Mr. Derek White reports
ASCOT INCREASES TOTAL GOLD RESOURCES AT THE PREMIER-DILWORTH PROPERTIES IN BRITISH COLUMBIA
Ascot Resources Ltd. has releasedan updated National Instrument 43-101 resource estimate for its flagship Premier-Dilworth property in British Columbia's Golden Triangle. The additional resource includes high-grade zones from the Premier and Northern Lights area, which were modelled using a cut-off grade that is suitable for underground mining (see attached tables).
When the new management team joined six months ago, focus was shifted from the previous open-pit mining scenario toward developing higher-grade, underground resources. Operations can be restarted within a potentially shorter time frame by using the existing underground infrastructure. Higher-grade resources will maximize the profitability of the current processing facilities. Future operations will be more profitable, less disruptive and easier to repermit by starting initial production within the existing footprint of the project.
Derek White, president and chief executive officer of Ascot Resources, commented: "This resource will be the first step in a series of resource developments, which we believe will add significant ounces with each resource update. Our principal business objective is to maximize the utilization of the existing infrastructure, specifically with regard to the mill throughput of up to 3,000 tonnes per day.Currently, we are drilling in the Big Missouri area as part of our next resource update. We remain extremely excited about the prospect of adding resources to restart operations."
The company identified various areas to develop higher-grade resources based on the existing drill spacing across the property. The development of additional high-grade resources will take place in a series of steps. This maiden high-grade resource was developed in the Premier/Northern Lights area only, in the southern part of the property where the existing drill spacing was close enough to define underground resources.
Premier/Northern Lights mineral resources
The updated NI 43-101 resource estimate for the Premier/Northern Lights zone (as at May, 2018) resulted in the following additional resources:
281,059 gold equivalent ounces in the indicated category (1.21 million tonnes grading 7.23 grams per tonne gold equivalentat a 3.5-gram-per-tonne-gold-equivalent cut-off);319,675 gold equivalent ounces in the inferred category (1.64 million tonnes grading 6.18 grams per tonne gold equivalentat a 3.5-gram-per-tonne-gold-equivalent cut-off).
In November, 2017, the company engaged David Rennie, PEng, of RPA Inc. to prepare an updated NI 43-101 mineral resource estimate focused on eight high-grade zones in the Premier/Northern lights area. The modelled high-grade zones outline two curvilinear structural planes where quartz breccias and stockwork development host gold mineralization in these mineralized fault zones. Historical mining at the Premier mine focused on narrow zones that were steeply dipping close to surface. New modelling has revealed that the dip of the structural zones decreases at depth into more flat-lying bodies. The thickness of the mineralized zones with moderate dip appears to be more substantial.
In April, 2018, the company commenced the 2018 drill program with infill drilling on the 602 zone. The drill holes to date intercepted the modelled zone at the projected depth based on visual inspection, supporting the validity of the new geological model. Assays of these holes are pending and will be reported as they become available. There is significant potential to expand the 602 zone to the west and down dip. Other areas in the Premier/Northern Lights zone that have expansion potential are the Ben, Prew and the 609 zones. These possible extensions will be tested later in the year. Currently, the focus is on the Big Missouri area to infill and add additional high-grade resources.The company will be exploring other attractive targets on the property later in the summer.
The attached tables summarize the mineral resources estimate for the Premier/Northern Lights area and the current total for the Premier-Dilworth property.
The undiluted and in situ mineral resource estimate incorporates the Premier/Northern Lights zones reported at underground cut-off grades (3.5 grams per tonne gold).
INDICATED RESOURCES Cut-offTonnageAuAgAuEqAuAgAuEq(g/t AuEq)(g/t) (g/t) (g/t)(oz)(oz)(oz)6.0562,000 10.0636.3 10.32 182,000 656,000 186,4435.5654,0009.4335.29.67 198,000 739,000 203,0055.0757,0008.8334.09.07 215,000 827,000 220,6014.5878,0008.2432.88.47 233,000 925,000 239,2644.01,030,0007.6431.67.86 252,000 1,040,000 259,0433.51,210,0007.0230.67.23 273,000 1,190,000 281,0593.01,450,0006.3729.56.57 297,000 1,380,000 306,3462.51,700,0005.8128.36.00 318,000 1,550,000 328,4972.01,910,0005.4027.35.59 332,000 1,680,000 343,378INFERRED RESOURCESCut-offTonnageAuAgAuEqAuAgAuEq(g/t AuEq)(g/t) (g/t) (g/t)(oz)(oz)(oz) 6.0 589,000 8.7623.58.92 166,000 445,000 167,756 5.5 752,000 8.0823.18.24 195,000 559,000 196,968 5.0 950,000 7.4524.07.62 227,000 734,000 229,165 4.5 1,150,000 6.9523.97.12 257,000 882,000 259,336 4.0 1,390,000 6.4624.26.63 288,000 1,080,000 290,526 3.5 1,640,000 6.0124.96.18 317,000 1,310,000 319,675 3.0 1,920,000 5.5924.35.76 345,000 1,500,000 345,000 2.5 2,250,000 5.1523.55.31 373,000 1,700,000 373,000 2.0 2,580,000 4.7622.94.92 395,000 1,900,000 395,000 Notes:(1) CIM ((Canadian Institute of Mining, Metallurgy and Petroleum) (2014) definitions were followed for mineral resources.(2) Mineral resources are estimated at a cut-off grade of 3.5 grams per tonne gold equivalent. 3) Mineral resources are estimated using long-term metal prices of $1,350 (U.S.) per ounce gold and $20 (U.S.) per ounce silver.(4) Gold equivalent amounts were calculated using a ratio of 65:1 Ag:Au and silver recovery of 45.2 per cent.(5) The zones were interpreted using a minimum true width of 2.5 metresfor steep dipping zones and 3.0 metres for moderate-to-flat-dipping zones.(6) Numbers may not sum due to rounding.
In addition to the Premier/Northern Lights underground resources, the property hosts a significant open-pit resource at Big Missouri and Martha Ellen, only four kilometres to the north of the Premier project within easy trucking distance to the Premier mill. These previously reported resources are summarized as follows. (The NI 43-101 technical report was prepared in March, 2014, for this area by Ronald G. Simpson, PGeo, of Geosim Services Inc.; however, the focus at that time was on open-pit mining.)
Big Missouri/Martha Ellen resources
The previous NI 43-101 technical report prepared in March, 2014, for the Big Missouri/Martha Ellen area contained the following resources:
2.83 million equivalent ounces of gold in the indicated category (93.5 million tonnes grading 0.94 gram per tonne gold equivalent);1.8 million equivalent ounces of gold in the inferred category (79.28 million tonnes grading 0.71 gram per tonne gold equivalent).
Through a staged growth, the company plans to add more high-grade resources after the completion of the 2018 drill program. The Premier mine was once North America's largest gold mine and Ascot believes that its favourable location near Stewart, B.C., along with its well-established infrastructure, will facilitate its ability to restart the mine with a low-capital-cost approach.
TOTAL PREMIER-DILWORTH PROJECT MINERAL RESOURCES ClassDeposit Tonnes Average grades Contained ounces (000s)(000s)Au Ag AuEq Au Ag AuEq(g/t)(g/t)(g/t) IndicatedOpen pit (1, 2, 3)93,502 0.826.9 0.942,475 20,7832,830 Underground (4, 5) 1,210 7.02 30.6 7.232731,190281Total indicated Open pit and underground 94,7120.97.2 1.022,748 21,9733,111Inferred Open pit (1, 2, 3)79,278 0.597.2 0.711,494 18,2381,804 Underground (4, 5) 1,640 6.01 24.9 6.183171,310320Total inferredOpen pit and underground 80,9180.7 7.56 0.821,811 19,5482,124Notes:(1) Mineral resources are reported at a cut-off grade of 0.3 gram per tonne gold equivalent.(2) Source: technical report prepared by Ronald G. Simpson, effective date March 31, 2014.(3) The gold equivalent grade was calculated using metal prices of $1,400 per ounce for gold and $24 per ounce for silver. The gold equivalence formula is as follows: AuEq g/t equalsAu g/t plus (Ag g/t multiplied by 0.017).(4) Mineral resources are estimated at a cut-off grade of 3.5 grams per tonne gold equivalent.(5) Gold equivalent amounts were calculated using a ratio of 65:1 Ag:Au and silver recovery of 45.2 per cent.(6) The mineral resources presented herein were estimated using the CIM standards on mineral resources and reserves, definitions and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM Council on May 10, 2014.(7) Figures are rounded and totals may not add correctly.
Ascot has engaged SRK as study manager to direct a team of consultants to optimize engineering studies for the mine restart plan.One of Ascot's many advantages at the Premier-Dilworth site is that it has its own mill and tailings facility located at the mine site, which has the capacity to process between 1,000 and 3,000 tonnes per day using conventional crushing, grinding and carbon in leach (CIL) to produce a dore product.
In accordance with NI 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 company will hold an investor conference call with president and chief executive officer Derek Whiteon Thursday, May 10, 2018, at 2 p.m. Pacific Time and 5 p.m. Eastern Time. Mr. White will discuss the updated resource and next steps for the company going forward. A question-and-answer period will follow the presentation.
To participate, please dial 1-800-319-4610 (Canada/United States toll-free) or 1-604-638-5340 (international toll) and request join to the Ascot Resources conference call. Participants should dial in five to 10 minutes prior to the scheduled start time.
Qualified persons
Each of David Rennie, PEng, of RPA and Ronald G. Simpson, PGeo, of Geosim Services is an independent qualified person (as defined in NI 43-101) responsible for this mineral resource estimate. RPA and Geosim Services have conducted independent data verification relating to drill hole location and orientation, sampling methodology, assay quality assurance/quality control, and database integrity, and they found the results satisfactory. RPA and Geosim Services acknowledge that they have reviewed the technical content presented in this news release and approved the written disclosure.
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.
© 2018 Canjex Publishing Ltd. All rights reserved.