Mineral and Financial delighted with Lagoa Salada PEA, but just ‘the beginning’ it says

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Mineral and Financial Investments’ Lagoa Salada project in Portugal is worth US$361mln according to an independent pre-feasibility study, but the project is “still in its infancy from a geological understanding perspective”.


The project will pay back the US$132mln build costs within 1.3 years said the study based on current metal prices, with an operating mine life of 14 years.


Underlying earnings would be US$117mln and free cash flow US$82mln over the five years, added the PEA.


Lagoa Salgada is held inside Mineral and Financial’s investee project Redcorp, with the study funded by Ascendant Resources, which owns 25% of Redcorp, as part of its ongoing earn-in commitments.


Redcorp / Ascendant are now advancing the project through to the Feasibility Study stage.


Jacques Vaillancourt, M&FI’s chief executive, said: “We are extremely pleased with the results from this new PEA which highlights the strong potential of the Project.


“I believe this PEA is a very significant milestone for Redcorp/Ascendant to date, demonstrating a high-quality project with strong economic potential and a progressive environmentally conscious mine design.


“The consulting engineers and management team have set the basis for a feasibility study which is planned to start in Q4 2021.


“Ascendant is expecting to be able to present to M&FI a completed Feasibility Study by the end of 2022, which we expect should provide a solid foundation for the start of the construction phase.”


Vaillancourt added that there still remains a lot to be explored at Lagoa Salgada, “which is still in its infancy from a geological understanding perspective”.


“There have been less than 40,000 meters drilled to date on the property and geophysical studies indicate that our qualified resources are just the beginning of the resource potential on the property.”

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