Ascendant doubles resource of Lagoa Salgada in Portugal

Ascendant Resources (TSX: ASND; US-OTC: ASDRF) has nearly doubled the number of tonnes at both its North and South deposits, part of the Lagoa Salgada polymetallic project in Portugal’s Iberian Pyrite Belt.

The increase comes after drilling just 20 additional holes in 7,077 metres and the company believes there is potential for further growth along a continuous 1.6-km-long induced polarization (IP) anomaly suggesting the deposits remain open along strike and at depth.

The volcanogenic massive sulphide project now contains a total resource of 7.84 million tonnes grading 0.47% copper, 2.31% zinc, 2.15% lead, 0.10% tin, 51.71 grams silver per tonne and 0.50 gram gold per tonne, for a zinc equivalent grade of 8.38%. Inferred resources add 12.82 million tonnes grading 0.36% copper, 1.68% zinc, 1.63% lead and 0.04% tin, 38.6 grams silver per tonne and 0.61 gram gold per tonne for a zinc-equivalent grade of 6.37%.

Ascendant says the resource update “validates” its initial investment thesis that “a modest drilling budget could provide outsize value.”

“Given the deposits are located near surface with significant targets identified from the IP and gravimetric survey data, we are excited about future drilling and overall long-term development potential of the project,” Chris Buncic, the company’s president and CEO, said in a statement.
Ascendant owns 25% of the project and has an option to earn up to an 80% stake in the project, 80 km southeast of Lisbon.

The project is a single exploration permit covering an area of about 10,700 hectares and currently consists of the North Zone (main massive sulphide) and the South Zone (stockwork).

Upcoming catalysts include the results of metallurgical test-work expected before the end of the first quarter of 2019.

The junior notes that the Iberian Pyrite Belt is host to some of the world’s largest VMS deposits and mines, such as Lundin Mining Corporation’s Neves-Corvo and Trafigura Mining’s Aguas Tenidas.

The IPB forms an arch through Portugal and Spain that is approximately 240 km long and 35 km wide and by Ascendant’s estimates has produced more than 300 million tonnes of massive sulfide ore over the last century.

Ascendant’s other asset is the El Mochito mine, which it acquired in December 2016. The underground zinc-lead-silver mine near Las Vegas in northwestern Honduras, is about 220 km northwest of the capital city of Tegucigalpa. All of the mine’s lead and zinc concentrates go to Nyrstar under a nine-year offtake agreement.

Over the last year Ascendant’s shares have traded in a range of 35¢ and $1.23. At press time in Toronto the junior’s shares were trading at 47¢.

The company has 77 million common shares outstanding for a market cap of $36 million.

Matthew O’Keefe, an analyst at Cantor Fitzgerald, has a one-year target price on the stock of $1.40 per share.