Junin Mineral Property: Overview

• Junin 43101 Compliant Report - Click Here to View
  
• copper-molybdenum, silver-gold porphyry
• 9,505ha (23,475 acres) located in northern Ecuador
• inferred resource estimate: 982 million tonnes (NI43-101)
• 19.2 billion lbs copper and 864 million lbs molybdenum at 0.4%Cu cut-off grades of 0.89%Cu and 0.04% Mo
• final Environmental Impact Study submitted to government for approval
• signed exploration agreement with communities in 2006

At this time, Ascendant has completed no independent drilling on the Junin property as unrestricted access to the Junin property has remained an unresolved issue. See below under the heading “Agreement with Government of Ecuador and Ecological Group”.

Ascendant’s short-term objective is to gain access to the Junin property for commencement of exploration.  A significant amount of mapping, sampling and drilling has previously been done by other companies with the majority of the original data and interpretation of this work being available to Ascendant. 

In late 2006, based on recommendations contained in the Junin Report, Ascendant initiated a check assaying program of selected intervals of historic drill core from four holes (Holes 27, 28, 29 and 30) drilled under the 1990s Program.  The assay results that Ascendant received from this check assay program were substantially different from the results of the 1990s Program.  Given the discrepancy in results, Ascendant retained Micon to review Ascendant’s check assay results.  Micon recommended that core from an additional four holes (Holes 4, 10, 17 and 22) from the 1990s Program be re-sampled and assayed.  Ascendant completed this re-assay work in March 2007, with a total of 702 check samples taken from the selected eight holes of historic core drilled during the 1990s Program.

Micon has concluded that the 2007 Check Assay Program results were based on core samples that have been adversely affected due to deterioration of the existing historic core and the lack of sample custody. This loss of quality and inability to produce proximate results may be due to a combination of numerous events, including: 1) known loss or theft of complete sections of historic core as well as numerous individual pieces, 2) wood core box disintegration due to termites and open exposure to the elements, 3) transfer of historic core to new boxes since 1997, resulting in mixing of core, 4) loss of fine material, and 5) possible mislabeling of core boxes, among other factors.  Large data variances could be expected between the original assays and the re-assay results given the poor condition of the drill core.  On this basis, it can be concluded that the 2007 Check Assay Program sample material is not reliably representative of the original core samples.  Micon confirms however that the inferred resource estimate contained in the Junin Report remains current and indicative of the potential of the Junin project.

Ascendant plans on generating new data from the work program previously recommended in the Junin Report. This would include completing a drilling program of the Junin project, which would comprise the twinning of certain historic holes, with all aspects of future drilling, logging, sampling and assaying to be closely scrutinized and carried out in accordance with industry standard best-practices.

Agreement with Government of Ecuador and Ecological Group

On March 20, 2007, the Company met with members of government, including the provincial Governor, representatives of the Ministry of Energy and Mines and of the Ministry of Government and Police of Ecuador, and with representatives of an ecological group opposing mining activities in the region.  All three groups – the government, Ascendant and the ecological group – expressed an interest in restoring law and order to the region, reducing tensions, and respecting the rights of all involved.

The Company and the ecological group signed agreements in parallel with the government to reflect their negotiations.  Opponents of the Junin project have agreed with government officials to:

• open all roads in the area which have been previously blocked by them,
• guarantee free access and circulation to all persons, including representatives of Ascendant,
• deliver to the police a cache of arms under their control, and
• return to Ascendant its demonstration farm in the Intag area which had been illegally seized the preceding week.

As part of the negotiations, Ascendant reluctantly agreed, based on the demands of the ecological group, to substantially reduce its work force, from 159 to 48 people, and its current activities which include providing medical and dental care to the area.  The work force primarily consists of local community members who assist the Company in conducting agricultural activities on surface lands owned by Ascendant as well as implementing social services and community programs.

The government stated that it would organize a commission of community leaders, government officials and Ascendant representatives to ensure compliance with the agreements.  The government also announced a plan to begin a study of the region with the objective of determining a permanent resolution to the problems in the area.

In the interim, Ascendant will continue to supervise activities of its remaining personnel to ensure compliance with the agreement and the Company’s policy of non-violence.  Ascendant views the signing of the agreements as a positive step forward by bringing the government into the process, guaranteeing access to the area by any individual, and reducing conflict in the area.