Ascendant Resources Inc. (TSX: ASND) (OTCQX:
ASDRF; FRA: 2D9) ("Ascendant" or the "Company”) is pleased to
release fourth quarter and full year 2018 production results and
guidance for 2019.
2018 Production Results – Guidance
Achieved
Contained metal production for the full year
2018 was 91.4 million pounds of zinc equivalent (“ZnEq”) metal,
in-line with the Company’s revised production guidance. This was
comprised of 62.7 million pounds of zinc, 21.8 million pounds of
lead and just over one million ounces of silver. Overall production
represents a 38% increase over 2017 contained metal production of
66.1 million pounds of ZnEq and it also concludes the Company’s
first full year of normalized operations at El Mochito.
During the fourth quarter 2018 (“Q4 2018”),
contained ZnEq metal production was 23.2 million pounds, an 18%
increase over fourth quarter 2017 (“Q4 2017”) production of 19.6
million pounds and relatively in-line with third quarter 2018 (“Q3
2018”) production of 23.9 million pounds. Milled production for the
fourth quarter was 184,913 tonnes, representing a slight decrease
of 4% over the previous quarter of 191,738 tonnes and a decrease of
7% over Q4 2017 of 198,355 tonnes.
In Q4 2018, the Company achieved a record ZnEq
head grade of 7.0%, a 32% increase over the Q4 2017 head grade of
5.3% ZnEq and a 4% increase over the 6.7% ZnEq achieved in Q3 2018.
The main driver behind the increase in ZnEq grades were the silver
grades, which increased to 77 g/t, a 126% increase over the 34 g/t
achieved in Q4 2017 and a 71% increase over the 45 g/t in Q3 2018.
The significantly higher silver grades are a result of an increased
focus on dilution control and the conventional mining of narrow,
high-grade areas in the mine. Zinc grades of 4.2% were slightly
lower compared to the previous quarter of 4.5%, while lead grades
of 1.9% showed a 12% increase over the 1.7% achieved in the
previous quarter. As the Company heads into 2019, we expect to
continue to focus on newly defined zones of higher-grade
mineralization to support higher overall production rates.
Zinc recovery for the quarter was 84.1%, down 5%
and 4% against Q4 2017 and Q3 2018 respectively. Recoveries for
lead and silver were 77.6% and 76.6% respectively, consistent with
previous performance. The lower than expected zinc recoveries were
attributed to the more complex metallurgy of some of the
higher-grade orebodies.
President and CEO Chris Buncic stated: “As 2018
represents our first full year of normalized production, we are
very pleased with the operational performance at El Mochito over
the course of the year with another strong operating quarter
highlighted by record zinc equivalent grades. Despite a suppressed
metals market, the year was marked by continuous achievements as El
Mochito demonstrated its ability to maintain strong sustained
production and deliver quarter after quarter improved head
grades.”
He continued, “Heading into 2019, the Company
continues to drive forward focused on value creation through
further growth in production and a continued emphasis on improved
grades while advancing the expansion opportunity at El Mochito and
growing the resource base as well as advancing the Lagoa Salgada
project in Portugal.”
Operational performance for fourth quarter and
full year 2018 is provided in the table below (numbers may not
match due to rounding):
|
|
|
2018 |
2017 |
|
|
Units |
Q4 |
Q3 |
Q2 |
Q1 |
Full
Year |
Q4 |
Full
year |
Ore Milled |
tonnes |
184,913 |
191,738 |
192,428 |
186,955 |
756,034 |
198,354 |
656,291 |
Average Head Grade |
Zinc |
% |
4.2% |
4.5% |
4.3% |
4.2% |
4.3% |
3.7% |
3.5% |
Lead |
% |
1.9% |
1.7% |
1.5% |
1.6% |
1.7% |
1.4% |
1.4% |
Silver |
g/t |
77 |
45 |
48 |
46 |
54 |
35 |
43 |
ZnEq* |
% |
7.0% |
6.7% |
6.3% |
6.1% |
6.5% |
5.3% |
5.4% |
Average Recoveries |
Zinc |
% |
84.1% |
87.8% |
89.7% |
89.3% |
87.8% |
88.5% |
88.9% |
Lead |
% |
77.6% |
78.9% |
79.1% |
76.7% |
78.1% |
74.6% |
74.2% |
Silver |
% |
76.6% |
77.8% |
79.4% |
78.3% |
77.8% |
75.0% |
77.4% |
Contained Metal Production |
Zinc |
000's lbs |
14,435 |
16,579 |
16,343 |
15,301 |
62,658 |
14,133 |
45,054 |
Lead |
000's lbs |
6,023 |
5,552 |
5,109 |
5,125 |
21,810 |
4,556 |
14,905 |
Silver |
ozs |
347,251 |
209,622 |
229,043 |
215,599 |
1,001,515 |
169,039 |
698,506 |
ZnEq* |
000's lbs |
23,173 |
23,919 |
22,926 |
21,412 |
91,430 |
19,576 |
66,120 |
*ZnEq Grades and contained metal production in ZnEq
represents zinc metal considered together with the lead and silver
expressed in zinc equivalent terms of zinc using zinc, lead and
silver realized metal prices and production ratios for each
quarter. |
2019 Guidance
2019 production guidance is provided in the
table below (all financial figures in $US):
Contained Metals in
Concentrate |
Zinc equivalent
metal |
90 – 110 million
lbs |
Zinc |
65 – 75 million lbs |
Lead |
21 – 26 million lbs |
Silver |
850,000 – 1,200,000 ozs |
Direct Operating Costs |
$70 – $80 / tonne |
Capital Expenditure |
$15 – $20 million |
Fourth Quarter and Full Year 2018
Conference Call
Ascendant plans to release fourth quarter and
full year 2018 financial results after market close on March 20,
2019. A conference call will be held on March 21, 2019, at 10:00am
EDT to discuss fourth quarter and full year 2018 operational and
financial results.
Conference Call Details:Date of
Call: Thursday, March 21, 2019Time of Call: 10:00am EDTConference
ID: 8795685Dial-In Numbers:North American Toll-Free:
1-833-696-8362International: 1-612-979-9908
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 two years 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
PrydeDirector, Communications & Investor RelationsTel:
888-723-7413info@ascendantresources.com
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 production
growth, the consistency of processing recovery levels, improvements
of grades increase in contained metal production, maintenance of
production rates, increase of mill feed grades, reduction of costs,
the ability to fully fund planned development, exploration and
capital expenditures, the undertaking of the expansion program at
El Mochito Mine, the advancement of the Lagoa Salgada Project and
the achievement of the 2019 production, cost and capital
expenditures guidance. 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 grow production, to maintain the
consistency of processing recovery levels, to improve grades,
increase contained metal production, increase mill feed grades,
reduce costs, make monthly shipments of concentrate, fully fund
planned development, exploration and capital expenditures,
undertake the expansion project at El Mochito Mine, the ability to
advance the Lagoa Salgada Project in Portugal, the ability to
achieve the 2019 production, cost and capital expenditures
guidance, 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.
¹ ZnEq lbs and grades in ZnEq % represents
zinc metal considered together with the lead and silver expressed
in zinc equivalent terms of zinc using spot metal prices and
production during the period.
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