Ascot Resources Ltd (TSX: AOT; OTCQX:
AOTVF) (“Ascot” or the “Company”) is pleased to announce
an updated Resource Estimate for the Premier Gold Project (“PGP”)
including the Silver Coin, Big Missouri and Premier deposits (see
Table 1 below). The Company, previously released an updated
Red Mountain Project (“RMP”) Resource Estimate dated November 22,
2019.
Highlights:
Resources at Premier Gold Project contained
precious metals are:
- Indicated Category: 1,066,000 ounces of gold and
4,669,000 ounces of silver
- Inferred Category: 1,180,000 ounces of gold and
4,673,000 ounces of silver
Ascot’s combined resources for the Premier1 and
Red Mountain2 Projects have total contained precious metals as
follows:
- Measured & Indicated Category: 1,849,000 ounces of
gold and 6,824,000 ounces of silver
- Inferred Category: 1,250,000 ounces of gold and
4,769,000 ounces of silver
Since late 2017, Ascot management turned its
focus towards developing high-grade underground resources.
Starting with limited high-grade underground resources, Ascot now
has a substantial amount of high-grade resources from four
deposits, which could feed the centrally located Premier mill (see
Figure 1 below). In 2019, the Company completed over 53,000 metres
of drilling, of which 43,000 metres was focused on an infill drill
program to improve the confidence level and classification of the
Premier Gold Project resource from the Inferred Category to the
Indicated Category. The Company now has an updated NI 43-101
compliant Resource Estimate for the Premier Gold Project based on
this drilling.
Derek White, President and CEO of Ascot
commented, "I am pleased with our progress and the large increase
in tonnage, grade and contained gold and silver in the Indicated
Category at the Premier Gold Project. We convincingly achieved our
goal of rapidly creating a strong base of Measured and Indicated
Resources as the basis for developing a mine plan for the
project. We have scheduled the release of our feasibility
study by the end of March, 2020."
All drilling at the Premier Gold Project to date
was undertaken from surface which is less expensive than
underground drilling. A significant portion of future infill
programs will likely be conducted from underground. The
reduction in Inferred Resources at Premier was a result of the
upgrading a portion of the Inferred Resource to the Indicated
category. The remainder of the resource in the Inferred
Category is available to be upgraded to the Measured and Indicated
Categories with a future drill program.
- 43-101 Technical Report to be filed in 45 days as noted in
Table 1
- 43-101 Technical Report dated November 22, 2019 (at 3.0g/t
cut-off grade) Red Mountain M&I 3.19Mt @ 7.63g/t Au and 21.0g/t
Ag, Red Mountain Inferred 0.4Mt @ 5.32g/t Au and 7.3g/t Ag
2020 Mineral Resource Estimate at
Premier Gold Project
In August of 2019, the Company engaged Ms. Sue
Bird, P.Eng. of Bird Resource Consulting Corp. (“BRCC”) to prepare
an updated Mineral Resource estimate for the Premier Project. The
new estimate incorporates the drill results form the 2019 field
season and required an update to the modeled mineralized zones and
the modelling methodology for Premier, Big Missouri and Silver Coin
to accommodate the results from the new drill holes in these three
areas.
Table 1: Mineral Resources at
PGP reported at a 3.5g/t AuEq cut-off (effective date of December
12, 2019).
Class |
Deposit |
In situ Tonnes000's |
Average In situ Grades |
Contained oz (000's) |
Au g/t |
Ag g/t |
AuEq g/t |
Au |
Ag |
AuEq |
Indicated |
Premier |
1,298 |
8.46 |
64.2 |
8.90 |
353 |
2,680 |
372 |
Big Missouri |
1,116 |
8.36 |
16.9 |
8.48 |
300 |
607 |
304 |
Silver Coin |
1,597 |
7.61 |
23.0 |
7.77 |
390 |
1,181 |
399 |
Martha Ellen |
130 |
5.47 |
48.0 |
5.80 |
23 |
201 |
24 |
Total Indicated |
All Above |
4,141 |
8.01 |
35.1 |
8.25 |
1,066 |
4,669 |
1,099 |
Inferred |
Premier |
1,753 |
6.72 |
39.8 |
7.00 |
379 |
2,243 |
394 |
Big Missouri |
1,897 |
8.34 |
14.7 |
8.44 |
508 |
896 |
515 |
Silver Coin |
523 |
7.03 |
23.2 |
7.19 |
118 |
390 |
121 |
Martha Ellen |
653 |
6.12 |
34.3 |
6.36 |
129 |
720 |
134 |
Dilworth |
235 |
6.13 |
56.0 |
6.51 |
46 |
424 |
49 |
Total Inferred |
All Above |
5,061 |
7.25 |
28.7 |
7.45 |
1,180 |
4,673 |
1,213 |
Notes for Table 1:
- Mineral Resources are estimated at a cut-off grade of 3.5 g/t
AuEq based on metal prices of US$1,300/oz Au and US$20/oz Ag.
- The AuEq values were calculated using US$1,300/oz Au, US$20/oz
Ag, a silver metallurgical recovery of 45.2%, and the following
equation: AuEq(g/t) = Au(g/t) + 45.2% x Ag(g/t) x 20 / 1,300
- A mean bulk density of 2.84 t/m3 is used for Premier and of
2.80 t/m3 for all other deposit areas
- A minimum mining width of 2.5 m true thickness is required in
order to be classified as Resource material
- Numbers may not add due to rounding.
The two tables below compare the current
Resource Estimate to the previous estimate (see NR Dec 3, 2018),
highlighting the changes in tonnage, gold grade and contained gold
ounces due to the new drilling and geology updates.
Table 2: Comparison of the
Resources at PGP in the Indicated Category reported at a 3.5g/t
AuEq cut-off
Deposit |
In situ Tonnes000's |
Tonnage Change from 2018 |
In situ Grade |
Contained oz (000's) |
Au g/t |
Change from 2018 |
Au |
Change from 2018 |
Premier |
1,298 |
+4% |
8.46 |
+21% |
353 |
+26% |
Big Missouri |
1,116 |
+107% |
8.36 |
+2% |
300 |
+111% |
Silver Coin |
1,597 |
+86% |
7.61 |
-5% |
390 |
+76% |
Martha Ellen |
130 |
0% |
5.47 |
0% |
23 |
0% |
Total |
4,141 |
+49% |
8.01 |
+7% |
1,066 |
+60% |
Table 3: Comparison of the Resources at PGP in
the Inferred Category reported at a 3.5g/t AuEq cut-off
Deposit |
In situ Tonnes000's |
Tonnage Change from 2018 |
In situ Grade |
Contained oz (000's) |
Au g/t |
Change from 2018 |
Au |
Change from 2018 |
Premier |
1,753 |
+1% |
6.72 |
+13% |
379 |
+14% |
Big Missouri |
1,897 |
-16% |
8.34 |
+1% |
508 |
-15% |
Silver Coin |
523 |
-55% |
7.03 |
-10% |
118 |
-59% |
Martha Ellen |
653 |
0% |
6.12 |
0% |
129 |
0% |
Dilworth |
235 |
0% |
6.13 |
0% |
46 |
0% |
Total |
5,061 |
-16% |
7.25 |
+1% |
1,180 |
-15% |
Notes for Tables 2 and 3:
- Comparison to 43-101 Technical Report dated January 17,
2019
- Mineral Resources are estimated at a cut-off grade of 3.5 g/t
AuEq based on metal prices of US$1,300/oz Au and US$20/oz Ag.
- Percent differences are calculated as: (2020-2018)/2018 %
- The AuEq grade was calculated using the same parameters as the
last Resource Estimate for comparison purposes
- The AuEq values were calculated using US$1,300/oz Au, US$20/oz
Ag, a silver metallurgical recovery of 45.2%, and the following
equation: AuEq(g/t) = Au(g/t) + 45.2% x Ag(g/t) x 20 /
1,300
- A mean bulk density of 2.84 t/m3 is used for Premier and of
2.80 t/m3 for all other deposit areas
- A minimum mining width of 2.5 m true thickness is required in
order to be classified as Resource material
- Numbers may not add due to rounding.
Sensitivity to Cut-off Grade
Table 4: Grade Sensitivity Analysis of the PGP
Resource with the Base case at a cut-off of 3.5g/t AuEq highlighted
(effective date of December 12, 2019) - Indicated.
Cut-Off(g/t AuEq) |
In situ Tonnage(t) |
In situ Grades |
Contained oz (000's) |
Au(g/t) |
Ag(g/t) |
AuEq(g/t) |
Au(koz) |
Ag(koz) |
AuEq(koz) |
5.0 |
2,545 |
10.53 |
42.0 |
10.82 |
861 |
3,439 |
885 |
4.5 |
2,954 |
9.70 |
40.0 |
9.98 |
921 |
3,797 |
948 |
4.0 |
3,483 |
8.85 |
37.6 |
9.11 |
990 |
4,215 |
1,020 |
3.5 |
4,141 |
8.01 |
35.1 |
8.25 |
1,066 |
4,669 |
1,099 |
3.0 |
4,958 |
7.20 |
32.7 |
7.43 |
1,148 |
5,207 |
1,184 |
2.5 |
6,015 |
6.39 |
30.1 |
6.60 |
1,237 |
5,825 |
1,277 |
Table 5: Grade sensitivity analysis of PGP
Resources with the Base case cut-off of 3.5g/t AuEq highlighted
(effective date of December 12, 2019) - Inferred.
Cut-Off(g/t AuEq) |
Tonnage(t) |
In situ Grades |
Contained oz (000's) |
Au(g/t) |
Ag(g/t) |
AuEq(g/t) |
Au(koz) |
Ag(koz) |
AuEq(koz) |
5.0 |
2,890 |
9.74 |
31.7 |
9.96 |
905 |
2,942 |
925 |
4.5 |
3,364 |
9.01 |
31.0 |
9.22 |
974 |
3,352 |
998 |
4.0 |
4,071 |
8.15 |
30.0 |
8.36 |
1,067 |
3,925 |
1,094 |
3.5 |
5,061 |
7.25 |
28.7 |
7.45 |
1,180 |
4,673 |
1,213 |
3.0 |
6,176 |
6.51 |
27.2 |
6.70 |
1,292 |
5,402 |
1,329 |
2.5 |
7,565 |
5.79 |
26.1 |
5.97 |
1,408 |
6,342 |
1,452 |
Note for Tables 4 and 5:
- Mineral Resources are estimated at a cut-off grade of 3.5 g/t
AuEq based on metal prices of US$1,300/oz Au and US$20/oz Ag.
- The AuEq values were calculated using US$1,300/oz Au, US$20/oz
Ag, a silver metallurgical recovery of 45.2%, and the following
equation: AuEq(g/t) = Au(g/t) + 45.2% x Ag(g/t) x 20 / 1,300
- A mean bulk density of 2.84 t/m3 is used for Premier and of
2.80 t/m3 for all other deposit areas
- A minimum mining width of 2.5 m true thickness is required in
order to be classified as Resource material
- Numbers may not add due to rounding.
Methodology
The Resource Estimate is based on 4,692 drill
holes (2,253 Ascot holes) for in excess of 735,000 metres of
drilling (Ascot holes account for 507,000 metres of that total).
The geological models for all five deposit areas at PGP
consist of interpreted shapes of mineralized zones and of
post-mineral porphyry dikes and faults. Mineralization within
each of the deposits is interpreted to have been emplaced by
sub-vertical structures which acted as conduits to fluid
flow.
In accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”), an
updated technical report for the Premier Project will be filed on
SEDAR and the Company’s web site within 45 calendar days of this
disclosure.
Figure 1 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1584b5c7-b541-4b64-9c4a-2efbf493e363.
Map of Ascot’s Premier Gold Project showing the relative location
of the various resource areas described in this release and the
existing infrastructure in the area.
The mineralized zone shapes have been built as
AuEq grade shells which conform to the general strike and dip of
the geologic modelling. Grade shells have been created by manual
tagging of assay intercepts with an AuEq grade of equal to or
greater than approximately 2.0g/t AuEq and a possible true
thickness of greater than 2.0 m to 2.5 m. This has been done
to include intercepts below the resource cut-off grade of 3.5g/t
AuEq in order to increase continuity of the mineralized solids, and
to include internal dilution in the interpolations. The
tagged intercepts were then used with the Implicit Modelling Tool
in MineSight (MSIM®) to create solids of mineralized shapes.
A total of 83 zones for Big Missouri, 99 zones for Premier, and 90
zones for Silver Coin have been re-modelled for the Resource
update, with Martha Ellen and Dilworth remaining the same as the
January, 2019 Resource.
Assay sample lengths varied across the drill
programs with the majority of sampling being at one metre intervals
within the potentially mineralized zones. Therefore, a base
composite length of one metre has been used for all three
deposits. Assay data has been coded with a domain value
corresponding to the mineralized shapes prior to compositing and
the domain code has been honoured during compositing and
interpolating. Any assay interval within a domain that was
less than 0.5 m was composited with the interval above it,
resulting in a length range from 0.5 m to 1.5 m.
Block dimensions are 3m x 3m x 3m. The
block model is defined as a Multiple Percent Model, with up to two
mineralized zones per block and two associated block percent
items.
Variogram modelling was not effective at
defining anisotropy due to varying orientations of the mineralized
zones, and to the multiple stacked lens nature of the
mineralization, resulting in too few data pairs in each zone.
Therefore, the orientation of anisotropy has been obtained from the
orientation of the zone itself. Interpolation has been done
using five passes of inverse distance cubed (ID3) in all cases.
The blocks were classified according to CIM
(2014) definitions as follows:
- All Classified material must be within a modeled shape with a
minimum minable true thickness of 2.5m.
- Blocks within an anisotropic search ellipse with dimensions of
100mx100mx15m are assigned a preliminary classification of
Inferred.
- Indicated blocks are required to meet at least one of the
following criteria:
- The average distance to the nearest 3 drill holes is less than
35m with none further than 35m, and there are samples from at least
2 “split quadrants to limit any potential extrapolation, or
- the average distance to the nearest two drill holes is less
than 17.5 m, and there are samples from at least 2 “split
quadrants”, or
- the distance to the nearest drill hole is less than 10m and at
least 2 drill holes have been used in the estimate.
A cut-off grade of 3.5 g/t AuEq was applied to
the block model for reporting of Mineral Resources. This
cut-off grade was derived from a preliminary analysis of current
mining and processing costs for underground mining operations.
The Resource QP is not aware of any
environmental, permitting, legal, title, taxation, socio-economic,
marketing, political, or other relevant factors that could
materially affect the Mineral Resource estimate for Premier, Big
Missouri, Martha Ellen, Dilworth, or Silver Coin properties.
Next Steps
The 2019 drill program increased the gold ounces
in the Indicated category at Premier Gold Project by 60%.
Many areas of the remaining modelled Inferred resources for
these three deposit areas require deeper drilling which can be more
efficiently drilled from underground. Additional drilling to
convert Inferred resources to the M&I category will be
conducted from underground. Lastly, the new resource base will be
used for a feasibility level study to evaluate the economic
viability of the project.
Upcoming Events
Ascot will be at the GCFF Vancouver Resource
Investment Conference held at the Executive Airport Plaza Hotel
Richmond, Saturday January 18 with members of management who can
speak Mandarin and Cantonese.
Management will also be at Cambridge House
Vancouver Investor Conference from January 19-20. CEO,
Derek White will be hosting a workshop at the VRIC from 11:30 AM -
11:40 AM on Monday January 20 at the Convention Centre (Workshop
5). Ascot will also be at the Roundup in Vancouver from January
20-21.
For more information about the Company, please
refer to the Company’s profile on SEDAR at www.sedar.com or visit
the Company’s web site at www.ascotgold.com, or for a virtual tour
visit www.vrify.com under Ascot Resources.
Qualified Persons
Sue Bird, P. Eng. of BRCC is an independent
“qualified person” (as defined in NI 43-101) responsible for this
mineral Resource Estimate. Ms. Bird has conducted independent data
verification relating to drill hole location and orientation,
sampling methodology, assay QA/QC and database integrity and found
the results satisfactory. Ms. Bird acknowledges that she has
reviewed the technical content presented in this news release and
approved the written disclosure.
Quality Assurance/Quality
Control
Lawrence Tsang, P. Geo., the Company’s Senior
Geologist provides the field management for the Premier exploration
program. John Kiernan, P. Eng., Chief Operating Officer of the
Company is the Company’s Qualified Person (QP) as defined by
National Instrument 43-101 and has reviewed and approved the
technical contents of this news release.
Analytical work is being carried out by SGS
Canada Inc (“SGS”). Ascot’s quality-assurance and quality-control
program includes the use of analytical blanks to monitor for cross
contamination, certified reference material standards to assess
analytical accuracy, and duplicate samples to quantify sampling
precision. This is in addition to the internal quality
assurance program employed by SGS.
Samples are dried and weighed by SGS. They
are then crushed to 75% passing 2mm, with 250g split and pulverized
to 85% passing 75µm. Samples are processed on site by a
mobile lab supplied by SGS and run by SGS personnel. All splits are
sent to SGS in Burnaby. There, all samples are digested using
aqua-regia with an ICP-AES finish and fire assay with AA finish for
gold. Samples over 100ppm silver are digested with aqua regia and
then volumetrically diluted before an ICP-AES or AA finish (up to
1,500ppm). Samples over 1,500ppm silver are fire assayed with
a gravimetric finish. Samples over 10ppm gold are fire assayed with
a gravimetric finish. Identified or suspected metallic gold
or silver are subjected to “metallics” assays. Sampling and
storage are at the Company’s secure facility in Stewart.
ON BEHALF OF THE BOARD OF DIRECTORS OFASCOT RESOURCES
LTD.
“Derek C. White”, President and
CEO
For further information contact:Kristina Howe
VP, Investor Relations 778-725-1060 / khowe@ascotgold.com
About Ascot Resources
Ltd. Ascot is a Canadian-based junior exploration
company focused on re-starting the past producing historic Premier
gold mine, located in British Columbia's Golden Triangle. The
Company continues to define high-grade resources for underground
mining with the near-term goal of converting the underground
resources into reserves, while continuing to explore nearby targets
on its Premier/Dilworth and Silver Coin properties (collectively
referred to as the Premier Gold Project). Ascot's acquisition
of IDM Mining added the high-grade gold and silver Red Mountain
Project to its portfolio and positions the Company as a leading
consolidator of high-quality assets in the Golden Triangle.
The TSX Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding Forward-Looking
Information
All statements, trend analysis and other
information contained in this press release about anticipated
future events or results constitute forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as “seek”, “anticipate”, “believe”, “plan”,
“estimate”, “expect” and “intend” and statements that an event or
result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. All statements, other than
statements of historical fact, included herein are forward-looking
statements. Although Ascot believes that the expectations reflected
in such forward-looking statements and/or information are
reasonable, undue reliance should not be placed on forward-looking
statements since the Ascot can give no assurance that such
expectations will prove to be correct. These statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those
anticipated in such forward-looking statements, including the
risks, uncertainties and other factors identified in the Ascot’s
periodic filings with Canadian securities regulators, and
assumptions made with regard to: the estimated costs associated
with construction of the Premier and RMP Projects; the timing of
the anticipated start of production at the Premier and RMP
Projects; the ability to maintain throughput and production levels
at the Premier Mill. Forward-looking statements are subject to
business and economic risks and uncertainties and other factors
that could cause actual results of operations to differ materially
from those contained in the forward-looking statements. Important
factors that could cause actual results to differ materially from
Ascot’s expectations include risks associated with the business of
Ascot; risks related to exploration and potential development of
Ascot’s projects; business and economic conditions in the mining
industry generally; fluctuations in commodity prices and currency
exchange rates; uncertainties relating to interpretation of drill
results and the geology, continuity and grade of mineral deposits;
the need for cooperation of government agencies and native groups
in the exploration and development of properties and the issuance
of required permits; the need to obtain additional financing to
develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and
other governmental approvals; and other risk factors as detailed
from time to time and additional risks identified in Ascot’s
filings with Canadian securities regulators on SEDAR in Canada
(available at www.sedar.com). Forward-looking statements are based
on estimates and opinions of management at the date the statements
are made. Ascot does not undertake any obligation to update
forward-looking statements.
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