Ascendant Resources Inc. (TSX: ASND | OTCQB: ASDRF | FRA: 2D9) has completed the initial NI 43-101 compliant feasibility study (FS) for the Lagoa Salgada project.
As a result, Ascendant now holds an 80% interest in the Lagoa Salgada project through Redcorp Empreedimentos Mineiros Lda.
Mark Brennan, executive chairman of Ascendant, stated, “The completion of this initial feasibility study and solidifying our 80% interest in the Laga Salgada project, marks a significant milestone for the company.”
The remaining 20% of Redcorp is held by Mineral & Financial Investments AG (MF&I). The MF&I interest is subject to a consortium agreement with Empresa de Desenvolvimento Mineiro S.A. (EDM), the state mining development agency wholly owned by the Portuguese government.
Additionally, the consortium agreement provides EDM the right to participate in up to a 15% interest in the project by exercising an option within 120 days of completion of the FS. If EDM elects to exercise its option, the MF&I interest will be reduced to 5% and MF&I will have the right to put this interest to Ascendant.
Mr. Brenan continued, “Going forward, we will work to further optimize the project, continue exploration to grow the overall resource base and continue to work of delivering a robust financial package to develop the Venda Nova deposit at Lagoa Salgada into the newest mine on the Iberian Pyrite Belt.”
Highlights of the 2023 feasibility study include:
- Post-tax NPV8% of US$147M and 39% IRR
- Average annual payable zinc equivalent (ZnEq) production of 124Mlbspa over first five years
- Average all-in sustaining cost of US$0.59/lb ZnEq over first five years
- Robust Average EBITDA of US$75.5Mpa over the first five years
- Upfront capex requirement of US$164M (including US$12M of contingency)
- Inaugural NI 43-101 compliant proven and probable reserves in the North Zone and South Zones of 14.6Mt at an average NSR of US$66.1/t
- Updated NI 43-101 compliant mineral resource of:
- North Zone: 8.9Mt at 10.52% ZnEq Measured and Indicated and additional Inferred Resources of 0.5Mt at 6.62% ZnEq
- South Zone: 10.0Mt at 1.22% copper equivalent (CuEq) and additional Inferred resources of 8.1Mt at 1.16% CuEq
To find out more, please visit www.ascenndantresources.com
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