Ascendant Resources Inc. (TSX:ASND)
(OTCQX:ASDRF) (FRA:2D9) ("Ascendant" or the "Company”) announces
production results from its El Mochito mine for the first quarter
of 2018 demonstrating its continued production improvements
highlighted by an average head grade of 6.1% ZnEq, which is a
significant improvement over the fourth quarter average head grade
of 5.3% ZnEq, and a strong closing cash balance of US$13.1 million
as at March 31, 2018. Contained metal production for the quarter
was 21.4 million ZnEq lbs, an increase of 9% over the fourth
quarter 2017 and 57% over the first quarter 2017.
Q1 2018 Operational
Performance
During the first quarter of 2018, Ascendant
produced record contained zinc equivalent metal production of 21.4
million ZnEq lbs, compared to 19.6 million ZnEq lbs in the fourth
quarter of 2017 and 13.7 million lbs in the first quarter of 2017.
This is Ascendant’s fifth consecutive quarter of production
increases. Zinc grades showed a significant improvement through the
quarter increasing by 14% from 3.7% zinc in Q4 2017 to 4.2% zinc in
Q1 2018. Lead and silver grades similarly showed an increase of 16%
and 34 g/t respectively to 1.6% lead and 46 g/t silver from the
fourth quarter of 2017.
Increased control of dilution and a firm focus
on mining less sub-grade material in most areas of the mine drove
the substantial increase in head grades. Notably, mining from the
relatively higher-grade Esperanza orebody accelerated in the first
quarter with the completion of development at its first long hole
stope. The success at Esperanza was partially offset by higher than
expected internal dilution experienced in the Nueva Este long 23L
hole stope, which has now been depleted.
Milled production for the quarter was 186,955,
compared to fourth quarter 2017 of 198,354, representing a slight
decrease of 6%. The mill encountered a number of small stoppages
due to wet ore and large rocks impacting the vibrating screen and
cone crusher. Overall, throughput rates continue to trend higher as
additional new equipment continues to be introduced into the mining
fleet and new lower cost long hole stopes constitute more of total
production. The remainder of the new equipment is expected to
arrive by mid-2018, completing the full underground fleet
replacement program that commenced in the second quarter 2017.
Recovery rates have improved returning to levels
seen earlier in 2017. Management expect tonnes processed and ore
grades to trend higher during the course of the year.
Operational performance for Q1 2018 relative to
2017 is provided in the table below:
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2018 |
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2017 |
|
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|
Units |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
|
Ore Milled |
tonnes |
186,955 |
|
198,354 |
|
176,035 |
|
150,785 |
|
131,116 |
|
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|
Average Head Grade |
Zinc |
% |
4.2 |
% |
3.7 |
% |
3.5 |
% |
3.4 |
% |
3.4 |
% |
|
|
Lead |
% |
1.6 |
% |
1.4 |
% |
1.5 |
% |
1.3 |
% |
1.3 |
% |
|
|
Silver |
g/t |
46 |
|
34 |
|
38 |
|
49 |
|
52 |
|
|
|
|
Zinc equivalent grade* |
% |
6.1 |
% |
5.3 |
% |
5.4 |
% |
5.5 |
% |
5.6 |
% |
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|
Average Recoveries |
Zinc |
% |
89.3 |
% |
88.5 |
% |
88.8 |
% |
88.9 |
% |
89.8 |
% |
|
|
Lead |
% |
76.7 |
% |
74.6 |
% |
73.7 |
% |
72.3 |
% |
76.9 |
% |
|
|
Silver |
% |
78.3 |
% |
75.0 |
% |
78.0 |
% |
79.3 |
% |
78.8 |
% |
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|
Contained Metal Production |
Zinc |
000's
lbs |
15,301 |
|
14,133 |
|
12,100 |
|
9,933 |
|
8,888 |
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|
Lead |
000's
lbs |
5,125 |
|
4,556 |
|
4,175 |
|
3,216 |
|
2,957 |
|
|
|
Silver |
ozs |
215,599 |
|
169,039 |
|
168,181 |
|
188,245 |
|
173,041 |
|
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|
Zinc equivalent metal* |
000's lbs |
21,412 |
|
19,576 |
|
17,495 |
|
15,377 |
|
13,672 |
|
|
|
*Calculated from average Q1 2018 realised metal prices of
US$1.55/lb for zinc, US$1.14 for lead, and US$16.72 Ag for
silver |
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President and CEO Chris Buncic stated: “In the
first quarter we continued to build upon our successful operational
turnaround at the El Mochito mine. The team has demonstrated a
greater understanding of the ore body, mine plan and plant, and
continues to show adaptability and improved operational
efficiencies. We are very pleased to have been able to deliver
strong growth in payable pounds on a metal basis and exit the
quarter with over $13 million in cash, putting us on track for our
EBITDA and free cash flow generation projections for 2018.”
He continued, “The new NI 43-101 reserve and
resource estimate announced on April 10, 2018 gives us great
confidence in the ability of the El Mochito mine to deliver a long
and successful future as indicated by the seven-year mine life in
Reserves. In the second quarter we look forward to incorporating
this significant resource growth while continuing to improve
operations and deliver on further free cash flow generation and
improved contribution margins.”
First Quarter 2018 Conference
Call
Ascendant plans to release first quarter 2018
financial results after market close on May 9, 2018. A conference
call will be held on May 10, 2018, at 10:00am EST to discuss first
quarter 2018 operational and financial results.
Conference Call Details:Date of
Call: Thursday, May 10, 2018Time of Call: 10:00am ESTConference ID:
9029578Dial-In Numbers:North American Toll-Free:
1-833-696-8362International: 1-612-979-9908
A recorded playback of the call will be
available from 1:00pm EST on May 10, 2018 until 1:00pm EST on June
9, 2018 by dialing: 1-855-859-2056 or 1-404-537-3406 and entering
the call back passcode 9029578.
About Ascendant Resources
Inc.
Ascendant is a Toronto-based mining company
focused on its 100%-owned producing El Mochito zinc, silver and
lead mine in west-central 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 it set out to
achieve with sustained production at record levels and
profitability restored. The Company now 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 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 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 PrydeDirector, Communications & Investor
RelationsTel: 888-723-7413info@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
consistency of processing recovery levels, improvements of grades
in 2018, deployment of new mining equipment, increase in contained
metal production, maintenance of production rates, increase of mill
feed grades, reduction of costs, monthly shipments of concentrate,
the ability to fully fund planned development, exploration and
capital expenditures, completion of an NI 43-101 report and the
undertaking of various long-term optimization programs.
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 ability of the Company to
maintain the consistency of processing recovery levels, to improve
grades in 2018, to deploy new mining equipment, increase contained
metal production, maintain production rates, increase mill feed
grades, reduce costs, make monthly shipments of concentrate, fully
fund planned development, exploration and capital expenditures,
complete an NI 43-101 report and undertake various long-term
optimization programs 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.
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