Source - RNS
RNS Number : 4830I
Mineral & Financial Invest. Limited
19 June 2017
 

 

The following replaces the Investment Update announcement released at 7:00 under RNS number 3724I.

 

The announcement is being re-released to include a link to a PDF document.

 

In addition, the table which refers to the results of the drill hole (the first table in the announcement) referred to drill hole LS DH-01. This was a typographical error and has been amended to the correct reference LS-MS-01.

 

Finally, the contact details at the end of the announcement have been amended to include the Company's broker, Jon Belliss, Beaufort Securities Limited  +44 207 382 8300. These details were previously omitted in error.

The remainder of the text has not been amended.

 

The corrected version of the announcement appears below.

 

 

 

MINERAL & FINANCIAL INVESTMENTS LIMITED

("Mineral & Financial", "MAFL", or the "Company")

Investment Update

 

 

Lagoa Salgada Exploration Program strikes 88.0m of 11.85% Zinc Equiv.1

 

 

HIGHLIGHTS:

 

-   LS MS-01 drill hole strikes 88.0m of 11.85% zinc equiv. 1, including 28.0m of 20.63% Zn equiv.1

-   LS MS-01 drill hole is the first hole of LS-1 resource expansion program

-   LS-1 Exploration program to expand resource from 4.5Mt to 8.0Mt-10Mt on track

-   Substantial gold-rich zones, including 2m at 30 g/t gold and 16m at 3.3 g/t gold

-   LS ST-03 strikes 11 distinct semi-massive to massive sulphide intervals in conjunction with very high levels of sericitic alteration

-   16 other anomalies still to be fully explored

 

George Town, Cayman Island - June 19, 2017 - Mineral & Financial Investments is very pleased to announce drill results from its 49%-owned subsidiary, TH Crestgate GmbH, a private Swiss-based investment company. TH Crestgate has released the first assay results from its new drilling campaign to expand the LS-1 resource. The holes were completed by wholly owned local subsidiary, Redcorp Empreedimentos Lda, on the100%-owned Lagoa Salgada zinc-copper project in southern Portugal.

The 6-hole drill program, announced and initiated in June 2017, is focussed on expanding the existing LS-1 Resource. The current resource is 4.5Mt, with a zinc equivalent grade of 8.2% (see RNS of August 27, 2015). This drilling program is targeting expanding the resource by 75% to 125% to between 8.0Mt and 10.0Mt.

 

The first hole of a six hole program being undertaken by TH Crestgate has returned with the first hole assays. The LS_MS_01 drill hole is located in the northern part of the current resource. This angled hole intercepted mineralization 34 meters above where mineralization was previously thought to begin. The LS_MS_01 drill hole is mineralized from 140m depth (where the assaying began) and extended to the bottom of the hole at 276m. The average zinc equivalent1 grade over 136.0m is 8.58%.

 

Hole

Depth (m)

Thickness (m)

Cu (%)

Zn (%)

Pb (%)

Au (g/t)

Ag (g/t)

Cu Equiv.

(%)[1]

Zn Equiv.

(%)1

LS MS-01

152 to 240

88.00

0.41

4.22

3.08

1.60

87.07

5.66%

11.85%

Including (Gossan)

152 to 161

9.00

0.13

0.54

3.58

7.04

138.78

8.14 %

17.05%

Including (Massive-Sulphide)

161 to 240

79.00

0.45

4.64

3.02

0.98

81.18

5.38%

11.27%

Including (Massive-Sulphide)

200 to 240

40.00

0.33

4.64

3.02

1.51

118.43

7.27%

15.23%

Including (Massive-Sulphide)

214 to 240

28.00

0.31

8.95

5.10

2.27

162.50

9.85%

20.63%

 

 

Jacques Vaillancourt, Chairman of Mineral and Financial, commented: "This hole is a very positive and hugely encouraging first hole. The size and grade of this intercept gives us confidence that our targeted resource increase to between 8.0Mt and 10.0Mt at LS-1 is achievable. IN addition to the LS-1 resource and the newly identified Central Sector mineralization, Lagoa Salgada hosts at least 16 other gravimetric anomalies that need to be explored using 21st century intelligence and technology. This underscores our belief that Lagoa Salgada could host more than one orebody that could become a mine. M&FI has a strong working capital position of £2.5 million of which £1.0 million is in cash, which will allow us comfortably to support our 49% interest in TH Crestgate.

 

LOCATION OF LS-1 SECTOR RESOURCE & "CENTRAL SECTOR"  ALONG WITH  NEW (Green) AND HISTORICAL (Black) DRILL HOLES

  

http://www.rns-pdf.londonstockexchange.com/rns/4830I_-2017-6-19.pdf

 

 

The LS-1 resource expansion drill program of 6 angled holes will additionally help define the true width of the mineralization. Based on cost estimates provided by TH Crestgate to Mineral & Financial, the Company has adequate resources to provide support for this programme. There are 4 geological zones characterizing the mineralization of the Lagoa Salgada project, and specifically the LS-1 zone. The first is tertiary cover, then there is a gossan cap and then massive sulphides. Alternatively the massive sulphides may be substituted with zones of stock-works.

 

Central Sector Drilling

 

TH Crestgate has also reported the results of drill-hole LS ST-03 which was the last hole of the Central Sector 4 hole drilling program. This drill program succeeded in identifying a mineralized zone 180m in length, 140m in width and up to 240m in thickness. LS ST-03 was a 145m step-out hole to the east of hole LS ST-02. The LS ST-03 hole was drilled to a total depth of 425 m of depth at a 600 angle.  

 

Drill-hole LS ST-03 was planned to intercept the 12m lens of massive sulphides intersected in the LS 23 historical drill hole. The LS ST-03 drill hole intersected many lenses of semi-massive and massive sulphides of minor expression (10.00 - 20.00 cm). In total, this drill hole intersected 11 different massive sulphide intervals. The amount of sericitic alteration can be seen to be very high and the number of semi-massive and massive sulphides sectors found indicates that this section is at the edges of a massive sulphides zone. Although the hole did not yield the grades intersected elsewhere in the Central Sector, it provide a large amount of technical information that proves that this sector warrants further exploration works in the future, with a particular focus on the massive sulphides. The LS_ST_03 drill hole appears to confirm the existence of at a stockwork mineralization that is distinct, but adjacent to, the massive sulphide mineralization that hosts the LS-1 preliminary resource of the LS-1 (see "Asset Description" below)

 

Cross Section of Current Resource Drilling at Lagoa Salgada

 

http://www.rns-pdf.londonstockexchange.com/rns/4830I_-2017-6-19.pdf

 

 

Hole

Depth (m)

Thickness (m)

Cu (%)

Zn (%)

Pb (%)

Au (g/t)

Ag (g/t)

Cu Equiv.

(%)1

Zn Equiv.

(%)1

LS ST-03

202 to 204

2.00

0.26

0.08

0.04

0.05

3.00

0.42%

0.88%

LS ST-03

297 to 306

9.00

0.16

0.06

0.02

0.02

4.56

0.26%

0.54%

Including

304 to 306

2.00

0.44

0.09

0.04

0.03

9.00

0.60%

1.27%

LS ST-03

319 to 321

2.00

1.18

0.08

0.02

0.04

11.50

1.37%

2.30%

LS ST-03

325 to 328

3.00

0.21

0.33

0.14

0.12

9.33

0.60%

1.25%

LS ST-03

342 to 345

3.00

0.43

0.05

0.02

0.10

7.00

0.61%

1.27%

LS ST-03

388 to 390

3.00

0.08

0.07

0.03

0.40

10.50

0.50%

1.06%

 

The 13,400-hectare Lagoa Salgada project currently has 17 identified gravimetric anomalies as well as a preliminary resource. The preliminary resource is located on one of these gravimetric anomalies, the LS-1 zone. The Central Sector is located within the LS-1 zone and is approximately 1,200 meters SE of LS-1's 4.5 million tonne zinc-lead polymetallic preliminary resource. The 'Central Sector' was the subject of a 4 drill-hole program undertaken by a previous operator in the early nineties.

 

Asset Description

 

The Lagoa Salgada resource is centred on one gravimetric anomaly called LS-1. There are a total of 17 gravimetric anomalies on the property. These anomalies remain to be fully tested. A petrographic study recently undertaken by TH Crestgate focused on the LS-1 area of the Lagoa Salgada property and also indicated the presence of anomalously high levels of indium. The orebody is composed of a central stock work zone - a more than 700m thick volcano-sedimentary complex - and a massive sulphide lens in the northwest. It is covered by more than one hundred meters of sediments of the Sado Tertiary basin (Lima et al., 2013, see below).

 

The historical, Canadian Institute of Mining (CIM) compliant, resource estimate, located on LS-1, completed in 2012 by Paul Daigle, P.Geo, is summarized below:

 

 

Category

LS-1 Resource Summary

 

LS-1 Sector

 

Tonnes

 

Mineral

 

Grade

Contained Metal

 

Units

 

 

Indicated

 

 

2,942,000

Pb (%)

2.94

190,686,436

Lbs.

Zn (%)

3.40

220,521,729

Lbs.

Cu (%)

0.34

22,052,173

Lbs.

Ag (g/t)

54.72

5,175,824

Oz.

Au (g/t)

0.82

77,562

Oz.

 

 

Inferred

 

 

1,554,000

Pb (%)

2.50

85,648,710

Lbs.

Zn (%)

1.80

61,667,071

Lbs.

Cu (%)

0.35

11,990,819

Lbs.

Ag (g/t)

51.00

2,548,073

Oz.

Au (g/t)

0.78

38,971

Oz.

 

 

Total

 

 

4,496,000

Pb (%)

2.79

276,335,146

Lbs.

Zn (%)

2.85

282,188,800

Lbs.

Cu (%)

0.34

34,042,992

Lbs.

Ag (g/t)

53.43

7,723,897

Oz.

Au (g/t)

0.81

116,532

Oz.

            Source: Tetra-Tech Wardrop

 

 

 

Financial Results

 

The Company expects to release financial results before the end of the month.

 

References in this announcement to exploration results and resource updates have been approved for release by Joao Barros, BSc (Engineering), MSc (Geology), who has more than 14 years of relevant experience in the field of activity concerned. Mr Barros is a Member of the Portuguese Engineers Association. Mr. Barros is employed by Redcorp Empreedimentos Mineiros, Lda., a wholly owned subsidiary of TH Crestgate GmbH, and has consented to the inclusion of the material in the form and context in which it appears.

 

This report should be seen as indicative of possible mineral content and not definitive, as the sample group is insufficient to arrive at any economic conclusions.

 

 

 

 

For more information:

Katy Mitchell, WH Ireland                               +44 161 832 2174

Jon Belliss, Beaufort Securities Limited           +44 207 382 8300

Alastair Ford, Chief Operating Officer             +44 780 226 8247

 

 



[1] Cu. and Zn. equivalency calculated using the following spot prices: Cu $5,782 /t; Zn $2,761/t; Pb $2,307/t; Au $1,252/oz.; Ag $18.33/oz.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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