Ascendant Resources Inc. (TSX:ASND) said it has commenced a drill program that will be used to support an upcoming feasibility study at its Lagoa Salgada VMS project in Portugal.
The program is planned to consist of 15,000 meters (m) of diamond drilling divided between the north and south zones of the Venda Nova orebody. The program will include six dedicated metallurgical drill holes -- four in the north zone and two in the south zone.
Most of the planned drill holes will be a combination of infill and exploration drilling on both the north and south zones, aiming to upgrade all inferred resources to measured and indicated categories to support the completion of a NI 43-101 feasibility study in 2022.
READ: Ascendant Resources signs definitive mining concession contract for its Lagoa Salgada project in Portugal
In addition, Ascendant said it is expected that the drill program will not only upgrade resources but also has the potential to increase the overall tonnage and grade of both the north and south sectors by expanding the higher-grade zones.
Ascendant will also be undertaking a surface TEM geophysics survey as part of this field program. This program will use larger loops to help define potential extensions to the known orebodies, both laterally and at depth, as well as develop new exploration targets in known prospective areas.
“We are very excited to begin this drill program that will support our Feasibility Study intended to demonstrate and highlight the robust potential of Lagoa Salgada as indicated by the Preliminary Economic Assessment and show the potential for further resource growth in the future to enhance the potential of the project for the longer term,” said Ascendant Executive Chairman Mark Brennan in a statement.
The planned infill drill program and feasibility study are commencing following the completion of NI 43-101 preliminary economic assessment (PEA).
The PEA highlighted a low capital intensive project (initial CAPEX US$132 million) with an after-tax NPV8% of $246 million and an IRR of 55% at conservative long-term metal prices. The PEA presents a low CAPEX, low operating cost, and high-margin underground mining operation with strong economics.
New VP named
Separately, Ascendant also announced that David Ball has joined the company as vice president, business development.
The company said he brings mining-focused operational and capital markets experience from Australia, South East Asia, and, North and South America.
Ball was most recently CFO of Santiago Metals Limitada, a private Chilean-based copper producer and portfolio company of US private equity group Denham Capital. Previously, he held senior positions at Macquarie Capital, an Australian investment bank.
During his career in the metals and mining sector, Ball has been actively involved in M&A, corporate advisory, and fundraising of both equity and debt.
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