TORONTO, Sept. 20, 2017 (GLOBE NEWSWIRE) -- Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF) (FRA:2D9) ("Ascendant" or the "Company”) is pleased to report continued positive momentum in August with adjusted EBITDA1 of $0.8MM at the mine for the month, marking the second consecutive month of positive cash flow before changes in working capital since Ascendant assumed ownership of the El Mochito mine in December 2016 and supporting management’s view that the turnaround of its Honduran mine is on a solid path to profitability.
The El Mochito mine milled 58,978 tonnes of ore in August averaging 1,903 tpd, an increase from 1,853 tpd in July and the second quarter average of 1,733 tpd. This reflects a 53% increase in ore throughput per calendar day per month since January 2017. August results reflect the benefit from the introduction of new mining equipment to operations in mid-July. A third truck ordered in March was delayed by the manufacturer and is currently being transported to the mine with its expected arrival in late October. Additionally, the Company is expecting to take delivery of a fourth truck and third scoop in November, in line with its strategy to replace the existing aging fleet which will have the effect of reducing unit costs and increasing productivity. The Company has further ordered five new trucks, two new scoops, two jumbo drills and two rock bolters from Sandvik for delivery over the next ten months.
With the ongoing benefits from operational improvements and the introduction of new mining equipment management remains confident of continuing its 2017 ramp up in ore production.
President and CEO Chris Buncic commented: “Our turnaround of the operations at El Mochito is nearly complete. The new equipment in July made a material contribution to the overall availability of our fleet in August. We view August as a strong validation of our efforts to rehabilitate and optimize the operations at El Mochito. We firmly believe we see the path to material free cash flows from the mine once the fleet availability issue is addressed with the delivery of the additional equipment. Near-term improvements in head grade are expected from several conventional sections that are being developed to enter the production schedule imminently, and our exploration program is well underway, with further results expected soon”.
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1 Adjusted EBITDA is a Non-IFRS measure and is calculated by considering the Company's earnings before interest payments, tax, depreciation and amortization, adjusted for net foreign exchange expenses.
About Ascendant Resources
Ascendant Resources Inc. is a mining company focused on its producing El Mochito zinc, silver and lead mine in west-central Honduras in which the Company has a 100% interest. El Mochito has been in production since 1948. The Company evaluates producing and advanced development stage mineral resource opportunities in North, South and Central America, on an ongoing basis. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "ASND". For more information on Ascendant Resources, please visit our website at www.ascendantresources.com.
