Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) is pleased to provide an update on the
development, financing, and exploration of the Premier Gold Project
(“
PGP” or the “
project”), located
on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of
northwestern British Columbia.
Construction has been significantly advanced in
many key project areas including detailed engineering, work in and
around the mill building, the new water treatment plant clarifier
foundation, the tailings storage facility and Cascade Creek
Diversion Channel (“CCDC”), the Big Missouri water
discharge pipeline, and portal establishment and initial
underground mine development at the Big Missouri deposit.
As noted in the Company’s news release dated
April 4, 2022, the Company needed to secure full alternative
funding in order to avoid putting certain work packages on hold.
Specifically, before the end of June the construction of the
tailings dam and new water treatment plant required full commitment
as these activities are limited to summer construction. The Company
has been working with a growing number of potential financing
partners including project lenders and streaming/royalty companies.
These discussions are ongoing and the Company is confident a
financing solution can be achieved in the foreseeable future. Until
this funding is secured and in order to preserve Ascot’s current
cash balance (as of May 31, 2022, unaudited balance of C$72M), the
Company will begin decelerating various construction activities and
placing certain work packages on hold.
Importantly, the underground mine development
work and exploration program will remain on track. The deceleration
of project construction will provide more time for mine plan and
sequencing optimization, and will enable exploration drilling to
determine the size extent and high-grade continuity of the emerging
Sebakwe Zone at the Premier deposit. Given the delays in
construction areas which require seasonal conditions, the target
for first gold pour will be delayed from the first quarter of 2023
until between late 2023 and early 2024. Ascot will be developing a
more detailed construction sequence based on this new timeline and
will continue to assess any potential cost implications associated
with this delay.
Derek White, President and CEO, commented, "We
have made significant advancements in many project areas so far
this construction season, especially in the establishment of the S1
portal and initial underground development, with very good rock
conditions boding well for underground development rates. In
addition, early indications from exploration drilling at the
emerging Sebakwe Zone, including the occurrence of significant
amounts of coarse, visible gold in a number of holes, have so far
been very encouraging.
In the current inflationary environment and
challenging financial markets, the Company is seeking a financing
package to provide sufficient capital to complete the project and
commence production at PGP. The Company has a limited weather
window to conduct certain outdoor construction activities and needs
to ensure it has sufficient funding to complete these activities
and the rest of the project. Since the Company has not completed
alternative financing at this time, the decision was made to delay
certain construction activities until the next weather window and
focus financial resources on mining development and exploration
activities.
We are disappointed to have to slow down the
pace of project construction while we actively pursue alternative
financing options for the remaining construction work at PGP. We
have been approached by many interested parties and have progressed
to advanced due diligence with various lenders and
streaming/royalty companies. Although more time is required to
secure this funding, all potential financiers have expressed their
continued interest.”
PROJECT DEVELOPMENT
-
Underground development: Portal construction
started in April 2022 and after mine services such as compressed
air, water, and ventilation were established, underground ramp
development began in May. To date, underground development into the
Big Missouri deposit has advanced approximately 115 metres. The
rock quality has been good so far, which bodes well for development
advance rates. In single heading underground development, crews
have achieved seven days of over 6.0 metres/day and four days of
over 7.0 metres/day. Development is now approximately 180 metres
from reaching the initial ore stopes at Big Missouri deposit in the
A Zone. The underground development originally planned for 2022
will continue unabated, as it is a core de-risking activity for the
project and will enable access to ore areas and further stope
definition drilling from underground.
Figure 1 – Underground development
heading at Big
Missouri https://www.globenewswire.com/NewsRoom/AttachmentNg/0eda43aa-41dd-46f6-8908-af39052c759c
- Mill
interior and exterior construction: Following the
installation of the Ball and SAG mills in 2021, the Ball and SAG
mill motors have now been installed. The main transformer has been
installed and the high voltage power line has been established to
the mill building. Most mill building electrical systems and the
MCCs have been installed. The Falcon gravity concentrator has been
delivered. The mine dry, washrooms, offices, and workshop areas
have been installed and are being used. Outside the mill building,
earth works, foundation, and erection work has been done on the
tailings thickener and cyanide destruction tanks. Most of the
activities in and around the mill building will be placed on hold
until alternative financing is arranged, with a plan to restart in
the Spring of 2023.
Figure 2 – Tailings thickener erection
outside mill
building https://www.globenewswire.com/NewsRoom/AttachmentNg/b1312c95-3554-4bcf-9ec6-d790ce746e9a
Figure 3 – Tailings thickener and
cyanide destruction tank erection outside mill
building https://www.globenewswire.com/NewsRoom/AttachmentNg/9d0eb878-1cc9-45ef-9fa4-452b96e49565
- New
water treatment plant: Excavation of the location for the
new water treatment plant clarifier was done in 2021. Recently the
foundation pad was prepared, and significant progress has been made
on the 42-meter clarifier foundation and pedestals. The foundation
for the Moving Bed Bio Reactor has also been completed. Work on the
new water treatment plant will be placed on hold until alternative
financing is arranged, with a plan to restart in the Spring of
2023.
Figure 4 – New water treatment plant
clarifier and lime tank
foundations https://www.globenewswire.com/NewsRoom/AttachmentNg/15e0ead7-20d4-469f-89fc-276d67f4e5e7
- Tailings
facility earthworks: Earth works have continued on
excavating the CCDC the material from which is being transported to
the south dam of the tailings facility in order to achieve a 2:1
slope. These earth works activities will be placed on hold until
alternative financing is arranged, with a plan to restart in the
Spring of 2023.
Figure 5 – Tailings facility south dam
earthworks https://www.globenewswire.com/NewsRoom/AttachmentNg/eabb136b-14f9-441e-a857-4d532e3423cc
Figure 6 – Cascade Creek diversion
channel
excavation https://www.globenewswire.com/NewsRoom/AttachmentNg/2044c8c8-1841-4196-a5d8-fcd3aaf27ea4
EXPLORATION PROGRAM
Ascot announced the start of its 18,000 metre
exploration drill program last month (see News Release dated May 9,
2022), with drilling commencing on the Sebakwe Zone first. An
initial 12 holes have been drilled this season from the same
surface pad used for the first two holes in October 2021. Assays
are still pending for these 12 new holes, but early visual
indications are encouraging for the continued growth of the Sebakwe
Zone. In particular, drill hole P22-2393 intersected a significant
amount of coarse, visible gold (“VG”) at a depth
of 316 metres, which corresponds with the predicted depth of the
Sebakwe structure in that location. The targeted quartz-breccia
veins were intersected at predicted intervals, and while assays are
pending, the structures are now known to be present over a strike
extent of 70 metres and a vertical extent of 120 metres.
Figure 7 – VG in hole P22-2393 at the
Sebakwe
Zone https://www.globenewswire.com/NewsRoom/AttachmentNg/002f4de4-a26c-4ffa-afd9-d7bc24ce8e27
Figure 8 – Northwest looking image of
the current drill pattern at Sebakwe showing completed and planned
drill holes. Quartz breccia intervals with sulfides in the
completed drill holes are shown in red. The approximate location of
the VG intercept is also
indicated. https://www.globenewswire.com/NewsRoom/AttachmentNg/8a20a8ab-b6d4-482e-8eea-38455ebe7297
2022 AGM PRESENTATION
WEBCAST
Ascot’s Annual General Meeting
(“AGM”) is taking place today at 10:00 AM PST.
Please join President & CEO Derek White for a presentation via
webcast at 1:15 PM PST for the results of the AGM and an overview
of Ascot’s progress and plans in 2022. Please join 5 to 10 minutes
prior to the scheduled time.Webcast:
http://services.choruscall.ca/links/ascot20220623.htmlTelephone:
toll free Canada/USA 1‐800‐319‐4610; International
1‐604‐638‐5340
Qualified Person
Lawrence Tsang, P.Geo., the Company’s Senior
Geologist provides the field management for the PGP 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.
On behalf of the Board of Directors of
Ascot Resources Ltd.“Derek C. White”President &
CEO
For further information
contact:
David Stewart, P.Eng. VP, Corporate Development &
Shareholder
Communications dstewart@ascotgold.com 778-725-1060 ext.
1024
About Ascot Resources Ltd.
Ascot is a Canadian junior exploration and
development company focused on re-starting the past producing
Premier gold mine, located on Nisga’a Nation Treaty Lands, in
British Columbia’s prolific Golden Triangle. Ascot shares trade on
the TSX under the ticker AOT. Concurrent with progressing the
development of Premier, the Company continues to successfully
explore its properties for additional high-grade underground
resources. Ascot is committed to the safe and responsible
development of Premier in collaboration with Nisga’a Nation as
outlined in the Benefits Agreement.
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.
The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding
Forward-Looking Information
All statements and other information contained
in this press release about anticipated future events may
constitute forward-looking information under Canadian securities
laws ("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",
"targeted", "outlook", "on track" 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, including statements in respect of the
pursuit of alternative project financing solutions, the advancement
and development of the PGP and the timing related thereto, the
exploration of the Company’s properties and management’s outlook
for the remainder of 2022 and 2023. 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 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 indigenous 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; risks associated with COVID-19 including adverse impacts
on the world economy, construction timing and the availability of
personnel; and other risk factors as detailed from time to time in
Ascot's filings with Canadian securities regulators, available on
Ascot's profile on SEDAR at www.sedar.com including the Annual
Information Form of the Company dated March 21, 2022 in the section
entitled "Risk Factors". Forward-looking statements are based on
assumptions made with regard to: the estimated costs associated
with construction of the Project; the timing of the anticipated
start of production at the Project; the ability to maintain
throughput and production levels at the Premier Mill; the tax rate
applicable to the Company; future commodity prices; the grade of
Resources and Reserves; the ability of the Company to convert
inferred resources to other categories; the ability of the Company
to reduce mining dilution; the ability to reduce capital costs; and
exploration plans. Forward-looking statements are based on
estimates and opinions of management at the date the statements are
made. 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 Ascot can give no assurance that such expectations will prove
to be correct. Ascot does not undertake any obligation to update
forward-looking statements. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement.
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