Mineral & Financial Investments Limited (LON:MAFL) told investors that exploration plans are now in place for its part-owned Lagoa Salgada volcanogenic massive sulphide (VMS) project in Portugal.
The exploration programme, detailed by operator Ascendant Resources, follows a robust Preliminary Economic Assessment and include an extensive drill programme (8,000 metres) and IP data capture in the Lagoa Salgada area.
Drilling is also planned for the North Zone to convert and upgrade minerals resources, to lift the overall tonnage and grade. Exploration will also focus on the South Zone which is described as highly prospective and copper-rich. The drill contract is currently on stand-by with activity currently suspended due to the coronavirus lockdown in Portugal.
READ: MAFL investee Cerrado Gold to acquire Argentinean gold mine
“We have a great degree of confidence in Ascendant Resources' ability to substantially expand and upgrade the Mineral Resources in 2020,” Jacques Vaillancourt, MAFL chairman said in a statement.
He added: “We are especially interested in the South and Central Zones where Ascendant hope to greatly improve CuEq tonnage and grade, as drilling in these zones has been very limited to date.
“Data suggests that these zones have the potential to be larger than the North Zone and may also be connected at depth in one large deposit. Though Lagoa Salgada is in the early stages of exploration, it has the hallmarks of being a comparable project to its large neighbours on this World Class mineral belt."
MAFL’s 75% owned subsidiary Redcorp Empreedimentos Mineiros owns the project.
Vaillancourt noted that Redcorp and Ascendant Resources plan to complete an updated resource estimate in the latter part of the year, and also start a feasibility study by the end of 2020.
The company also confirmed that it has been advised that all operations at Lagoa Salgada remain suspended due to the lockdown imposed in Portugal but it understands that Ascendant Resources continue to run desktop work remotely, and said a further update will be provided when the restrictions on activity at the site is lifted.
