Ascendant Resources Inc. (TSX: ASND) (OTCQX: ASDRF; FRA: 2D9) (“Ascendant” or the “Company”) is pleased to release second quarter 2019 production results highlighted by record throughput and contained metal production since assuming ownership of the El Mochito mine in Honduras. The strong second quarter, which was above Ascendant’s expectations and budget, positions the Company for a solid operating year ahead.
Contained metal production for the second quarter (Q2 2019) was 24.6 million pounds of zinc equivalent (“ZnEq”) metal, comprised of 16.4 million pounds of zinc, 5.9 million pounds of lead and 347.7 thousand ounces of silver. Total contained metal production increased by 8% over Q2 2018 (22.9 Mlbs ZnEq) and 5% over Q1 2019 (23.4 Mlbs ZnEq), due to higher zinc, lead and especially silver grades. Assuming fixed metal prices over the past two and a half years, production on a ZnEq basis has increased consecutively every quarter for all ten quarters of Ascendant’s ownership, a testament to the capabilities of the entire Ascendant team.
Milled production of 195.7 thousand tonnes demonstrated slight improvements over Q2 2018 of 1.7% (192.4 kt) and Q1 2019 of 1.4% (192.9 kt).
The average head grade of 6.7% ZnEq for the quarter represented an increase of 7% over Q2 2018 (6.3% Zn) and was in line with Q1 2019. Milled zinc grades for the quarter were 4.4% zinc, up 4% from both Q2 2018 and Q1 2019. Lead head grades were up 8.9% from Q2 2018 to 1.7% lead but down from the 1.8% lead achieved in the previous quarter. Silver feed grades increased significantly by 40.4% to 67g/t from the 48 g/t achieved in the same period in 2018 and increased 8.4% from Q1 2019 (62 g/t). The increase in silver and lead grades are a direct result of the Company focussing on extraction of various, small high-grade pillars in the upper old part of the mine.
Zinc processing recoveries of 86.4% improved 2.6% during the quarter but were still 3.7% below the 89.7% achieved in the same period last year, mainly due to the complicated metallurgy of the Esperanza ore, which is currently a material portion of the mill feed. This was offset by a 3% higher lead and zinc recovery of 81.5% and 81.9% respectively in Q2 2019. Lead and zinc recoveries for the quarter were also 2% and 4% higher respectively than the previous quarter. The higher lead recoveries are attributable to the higher grades, while silver recovery received a boost after a change in the silver collector reagent dosing strategy in the floatation circuit. It is expected that the higher silver recoveries can be maintained into the future.
The Company had previously anticipated reduced metal production during the first half of the 2019, with stronger performance in the second half of the year due to higher grades. Operational performance to date has exceeded those expectations and the mine remains well positioned for stronger performance in the second half of 2019.
President and CEO Chris Buncic stated: “We delivered our strongest operational performance in the second quarter since acquiring the El Mochito mine and the highest throughput ever achieved in a quarter at the mine. Contributing to these results was higher than planned mining throughput as a result of the recently completed Esperanza development tunnel and overall grade improvements, especially in silver grades, which drove an increase in contained metal production.”
He continued, “Overall, our operational performance in the first half of 2019 has exceeded expectations and we remain focused on driving further improvements in 2019. As per our budget, we continue to look forward to much improved grades in the third and fourth quarter which will positively benefit our economics.”
Operational performance for Q2 2019 is provided in the table below (numbers may not match due to rounding):
2019 | 2018 | ||||||
Units | Q2 | Q1 | Q4 | Q3 | Q2 | ||
Ore Milled | tonnes | 195,706 | 192,922 | 184,913 | 191,738 | 192,428 | |
Average Head Grade | Zinc | % | 4.4% | 4.2% | 4.2% | 4.5% | 4.3% |
Lead | % | 1.7% | 1.8% | 1.9% | 1.7% | 1.5% | |
Silver | g/t | 67 | 62 | 77 | 45 | 48 | |
Zinc Equivalent grade* | % | 6.7% | 6.7% | 7.0% | 6.7% | 6.3% | |
Average Recoveries | Zinc | % | 86.4 | 84.2% | 84.1% | 87.8% | 89.7% |
Lead | % | 81.5 | 79.5% | 77.6% | 78.9% | 79.1% | |
Silver | % | 81.9 | 79.0% | 76.6% | 77.8% | 79.4% | |
Contained Metal Production | Zinc | 000’s lbs | 16,444 | 15,162 | 14,435 | 16,579 | 16,343 |
Lead | 000’s lbs | 5,916 | 5,955 | 6,023 | 5,552 | 5,109 | |
Silver | ozs | 347,784 | 293,287 | 347,251 | 209,622 | 229,043 | |
Zinc equivalent metal* | 000’s lbs | 24,638 | 23,370 | 23,173 | 23,919 | 22,926 | |
* Zn equivalent grades calculated in Q2 2019 used average spot metal prices of US$1.25/lb for zinc, US$0.85 for lead, and US$15.33 Ag for silver |
Second Quarter 2019 Conference Call
Ascendant plans to release second quarter 2019 financial results after market close on August 7, 2019. A conference call will be held on August 8, 2019, at 10:00am EDT to discuss second quarter 2019 operational and financial results.
Conference Call Details:
Date of Call: Thursday, August 8, 2019
Time of Call: 10:00am EDT
Conference ID: 2681208
Dial-In Numbers:
North American Toll-Free: 1-833-696-8362
International: 1-612-979-9908
Technical Disclosure/Qualified Person
All technical information contained herein has been reviewed and approved by Robert A. Campbell, M.Sc, P.Geo, a director of the Company. Mr. Campbell is a “qualified person” as defined by NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Ascendant Resources Inc.
Ascendant is a Toronto-based mining company focused on its 100%-owned producing El Mochito zinc, lead and silver mine in west-central Honduras and its high-grade polymetallic Lagoa Salgada VMS Project located in the prolific Iberian Pyrite Belt in Portugal.
After acquiring the El Mochito mine in December 2016, Ascendant spent 2017 and 2018 implementing a rigorous and successful optimization program restoring the historic potential of El Mochito, a mine in production since 1948, to deliver record levels of production with profitability restored. The Company now remains focused on cost reduction and further operational improvements to drive profitability in 2019 and beyond. With a significant land package of approximately 11,000 hectares in Honduras and an abundance of historical data, there are several near-mine and regional targets providing longer term exploration upside which could lead to further Mineral Resource growth.
Ascendant holds an interest in the high-grade polymetallic Lagoa Salgada VMS Project located in the prolific Iberian Pyrite Belt in Portugal. The Company is engaged in exploration of the Project with the goal of expanding the already-substantial defined Mineral Resources and testing additional known targets. The Company’s acquisition of its interest in the Lagoa Salgada Project offers a low-cost entry point to a potentially significant exploration and development opportunity. The Company holds an additional option to increase its interest in the Project upon completion of certain milestones.
Ascendant Resources is engaged in the ongoing 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