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Tuesday, July 18, 2017 Derek Macpherson

ASND Shows Improved Operations in June & Q2

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Ascendant Resources Inc. (TSXV:ASND) provided a production update for June and Q2 from its El Mochito mine. Operations improved month-over-month but throughput fell slightly short (~7%) of Q2 guidance. However, better than expected grades resulted in the company exceeding zinc equivalent production guidance by ~4% for the quarter. We view the progress the company is making positively, particularly since equipment availability is expected to improve in Q3 and the company reaffirmed its full-year guidance. Consequently, we expect operational improvements to continue. We believe a progressive re-rating is likely over the year as the company executes on its ongoing optimization program and reports exploration results from the recently initiated program. read more


Tuesday, June 27, 2017 Derek Macpherson

ASND Reports High Grades from El Mochito

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Ascendant Resources Inc. (TSXV:ASND) reported high-grade results from 29 drill holes completed from its 33,200m 2017 underground exploration aimed to upgrade and expand resources at its El Mochito mine in Honduras. Results focused on the extensions of Palmer Dyke, Santa Elena, Victoria and Esperanza, of which Esperanza is currently being mined, while the others are near current operations and the company suggests could be placed into production within 6-12 months (Figure 1). Highlights include, 5.3% Zn, 3.8% Pb and 83 g/t Ag over 17.6m (step-out Hole 10846) and 6.2% Zn, 2.2% Pb and 41 g/t Ag over 17.5m (infill Hole 10847 – Esperanza). Importantly an exploration program of this size is the first in many years at the mine. We view these results positively as it points to the possibility for a longer mine life, with more results pending. We continue to believe a progressive re-rating is likely over the year as the company executes on its ongoing optimization program and reports on exploration results. Q2 operating results (anticipated in early July) are likely to be the next catalyst for the company. read more


Monday, June 12, 2017 Derek Macpherson

ASND Has Challenging May; Turnaround Progressing

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Ascendant Resources Inc. (TSXV:ASND) provided an update on production and exploration activities at its El Mochito mine. Ore hoisted for the month May averaged 1,511 tpd, a decrease from April (1,960 tpd) due to diminished availability of mining equipment. A plan to update the mining fleet was already in progress and more purchases are expected, new trucks and scoops will be added over the coming weeks. The company remains confident in meeting its guidance of 1,850 tpd in Q2 despite being behind that target quarter-to-date (1,750 tpd). As well, the company began a 33,200m 2017 underground exploration program to upgrade and expand resources at El Mochito consisting of 18,200m of definition drilling and 15,000m of greenfield exploration with the goal of adding new higher-grade zones. We continue to believe a progressive re-rating is likely over the year as the company executes on its ongoing optimization program and reports on upcoming exploration results; Q2 operating results (anticipated in early July) are likely to be the next catalysts for the company. read more


Thursday, May 11, 2017 Derek Macpherson

RCKS Drilling Deeper Lunch; Focus on Zinc

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Yesterday, Red Cloud Klondike Strike Inc. (RCKS) hosted another installment of our Drilling Deeper Lunch series, this time featuring three zinc companies, a producer, a developer, and an explorer. The presenting companies were Tinka Resources Ltd. (TSXV:TK), Ascendant Resources Inc. (TSXV:ASND) and Aquila Resources Inc. (TSX:AQA). We believe all three presenters are well positioned to take advantage of the strong fundamentals we see for zinc.  read more


Monday, May 08, 2017 Derek Macpherson

Ascendant Sees Improvements Early in Q2

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Ascendant Resources Inc. (TSXV:ASND) announced average daily throughput had improved to 1,960 tpd from its El Mochito mine in April (up from 1,619 tpd in Q1), providing an early indication that the company is on-track with its turnaround. For Q2, the company has guided for 1,850 tpd and expects to exit 2017 at 2,200 tpd. To achieve these goals, we expect the company is likely to deliver steady improvements over the course of the year, as it enters its most capital intensive quarter. The recent financing (C$20 million), should provide the financial support necessary to fund its operational turnaround. In addition, the company announced that its new three-year collective bargaining agreement has been agreed upon with union leadership and ratified by the Minister of Labour of Honduras, which should provide the company medium term labour stability. We believe a progressive re-rating is likely over the year as the company executes on its ongoing optimization program; we expect Q2 operating results (expected in early July) are inclined to be the next catalysts for the company. read more


Thursday, April 20, 2017 Derek Macpherson

Ascendant Q1 Progress Report Encouraging

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Ascendant Resources Inc. (TSXV:ASND) announced Q1 operating results and 2017 guidance from its recently acquired El Mochito mine in Honduras both of which we view positively. For Q1, despite elevated costs and ongoing efforts to improve operations the company appears to be only modestly cash flow negative at the mine level. More importantly, the planned progressive improvements appear to be achievable and the exit run-rate suggests a much higher valuation may be warranted at the end of 2017. While there is risk associated with Ascendant executing these operational improvements, the company appears poised to deliver a progressive re-rating throughout 2017. As well, following the recent financing (C$20 million) the company should have the financial flexibility to execute on its plan, including what is planned to be a capital intensive Q2. We expect the pending financial and operating updates to be the key catalysts for the Ascendant share price over the next year. read more


Thursday, March 23, 2017 Derek Macpherson

Ascendant Continues Optimization at El Mochito

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Ascendant Resources Inc. (TSXV:ASND) provided an update on its ongoing optimization program at its El Mochito Mine in Honduras. Throughout the majority of March, the company mined and milled on average 1,745 tpd (vs. 1,600 tpd in January), noting a sustainable processing capacity target of 2,200 tpd. The company expects that ongoing productivity improvements should steadily ramp-up throughput, achieving planned throughput by year end. In addition, the company is implementing a maintenance program to improve equipment availability and support higher production rates. On March 9th, the company completed its first lead concentrate shipment from El Mochito, selling ~1,500 tonnes. Negotiations are underway to complete a new Collective Bargaining Agreement, we expect further results from the agreement coupled with the ongoing optimization program to result in an operational turnaround, positioning Ascendant to benefit from the improving zinc price environment. read more


Sunday, February 26, 2017 Derek Macpherson

RCKS Pre-PDAC Mining Showcase Presenter Preview

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On Friday March 3th, 2017, Red Cloud Klondike Strike Inc. will be hosting its 5th Annual Pre-PDAC Mining Showcase. The event features presentations from 21 companies, including a themed lunch presentation by leading corporations in the gold mining sector. Visit the event page for more details on the day’s schedule. In this post, we provide a brief preview on the 21 presenting companies and 13 banner sponsors that will also be in attendance.  read more


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