Ascot Signs New Option Agreement
June 15 2009 - 10:47AM
Marketwired Canada
Ascot Resources Ltd. (TSX VENTURE:AOT) is pleased to announce the signing of an
Option Agreement to purchase all of the assets of the Premier Gold Mine held by
Boliden Ltd. in the Premier Gold Camp, north of Stewart, British Columbia in the
Cassiar Mining District (to view land map please click on the following link:
http://media3.marketwire.com/docs/AOT0615.pdf).
The Premier Gold Mine is a historical producer of 2 million ounces of gold and
42.8 million ounces of silver, until operations were suspended in 1996.
Ascot plans an extensive $3 million surface and underground exploration program
for 2009, to expand the historic geological gold reserves stated by Westmin
Resources Limited (the mine owner prior to Boliden Ltd.) in a news release,
dated February 5th 1997; quoted below:
Westmin is pleased to report that two successful 1996 programs of
underground drilling at Premier, totaling approximately 50,000 feet,
have substantially increased geological reserves. As of January 1,
1997 (geological) reserves are as follows:
------------------------------------------------------------------------
Geological Reserves
-------------------
Gold Gold Silver
Grade Grade Grade Zinc
Reserve (cut) (uncut) (uncut) Grade
Category Tons (oz/ton) (oz/ton) (oz/ton) (%)
------------------------------------------------------------------------
Proven/ Probable
Diluted 386,000 0.21 0.27 1.1 1.6
Possible Not
Undiluted 123,000 0.25 0.29 0.8 calculated
- All individual assays greater than 1 oz/ton reduced to 1 oz/ton.
------------------------------------------------------------------------
These reserves were defined by partially testing the potential outlined
in a Resource Evaluation Study, completed in February 1996. That study
inferred a reserve potential of 1,122,000 tons at a gold grade of 0.23 oz
per ton, located in several target areas. It is significant that areas
representing only a small portion of the tonnage identified in the
Resource Evaluation Study were tested by the 1996 drilling programs. The
portion that was drill tested returned not only more than twice the
projected tonnage of reserves (in all three categories), but also a gold
grade 8% higher than expected.
This recently completed program, which led to the reserve expansion, was
conducted by Westmin during the period April to December, 1996 - when
Premier mining was suspended for lack of ore. This reserve increase and
the additional demonstrated potential should support an early restart to
Premier. The operation has a modern and efficient CIL milling facility
and permitted tailings pond. Access to the reserves is good through
extensive underground workings so that development capital required would
be low.
It should be noted that:
i) A qualified person has not done sufficient work to classify these historical
estimates as a current mineral resources or mineral reserves.
ii) The Company is not treating the historical estimates as a current mineral
resources or mineral reserves as defined in NI 43-101.
iii) These historic estimates should not be relied upon.
The Option Agreement is subject to approval by the TSX Venture Exchange. In
order for the Company to purchase all of the assets of the Premier Gold Mine it
must make the following payments:
a) $100,000 within ten days of the later of the Execution Date and the approval
of this agreement by the TSX Venture Exchange.
b) $100,000 on or before the first anniversary of the Execution Date.
c) $100,000 on or before the second anniversary of the Execution Date.
d) $20,000,000 on or before October 1, 2012.
In order for the Company to exercise the Option it must:
a) Have made all the above noted payments.
b) Have exercised its option to acquire certain mineral claims under its option
agreement dated March 2007 - see news release March 28, 2007. The terms of the
2007 option agreement have been amended to make the second anniversary payment,
payable in two equal installments over a two year period, to defer the third
year anniversary payment to year four and to extend the closing date to October
1, 2012.
c) Grant Boliden Limited a 1% Net Smelter Royalty, and the first right to
purchase at market prices all base metal concentrates produced from the
Property.
The Qualified Person responsible for review of the technical data in this news
release is K.M. Carter, P.Geo a director of the Company.
ON BEHALF OF THE BOARD OF DIRECTORS OF ASCOT RESOURCES LTD.
John A. Toffan, President and Director
Statements contained in this news release that are not historical fact, such as
statements regarding the economic prospects of Ascot's projects, Ascot's future
plans or future revenues, timing of development or potential expansion or
improvements, are forward-looking statements. Such forward-looking statements
are subject to risks and uncertainties which could cause actual results to
differ materially from estimated results. Such risks and uncertainties include,
but are not limited to, Ascot's ability to raise sufficient capital to fund
development, changes in economic conditions or financial markets, changes in
prices for Ascot's mineral products or increases in input costs, litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments in Canada or the United States, technological and
operational difficulties or inability to obtain permits encountered in
connection with our exploration and development activities, labour relations
matters, and changing foreign exchange rates.
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