Name of the Project
El Mochito zinc/lead/silver mine expansion.

Location
Honduras.

Project Owner/s
Ascendant Resources.

Project Description
A preliminary economic assessment (PEA) has concluded that the project presents a robust and compelling opportunity for the company to position El Mochito as a long-term profitable operation.

The expansion project mine plan is based on the company’s current mineral resource estimate of 7.55-million tonnes grading 5.2% zinc, 1.7% lead and 44 g/t gold, which has an effective date of January 1, 2018. The PEA considers increasing mining and processing capacity to about 2 800 t/d, or from one-million tonnes a year, from 2 200 t/d (750 000 t/y) without significantly interfering with ongoing operations.

The PEA assumes a mine life of ten years, inclusive of current inferred mineral resources of 4.97-million tonnes grading 5.1% zinc, 1.4% lead and 33 g/t silver. Yearly zinc equivalent metal production will average 120-million pounds over the life-of-mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax and royalties net present value, at an 8% discount rate, of $83-million and an internal rate of return of 58%, with a payback of two years.

Capital Expenditure
Capital costs to complete the development pro­gramme have been estimated at $32.8-million and an expected payback of two years.

Planned Start /End Date
A planned start/end date for the project has not been disclosed; however, the PEA has indi­cated a construction period of about two years.

Latest Developments
Ascendant Resources has secured financing from a US government agency, which helps businesses invest in emerging markets, to expand its El Mochito zinc/lead/silver mine.

The nonbinding term sheet with Overseas Private Investment Corporation (OPIC) is for a $35-million project loan. Ascendant has said that this will be sufficient to cover the total financing requirements for the expansion pro­gramme, including mine development expan­sion, a new underground shaft, under­ground water pumping upgrades and mill upgrades.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ascendant Resources, tel +1647 796 0066 or email info@ascendantresources.com.