20:15:58 EST Tue 29 Nov 2022
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Ascot Resources Ltd
Symbol AOT
Shares Issued 375,675,547
Close 2021-11-08 C$ 1.23
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Ascot Resources loses $1.7-million in Q3 2021

2021-11-08 17:33 ET - News Release

Mr. Derek White reports


Ascot Resources Ltd. has released its unaudited financial results for the three and nine months ended Sept. 30, 2021 (Q3 2021). For details of the unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and nine months ended Sept. 30, 2021, please see the company's filings on SEDAR.

The company is also pleased to provide an update on the status of permitting and predevelopment activities for its 100-per-cent-owned Premier gold project (PGP or the project) in the Golden Triangle of northwestern British Columbia. The B.C. provincial regulating authorities, namely the Ministry of Environment and Climate Change Strategy and the Ministry of Energy, Mines and Low Carbon Innovation (the regulators), have recently issued to Ascot the draft joint permit application amendment (JPAA or permit) conditions for construction and operation of PGP. Ascot is currently reviewing the conditions of the permit and anticipates to negotiate and accept permit terms in the next several weeks, followed by final permit issuance. Receipt of the final permit will then enable commencement of full-scale construction activities including portal preparation and underground development.

Derek White, president and chief executive officer, commented: "Ascot made much headway in advancing the project this past quarter. In July we announced the signing of an updated benefits agreement with Nis g a'a Nation, strengthening our partnership. In August we announced positive exploration results including 21 g/t gold over seven metres in a step-out hole at the Premier deposit. In September we announced the delivery of the Ball and SAG mills and the significant progress made on the early works program, which continues to this day. We are pleased that the permitting process is nearing completion as we recently received the draft permit conditions for the project from the provincial regulators and following negotiation and acceptance of said conditions over the next several weeks, we anticipate final permit issuance which will enable the commencement of full-scale construction including underground development. We look forward to being able to advance the project towards production later next year."

All amounts herein are reported in thousands of Canadian dollars unless otherwise specified.

Q3 2021 and recent highlights

  • Permitting process nearing completion, with the company recently receiving the draft permit conditions.
  • Throughout Q3 and currently, the company has made significant progress on the PGP early works program. Highlights of the progress include:
    • Mill and assay lab cleanup is near completion;
    • Grinding circuit foundations restored;
    • Most Ball and SAG mill components, including the mill shells, have been delivered to site and installed;
    • Electrical cabling was sorted and reusable cable and cable trays were established;
    • Wi-Fi was established by satellite at the mill building;
    • First aid and lunch rooms were established;
    • 45,000-litre diesel fuel tank was installed;
    • Construction of the camp is now completed and the camp has been in full operation since late September;
    • Administration office refurbishment is near completion and expected to be utilized by the construction crews and other personnel in the upcoming weeks;
    • Temporary power has been installed and activated to the mill, including interior and exterior lighting.
    • Rebuilt, tested, and certified mill building overhead crane.
    • Many site roads have been graded and bermed for construction and operations with run away lanes established;
    • New water treatment plant location finalized and clarifier foundational earthworks well progressed;
    • A temporary liner for the Dago pit was installed for waste rock;
    • Tree clearing for Cascade Creek Division Channel is under way.
  • On Aug. 9, 2021, the company announced high-grade exploration drill results including 21.13 grams per tonne Au over 7.00 metres in a step-out hole at PGP.
  • On July 19, 2021, the company announced the signing of an updated benefits agreement with Nisga'a Nation, which now encompasses both PGP and RMP. The updated benefits agreement replaces the former agreement which only pertained to RMP. The comprehensive benefits agreement sets the basis for the long-term success of the project and how it will benefit Nisga'a Nation, its citizens and businesses as well as the shareholders and stakeholders of Ascot.
  • On July 8, 2021, the company announced the discovery of new high-grade copper, gold and silver mineralization at PGP property.
  • The company experienced unprecedented delays in the turnaround times of assay results this field season, which is mainly due to overwhelming large number of samples. The delay is industry wide. With many drill programs now shut down, assay results are anticipated to be available in due course.

Financial results for the three months ended Sept. 30, 2021

The company reported a net loss of $1,700 for Q3 2021 compared with a net income of $682 for Q3 2020. The difference in net loss in Q3 2021 compared with Q3 2020 was mainly driven by a $1,254 change in foreign exchange loss, the absence of a gain on marketable securities, and a $675 decrease in flow-through premium recognition.

Liquidity and capital resources

As at Sept. 30, 2021, the company had cash and cash equivalents balance of $90,037 and working capital of $79,041. Included in cash and cash equivalents is $905, which is required to be spent on flow-through expenditures prior to Dec. 31, 2022. During the nine months ended Sept. 30, 2021, the company issued 97,351,796 common shares and granted 603,190 stock options, 40,781 DSUs and no RSUs.

Management's outlook for remainder of 2021

Management is planning a number of activities for the remainder of 2021, which include:

  • Negotiation and acceptance of permit conditions and final approval of the permit amendments;
  • Commencing the portal preparation for the main underground development for Big Missouri S1 portal;
  • Completing the gravity feed piping system from Big Missouri to the water treatment plant;
  • Commencing the underground development and portal access.;
  • Completing the concrete works outside for the clarifier, tailing thickener, cyanide destruction and various bulk chemical tanks;
  • Continuing with detailed engineering and vendor interface for various procurement items;
  • Completing the tree clearing for the Cascade Creek Diversion Channel.

About Ascot Resources Ltd.

Ascot is a Canadian-based junior exploration and development company focused on restarting the past-producing Premier gold mine, located in British Columbia's prolific Golden Triangle. 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 partnership with Nisga'a Nation as outlined in the benefits agreement.

We seek Safe Harbor.

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