Ascendant Resources Inc. announced that it has commenced its regional exploration program, designed to drill two highly prospective geophysical targets, Anomaly D and B, that appear analogous to the known geophysical footprint of the massive sulphides within the North Zone at its Lagoa Salgada property located on the Iberian Pyrite Belt (“IBP”) in Portugal. On the IBP, as with most VMS districts around the world, VMS orebodies tend to occur in “clusters” as opposed to being single deposits. The Ascendant team have prioritized Anomaly D and B as having the potential to be additional clusters of mineralization at scale and with grade.

Drilling has commenced at the first target known as “Anomaly D” and has reached a depth of approximately 28m, drilling is expected to intersect the “core” of the target at the expected depth of 350-400m by early February 2023. Anomaly D is located 700m to the north-east of the South Zone at Lagoa Salgada and has estimated dimensions of approximately 500m of strike length and 600m of downdip length. Anomaly D coincides with an elongated gravity anomaly that extends throughout the central part of the 7,209ha Lagoa Salgada property and demonstrates an electromagnetic signature very similar to that of the North Zone.

The Company believes this target may represent the folding of the same permissive horizon as the North Zone. Anomaly D has been prioritized based on the confluence of the above factors and considering the North Zone at Venda Nova is the richest portion of the current resource with respect to: i) tonnage and grade, representing 12.8MT of the existing Resource; and ii) importantly, between 65-75% of the USD 246.7m NPV8%, as outlined in the 43-101 PEA dated September 21, 2021. Drilling on the second target, “Anomaly B”, a much larger yet deeper target, is expected to commence later in the first quarter.

Anomaly D is located ~700m to the East of the Venda Nova South Zone. The best fit (predicted vs actual electromagnetic response) of the Electromagnetic response was obtained modeling a maxwell plate with a 340 azimuth and an 80-degree dip (northeast), with dimensions of approximately 500m of strike length and 600m of downdip length. The top of the conductive plate sits just below the tertiary erosional contact zone at a depth of approximately 150m.

Anomaly D notably coincides with the elongated gravity anomaly that extends throughout the central part of the property. This multi-kilometer anomaly was the original targeting tool for the discovery at Venda Nova. Ascendant believes that the shape of the anomaly, that shows some bulging to the northwest, might reflect folding.

The inferred fold follows the main structure identified in the deposit defined by steep dipping flanks, with a general northwest trend and an axial plunge to the northwest. Under this assumed fold geometry, Anomaly D (east flank) might represent the same permissive stratigraphic horizon that hosts the massive sulphide lenses of the North and South zones (west flank). Anomaly B is located ~1 kilometer to the northeast of the Venda Nova North Zone massive sulphide lens.

The best fit (predicted vs actual electromagnetic response) was obtained by using a thick plate that will be used as a general guide when defining the axis and the thickness of the conductor. The dimensions of the plate are: 1.3km strike length by 600m of down dip length. The depth of the top of the plate is approximately 200m.

This conductive zone has the potential to host a single large or multiple smaller massive sulphide lenses. As is the case of Anomaly D, the first hole will target a central zone in order to define a more accurate understanding of the geometry, extent and general orientation in order to increase the accuracy of the following holes.