The first of 22 planned drill holes returned strong mineralisation, including 107.9m grading 10.25% zinc equivalent (Zn-eq). The intercept was about 30m longer than what previous intercepts had indicated, the comapny said.

Significant intercepts included 10.7m in the gossan cap at 1.73 grams per tonne (g/t) gold and 143.08g/t silver for 7.64% Zn-eq. This included an intercept of 5.79m grading 3.19g/t Au and 264.29g/t Ag, for 13.43% Zn-eq.

The hole also intercepted 59.2m in the massive sulphide zone at 0.33% copper, 4.49% lead, 4.89% zinc, 1.09g/t Au and 98.21g/t Ag, for 13.89% Zn-eq.

Ascendant announced it had encountered a new zone of high-grade chalcopyrite-rich stringer mineralisation of 9.9mgrading 3.19% Cu, or 10.22% Zn-eq, intersected at depth beyond the fault zone, indicating the fault might have displacement of the ore zone. Intercepts here included 3.3m grading 8.22% Cu, or 24.68% Zn-eq.

Further, Ascendant said it had intersected a second massive sulphide zone of 7.6m grading 0.44% Cu, 0.89% Pb, 2.58% Zn, 0.29g/t Au and 44.4g/t Ag, for a combined value of 5.72% Zn-eq, which demonstrated the potential for further VMS mineralisation at depth and west of a known fault.

"While still early in the drill program, the results from this first hole support our view of the potential to rapidly expand the current known high-grade, massive sulphide mineralisation that has been identified in previous drilling campaigns on the project and provides confidence to quickly increase mineral resources. The new intersection at depth which was unexpected further increases the overall potential of the project," said CEO Chris Buncic.

To date, 17 gravimetric targets have been identified on the Lagoa project, but only two of those had been tested, with resources defined on the LS-1 and LS-1 Central deposits.

LS-1 has 5.84 million tonnes grading 8.88% Zn-eq in the indicated category, with 2.01Mt grading 7.82% inferred.

LS-1 Central held 2.22Mt grading 4.8% Zn-eq in the inferred category.

Ascendant owns 25% of Redcorp - Empreendimentoes Mineirs, which has 85% of the Lagoa Salgada project. Ascendant has an option to increase ownership to 80% by completing certain milestones and payments. On a pro rata basis Ascendant currently owns an effective 21.25% of the project

The IPB has been mined for centuries and contains storied deposits such as the Sao Domingos and Rio Tinto mines. The region has a long history of large-scale mineral discovery with most of the deposits and mines demonstrating multiple zones typical of VMS style deposits.