25th Sep 2019 15:47
(Alliance News) - Mineral & Financial Investments Ltd on Wednesday announced a 57% increase in the mineral resource at a project in Portugal.
The Lagoa Salgada polymetallic volcanic massive sulphide project's North Zone resource is estimated to have 2.8 million tonnes of ore at a grade of 10.7% zinc equivalent, on a measured basis.
Including indicated resources, the North Zone is expected to contain 10.3 million tonnes of ore at 9.1% zinc equivalent. The upgrade at North Zone, the company said, follows a more than doubling in the entire resource at Lagoa Salgada in 2018.
Mineral & Financial carried out a "relatively modest" 24-hole drilling programme at the North Zone to further investigate resources. The new figures will be used for a preliminary economic assessment of the project, due to be finished by the end of 2019.
Mineral & Financial operates the mine in partnership with Ascendant Resources.
Chief Operating Officer James Lesser commented: "The mineral resource estimate is a highly satisfying result as it demonstrates a substantial milestone towards the goal of developing Lagoa Salgada. Ascendant believe there is ample opportunity to expand the resource substantially as this resource follows a rather modest drill program targeted at infill drilling the North Zone.
"Lagoa Salgada has many traits common to other VMS deposits and mines in the Iberian pyrite belt, and it appears to be at the higher end of the grade scale, and we continue to be encouraged by the mineable potential of the project. A preliminary economic assessment is planned for completion before the end of the year."
Shares were 2.0% lower on Wednesday at a price of 12.50 pence each.
By George Collard; [email protected]
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