(All amounts referred to are in US$ currency)
- Low capital intensive project with pre production capital cost of $132 million and a post tax payback of 1.5 years
- Post tax NPV8% of $246 Million and Post tax IRR of 55%;
- Average EBITDA of approximately US$117 million and Post Tax Free Cash Flow of approximately US$82 million per annum for the first 5 years;
- Initial Operating Mine Life of 14 years with average throughput of 2.0 million tpa from the North and South Zones of Venda Nova Area at Lagoa Salgada
- World Class Infrastructure in place including existing major highway, water dam, high voltage power line and rail line to nearest ports supporting rapid development
- Ascendant currently advancing the project through feasibility Stage
PEA Summary Results
|PEA Summary Table - All figures in US$||LOM Total / Avg.|
|Pre-Tax NPV (8%)||$MM||$341.6|
|Post-Tax NPV (8%)||$MM||$246.7|
|Initial Capital Costs - Including Contingency||$MM||$132.3|
|Sustaining Capital Costs||$MM||$102.6|
|Total Operating Costs||$/t||$38.52|
|All-In Sustaining Costs (AISC)||$/t||$52.83|
|All-In Sustaining Costs (AISC)||$/lb Zn eq.||$0.76|
|Ag Payable (Total)||koz||17,661|
|Au Payable (Total)||koz||167|
|Zn Payable Equivalent||Mlb||1,818|
|Zn Payable Equivalent||kt||825|
TORONTO, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Ascendant Resources Inc. (TSX: ASND) (FRA: 2D9) ("Ascendant" or the "Company”) is extremely pleased to announce robust economic results from its Preliminary Economic Assessment (PEA) at its Lagoa Salgada VMS project in Portugal. The PEA presents a low capex, low operating cost, high margin underground mining operation with strong economics and the opportunity for significant benefit to the Company, the local stakeholders, and will boost Portugal’s economy through exports, taxes and local employment.
The PEA was completed by QUADRANTE, a multidisciplinary engineering and consulting company with more than 23 years of activity and projects completed in Europe, Africa and the Americas, and mine planning, design and engineering undertaken by IGAN INGENIERÍA, an independent consulting firm specializing in mine planning and engineering for open pit and underground mining projects and operations based in Spain.
The PEA is based upon the Company’s current Mineral Resource Estimate completed by MICON International reported in a NI 43-101 report dated March 26, 2021, updated on June 10, 2021, and focuses on the mining and processing of ore from both the North Zone and the South Zones at the Venda Nova area. The PEA demonstrates robust economics for Lagoa Salgada based on the current defined resources, however, the company anticipates that future exploration work to define additional resources should extend the mine life or increase the scale of the outlined operation.
Mark Brennan, CEO & Chairman of Ascendant stated, “We are extremely pleased with the results from this new PEA which highlights the strong potential of the Project to deliver significant value to all stakeholders going forward. This PEA is transformative and one of the most significant milestones for Ascendant to date, demonstrating a high-quality project with strong economics and a progressive environmentally conscious mine design. Our consulting engineers and management team have set the basis for a quality feasibility study which is planned to start in Q4 2021. We look forward to completion of the Feasibility Study by the end of 2022, which should provide a solid foundation for the start of the build phase.”
He continued, “While the PEA has demonstrated potential for a very robust project, it is extremely important to reiterate that Lagoa Salgada is still in its infancy from a geological understanding perspective and is still in the discovery stage of the total resource endowment we believe is present on the property. There has been less than 40,000 meters drilled to date on the property and geophysical studies indicate that our qualified resources are just the beginning of the resource potential on the property. We believe this highlights the world class potential of the Lagoa Salgada property.”
The PEA for the Lagoa Salgada Project is being prepared in accordance with National Instrument 43-101 (“NI 43-101”) Standards of Disclosure for Mineral Projects. The Company intends to file the final PEA on its profile on SEDAR (www.sedar.com) within 45 days of this news release.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
The Lagoa Salgada Project is located within the north-western section of the prolific Iberian Pyrite Belt (IPB) in Portugal, approximately 80 km southeast of Lisbon and is accessible by national highways and roads. The Project is comprised of a single exploration permit covering an area of approximately 10,700 hectares.
Figure 1 – Location map of the Lagoa Salgada Property (IPB) is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9a286d22-46fc-4940-91d9-d3125e180f85
The Iberian Pyrite Belt (IBP) is host to some of the world’s largest VMS deposits (80) and mines such as Neves-Corvo (Lundin Mining Corporation), Aguas Tenidas (Trafigura Mining Group) and Aljustrel (ALMINA). It represents the largest concentration of massive sulphide deposits in the world, forming an arch through Portugal and Spain about 250 km long and 30-50 km wide and has produced more than 1,750 million tonnes of massive sulfide ore and 2,500 million tonnes of mineralized stockwork over the past hundred years.
The table below outlines the key project metrics on a 100% basis:
|Financials||LOM Total / Avg.|
|Pre-Tax NPV (8%)||MUS$||$||341.6|
|Post-Tax NPV (8%)||MUS$||$||246.7|
|Exchange Rate (EUR:USD)||-||$||1.20|
|Total Mill Feed Tonnes - Oxides||kt||1,101|
|Total Mill Feed Tonnes - Massive Sulphides||kt||7,838|
|Total Mill Feed Tonnes - Stockwork||kt||17,131|
|Total Mill Feed Tonnes - Total Ore||kt||26,070|
|Total Waste Tonnes Mined||kt||7,342|
|Ag Payable (in Pb Concentrate)||koz||8,490|
|Ag Payable (in Zn Concentrate)||koz||3,425|
|Ag Payable (in Leach)||koz||5,746|
|Ag Payable (Total)||koz||17,661|
|Au Payable (in Pb Concentrate)||koz||18|
|Au Payable (in Zn Concentrate)||koz||-|
|Au Payable (in Leach)||koz||149|
|Au Payable (Total)||koz||167|
|Zn Payable Equivalent||Mlb||1,818|
|Zn Payable Equivalent||kt||825|
A financial model was completed based on the mine plan developed in addition to other inputs such as mining inventory and rates, processing throughputs and metallurgical recoveries, capital and operating costs, net smelter return (“NSR”) royalties, government royalty and taxation parameters.
Sensitivities of pre-tax and post-tax NPV and IRR to metal prices per ounce are as follows:
Mineral Resource Estimates
The PEA is based upon the recently updated Mineral Resource Estimate summarized as of June 17, 2021, and has been estimated in alignment with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines (CIM, 2019) and reported in accordance with NI 43-101 by MICON International. The PEA is based on the total combined resources of both the North and South zones at Lagoa Salgada as currently defined.
The details of the Mineral Resource Estimate are shown in the table below:
Mineral Resource Estimate for the North and South zones within the Lagoa Salgada Project - June 2021
LS Project North Deposit Resources Effective September 5, 2019, Reported at Cut-off Grades Shown in Table
|Category||Min Zones||Average Grade||Contained Metal|
|Tonnes (kt)||Cut-off |
|M & I||GO||1.696||2.5||0.09||0.47||2.79||0.27||39||0.64||7.28||4.60||1.5||7.9||47.4||4.6||2,127.2||35.1|
|M & I||MS||7.902||3.0||0.43||2.59||2.51||0.14||74||0.69||9.98||6.30||34.2||204.4||198.1||10.9||18,845.5||175.2|
|M & I||Str||737||2.5||0.34||0.90||0.24||0.09||17||0.07||3.21||2.03||2.5||6.6||1.7||0.6||405.0||1.7|
|M & I||All zones||10.334||2.9||0.37||2.12||2.39||0.16||64||0.64||9.06||5.72||38.2||219.0||247.2||16.2||21,377.7||212.0|
LS Property South Deposit Updated Resources Effective June 10, 2021, Reported at 1.10% CuEq
|Category||Tonnes (kt)||Average Grade||Contained Metal|
|(%)||(%)||(%)||(%)||(g/t)||(g/t)||(kt)||(kt)||(kt)||(kt)||(k oz)||(k oz)|
Notes To Table
1. Mineral resources unlike mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2. The mineral resources have been estimated in accordance with the CIM Best Practice Guidelines (2019) and the CIM Definition Standards (2014).
3. The resources for the South Zone are reported at a cut-off grade of 1.10 % CuEq; for the North zone, resources contained in the Gossan and Stringer domains are reported at a cut-off grade of 2.5 % ZnEq, and within the Massive Sulphide domain at 3.0 % ZnEq.
4. Totals may not tally due to rounding
5. CuEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au Grade*40.19)+(Ag Grade*0.62))/67.24
6. ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au Grade*40.19)+(Ag Grade*0.62)+(Sn Grade*191.75))/25.35
7. Metal Prices: Cu $6,724/t, Zn $2,535/t, Pb $2,315/t, Au $1,250/oz, Ag $19.40/oz, Sn $19,175/t
8. Densities: GO=3.12, MS=4.76, Str=2.88, Str/Fr=2.88 (north Zone) & 3.00 (South Zone)
9. MMlb: Million Pounds.
The mine is designed using a single access ramp from surface and will target the extraction of ore from both the north and south zones at a rate of 2.0 million tonnes per annum. The initial years will focus more highly on the north zone due to the higher grade profile with additional ore delivered from the south zone.
The proposed underground mine design incorporates a main decline, starting from the surface portal located close to the processing plant, which will be used to access the mine. This main access then splits into two independent declines , one for each mine zone (i.e., “North and South”). The underground mine is planned to support the extraction of 2.0 million tonnes of ore per year (“Mtpa”) through a combination of transverse sublevel stoping and cut&fill. Paste backfill is used in both mining methods to maximize ore recovery and productivity.
The use of an independent decline for each orebody, instead of one decline serving both zones, was chosen to reduce the initial Capital Cost (“CAPEX”) considering that production starts earlier in the North zone.
A fleet of LHDs (“Load-Haul-Dump”) and trucks will be used for material loading and hauling from production areas to the orepass system. From the orepass collecting points, trucks will be hauling the ore to the surface. Waste is also transported to the surface by trucks.
A pre-production development program will be required to provide access to the initial stoping levels in the North zone during the first two years. Production will start in the second year, reaching the nominal plant feed in the fourth year.
Based upon the current resources available, the mine life is estimated at 14 years, however, this excludes any benefit of future exploration. We note the North and South deposits remain open to depth and along strike, with additional satellite targets also available for future exploration. Relative to other operations in the IPB Lagoa Salgada remains relatively shallow with significant room to grow over time.
Metallurgy and Processing
Metallurgical test work has been carried out by Grinding Solutions Ltd. (GSL) as outlined in the Press Release dated September 9, 2021. Studies were conducted on the massive sulphide material form the North zone, Stockwork material from the South zone and on blended ore as planned under the mine plan. Results support that a conventional polymetallic process flowsheet capable of recovering coper, lead, zinc, gold and silver. The flotation tailings will be leached for additional gold and silver values. The oxide ore can be leached to recover precious metals. Tin will be recovered from processing the tails material by flotation.
The projected recoveries and concentrate grades are presented in the table below are estimated for the project based on recent test results and the extensive experience working with polymetallic ores in the IPB. Additional testing is planned to as the project moves towards feasibility.
|Silver Recovery (in Lead Concentrate)||35||%|
|Silver Recovery (in Zinc Concentrate)||20||%|
|Silver Recovery (Leach)||20||%|
|Gold Recovery (in Lead Concentrate)||10||%|
|Gold Recovery (Leach)||65||%|
|Silver Recovery (in Lead Concentrate)||40||%|
|Silver Recovery (in Zinc Concentrate)||20||%|
|Silver Recovery (Leach)||20||%|
|Gold Recovery (in Lead Concentrate)||10||%|
|Gold Recovery (Leach)||65||%|
|Cu Concentrate Grades|
|Massive Sulphide||% Cu||25||%|
|Zn Concentrate Grades|
|Massive Sulphide||% Zn||48||%|
|Pb Concentrate Grades|
|Massive Sulphide||% Pb||45||%|
|Sn Concentrate Grades|
|Massive Sulphide||% Sn||30||%|
The PEA contemplates an underground mine from which mineralized material will be trucked to a conventional IPB crushing, grinding and floatation concentration plant located close to the main portal.
The operating costs were estimated using external databases, refined with benchmark costs from operations on the IPB. These costs were scaled to the estimated production rates and to the labor costs in Portugal. LOM operating costs are summarized in the table below:
Operating Cost Estimate
|Operating Costs||LOM Total / Avg.|
|Total Operating Costs||$/t||$38.52|
|Treatment & Refining Charges||$/t||$8.57|
|Total Cash Costs||$/t||$48.89|
|Total Cash Costs||$/lb Zn eq.||$0.70|
|All-in Sustaining Costs (AISC)||$/t||$52.83|
|All-in Sustaining Costs (AISC)||$/lb Zn eq.||$0.76|
|1 - includes pastefill, maintenance and all UG activities|
|2 - Includes tailings disposal|
Average unit mining costs of $19.13/tonne were estimated based on the proposed mine plan, local cost benchmarking and experience from similar operations in other operating mines in the IPB and local conditions. It is envisaged that the mining operations will be carried out by a contractor.
Average processing costs of $15.89/tonne were estimated based on the design process flowsheet and considered process labour requirements and rates, as well as calculated consumption rates of reagents, consumables, electricity, and maintenance.
Up front capital costs are estimated at $132 million, inclusive of a 10% contingency and closure costs. Up front capital costs have been minimized via a staged build out of certain life of mine infrastructure such as the tailing dam, paste backfill and a ramp up in the mine fleet as needed by production. Sustaining capital over the life of mine is estimated at $102MM million.
The accuracy range for the capital costs is expected to be ±35% which is consistent with industry standards for a PEA. All costs are expressed in 2021 US$ and uses an exchange rate EUR:US$ of 1.2 where applicable. A summary of the Lagoa Salgada capital cost estimates is shown in the table below:
Capital Cost Estimate
|Dry Stack Facility||$MM||$1.5|
|Initial Capital Costs - Excluding Contingency||$MM||$120.3|
|Initial Capital Costs - Including Contingency||$MM||$132.3|
|Sustaining Capital Costs||$MM||$102.6|
Lagoa Salgada is well situated to benefit from the well-established regional infrastructure to support mine development with access to skilled labour, roads, ports and the national electrical grid. Lagoa Salgada is situated in southern Portugal about 100km south west of Lisbon, in close proximity to the town of Grândola, and is currently accessed via paved roads to Cilha do Pascoal, followed by 4 km of gravel roads to the mine site.
The site will require an office, changeroom, shop and warehouse as well as storage for fuel, laydown areas, site fencing, and a security building. An allowance for a total of 2,600 m2 of building space has been included in the PEA.
The anticipated direct infrastructure for the Project includes an electrical substation, paste plant, equipment maintenance workshop, refueling facilities, assay laboratory, office administration facilities and changing rooms, among others.
The tailings and waste rock disposal concepts were developed in full compliance with the most current standards for sustainable tailings management, including consideration of Best Available Practices (BAT) and Technologies. The method considered in the PEA includes co-disposal of filtered tailings and mine waste rock, in addition to the novel implementation of Geotubes for additional risk reduction for the dry-stacked tailings.
Exploration and Geological Potential Update
Current geological understanding suggests that the original spatial breakdown of the Venda Nova deposit at Lagoa Salgada into the North, Central and South deposits was arbitrary. This segmentation is due to the drilling pattern. Ascendant believes that mineralization continuity gaps are probably related to varying strike, dip, and plunge along the system further systematic drilling may prove that the known sectors are likely to coalesce into a continuous zinc-lead-copper VMS system, displaying local variation of mineralization styles and tenors: from secondary gossan to primary massive sulphide ending with peripheral primary/secondary stringer/fissure type mineralization. This interpretation is backed by continuity of the geophysical footprint.
Notably the current northern edge of the southern zone, that shows a North-Northwest plunge shows a significant increase in gold tenors. This zone warrants systematic drilling as it could reflect deeper stringer levels that can carry high precious metal grades. Surface and Borehole 3D Models show that all three Venda Nova deposits lie on continuous, coincidental Resistivity (Low) and Chargeability (High) anomalies with an estimated geological strike length of 1.7 km. Anomalies extend in a SSE to NNW direction from the South deposit to beyond the North deposit and terminating against the Alpine fault. Combined drilling and geophysical results indicate that the mineralization remains open beyond the current limits of drilling, along strike in both directions and down plunge/dip.
The known footprint of the large continuous system is constrained vertically by the depth of penetration of the IP/Res system, ~ 350 m. A deep penetrating Electro Magnetic (DEPM) survey will be completed in Q4 2021 aiming to image the roots of the IP/Res anomalies and test the existence of high-grade massive sulphide lenses below the current threshold of the geophysical footprint (350 m below surface)
Ascendant firmly believes that the large proven footprint of the Lagoa Salgada VMS system suggests high potential exploration upside at the property. Given the size of the system it is probable that the exhalative system recognized at Lagoa Salgada is associated with fertile deep-rooted fractures that may be related to additional stacked or lateral mineralized lenses.
Technical work on the PEA was guided by Charley Murahwi, M.Sc., P.Geo., Pr. Sci. Nat., FAusIMM, Senior Economic Geologist, Micon International Limited, who was also responsible for the resource determination and metallurgical results validation, who will act as the QP for the NI 43-101 report. Work regarding the site infrastructure was undertaken by João Nunes, Mining Engineer, BSc (Mine Eng), director of Quadrante, SA QUADRANTE, a multidisciplinary engineering and consulting company with more than 23 years of activity and projects completed in Europe, Africa and Americas. QUADRANTE’s activity focuses across 7 main business Units – Industry and Energy (including Mining Segment), Buildings, Transports, Airports, Environment, Water Utilities, and Construction Management and Supervision, QUADRANTE has been involved in recent years in several mining projects, mainly in Portugal, Spain, Chile, Mozambique, and Zimbabwe and has a staff of over 200 employees. The company has significant direct experience at numerous operations within the Iberian Pyrite Belt.
Mine planning, design and engineering it was the responsibility of PAblo Gancedo Minguez, Mining Engineer, BSc (Mine Eng), Director of IGAN Ingeniería, SL,IGAN INGENIERÍA, an independent consulting firm specializing in mine planning and engineering for open pit and underground mining projects and operations. Based in Spain, IGAN has completed projects across 8 countries and 3 continents for international mining companies (both private and publicly listed), equity firms and state-owned companies. The company has significant direct experience at numerous operations within the Iberian Pyrite Belt.
Metallurgical test work was carried out by Jon Rumbles, MCSM Project Metallurgist for Grinding Solutions Limited (GSL), a UK mineral processing services company with a strong technical knowledge on the mineral processing of the IBP ores and has been guided by Micon International, who was also responsible for the metallurgical results validation, resource determination and will act as the QP for the NI 43-101 preliminary economic assessment report.
The scientific and technical information in this press release has been reviewed and approved by João Nunes, Mining Engineer, BSc (Mine Eng), director of Quadrante and by Dr. Sergio Gelcich, P.Geo., Vice President for Exploration for Ascendant Resources Ltd. Both are all Qualified Persons as defined in NI 43-101.The QPs have reviewed and approved the technical content of this news release.
About Ascendant Resources Inc.
Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. Through focused exploration and aggressive development plans, the Company aims to unlock the inherent potential of the project, maximizing value creation for shareholders.
Lagoa Salgada contains over 10.33 million tonnes of Measured and Indicated Resources @ 9.06 % ZnEq and 2.50 million tonnes of Inferred Resources @ 5.93 % ZnEq in the North Zone; and 4.42 million tones of Indicated Resources @ 1.50 % CuEq and 10.83 million tonnes of Inferred resources @ 1.35 % CuEq in the South Zone at Venda Nova. The deposit demonstrates typical mineralization characteristics of Iberian Pyrite Belt VMS deposits containing zinc, copper, lead, tin, silver and gold. Extensive exploration upside potential lies both near deposit and at prospective step-out targets across the large 10,700ha property concession. The project also demonstrates compelling economics with scalability for future resource growth in the results of the Preliminary Economic Assessment. Located just 80km from Lisbon, Lagoa Salgada is easily accessible by road and surrounded by exceptional Infrastructure. Ascendant holds a 21.25% interest in the Lagoa Salgada project through its 25% position in Redcorp - Empreendimentos Mineiros, Lda, ("Redcorp") and has an earn-in opportunity to increase its interest in the project to 80%. Mineral & Financial Investments Limited owns the additional 75% of Redcorp. The remaining 15% of the project is held by Empresa de Desenvolvimento Mineiro, S.A., a Portuguese Government owned company supporting the strategic development of the country's mining sector. The Company's interest in the Lagoa Salgada project offers a low-cost entry to a potentially significant exploration and development opportunity, already demonstrating its mineable scale.
The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "ASND". For more information on Ascendant, please visit our website at www.ascendantresources.com.
Additional information relating to the Company, including the Preliminary Economic Assessment referenced in this news release, is available on SEDAR at www.sedar.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:
|Mark Brennan||Nicholas Campbell, CFA|
|CEO, Executive Chairman, Founder||Manager, Corporate Development|
|Tel: +1-647-796-0023||Tel: +1-905-630-0148|
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 exploration activities and the results of such activities at the Lagoa Salgada Project, the ability of the Company to advance the Lagoa Salgada Project to a Preliminary Economic Assessment, and the ability of the Company to fund the exploration with funds from operations. 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 success of the exploration activities at Lagoa Salgada Project, the Company advancing the project to a Preliminary Economic Assessment, the ability of the Company to fund the exploration program at Lagoa Salgada with funds from operations , 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.
drilling tsx-lun lundin-mining-corporation lundin mining corporation press-release
Drill Update Cacao: Fully Preserved Epithermal Vein System Identified Over a 1,000 m Strike Length, With a 10 m True Width, Open Along Strike and to Depth
SURREY, BC / ACCESSWIRE / September 17, 2021 / Condor Gold (AIM:CNR; TSX:COG) is pleased to announce that drilling has been completed and all assay results…
SURREY, BC / ACCESSWIRE / September 17, 2021 / Condor Gold (AIM:CNR; TSX:COG) is pleased to announce that drilling has been completed and all assay results returned from exploration drilling at the Cacao Prospect. Fifteen drill holes for 3,500 m were completed to test the geological concept that the near surface gold mineralisation at Cacao is the top of a fully preserved epithermal gold system. Secondly to test that the gold mineralizing system extends, buried below surface, beyond the 450 m long outcrop where all the drilling had been concentrated to-date. Both objectives have been achieved with a wide zone of high-grade gold mineralisation intercepted below the current mineral resource, and a wide low-grade gold anomaly identified along strike of the outcropping mineralisation that may be the top of a completely hidden, deep-seated extension of the Cacao epithermal gold system. Follow-up drilling is being planned to test both targets at greater depths.
- Cacao epithermal gold system is interpreted as being fully preserved, open along strike and to depth. The latest drilling is clipping the top of the system.
- 10 metre plus true width mineralised zone including the Cacao vein has been confirmed for a strike length of approximately 1,000 m beneath and along strike of the existing Cacao mineral resource
- 25.93 m (14.9 m true width) at 3.94 g/t Au from 263.82 m, including 4.58 m (2.6 m true width) at 7.76 g/t Au from 282.12m drill depth (drill hole CCDC033) below the Cacao mineral resource and open to depth and along strike in both directions.
- 39.65 m (32.9 m true width) at 0.38 g/t Au from 181.47 m, including 3.05 m (2.5 m true width) at 2.34 g/t Au from 218.07 m drill depth (drill hole CCDC028) beneath alluvial cover some 400 m along strike of the Cacao mineral resource, interpreted as the top of an epithermal system.
Mark Child, Chairman and CEO commented:
"Part of Condor's strategy is to demonstrate a 5M oz Gold District. The recently completed 3,500m exploration drill programme has been a success. A 10 metre plus true width mineralised zone including the main Cacao vein has been confirmed for a strike length of approximately 1,000 m beneath and extending to the East of the current Cacao Mineral Resource of 662 Kt at 2.8 g/t gold for 60,000 oz gold. Drill hole CCDC033 intercepted 14.9 m true width at 3.94g/t gold beneath the existing mineral resource, and 700 m along strike of this intercept, drill hole CCDC028 intercepted 32.9 m true width at 0.38g/t gold (see Figure 1). Cacao is interpreted as a fully preserved epithermal gold system due to the sinter on the surface and its preservation in a downthrown block. The current round of drilling has been interpreted to be clipping the top of the gold mineralising system, with the gold grade increasing at depth. It is highly significant that a wide, greater that 10 m true width, mineralised zone for a strike length of 1,000 m, open along strike and down dip, has been identified with grades increasing at depth".
The Cacao prospect is a low-sulphidation epithermal gold vein deposit with an Inferred Mineral Resource of 188,000 tonnes at 2.3 g/t for 14,000 oz open-pittable gold, and 474,000 tonnes at 3.0 g/t for 46,000 oz with underground mining potential, contained within a 450 m strike length to a depth of 150-250 m below surface. It has been identified as a potential satellite deposit for processing at the Company's fully permitted processing plant to be located 4 km away. The mineral resource modelling indicates that Cacao could support a small open pit. Current exploration drilling is focused towards identifying deeper level mineralisation that could support a larger pit or underground mining.
The Cacao prospect sits on a major east-west trending structure with a 3-4 km strike length identified in Condor's regional geophysics and soil sampling data. Other isolated exposures of bedrock along the structure have returned anomalous gold assays. The best results to the east of Cacao are rock chip samples of up to 11.6 g/t gold from artisanal mine workings approximately 1.6 km east of the mineral resource. The Cacao structure occurs within a major downthrown geological block, separated from the Company's principal gold deposit at La India by the late-stage Highway Fault. At La India erosion has exposed high-grade epithermal mineralisation at surface, however, at Cacao the low-lying downthrown block has not been significantly eroded and the epithermal mineralisation is typically hidden and interpreted to be preserved in its entirety beneath the surface.
Figure 1: Location of Cacao Relative to Permitted Mine Site Infrastructure
The latest drilling campaign has tested the geological concept that the gold-bearing rock outcrops at Cacao are part of the top of a higher grade, deep-seated, and possibly much more extensive epithermal gold deposit. The depth potential was tested by drilling 50 m and 100 m spaced step-out drill holes around and below the current mineral resource to explore for the higher-grade epithermal boiling zone interpreted to be at depth. Secondly, the deep-seated strike potential was drill tested along 500 m strike extension immediately to the east of the Cacao Mineral Resource with 100 m spaced drill holes to explore for the mineralised structure beneath the alluvial cover. Both objectives have been achieved with positive results:
- A wide zone of well-developed epithermal quartz veining with the best drill intercept to-date has been returned from the deepest drill hole on the prospect. Drill hole LIDC033 returned a drill intercept of 25.93 m (14.9 m true width) at 3.94 g/t Au from 263.82 m, including 4.58 m (2.6 m true width) at 7.76 g/t Au from 282.12m drill depth. This intercept is approximately 260 m below the surface outcrop and suggests that the bonanza zone of high-grade gold mineralisation where geological conditions were ideal for the deposition of gold-bearing quartz veins is found more than 200 m below surface.
- Wide-spaced exploratory drill holes have detected wide zones of low-grade gold mineralisation some 300-400 m along strike of the Cacao outcrop and current mineral resource at a depth of 100-150 m below surface (i.e. Drill hole LIDC038 with 39.65 m (32.9 m true width) at 0.38 g/t Au from 181.47 m, including 3.05 m (2.5 m true width) at 2.34 g/t Au from 218.07 m drill depth. This weak and diffuse gold mineralisation and associated strong hydrothermal alteration is characteristic of the depleted vapor-deposits that can occur above an epithermal deposit and it is anticipated that higher-grade gold veins will be found below.
Further drilling is being planned to follow-up on both targets. Further resource extension drilling to expand the mineral resource down into the high-grade zone at depth, and exploratory drilling along strike below the wide, low-grade gold anomaly to test the concept that this is the low grade halo above a deep strike extension of the higher grade epithermal system.
Figure 1. Long-sections looking north at the drill intercepts at Cacao and the eastern strike extension showing drill intercepts and the current resource (shaded pink) and pit shells (grey) (top), contoured gold grade (centre) and contoured true width thickness (bottom).
Long Section Greater than 10 m thick
Table 1. Top ten gold intercepts from Cacao drilling.
Drill hole ID
Intercept From (m)
Intercept To (m)
True Width (m)
True grade-width (gm/t)
Cacao: Discovery to Inferred Mineral Resource
An east-west-striking ridge of chalcedonic phreatic breccia, 10 to 50 m wide and about 600 m long, was first identified at Cacao in 2006. Rock chip and trench sampling by Condor in 2006-2007 identified some gold-bearing subvertical crustiform quartz veins within the breccia with trench intercepts of up to 1.0 m at 11.54 g/t gold.
Drilling in 2007 and 2008 demonstrated that the phreatic breccia narrows downwards and gives way to a higher grade, classic crustiform epithermal vein. Identification of float boulders of hot spring sinter in 2015 provided the evidence that there has been minimal erosion in the Cacao area, suggesting that the epithermal boiling zone where the bulk of the gold would be expected to be deposited is still preserved and concealed at depth. Drilling in 2016 added support to this model and further highlighted that the epithermal mineralisation is part of a long-lived hydrothermal system with numerous mineralising ‘events' and early hydrothermal breccias cut by later crustiform veins, and some significant drill intercepts of up to 7.85 m (3.9 m true thickness) at 3.75 g/t gold (CCDC023, approximately 150 m below surface).
Mineral resource modelling based on the 26 drill holes for 2890 m drilled by the end of 2016 suggested that Cacao is amenable to open pit and underground mining despite the lower grades encountered at surface. A mineral resource estimate published in January 2019 contained 188,000 tonnes at 2.3 g/t for 14,000 oz open-pit gold, and 474,000 tonnes at 3.0 g/t for 46,000 oz with underground mining potential. This mineral resource is contained within a 450 m strike length to a depth of 150-250 m below surface (Table 2).
Table 2: Cacao Inferred Mineral Resource, prepared in accordance with CIM and Canadian NI 43-101 (25th January 2019; SRK Consulting (UK) Ltd).
Gold grade (g/t)
Contained gold (koz)
0.5 g/t (OP)
2.0 g/t (UG)
(1) The methods applied to conducting the geological modelling and estimation have not changed from those described in the Technical Report. The Cacao pits are amenable to open pit mining and the Mineral Resource Estimates are constrained within Whittle optimised pits, which SRK based on the following parameters: A Gold price of USD1,500 per ounce of gold with no adjustments. Prices are based on experience gained from other SRK projects. Metallurgical recovery assumptions are between 91-96% for gold, based on testwork conducted to date. Marginal costs of USD19.36/t for processing, USD5.69/t G&A and USD2.35/t for mining, slope angles defined by the Company Geotechnical study which range from angle 40 - 48°, a haul cost of USD1.25/t was added to the Mestiza ore tonnes to consider transportation to the processing plant.
(2) Underground Mineral Resources beneath the open pit are reported at a cut-off grade of 2.0 g/t over a minimum width of 1.0m. Cut-off grades are based on a price of USD1,500 per ounce of gold and gold recoveries of 91 percent for resources, costs of USD19.36/t for processing, USD4.55/t G&A and USD50.0/t for mining, without considering revenues from other metals.
Table 3. Assay results from Cacao exploration drilling.
Drill hole ID
Collar UTM WGS84-16N
Drill Width (m)
True Width (m)
|580250E 1411900N 453mamsl|
|580250E 1411899N 453mamsl|
|580047E 1411918N 450mamsl|
|Cacao hangingwall vein|
|580047E 1411919N 450mamsl|
|580148E 1411886N 448mamsl|
|580349E 1411863N 452mamsl|
|580549E 1411869N 451mamsl|
|580648E 1411888N 450mamsl|
|580752E 1411826N 447mamsl|
|580849E 1411848N 444mamsl|
|580946E 1411841N 434mamsl|
|582200E 1411670N 445mamsl|
|582100E 1411620N 445mamsl|
*Note: Bureau Veritas Mineral Laboratories, Canada. www.bureauveritas.com/um was used for the drill assay results.
- The sample chain of custody is managed by the Condor's Geology Team on site. Reported results are from diamond drilled core samples. Intervals of core to be analysed are split into half using a mechanized core cutter, with one half sent to the Laboratory for geochemical analysis and the remaining half kept in storage for future reference and uses. Diamond drilled core has been a HQ size and recoveries are consistently 100% across all drill holes intercept reported.
- Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The QAQC program involves insertion of duplicate samples, blanks and certified reference materials in the sample stream. Gold analyses are performed by standard fire assaying protocols using a 50-gram charge with atomic absorption (AAS) finish and a gravimetric finish performed for assays greater than 10 grams per tonne.
- Sample preparation and analysis are performed by the independent Bureau Veritas Laboratories, Canada. Samples are crushed and prepared in Managua and pulp samples for fire assay are dispatched to Vancouver, Canada. The Laboratory meets the requirements of ISO/IEC 17025 & ISO 9001, and employs a Laboratory Information Management System for sample tracking, quality control and reporting.
About the Sampling & Assay Procedures
Drill core was cut, and half core samples collected and bagged by Condor staff on-site. Samples were transported to Bureau Veritas accredited sample preparation laboratory in Managua every week in batches of two or three drill holes, generally being submitted to the lab within 5-10 days of completing the drill hole. Sub-samples of the pulverised rock samples were forwarded for assay to Bureau Veritas accredited analytical laboratory in Vancouver, Canada.
- Ends -
For further information please visit www.condorgold.com or contact:
Condor Gold plc
|Mark Child, Chairman and CEO|
+44 (0) 20 7493 2784
Beaumont Cornish Limited
|Roland Cornish and James Biddle|
+44 (0) 20 7628 3396
SP Angel Corporate Finance LLP
H&P Advisory Limited
Andrew Chubb and Nilesh Patel
|Tim Blythe and Megan Ray|
+44 (0) 20 7138 3204
About Condor Gold plc:
Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in January 2018. The Company is a gold exploration and development company with a focus on Nicaragua.
In August 2018, the Company announced that the Ministry of the Environment in Nicaragua had granted the Environmental Permit ("EP") for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day at its wholly-owned La India gold project ("La India Project"). The EP is considered the master permit for mining operations in Nicaragua.
La India Project contains a Mineral Resource of 9,850 Kt at 3.6 g/t gold for 1.14 M oz gold in the Indicated category and 8,479 Kt at 4.3 g/t gold for 1.18 M oz gold in the Inferred category. A gold price of $1,500/oz and a cut-off grade of 0.5 g/t and 2.0 g/t gold were assumed for open pit and underground resources, respectively. A cut-off grade of 1.5 g/t gold was furthermore applied within a part of the Inferred Resource. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources will be converted to Mineral Reserves.
Environmental Permits were granted in April and May 2020 for the Mestiza and America open pits respectively, both located close to La India. The Mestiza open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the Inferred Mineral Resource category. The America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold (67,000 oz) in the Inferred Mineral Resource category. Following the permitting of the Mestiza and America open pits, together with the La India open pit Condor has 1.12 M oz gold open pit Mineral Resources permitted for extraction.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
The Mineral Resource Estimate has been completed by Ben Parsons, a Principal Consultant (Resource Geology) with SRK Consulting (U.S.) Inc, who is a Member of the Australian Institute of Mining and Metallurgy, MAusIMM(CP). He has some nineteen years' experience in the exploration, definition and mining of precious and base metals. Ben Parsons is a full-time employee of SRK Consulting (U.S.), Inc, an independent consultancy, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a "qualified person" as defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators and as required by the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Ben Parsons consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
The Qualified Persons responsible for the Technical Report are Dr Tim Lucks of SRK Consulting (UK) Limited, and Mr Fernando Rodrigues, Mr Stephen Taylor and Mr Ben Parsons of SRK Consulting (U.S.) Inc. Mr Parsons assumes responsibility for the MRE, Mr Rodrigues the open pit mining aspects, Mr Taylor the underground mining aspects and Dr Lucks for the oversight of the remaining technical disciplines and compilation of the report.
The technical and scientific information in this press release has been reviewed, verified and approved by Gerald D. Crawford, P.E., who is a "qualified person" as defined by NI 43-101 and is the Chief Technical Officer of Condor Gold plc.
The technical and scientific information in this press release has been reviewed, verified and approved by Andrew Cheatle, P.Geo., who is a "qualified person" as defined by NI 43-101.
Forward Looking Statements
All statements in this press release, other than statements of historical fact, are ‘forward-looking information' with respect to the Company within the meaning of applicable securities laws, including statements with respect to: the ongoing mining dilution and pit optimisation studies, and the incorporation of same into any mining production schedule, future development and production plans at La India Project. Forward-looking information is often, but not always, identified by the use of words such as: "seek", "anticipate", "plan", "continue", "strategies", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", "could", "might", "will" and similar expressions. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions regarding: future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; the receipt of required permits; royalty rates; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.
Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to: mineral exploration, development and operating risks; estimation of mineralisation and resources; environmental, health and safety regulations of the resource industry; competitive conditions; operational risks; liquidity and financing risks; funding risk; exploration costs; uninsurable risks; conflicts of interest; risks of operating in Nicaragua; government policy changes; ownership risks; permitting and licencing risks; artisanal miners and community relations; difficulty in enforcement of judgments; market conditions; stress in the global economy; current global financial condition; exchange rate and currency risks; commodity prices; reliance on key personnel; dilution risk; payment of dividends; as well as those factors discussed under the heading "Risk Factors" in the Company's annual information form for the fiscal year ended December 31, 2020 dated March 31, 2021 and available under the Company's SEDAR profile at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
The laboratory test conducted to determine the proportion of a mineral within a rock or other material. Usually reported as parts per million which is equivalent to grams of the mineral (i.e. gold) per tonne of rock
A fragmental rock, composed of rounded to angular broken rock fragments held together by a mineral cement or in a fine-grained matrix. They can be formed by igneous, tectonic, sedimentary or hydrothermal processes.
A variety of quartz formed by microscopic or submicroscopic crystals. In an epithermal environment, chalcedony is formed in low temperature and pressure conditions high in the system.
A quartz vein texture describing successive banding oriented parallel to vein walls and defined by differences in the size of the crystals, mineral composition or colour.
Further down towards the deepest parts of an ore body or zone of mineralisation.
Referring to the rock that has moved downwards on a fault relative to the other side.
Mineral veins and ore deposited from fluids at shallow depths at low pressure and temperatures ranging from 50-300°C.
The plane along which two rock masses have moved or slide against each other in opposing directions.
The proportion of a mineral within a rock or other material. For gold mineralisation this is usually reported as grams of gold per tonne of rock (g/t)
grams per tonne
|Indicated Mineral Resource|
That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
|Inferred Mineral Resource|
That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited, or of uncertain quality and reliability,
A concentration or occurrence of material of economic interest in or on the Earth's crust in such a form, quality, and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, estimated from specific geological knowledge, or interpreted from a well constrained and portrayed geological model.
Canadian National Instrument 43-101 a common standard for reporting of identified mineral resources and ore reserves
|Open pit mining|
A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining).
Fragmental rocks formed near the Earth's surface by the interaction of hot rock and cold water, or vice versa. Commonly occur at the top of mineralized epithermal gold systems.
Deposit of quartz rock that develop in fractures and fissures in the surrounding rock. They are deposited by saturated geothermal liquids rising to the surface through the cracks in the rock and then cooling, taking on the shape of the cracks that they fill.
A mineral deposit that presents a porous or vesicular texture; its structure shows small cavities. These may be siliceous deposits or calcareous deposits.
The longest horizontal dimension of an ore body or zone of mineralisation.
A sheet-like body of crystallised minerals within a rock, generally forming in a discontinuity or crack between two rock masses. Economic concentrations of gold are often contained within vein minerals.
SOURCE: Condor Gold plc
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Canada One to Option Franelle Copper Project, Quebec Canada
Vancouver, Canada – TheNewswire – September 16, 2021 – Canada One Mining Corp. (the “Company” or “Canada One”) (TSXV:CONE) is pleased to announce…
Vancouver, Canada – TheNewswire - September 16, 2021 – Canada One Mining Corp. (the “Company” or “Canada One”) (TSXV:CONE) is pleased to announce that it has entered into an option agreement, effective date August 31st, 2021 (the “Agreement”), pursuant to which the Company will acquire the right to earn a 100% interest, subject to a 2% royalty, in the Franelle Copper Project (the “Project”, or the “Property”), a 31 square kilometre contiguous property located 90 kilometres northwest of Schefferville, Quebec, from Messrs. Fayz and Ramy Yacoub (the “Vendors”), arm’s length parties (the “Transaction”).
- The Project hosts 4 mineralized zones: Franelle, Bennelle, Reuben and Beluet
- The Franelle zone currently extends westwardly 2,600 metres along a 7000-metre gabbro dyke that has an average width of 60 to 75 metres
- Three programs of diamond drilling at the Franelle zone intersected significant widths of copper mineralization, including:
- 2.42% copper over 13.7m within 32m of 1.12% copper
- 0.86% copper over 25.3m within 50.3m of 0.51% copper;
- 0.80% copper over 14.9m within 33.2m of 0.59% copper within 173.4m of 0.29% copper;
- 0.56% copper over 39m
- Grab sample copper highlights include: 6.15% and 4.83% from the Beluet zone, 2.06%, 1.73% and 1.68% from the Bennelle zone
- Chip sample highlights include: 4% copper and 6.9 g/t silver over 0.40 metres and 2.61% copper and 2.5 g/t silver over 2.5 metres from Reuben zone
Canada One cautions investors selected grab samples are selected samples and are not necessarily representative of mineralization hosted on the Project. The true width of the mineralization is unknown at this time.
“The Franelle Copper Project represents an excellent opportunity for Canada One shareholders,” commented CEO Peter Berdusco. “The strong copper grades over good widths immediately attracted us to the project and we plan to undertake a comprehensive review of the historical data to drive the upcoming exploration program.”
The Company can earn a 100% interest in the Franelle Copper Project, subject to a 2% net smelter return royalty by meeting the following terms:
- Issuing 3,000,000 shares as follows:
- 500,000 Shares within five business days of approval of the TSX Venture Exchange (the “Approval Date”);
- An additional 500,000 Shares on or before the first anniversary of the Approval Date;
- An additional 500,000 Shares on or before the second anniversary of the Approval Date;
- An additional 500,000 Shares on or before the third anniversary of the Approval Date;
- An additional 500,000 Shares on or before the fourth anniversary of the Approval Date; and
- An additional 500,000 Shares on or before the fifth anniversary of the Approval Date.
- Making cash payments totaling $300,000 as follows:
- $25,000 payable on signing of the Agreement as non-refundable deposit;
- An additional $25,000 payable within 15 days from signing of the Agreement as further non-refundable deposit;
- An additional $50,000 payable on or before the first anniversary of the Approval Date;
- An additional $50,000 payable on or before the second anniversary of the Approval Date;
- An additional $50,000 payable on or before the third anniversary of the Approval Date;
- An additional $50,000 payable on or before the fourth anniversary of the Approval Date; and
- An additional $50,000 payable on or before the fifth anniversary of the Approval Date.
- Incurring $5,000,000 in Exploration Expenditures on the Property as follows:
- $250,000 within 12 months from the Approval Date;
- An additional $250,000 within two years from the Approval Date;
- An additional $250,000 within three years from the Approval Date;
- An additional $250,000 within four years from the Approval Date;
- An additional $250,000 within five years from the Approval Date; and
- An additional $3,750,000 at any time, in any number of proportions and amounts, within five years from the Approval Date
In addition, in the event the Company files a technical report supporting the disclosure of a mineral reserve on the Project at any time prior to the acquisition of the Project, the Company shall issue an additional 1,000,000 shares as a bonus to the Vendors.
The Company can purchase 50% (or 1%) of the net smelter return royalty on the Project at any time for $2,000,000.
The Vendors of the Project, Messrs. Fayz and Ramy Yacoub, are arm’s length parties. No finders’ fees or commissions are payable in connection with completion of the Transaction. In connection with completion of the Transaction, it is contemplated that the Company will complete a non-brokered private placement to raise additional capital to satisfy obligations under the Agreement and to further develop the Project. Further information regarding the terms of the placement will be provided as soon as available.
Closing of the Transaction remains subject to the completion of a technical report in respect of the Property, completion of financing on terms acceptable to the Company, and the approval of the TSX Venture Exchange. The Transaction cannot be completed until approval of the TSX Venture Exchange is received. Trading in the common shares of the Company has been halted on the TSX Venture Exchange and is expected to remain halted pending completion of further filings with the TSX Venture Exchange.
The Franelle Copper Project hosts 4 mineralized zones: Franelle, Bennelle, Beluet and Reuben.
The Franelle zone trends NNW 2600m along a 7000m long gabbro dyke with an average width of 60m to 75m. Mineralization consists of native copper, and copper oxides and sulfides with some potential supergene enrichment. Mineralization occurs as dissemination within the gabbro and with veins, veinlets and stockworks cutting the gabbro and the metasedimentary host rock. Three programs of diamond drilling tested the gabbo between the mid 1970’s and the mid-1990’s. A historic resource was calculated in 1976. The Company will to review the historic data before disclosure. (Diamond Drill Logs, Lac Musset Property, 1995 Energie et Ressources Naturelles Quebec Report GM 53794).
The Bennelle zone consists of veins, veinlets and disseminations of copper mineralization intersecting a gabbro sill intruded into arkosic red sandstone. The Franelle and Bennelle zones may lie along the same gabbro. Mineralization consists of native copper, and copper oxides and sulfides, and has been traced 450m along strike and ranges from 1m to 3m in thickness. Grab sample highlights include 2.06% copper, 1.73% copper and 1.68% copper. (Source: “Gitologie Des Indices De Cuivre Du Lac Musset, Fosse Du Labrador par B. Brassard (1984), Energie et Ressources Naturelles Quebec Report MB84-03).
Mineralization at the Beluet zone is hosted in an altered shear zone within sandstones in fault contact with gabbros and consists of malachite, azurite and chrysocolla accompanied by chalcopyrite. The shear zone has been traced 50m along strike and is 5m thick. Grab sample highlights include: 6.15% copper and 4.83% copper. (Source: Metallic Deposit 23O/11-004 1995 Energie et Ressources Naturelles Quebec)
The Reuben zone, a 30-metre wide stockwork of gabbro hosting calcite and epidote veins carrying chalcopyrite and malachite, and has been traced intermittently 425 metres along strike. Individual showings along the trend range from 60 metres by 6 metres to 15 metres by 1.5 metres. Chip sample highlights include: 4% copper and 6.9 g/t silver over 0.40 metres and 2.61% copper and 2.5 g/t silver over 2.5 metres. Source: (Diamond Drill Logs, Lac Musset Property, 1995 Energie et Ressources Naturelles Quebec Report GM 53794).
Canada One cautions investors it has not yet verified the above historic data.
R. Tim Henneberry, P Geo (British Columbia), a consultant to Canada One, is the Qualified Person who has reviewed and approved the technical content of this news release on behalf of the Company.
On behalf of the Board of Directors of
CANADA ONE MINING CORP.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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Benton and Sokoman Shares Rise After Confirming 1st High-Grade Lithium Discovery
Composite grab sampling returns 2.37% Li2OThunder Bay, Ontario–(Newsfile Corp. – September 16, 2021) – Benton Resources Inc. (TSXV: BEX) ("Benton") and…
Composite grab sampling returns 2.37% Li2O
Thunder Bay, Ontario--(Newsfile Corp. - September 16, 2021) - Benton Resources Inc. (TSXV: BEX) ("Benton") and Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) ("Sokoman") (together, "the Alliance") are pleased to announce analyses for 35 of 58 follow-up samples from the recently discovered swarm of Lithium-bearing pegmatite dikes on the Golden Hope Joint Venture Project in southwestern Newfoundland. The 35 grab and chip samples were collected over a 1 km2 area over the swarm of poorly-exposed pegmatite and aplite dykes. The follow-up sampling has confirmed that the pegmatites carry significant Lithium values, the first significant occurrence of Lithium documented in the province of Newfoundland and Labrador, Canada.
- 31.4% of the samples gave values >1% Li2O
- The Lithium-bearing samples were taken over a poorly-exposed pegmatite swarm covering 1 km2
- Additional results are pending (23 samples) along a 1 km strike of pegmatites
- Lithium, Beryllium, Cesium, Rubidium and Tantalum values were located 2 km to the west of the initial discovery
Of the 35 samples, 11 gave values greater than 1% Li2O with three greater than 2% Li2O, and a high of 2.37% Li2O. The dominant Lithium-bearing mineral appears to be spodumene (LiAl(SiO3)2) which occurs as clusters of elongated prismatic crystals up to 5-cm-long in a grey-white matrix of glassy quartz and feldspar and a pale-green to white mica (see photo of sample 361716). Multiple samples from the aplite dikes give highly-anomalous Cesium (17 ppm to 508 ppm Cs), Rubidium (226 ppm to 1310 ppm Rb) and Tantalum (5 ppm to 179 ppm Ta), typical of evolved pegmatite swarms. Samples 361715-718 were a series of 0.5 m2 composite samples from the discovery outcrop that measures 10m x 3m and is 100% pegmatite. The dike margins are overburden covered and actual width of the dike is not known. All other samples were taken over the broader mineralized area. The following table gives the results for the composite samples and other higher-grade Li values from the area.
|Summary of Significant Results (>500 ppm Li)|
|Sample||Li ppm*||Conversion||% Li2O|
* Li shown as ppm except where noted as %
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The Alliance also discovered high-grade Beryllium values with 2 grab samples grading >5000 ppm Be, with others ranging from 6 ppm to >5000 ppm Be, with associated anomalous Lithium, Cesium, Rubidium and Tantalum values. These samples, mineralogy unknown, are located approximately 2 km to the west of the Li discovery, providing further evidence that it is an evolved pegmatite system. Additional samples, taken up to 1,000 m along strike, have been submitted for analysis and are pending.
To view an enhanced version of this graphic, please visit:
Samples were submitted to Actlabs in Ancaster, Ontario for analysis by Sodium Peroxide Fusion ICPOES + ICPMS.
Benton's President and CEO Stephen Stares states: "The discovery of this new Lithium, Beryllium, Cesium, Tantalum and Rubidium mineralization in Newfoundland continues to show the Island's vast potential. Although this is the first discovery of Lithium in Newfoundland, the geological environment and setting to discover these types of large systems have already been proven and discovered in the Appalachian belt. This includes the important deposits held by Piedmont Lithium Inc in the Carolinas, eastern US, as well as the geologically equivalent Avalonia Project being advanced by Ganfeng Lithium in the Caledonides of Ireland. Benton and Sokoman will use these deposits for synergies and modeling as we advance this new discovery towards drilling."
Sokoman's President and CEO Tim Froude adds: "We are very pleased to have unequivocally verified high-grade Lithium mineralization at Golden Hope, the first such significant occurrence in Newfoundland. While still early days, significant Lithium mineralization in similar geological settings, elsewhere in the greater Appalachian belt, bodes well for the potential of this discovery to be of significance to our shareholders. While continuing to explore the pegmatites for Li and associated elements, the claims were originally staked for gold and we are presently processing and merging our recently-flown airborne data with pre-existing data to highlight gold targets on the 750 sq km property."
The Alliance has completed a 5,709 line-km Heliborne, High-Resolution, Aeromagnetic & Matrix Digital VLF-EM Survey, flown by Terraquest Ltd. The survey will provide the structural/ lithological setting to help identify gold-bearing structure extensions, as well as any unrecognized structures including those potentially related to the Lithium-bearing pegmatites.
This news release has been reviewed and approved by Timothy Froude, P.Geo., President and CEO of Sokoman Minerals Corp., and Nathan Sims, P.Geo., Senior Exploration Manager for Benton Resources Inc., both the 'Qualified Person' under National Instrument 43-101.
To ensure a working environment that protects the health and safety of the staff and contractors, Sokoman and Benton are operating under federally and provincially mandated and recommended guidelines during the current COVID-19 alert level.
About Sokoman Minerals Corp.
Sokoman Minerals Corp. is a discovery-oriented company with projects in Newfoundland and Labrador, Canada. The Company's primary focus is its portfolio of gold projects: flagship, 100%-owned Moosehead, Crippleback Lake (optioned to Trans Canada Gold Corp.) and East Alder (optioned to Canterra Minerals Corporation) along the Central Newfoundland Gold Belt, and the district-scale Fleur de Lys project in northwestern Newfoundland, that is targeting Dalradian-type orogenic gold mineralization similar to the Curraghinalt and Cavanacaw deposits in Northern Ireland, and Cononish in Scotland. The company also recently entered into a strategic alliance with Benton Resources Inc. through three large-scale joint-venture properties including Grey River Gold, Golden Hope and Kepenkeck in Newfoundland. Sokoman now controls independently and through the Benton alliance over 150,000 hectares (>6,000 claims - 1,500 sq. km), making it one of the largest landholders in Newfoundland, Canada's newest and rapidly-emerging gold districts. The company also retains an interest in an early-stage antimony/gold project (Startrek) in Newfoundland, optioned to White Metal Resources Inc., and in Labrador, the Company has a 100%-interest in the Iron Horse (Fe) project that has Direct Shipping Ore (DSO) potential.
About Benton Resources Inc.
Benton Resources Inc. is a well-funded mineral exploration company listed on the TSX Venture Exchange under the symbol BEX. Following a project generation business model, Benton has a diversified, highly-prospective property portfolio in Gold, Silver, Nickel, Copper, and Platinum Group Elements and currently holds large equity positions in other mining companies that are advancing high-quality assets. Whenever possible, BEX retains Net Smelter Return (NSR) royalties for potential long-term cash flow. Benton has also recently entered into a 50/50 strategic alliance with Sokoman Minerals Corp. (TSXV: SIC) through three large-scale joint venture properties including Grey River, Golden Hope and Kepenkeck in Newfoundland that are now being explored.
For further information, please contact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x251
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Companies' expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Companies prospects, properties and business detailed elsewhere in the Companies' disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Companies do not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Companies' expectations or projections.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96784
drill results drilling tsxv-bex benton-resources-inc benton resources inc tsxv-ctm canterra-minerals-corporation canterra minerals corporation tsxv-sic sokoman-minerals-corp sokoman minerals corp financing press-release
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