Name of the Project
Legoa Salgada volcanic massive sulphide project.

Location
On the Iberian pyrite belt, in Portugal.

Project Owner/s
Ascendant Resources.

Project Description
A preliminary economic assessment (PEA) has demonstrated Legoa Salgada to be a long-term, economically viable project.

The PEA envisages a two-stage underground mining development scenario.

Decline access will be through a 30-m-deep boxcut.

Stopes will be accessed from level access drives in the north and the south of the deposit. The deposit is planned to be mined using transverse sublevel open stoping, with pastefill at one-million tonnes a year.

The nine-year mine life is based on a 2 700 t/d mining rate and average head grades of 2.44% zinc, 2.85% lead, 0.34% copper, 0.16% tin, 0.75 g/t gold and 69.8 g/t silver.

The mine is expected to produce about 12 500 t/y of zinc, 13 700 t/y of lead, 2 000 t/y of copper, 1.1-million ounces of silver, 13 000 oz/y of gold and 3 000 t/y of tin.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $137-million and an internal rate of return of 37%, with a payback of four years.

Capital Expenditure
Initial capital expenditure is estimated at $162.7-million.

Planned Start/End Date
The project is expected to take about two years to complete.

Latest Developments
Ascendant intends to expand the current PEA with additional exploration work in the North zone, where, it is believed, there is potential for additional resource growth and operational scale increase. The Central and South zones, excluded from the PEA, remain a highly prospective source for future resource growth, as very limited drilling has been performed to date.

Key Contracts and Suppliers
AMC Mining Consultants (preliminary economic assessment), with contributions from Resource Development Inc (mineral processing) and Micon International (mineral resources estimate).

Contact Details for Project Information
Ascendant Resources communications and investor relations director Katherine Pride, tel +1647796 0066 or email info@ascendantresources.com.