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Ascot completes Silver Coin property acquisition

2018-10-29 10:40 ET - News Release

See News Release (C-AOT) Ascot Resources Ltd

Mr. Derek White of Ascot reports


Ascot Resources Ltd. has completed the previously announced purchase of the Silver Coin property located immediately adjacent to Ascot's Big Missouri project in northwestern British Columbia held by Jayden Resources Inc. and Mountain Boy Minerals Ltd.

Derek White, president and chief executive officer of Ascot, commented: "Ascot's neighbouring infrastructure creates key synergies with the Silver Coin project. Ascot's existing resources, together with the expected Silver Coin resources, will form the initial resource base for our ongoing engineering studies. In 1991, Silver Coin ore was processed at Ascot's Premier mill and the metallurgical characteristics of the ore are well understood. The consolidated ownership of the Big Missouri Ridge (shown below) creates an exciting platform for future exploration success in this geologically prospective area."

Pursuant to the share purchase agreement with Jayden, Ascot has acquired all of the issued and outstanding shares of Jayden's subsidiary, Jayden Resources (Canada) Inc., in exchange for 14,987,497 Ascot common shares. In addition, Ascot issued 192,000 additional Ascot shares for the settlement of options and warrants exercised before the closing date with the net cash proceeds of the warrants accruing to Ascot. Jayden Canada owned an 80-per-cent joint venture interest in Silver Coin pursuant to a joint venture agreement with Mountain Boy. Ascot has also acquired the remaining 20-per-cent joint venture interest in Silver Coin held by Mountain Boy in exchange for 3,746,874 Ascot shares. In addition, Ascot issued 48,000 additional Ascot shares to Mountain Boy for the settlement of Jayden options and warrants that were exercised before closing.

Certain shareholders of Jayden and all of the officers and directors of Jayden have entered into voting support agreements with Ascot, whereby they have agreed to restrict trading of Ascot shares distributed by Jayden to its shareholders pursuant to the transaction for a period of six months following closing of the transaction. The locked-up shareholders own or have control or direction of over approximately 31.4 per cent of the current issued and outstanding shares of Jayden.

The Silver Coin project

Silver Coin is an advanced-stage, gold-silver property located 25 kilometres north of Stewart, B.C., 800 metres from Ascot's Big Missouri project and five kilometres away from the Premier mill. Mineralization is characterized as epithermal gold-silver deposit with base metal sulphide-bearing breccias and veins similar to those mined at the Premier mine. The total historical mineral resource estimate for the high-grade core of the orebody consists of 702,000 tonnes grading 4.46 grams per tonne gold in the indicated category and 967,000 tonnes grading 4.39 grams per tonne gold in the inferred category as set forth in the report titled "NI 43-101 Technical Report on the Silver Coin Project, August 2013," prepared for Jayden by Mining Plus Canada with an effective date of Aug. 23, 2013. The resource estimate was stated at a cut-off grade of two grams per tonne gold. In 1991, Westmin Resources mined the Facecut-35 zone and extracted 102,539 tonnes of material grading 8.9 grams per tonne gold and 55.5 grams per tonne silver for an equivalent grade of 9.28 grams per tonne gold equivalent. The gold recovery for this material was 92.9 per cent and the silver recovery was 45.7 per cent. The project has room for expansion of the mineralized zones and significant exploration potential for additional zones.

A qualified person under National Instrument 43-101 has not done sufficient work to classify the Silver Coin project resource estimate as a current mineral resource, and Ascot is not treating this historical estimate as a current mineral resource.

John Kiernan, PEng, is the company's qualified person as defined by NI 43-101 and has reviewed and approved the technical contents of this news release.

About Ascot Resources Ltd.

Ascot Resources is a gold-and-silver-focused exploration company with a portfolio of advanced and grassroots projects in the Golden Triangle region of British Columbia. The company's flagship Premier project is a near-term high-grade advanced exploration project with large upside potential.

We seek Safe Harbor.

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