Ascot Files Feasibility Study to Restart the Premier Mill
May 22 2020 - 5:30PM
Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) is pleased to announce that it has
filed on SEDAR the Premier & Red Mountain Gold Project
Feasibility Study NI 43-101 Technical Report
(“
FS”) prepared by Sacre-Davey Engineering Inc. as
previously announced on April 15, 2020 (see press release at
https://ascotgold.com/news-releases/2020/ascot-reports-robust-feasibility-study-with-after-tax-irr-of-51/.)
The FS, prepared for the Company’s 100% owned
Premier and Red Mountain Gold Project (the
"Project") located in the Golden Triangle near
Stewart, British Columbia, Canada, supports robust economics
including Base case After-tax NPV5% of C$341 million and IRR
51% (based on US$1400/oz gold price, $17/oz silver price and CAD to
US exchange rate of 0.76.) The FS is based on a proven and
probable reserve of 6.2 million tonnes (“Mt”) from
the Project. In addition to the reserves, the Company has
inferred resources of 5.1Mt at 7.25 grams per tonne
(“g/t”) gold at Premier, with approximately 2.2Mt
of this resource material at similar grade, near the planned
development, which may potentially be converted to reserves during
operations.
Ascot’s President and CEO, Derek White
commented, “The feasibility study is very robust at the base case
assumptions and given the current strong gold price4 environment,
the after-tax NPV5% increases to over $600 million and IRR to
nearly 80%. This was a huge collaboration and I am proud of
the effort put forth to complete the FS and look forward to
additional optimizations in the future. We are now focused on
advancing our permitting efforts and reviewing various funding
proposals for the Project.”
Notes1. Fully ramped up yrs. @ 2500 tpd in year 3 2. All in
Sustaining Cost ( non GAAP)3. Base Case US$1400/oz. Gold: US CAD
0.764. Spot US$1710/oz Gold, Silver US$15.32/oz :US:CAD 0.71
* Premier & Red Mountain Total Resources M&I of 7.3Mt @
7.85g/t &Inferred of 5.5Mt @ 7.11g/t
Annual General Meeting - As
previously disclosed, with regards to the timing its Annual General
Meeting, the Company is relying on temporary relief measures
provided by the Canadian Securities Administrators ("CSA") and the
Toronto Stock Exchange ("TSX") due to the COVID-19 pandemic. The
Company is also relying on an exemption set out in BC Instrument
51-516 from the requirement under subsection 9.3.1.(1) of NI 51
-102 to file executive compensation disclosure no later than 140
days after the company’s most recently completed financial year
end. The Company will hold its 2020 Annual General Meeting
("AGM") in the second half of 2020. Management continues to monitor
the COVID-19 situation and details for the AGM will be communicated
in due course.
Qualified Persons and NI 43-101
DisclosureJohn 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 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 exploration and development 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.
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, 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, including statements in respect of the closing of the
Private Placement and the use of proceeds. 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 Project; the timing of
the anticipated start of production at the Projects; 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. 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 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 and additional
risks identified in Ascot’s filings with Canadian securities
regulators on SEDAR in Canada (available at www.sedar.com). The
timing of future economic studies; labour disputes and other risks
of the mining industry; delays in obtaining governmental approvals,
financing or in the completion of Project as well as those factors
discussed in the Annual Information Form of the Company dated
March 13, 2020 in the section entitled "Risk Factors", under
Ascot’s SEDAR profile 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.
Note to United States Investors
Concerning Estimates of Measured, Indicated and Inferred
Resources
Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Mineral
resource estimates do not account for mineability, selectivity,
mining loss and dilution. It is reasonably expected that the
majority of inferred mineral resources could be upgraded to
indicated mineral resources with continued exploration; however,
there is no certainty that these inferred mineral resources will be
converted into mineral reserves, once economic considerations are
applied. The mineral resource estimates referenced in this release
use the terms "Indicated Mineral Resources" and "Inferred Mineral
Resources". While these terms are defined in and required by
Canadian regulations (under NI 43-101), these terms are not
recognized by the U.S. Securities and Exchange Commission ("SEC").
"Inferred Mineral Resources" have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and
legal feasibility. The SEC normally only permits issuers to report
mineralization that does not constitute SEC Industry Guide 7
compliant “reserves” as in-place tonnage and grade without
reference to unit measures. U.S. investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into reserves. Ascot is not an SEC
registered company.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bd9f8011-362d-4ebe-b632-c6fcafecedaa
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