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Ascot Resources Ltd
Symbol AOT
Shares Issued 232,478,810
Close 2020-01-15 C$ 0.81
Recent Sedar Documents

Ascot Resources releases NI 43-101 Premier estimate

2020-01-15 07:40 ET - News Release

Mr. Derek White reports

ASCOT INCREASES INDICATED RESOURCES AT PREMIER GOLD PROJECT BY 60%

Ascot Resources Ltd. has provided an updated resource estimate for the Premier gold project (PGP), including the Silver Coin, Big Missouri and Premier deposits. The company previously released an updated Red Mountain project (RMP) resource estimate dated Nov. 22, 2019.

Highlights

Resources at Premier gold project contained precious metals of:

  • Indicated category: 1,066,000 ounces of gold and 4,669,000 ounces of silver;
  • Inferred category: 1.18 million ounces of gold and 4,673,000 ounces of silver.

Ascot's combined resources for the Premier and Red Mountain projects have total contained precious metals as follows:

  • Measured and indicated category: 1,849,000 ounces of gold and 6,824,000 ounces of silver;
  • Inferred category: 1.25 million ounces of gold and 4,769,000 ounces of silver.

Since late 2017, Ascot management turned its focus toward developing high-grade underground resources. Starting with limited high-grade underground resources, Ascot now has a substantial amount of high-grade resources from four deposits, which could feed the centrally located Premier mill. In 2019, the company completed over 53,000 metres of drilling, of which 43,000 metres was focused on an infill drill program to improve the confidence level and classification of the Premier gold project resource from the inferred category to the indicated category. The company now has an updated National Instrument 43-101-compliant resource estimate for the Premier gold project based on this drilling.

Derek White, president and chief executive officer of Ascot, commented: "I am pleased with our progress and the large increase in tonnage, grade, and contained gold and silver in the indicated category at the Premier Gold project. We convincingly achieved our goal of rapidly creating a strong base of measured and indicated resources as the basis for developing a mine plan for the project. We have scheduled the release of our feasibility study by the end of March, 2020."

All drilling at the Premier gold project to date was undertaken from surface, which is less expensive than underground drilling. A significant portion of future infill programs will likely be conducted from underground. The reduction in inferred resources at Premier was a result of the upgrading a portion of the inferred resource to the indicated category. The remainder of the resource in the inferred category is available to be upgraded to the measured and indicated categories with a future drill program.

2020 mineral resource estimate at Premier gold project

In August of 2019, the company engaged Sue Bird, PEng, of Bird Resource Consulting Corp. (BRCC), to prepare an updated mineral resource estimate for the Premier project. The new estimate incorporates the drill results form the 2019 field season and required an update to the modelled mineralized zones and the modelling methodology for Premier, Big Missouri and Silver Coin to accommodate the results from the new drill holes in these three areas.

                           MINERAL RESOURCES AT PGP REPORTED AT A 3.5 G/T AUEQ CUT-OFF 
                                     (effective date of Dec. 12, 2019)

Class                  Deposit    In situ tonnes            Average in situ grades            Contained oz (000)
                                           (000)     Au g/t      Ag g/t   AuEq g/t          Au       Ag     AuEq

Indicated              Premier             1,298       8.46        64.2       8.90         353    2,680      372
                  Big Missouri             1,116       8.36        16.9       8.48         300      607      304
                   Silver Coin             1,597       7.61        23.0       7.77         390    1,181      399
                  Martha Ellen               130       5.47        48.0       5.80          23      201       24
Total indicated      all above             4,141       8.01        35.1       8.25       1,066    4,669    1,099

Class                  Deposit    In situ tonnes            Average in situ grades            Contained oz (000)
                                           (000)     Au g/t      Ag g/t   AuEq g/t          Au       Ag     AuEq

Inferred               Premier             1,753       6.72        39.8       7.00         379    2,243      394 
                  Big Missouri             1,897       8.34        14.7       8.44         508      896      515 
                   Silver Coin               523       7.03        23.2       7.19         118      390      121 
                  Martha Ellen               653       6.12        34.3       6.36         129      720      134 
                      Dilworth               235       6.13        56.0       6.51          46      424       49  
Total inferred       all above             5,061       7.25        28.7       7.45       1,180    4,673    1,213

Notes
(1) Mineral resources are estimated at a cut-off grade of 3.5 g/t AuEq based on metal prices of $1,300 
(U.S.)/ounce Au and $20 (U.S.)/ounce Ag.
(2) The AuEq values were calculated using $1,300 (U.S.)/ounce Au, $20 (U.S.)/ounce Ag, a silver metallurgical 
recovery of 45.2 per cent, and the following equation: AuEq (g/t) equals Au (g/t) plus 45.2 per cent times 
Ag (g/t) times 20 divided by 1,300.
(3) A mean bulk density of 2.84 tonnes per cubic metre is used for Premier and of 2.80 tonnes per cubic metre 
for all other deposit areas.
(4) A minimum mining width of 2.5 m true thickness is required in order to be classified as resource material. 
(5) Numbers may not add due to rounding.

 

The two associated tables compare the current resource estimate with the previous estimate (see news release dated Dec. 3, 2018), highlighting the changes in tonnage, gold grade and contained gold ounces due to the new drilling and geology updates.

       COMPARISON OF THE RESOURCES AT PGP IN THE INDICATED CATEGORY REPORTED AT A 3.5 G/T AUEQ CUT-OFF

                                            Tonnage
Deposit                  In situ tonnes      change                    In situ grade            Contained oz (000) 
                                  (000)   from 2018        Au g/t   Change from 2018       Au     Change from 2018

Premier                           1,298         +4%          8.46               +21%      353                 +26%
Big Missouri                      1,116       +107%          8.36                +2%      300                +111%
Silver Coin                       1,597        +86%          7.61                -5%      390                 +76%
Martha Ellen                        130          0%          5.47                 0%       23                   0%
Total                             4,141        +49%          8.01                +7%    1,066                 +60%

         COMPARISON OF THE RESOURCES AT PGP IN THE INFERRED CATEGORY REPORTED AT A 3.5 G/T AUEQ CUT-OFF

                                            Tonnage
Deposit                  In situ tonnes      change                    In situ grade            Contained oz (000) 
                                  (000)   from 2018        Au g/t   Change from 2018       Au     Change from 2018

Premier                           1,753         +1%          6.72               +13%      379                 +14%
Big Missouri                      1,897        -16%          8.34                +1%      508                 -15%
Silver Coin                         523        -55%          7.03               -10%      118                 -59%
Martha Ellen                        653          0%          6.12                 0%      129                   0%
Dilworth                            235          0%          6.13                 0%       46                   0%
Total                             5,061        -16%          7.25                +1%    1,180                 -15%

Notes
(1) Comparison with NI 43-101 technical report dated Jan. 17, 2019.
(2) Mineral resources are estimated at a cut-off grade of 3.5 g/t AuEq based on metal prices of $1,300 
(U.S.)/ounce Au and $20 (U.S.)/ounce Ag.
(3) Per-cent differences are calculated as: (2020 minus 2018) divided by 2018 per cent.
(4) The AuEq grade was calculated using the same parameters as the last resource estimate for comparison purposes.
(5) The AuEq values were calculated using $1,300 (U.S.)/ounce Au, $20 (U.S.)/ounce Ag, a silver metallurgical 
recovery of 45.2 per cent, and the following equation: AuEq (g/t) equals Au (g/t) plus 45.2 per cent times 
Ag (g/t) times 20 divided by 1,300.
(6) A mean bulk density of 2.84 tonnes per cubic metre is used for Premier and of 2.80 tonnes per cubic metre 
for all other deposit areas.
(7) A minimum mining width of 2.5 m true thickness is required in order to be classified as resource material. 
(8) Numbers may not add due to rounding.
 

Sensitivity to cut-off grade

               GRADE SENSITIVITY ANALYSIS OF THE PGP RESOURCE WITH THE BASE CASE AT A 
         CUT-OFF OF 3.5 G/T AUEQ HIGHLIGHTED (EFFECTIVE DATE OF DEC. 12, 2019) -- INDICATED

Cut-off            In situ tonnage                   In situ grades              Contained oz (000)  
(g/t AuEq)                     (t)   Au (g/t)  Ag (g/t)  AuEq (g/t)  Au (koz)  Ag (koz)  AuEq (koz)

5.0                          2,545      10.53      42.0       10.82       861     3,439         885
4.5                          2,954       9.70      40.0        9.98       921     3,797         948
4.0                          3,483       8.85      37.6        9.11       990     4,215       1,020
3.5                          4,141       8.01      35.1        8.25     1,066     4,669       1,099
3.0                          4,958       7.20      32.7        7.43     1,148     5,207       1,184
2.5                          6,015       6.39      30.1        6.60     1,237     5,825       1,277

          GRADE SENSITIVITY ANALYSIS OF PGP RESOURCES WITH THE BASE CASE CUT-OFF OF 
           3.5 G/T AUEQ HIGHLIGHTED (EFFECTIVE DATE OF DEC. 12, 2019) -- INFERRED

Cut-off            In situ tonnage                   In situ grades              Contained oz (000)  
(g/t AuEq)                     (t)   Au (g/t)  Ag (g/t)  AuEq (g/t)  Au (koz)  Ag (koz)  AuEq (koz)

5.0                          2,890       9.74      31.7        9.96       905      2,942        925   
4.5                          3,364       9.01      31.0        9.22       974      3,352        998   
4.0                          4,071       8.15      30.0        8.36     1,067      3,925      1,094  
3.5                          5,061       7.25      28.7        7.45     1,180      4,673      1,213  
3.0                          6,176       6.51      27.2        6.70     1,292      5,402      1,329  
2.5                          7,565       5.79      26.1        5.97     1,408      6,342      1,452  

Note
(1) Mineral resources are estimated at a cut-off grade of 3.5 g/t AuEq based on metal prices of 
$1,300 (U.S.)/ounce Au and $20 (U.S.)/oz Ag.
(2) The AuEq values were calculated using $1,300 (U.S.)/ounce Au, $20 (U.S.)/ounce Ag, a silver 
metallurgical recovery of 45.2 per cent, and the following equation: AuEq (g/t) equals Au (g/t)
plus 45.2 per cent times Ag (g/t) times 20 divided by 1,300.
(3) A mean bulk density of 2.84 tonnes per cubic metre is used for Premier and of 2.80 tonnes 
per cubic metre for all other deposit areas.
(4) A minimum mining width of 2.5 m true thickness is required in order to be classified as 
resource material. 
(5) Numbers may not add due to rounding.

Methodology

The resource estimate is based on 4,692 drill holes (2,253 Ascot holes) for in excess of 735,000 metres of drilling (Ascot holes account for 507,000 metres of that total). The geological models for all five deposit areas at PGP consist of interpreted shapes of mineralized zones and of postmineral porphyry dikes and faults. Mineralization within each of the deposits is interpreted to have been emplaced by subvertical structures which acted as conduits to fluid flow.

In accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, an updated technical report for the Premier project will be filed on SEDAR and the company's website within 45 calendar days of this disclosure.

The mineralized zone shapes have been built as AuEq grade shells which conform to the general strike and dip of the geologic modelling. Grade shells have been created by manual tagging of assay intercepts with an AuEq grade of equal to or greater than approximately 2.0 g/t AuEq and a possible true thickness of greater than 2.0 m to 2.5 m. This has been done to include intercepts below the resource cut-off grade of 3.5 g/t AuEq in order to increase continuity of the mineralized solids, and to include internal dilution in the interpolations. The tagged intercepts were then used with the implicit modelling tool in MineSight (MSIM) to create solids of mineralized shapes. A total of 83 zones for Big Missouri, 99 zones for Premier and 90 zones for Silver Coin have been remodelled for the resource update, with Martha Ellen and Dilworth remaining the same as the January, 2019, resource.

Assay sample lengths varied across the drill programs with the majority of sampling being at one-metre intervals within the potentially mineralized zones. Therefore, a base composite length of one metre has been used for all three deposits. Assay data have been coded with a domain value corresponding to the mineralized shapes prior to compositing and the domain code has been honoured during compositing and interpolating. Any assay interval within a domain that was less than 0.5 m was composited with the interval above it, resulting in a length range from 0.5 m to 1.5 m.

Block dimensions are three m by three m by three m. The block model is defined as a multiple-per-cent model, with up to two mineralized zones per block and two associated block per cent items.

Variogram modelling was not effective at defining anisotropy due to varying orientations of the mineralized zones, and to the multiple stacked lens nature of the mineralization, resulting in too few data pairs in each zone. Therefore, the orientation of anisotropy has been obtained from the orientation of the zone itself. Interpolation has been done using five passes of inverse distance cubed (ID3) in all cases.

The blocks were classified according to CIM (2014) definitions as follows:

  • All classified material must be within a modelled shape with a minimum minable true thickness of 2.5 m.
  • Blocks within an anisotropic search ellipse with dimensions of 100 m by 100 m by 15 m are assigned a preliminary classification of inferred.
  • Indicated blocks are required to meet at least one of the following criteria:
    • The average distance to the nearest three drill holes is less than 35 m with none farther than 35 m, and there are samples from at least two-inch split quadrants to limit any potential extrapolation.
    • The average distance to the nearest two drill holes is less than 17.5 m, and there are samples from at least two-inch split quadrants.
    • The distance to the nearest drill hole is less than 10 m and at least two drill holes have been used in the estimate.

A cut-off grade of 3.5 g/t AuEq was applied to the block model for reporting of mineral resources. This cut-off grade was derived from a preliminary analysis of current mining and processing costs for underground mining operations.

The resource QP is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the mineral resource estimate for Premier, Big Missouri, Martha Ellen, Dilworth or Silver Coin properties.

Next steps

The 2019 drill program increased the gold ounces in the indicated category at Premier gold project by 60 per cent. Many areas of the remaining modelled inferred resources for these three deposit areas require deeper drilling which can be more efficiently drilled from underground. Additional drilling to convert inferred resources to the M&I category will be conducted from underground. Lastly, the new resource base will be used for a feasibility-level study to evaluate the economic viability of the project.

Upcoming events

Ascot will be at the GCFF Vancouver Resource Investment Conference held at the Executive Airport Plaza Hotel Richmond, Saturday, Jan. 18, with members of management who can speak Mandarin and Cantonese.

Management will also be at Cambridge House Vancouver Investor Conference from Jan. 19 to Jan. 20. Chief executive officer Derek White will be hosting a workshop at the VRIC from 11:30 a.m. to 11:40 a.m. on Monday, Jan. 20, at the Convention Centre (workshop 5). Ascot will also be at the Roundup in Vancouver from Jan. 20 to Jan. 21. For more information about the company, please refer to the company's profile on SEDAR or visit the company's website.

Qualified persons

Sue Bird, PEng, of BRCC is an independent qualified person (as defined in NI 43-101) responsible for this mineral resource estimate. Ms. Bird has conducted independent data verification relating to drill hole location and orientation, sampling methodology, assay QA/QC and database integrity and found the results satisfactory. Ms. Bird acknowledges that she has reviewed the technical content presented in this news release and approved the written disclosure.

Quality assurance/quality control

Lawrence Tsang, PGeo, the company's senior geologist provides the field management for the Premier exploration program. John Kiernan, PEng, 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.

Analytical work is being carried out by SGS Canada Inc. Ascot's quality assurance and quality control program includes the use of analytical blanks to monitor for cross-contamination, certified reference material standards to assess analytical accuracy, and duplicate samples to quantify sampling precision. This is in addition to the internal quality assurance program employed by SGS.

Samples are dried and weighed by SGS. They are then crushed to 75 per cent passing two millimetres, with 250 g split and pulverized to 85 per cent passing 75 micrometres. Samples are processed on site by a mobile lab supplied by SGS and run by SGS personnel. All splits are sent to SGS in Burnaby. There, all samples are digested using aqua regia with an ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish and fire assay with AA (atomic absorption) finish for gold. Samples over 100 parts per million silver are digested with aqua regia and then volumetrically diluted before an ICP-AES or AA finish (up to 1,500 ppm). Samples over 1,500 ppm silver are fire assayed with a gravimetric finish. Samples over 10 ppm gold are fire assayed with a gravimetric finish. Identified or suspected metallic gold or silver are subjected to metallics assays. Sampling and storage are at the company's secure facility in Stewart.

About Ascot Resources Ltd.

Ascot is a Canada-based junior exploration company focused on restarting 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 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.

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