Vancouver, B.C. March 18, 2020 — Ascot Resources Ltd (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company“) is pleased to provide the following update on the progress of pre-construction engineering, permitting and exploration for the Premier Gold Project (“PGP“).
Mr. White, President and CEO of Ascot commented, “In April 2020, Ascot announced a CAD $147 million initial capital estimate for the mine development, project construction and refurbishment of the project site. Since this date we have progressed the basic and pre-construction engineering studies and received proposals for construction and equipment from third party vendors. These proposals reflect more up-to-date studies and current market conditions for construction materials, shipping, indirect costs the latest health and safety protocols. After these latest updates the project still remains a low capital cost project.”
The Company previously announced its decision to proceed with the fabrication of the Ball and SAG mills targeting delivery to site by the end of June or early July 2021. During the Basic Engineering studies, the team focused on reducing operating risk by upgrading components of the grinding area and associated electrical requirements. In addition, cost inflation related to steel prices and indirect costs also increased our initial capital estimate. This has resulted in a revised estimate for the initial capital which is approximately 20% higher or a total of CAD $176 million. The 2020 April Feasibility Study highlighted a CAD $341 million after-tax NPV and an after-tax IRR of 51% at US$1,400 per ounce of gold, and an estimated CAD $546 million after-tax NPV and an after-tax IRR of 73% at current gold prices, at US$1,740 per ounce.
At the end of January, the Company submitted its permitting amendment application to the British Columbia regulators. Subsequent to the submission of the permit amendment application, the Company has received and responded to screening comments from both Nisga’a Nation and the various regulatory bodies from the Government of British Columbia. Following the completion of the screening phase the Company expects to proceed to the next phase of the permitting process by the end of March.
Ascot is in the process of planning the construction early works, which involves preparing the cranes for the mill building and demolition of old piping and cabling. This prepares the mill facility to receive the Ball and Sag Mill components. In addition, management is progressing into detailed engineering to support the construction of the project. A number of contractor bids have been received and the Company is engaged in simultaneous discussions for procurement and construction management.
The Company is planning to undertake both underground and surface exploration activities in the upcoming field season. Initial drilling will commence at lower elevation in the Premier West area following up the exciting drill results from last season. As road access becomes available at higher elevations, activities will move to the new areas at Woodbine and the northern and southern extension of the Day Zone. Based on last year’s high-grade results, the Company wants to explore for resources along strike into new areas. Ascot has submitted a Notice of Work for an underground exploration drill program at Big Missouri to test deeper areas that are difficult to explore from surface. The Company will provide a more detailed update on the summer exploration program at a later date.
Qualified Person
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 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.
