Mineral & Financial to begin second phase of drilling at Lagoa Salgada

Mineral and Financial Investments announced the start of the second phase drilling programme in the South Zone at the Lagoa Salgada project on Wednesday, on the Iberian Pyrite Belt in Portugal.

The AIM-traded firm said the programme was being executed by Redcorp, its 75%-owned subsidiary in the country.

It said the programme was funded and guided by Ascendant Resources, which owns 25% of Redcorp, as part of that company’s previously-announced earn-in agreement with Mineral and Financial.

The second phase programme would consist of 1,400 metres of drilling and downhole induced polarisation surveys, and follow the “very successful” recently-completed first phase programme.

It said the continued objective of the programme was to “significantly increase and upgrade” resources at the copper-rich South Zone, building on the strong drill results it reported on 13 January.

The increased resources were expected to build on the first phase 1 drilling, and the existing 2.47 million tonnes of measured and indicated resource and 6.09 million tonnes of inferred resource delineated in the South and Central Zone.

That was in addition to the measured and indicated resource of 10.3 million tonnes grading at 9.06% zinc equivalent, and 2.5 million tonnes of inferred resource with a zinc equivalent grade of 5.93% in the North Zone, on which a preliminary economic assessment had been completed.

The South Zone remains open along strike and at depth according to geological data collected during the company's previous exploration activities.

Indications were that the mineralisation was expanding southward, where the firm’s next drill targets in the programme were planned.

“We are excited to see Redcorp and Ascendant Resources continue and build on the successful first phase exploration activities in the South Zone where we hope to significantly grow copper and copper equivalent tonnage and grade,” said chairman Jacques Vaillancourt.

“The results of first phase drilling in the South Zone suggests that Redcorp is approaching a more intense system of stockwork and massive sulfide mineralisation, which was also predicted by their geophysics program.

“The second phase programme should advance us a long way along the path of growing this copper rich resource.”

At 1530 GMT, shares in Mineral & Financial Investments were up 5.49% at 9.6p.