Ascendant Resources Files NI 43-101 Technical Report for Mineral Reserve and Resource Update Outlining a Life of Mine Beyond 7 Years at El Mochito

2018-05-28 / @nasdaq

TORONTO, May 28, 2018 (GLOBE NEWSWIRE) -- Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF) (FRA:2D9) ("Ascendant" or the "Company”) is pleased to announce the Company has filed a Technical Report for its El Mochito mine in Honduras entitled, “ASC 2018 Technical Report on the Mineral Resources and Mineral Reserves of Ascendant Resources Inc. Producing El Mochito Mine in Honduras”, (the “Technical Report”), supporting the updated Mineral Reserve and Resource Estimate announced on April 10, 2018. The Technical Report was prepared in accordance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects (“NI 43-101”) and CIM Standards and is dated May 25, 2018 with an effective date of January 1, 2018.

The Technical Report was prepared by Mercator Geological Services Limited with P&E Mining Consultants Inc. contributing to the Mineral Reserve Estimate, mining and metallurgical engineering sections.

Highlights from the Technical Report include:

Proven & Probable Mineral Reserves increase life of mine beyond seven years (at a rate of 820kt/yr):
- Contained zinc increased 193% from 204Mlbs to 597Mlbs
- Contained lead increased 109% from 100Mlbs to 209Mlbs
- Contained silver increased 106% from 3.5Moz to 7.2Moz
Measured & Indicated Mineral Resources increase
- 50% to 869Mlbs contained zinc from 578Mlbs, and
- 28% to 1,216Mlbs contained zinc equivalent metal, up from 953Mlbs
Inferred Mineral Resources also increase by 14% to 739Mlbs contained zinc equivalent metal, up from 648Mlbs.

The new Estimate illustrates a significant increase in both Mineral Resources and Reserves against the previous Mineral Resource and Reserve Estimates dated December 31, 2015 and highlights the mine’s long history of expanding and upgrading Mineral Resources.

Chris Buncic, President and CEO of Ascendant commented: “The updated Mineral Reserve and Resource Technical Report for the El Mochito mine represents a major milestone for the Company. The significant increase in both Mineral Reserve and Mineral Resource tonnage and high conversion rates into Mineral Reserves are a direct reflection of our concerted exploration and development efforts carried out over the course of our first year as operators of El Mochito. The Report affirms the asset’s quality and potential for additional long-term upside.”

He continued, “The Company remains committed to further Mineral Reserve and Mineral Resource growth. With the success achieved to date and the ramp up in exploration work planned for 2018, management is confident in the ability of El Mochito to continue to grow, positioning it well for the future.”

A summary of the Mineral Reserve Estimate and the Mineral Resource Estimate are set out below in Table 1 and Table 2 respectively:


Table 1: El Mochito Mineral Reserve Statement - Effective 01 January 2018
Category	Tonnes	Grade				Contained Metal
		Zn	Pb	Ag	ZnEq.	Zn	Pb	Ag	ZnEq.
	(kt)	(%)	(%)	(g/t)	(%)	Mlbs	Mlbs	Moz	Mlbs
Proven Reserves	785	4.7	2.1	54	7.2	81	35	1.4	124
Probable Reserves	4,946	4.7	1.6	36	6.6	516	174	5.8	717
Proven & Probable Reserves	5,731	4.7	1.7	39	6.7	597	209	7.2	841
Notes:

(1) Metal price assumptions used were US$1.21/lb Zn, US$1.06/lb Pb and US$18/oz Ag (2) Zinc equivalent metal grade (ZnEq %) was calculated as follows Zn% +(Pb % x 0.8175) +(Ag g/t x 0.0149) = ZnEq% and is based on 88.9% Zn, 74.3% Pb and 77.7% Ag metallurgical recoveries. (3) A cut-off value of 4.76% ZnEq was used to estimate the Mineral Reserve which considered metal price assumptions, metal recoveries, refining charges, concentrate mass pulls, operating costs, royalties, concentrate treatment charges, payables, penalties and transportation/selling costs. (4) Mineral Resources are stated inclusive of Mineral Reserves, tonnages, grades and contained metal values have been rounded, totals may vary due to rounding.

Table 2: El Mochito Mineral Resource Statement - Effective 01 January 2018
Category	Tonnes	Grade				Contained Metal
		Zn	Pb	Ag	ZnEq.	Zn	Pb	Ag	ZnEq.
	(kt)	(%)	(%)	(g/t)	(%)	Mlbs	Mlbs	Moz	Mlbs
Measured Resources	1,100	5.5	2.0	65	8.2	134	48	2.3	198
Indicated Resources	6,452	5.2	1.7	41	7.2	735	241	8.4	1,019
Measured & Indicated Resources	7,553	5.2	1.7	44	7.3	869	289	10.7	1,216

Inferred Resources	4,972	5.1	1.4	33	6.7	556	156	5.4	739
Notes:

(1) Mineral Resources are stated inclusive of Mineral Reserves, Tonnage, grade and contained metal values have been rounded, totals may vary due to rounding. (2) Price assumptions used were US$1.21/lb Zn, US$1.06/lb Pb and US$18/troy oz Ag. Zinc equivalent metal grade (ZnEq. %) was calculated as follows: Zn% +(Pb % x 0.82) +(Ag g/t x 0.0149) = ZnEq% and is based on 88.9% Zn recovery, 74.3% Pb recovery and 77.7% Ag recovery. (3) A cut-off of 3.1% ZnEq. was used to estimate Mineral Resources and is based on fourth quarter 2017 marginal direct operating costs. (4) Results of an interpolated bulk density deposit model have been applied, and contributing 5ft downhole assay composites were capped at 38% Zn, 36% Pb and 2000g/t Ag. (5) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. (6) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

This Mineral Reserve and Resource Estimate marks the first compiled since Ascendant acquired the El Mochito mine in December 2016 and replaces the previous estimates with the effective date of December 31, 2015.

The Mineral Reserve Estimate reported in the Technical Report and set out in the table above reflect a non-material change from what the Company previously reported on April 10, 2018 as a result in a change to the dilution calculation. The Mineral Reserve Estimate reported in the Technical Report and in the table above supersedes that of the one reported in the Company’s press release dated April 10, 2018.

This Technical Report can be accessed under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.ascendantresources.com.

Qualified Persons

The Mineral Reserve and Metallurgical technical contents of this press release have been reviewed and approved by Eugene Puritch, P.Eng. FEC, CET, James Pearson, P.Eng. and D. Grant Feasby, P.Eng. of P&E Mining Consultants Inc., all “Independent Qualified Persons” as defined by NI 43-101.

The Mineral Resource content of this press release has been reviewed and approved by Michael Cullen, P.Geo. of Mercator Geological Services Limited, Mr. Cullen supervised and is responsible for the Mineral Resource Estimate and is an “Independent Qualified Person” as defined by NI 43-101.

Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by Patrick E. Toth, P.Geo., Director of Exploration for Ascendant, Eugene Puritch, P.Eng., FEC, CET of P&E Mining Consultants Inc. and Michael Cullen, P.Geo. of Mercator Geological Services Limited., all Qualified Persons as defined by National Instrument 43-101.

About Ascendant Resources Inc.

Ascendant is a Toronto-based mining company focused on its 100%-owned El Mochito zinc-lead-silver mine in north-western Honduras, which has been in production since 1948. After acquiring the mine in December 2016, Ascendant implemented a rigorous optimization program aimed at restoring the historic potential of the El Mochito Mine. In 2017, the Company successfully completed the operational turnaround with sustained production reaching record levels and profitability restored. The Company remains focused on cost reduction and further operational improvements to drive robust free cash flow in 2018 and beyond. Ascendant is also focused on expanding and upgrading known Mineral Resources through extensive exploration work for near-term growth. With a significant land package of 11,000 hectares and an abundance of historical data there are several regional targets providing longer term exploration upside which could lead to further Mineral Resource growth. The Company is also engaged in the evaluation of producing and development stage Mineral Resource opportunities, on an ongoing basis. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "ASND". For more information on Ascendant Resources, please visit our website at www.ascendantresources.com.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:

Katherine Pryde
Director, Communications & Investor Relations
Tel: 888-723-7413
info@ascendantresources.com

Cautionary Notes to US Investors

The information concerning the Company’s mineral properties has been prepared in accordance with National Instrument 43-101 (“NI-43-101”) adopted by the Canadian Securities Administrators. In accordance with NI-43-101, the terms “Mineral Reserves”, “Proven Mineral Reserve”, “Probable Mineral Reserve”, “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on May 10, 2014. While the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by NI 43-101, the U.S. Securities Exchange Commission (“SEC”) does not recognize them. The reader is cautioned that, except for that portion of Mineral Resources classified as Mineral Reserves, Mineral Resources do not have demonstrated economic value. Inferred Mineral Resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. It cannot be assumed that all or any part of any Inferred Mineral Resource will ever be upgraded to a higher category. Therefore, the reader is cautioned not to assume that all or any part of an Inferred Mineral Resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of a Measured or Indicated Mineral Resource will ever be upgraded into Mineral Reserves.

Readers should be aware that the Company’s financial statements (and information derived therefrom) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and are subject to Canadian auditing and auditor independence standards. IFRS differs in some respects from United States generally accepted accounting principles and thus the Company’s financial statements (and information derived therefrom) may not be comparable to those of United States companies.

Forward Looking Information

This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). Forward-looking information is also identifiable in statements of currently occurring matters which may continue in the future, such as "providing the Company with", "is currently", "allows/allowing for", "will advance" or "continues to" or other statements that may be stated in the present tense with future implications. All of the forward-looking information in this news release is qualified by this cautionary note.

Forward-looking information in this news release includes, but is not limited to, statements regarding the improvements of grades in 2018, the potential to expand Mineral Resources and grades, the increase of life of mine, the expectation to produce from areas with the bulk of Mineral Reserves, the enhancement of the overall Mineral Resource base, the expectation that the Mineral Resources will continue to grow. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Ascendant at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Ascendant identified and were applied by Ascendant in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the size of the mineralized bodies, the ability to increase the feed and the ability to expand Mineral Resources and grades at the mine, the ability to increase the life of mine, the ability to carry out additional drilling programs and exploration, and other events that may affect Ascendant's ability to develop its project; and no significant and continuing adverse changes in general economic conditions or conditions in the financial markets.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of Ascendant's projects, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, rights and title claims, operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, volatile financial markets that may affect Ascendant's ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of Mineral Reserves and Resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, tax refunds, hedging transactions, as well as the risks discussed in Ascendant's most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and available at www.sedar.com.

Should one or more risk, uncertainty, contingency, or other factor materialize, or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. Ascendant does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.