SOURCE: Ascendant Copper Corporation

November 15, 2006 16:29 ET

Ascendant Copper Corporation Announces Third Quarter Financial Results

VANCOUVER, BC -- (MARKET WIRE) -- November 15, 2006 -- Ascendant Copper Corporation (TSX: ACX) (Berlin-Bremen: A0HMLE) ("Ascendant" or the "Company") ("ACX") is pleased to announce its third quarter financial results. Following are the highlights of its financial report for the third quarter ended September 30, 2006.


(all dollars expressed in US dollars unless otherwise stated)

The Company expended $2,027,024 during the three months ended September 30, 2006 and has spent a total of $4,349,113 for the nine months ended September 2006.

The Company is continuing its work on the Junin project in northern Ecuador. During the current quarter, $504,581 was spent on this effort. These expenditures concentrated on finalization of the Environmental Impact Study as well as Social Responsibility spending. For the nine months ended September 2006, $1,439,704 has been expended in the area. Access to the project is still an outstanding item. The Environmental Impact Study has been completed and is in the process of being approved. Once it has been approved, the technical work can begin on the project. The work program on the Junin property will concentrate on exploration and development. The first phase, proposed 22-hole drilling program, will constitute a program of 15,500 meters.

The Company's short-term objective at Junin is to gain access to the property for commencement of exploration and through exploration to upgrade the existing inferred resource and demonstrate continuity of grade, to complete a pre-feasibility study to determine if the project is economically viable and, if warranted, to prepare further work programs leading to completion of a bankable feasibility study on the project.

The Company began a moderate drilling program at Chaucha in the third quarter to determine the nature of future work programs. At the end of the quarter, the access road was completed, the main camp rebuilt and operating and a 1,000 meter drilling program was completed. Assay results are pending on this first drilling program. Costs incurred during the current quarter were $618,880. The Company purchased a Longyear-44 drill which is expected to be on the site by November to continue a 5,000 meter drilling program. Drilling will be undertaken on the Naranjos target as well as Gur Gur. The first holes will be in the 300 meter range depth-wise. This will give the Company some updated data to compare with the historical drilling. As the mineralized zone is expanded, the holes will be drilled at greater depth to test the porphyry system underneath the supergene zone. The budget is currently set at approximately $1.8 million for the 5,000 meter program and an addition $150,000 for the initial 1,000 meter program. The Company has also applied to the Ministry of Energy and Mines for mining concession expansions at the Chaucha property to the west and around the boundaries which currently consist of the Janeth 1 concession.

Administrative costs included: $267,618 for wages and payroll taxes for the quarter while the total for the nine month period is $719,451; $263,176 was spent on consulting during the third quarter and $618,229 is the nine month total; the Company initiated the process of documenting its internal controls, testing, and remediation during the third quarter and our accounting and audit related expenditures amounted to $75,944 for the current quarter; finally another $341,063 and $992,522 was expended for administration and other expenditures for the quarter and nine month period respectively. The total administrative numbers include stock-based compensation of $86,895 for the current quarter and $273,420 for the year to date.

Ascendant Copper Corporation
Major Expenditures
Interim Period ended September 30, 2006

                                       Third Quarter      Nine Months
                                       Ended Sep 30,      Ended Sep 30,
                                       2006               2006
Operating Expenses:
Social Programs and Infrastructure     1,129,258             2,056,386
Wages and payroll taxes                  267,618               719,451
Management and consulting                575,503             1,454,886
Other, including interest income          44,645               118,390
and stock-based compensation
Total Operating Expenses               2,027,024             4,349,113
Investing Activities:
Land Purchases                            11,500               560,964
Equipment Purchases                      124,799               249,212
Total Investing Activities               135,299               810,276
As at September 30, 2006, the Company had cash and cash equivalents of $3,482,218.

Ascendant's principal business is the exploration for copper in Ecuador. The Company has two primary properties, the Junin and Chaucha properties; as well as an extensive exploration data base developed for Ecuador by Rio Tinto Mining and Exploration Limited and the recently acquired Telimbela copper/molybdenum grass roots exploration property in an historical mining district in south-central Ecuador. The Junin Project, located in northern Ecuador, is a copper-molybdenum, gold and silver porphyry property with a reported inferred mineral resource of 982 million tonnes grading 0.89% copper, 0.04% molybdenum and 1.9 grams per ton of silver, at a 0.4% copper cut-off grade (1). The Company has recently partnered with Antofagasta PLC for the exploration and advancement of the Company's Chaucha copper-molybdenum property in southern Ecuador (2). A drilling program is currently underway on the Chaucha property and results will be reported as they become available.

(1) See "Technical Report Review of the Quartz Porphyry-Hosted Copper-Molybdenum Mineralisation at Junin, Otavalo, Ecuador" prepared by Qualified Person, Paul D. Gribble, C. Eng., Senior Mineral Resources Geologist, of Micon International Co Limited ("Micon").

(2) See "Technical Report dated April 8, 2005, and amended August 5, 2005, Review of the Quartz Porphyry-Hosted Copper-Molybdenum Mineralisation at Chaucha, Cuenca, Ecuador" prepared by Qualified Persons, Paul D. Gribble, C. Eng., Senior Mineral Resources Geologist, and David T. Wells, Senior Metallurgist, of Micon.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release.

10920 West Alameda Avenue, Suite 201
Lakewood, CO 80226
Tel: (303) 824-0271
Fax: (303) 297-0538

Contact Information

  • Company contact:
    Gary E. Davis