Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) is pleased to announce initial positive
grade reconciliation between muck samples and the block model grade
from underground development at the Company’s Premier Gold Project
(“
PGP” or the “
project”), located
on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of
northwestern British Columbia. These results are from underground
development sampling at the Big Missouri deposit, approximately six
kilometres north of the past-producing Premier mill.
Highlights from the grade reconciliation program
include:
- Combined
results from ore drives 1 and 2 yielded overall 9% positive grade
reconciliation from muck samples compared to the resource block
model
- As
expected, the Company encountered high variability in development
round grades often associated with high-grade epithermal gold
deposits
- Initial
results suggest good potential to increase mined grades by
continuously improving external mining dilution
Derek White, President and CEO of Ascot
commented, “The ability to commence underground development this
year has been transformative for Ascot. Mining development rates
have exceeded expectations, benefiting from good rock quality. In
accessing the first stoping areas in the A Zone of the Big Missouri
deposit, we continue to enhance our understanding of the
mineralization at the Premier Gold Project.
We are especially pleased that in our initial
underground sampling, notwithstanding a high degree of variability
as expected with this style of mineralization, we have had 9%
positive reconciliation on gold grade compared to the block model.
In addition, by continuously improving our mining selectivity, we
believe the mined grades can be further improved.”
Underground development
progress
The Big Missouri deposit hosts a probable
reserve of 809 kt grading 7.15 g/t Au and 12.2 g/t Ag and
containing 186 koz Au and 317 koz Ag, an indicated resource of
1,116 kt grading 8.36 g/t Au and 16.9 g/t Ag and containing 300 koz
Au and 607 koz Ag, and an inferred resource of 1,897 kt grading
8.34 g/t Au and 14.7 g/t Ag and containing 508 koz Au and 896 koz
Ag. These reserves and resources are outlined in the NI 43-101
technical report entitled “Premier & Red Mountain Gold Project
Feasibility Study NI 43-101 Technical Report, British Columbia”,
dated May 22, 2020, with an effective date of April 15, 2020.
Underground development at Big Missouri is
progressing well with over 815 metres of development completed to
date, consisting of 128 metres on the main ramp, 314 metres on the
A Zone access and 222 metres in three crosscuts into mineralized
areas, with the remaining 150 metres completed in various
underground infrastructure (see Figure 1). With excellent ground
conditions, development rates have exceeded expectations so far,
and in recent months underground crews have averaged 6 metres per
day in single headings and over 10 metres per day in multiple
headings. The survey controls for underground development have been
accurate to date, with a surface drill hole recently being
intersected by development within 30 centimeters of the expected
location.
Figure
1 – Plan view with transparent
topography showing Big Missouri underground development to date is
available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/6a1e28ea-5c99-4f64-a398-4e000c6f7d01
Grade reconciliation
program
In the early stages of underground development,
Ascot is employing a multifaceted approach in reconciliation work
to maximize the available data and enhance the geological model at
PGP. In addition to recent and historical surface drill results,
and with underground development having accessed the A Zone of the
Big Missouri deposit, the Company collects chip samples along the
walls of underground workings, muck samples from blasted
development rounds, and sludge samples from an underground
long-hole drill.
Recently, underground development advanced into
two stoping areas called Ore Drive 1 (“OD1”) and Ore Drive 2
(“OD2”). Development advanced four rounds into OD1 and seven rounds
into OD2, for eleven rounds total. From each development round, a
total of 10 muck samples totaling approximately 30-40 kg of
material were collected and sent for assaying.
For the reconciliation exercise, the as-built
solids were compared with the block model to factor in external
dilution and to estimate the tonnage and gold grade of each
development round. The summary and comparison of predicted and
realized tonnages and grades are shown in Table 1.
While there was a high degree of variability in
actual gold grades compared to the block model, ranging from 12% to
382%, the overall gold grade reconciled closely with the block
model. OD1 reconciled very close to the block model at 1% higher
grade, and OD2 reconciled 11% higher grade than predicted, with the
total of OD1 and OD2 reconciling 9% higher than the block
model.
In both ore drives, geological controls were
applied early in the development sequence in order to more closely
follow visual indicators of mineralization – namely quartz breccia
and stockwork with sulfides, especially sphalerite – as opposed to
strictly following the block model wireframes. This resulted in
mined material from outside the wireframes across OD1 and OD2
totaling 49%, which was a contributing factor in the overall gold
grade of 4.53 g/t. In reviewing the reconciliation data, in
addition to chip samples and underground drill results, it is
apparent that grades were more elevated within the block model
wireframes, and selectively mining closer to the wireframes instead
of using geologic controls, would likely have resulted in a higher
mined grade. In applying this approach in future mining, the
Company anticipates significantly reduced external dilution and an
overall improvement in local mined grades.
Table 1 –
Grade reconciliation results
Stope |
Round |
Tonnes |
Block Model gradeg/t Au |
Muck gradeg/t Au |
Reconciliation |
OD1E |
2 |
234 |
1.84 |
5.62 |
306 |
% |
OD1E |
3 |
251 |
0.81 |
1.04 |
128 |
% |
OD1 |
4 |
229 |
4.76 |
1.39 |
29 |
% |
OD1 |
6 |
295 |
1.35 |
0.84 |
62 |
% |
OD1 |
Subtotal |
1,009 |
2.11 |
2.12 |
101 |
% |
OD2 |
9 |
245 |
3.60 |
13.75 |
382 |
% |
OD2 |
10 |
227 |
2.51 |
6.44 |
257 |
% |
OD2 |
11 |
264 |
2.61 |
1.43 |
55 |
% |
OD2 |
12 |
212 |
5.04 |
2.05 |
41 |
% |
OD2 |
13 |
217 |
7.55 |
16.46 |
218 |
% |
OD2 |
14 |
228 |
9.21 |
1.14 |
12 |
% |
OD2 |
15 |
217 |
8.51 |
1.29 |
15 |
% |
OD2 |
Subtotal |
1,611 |
5.46 |
6.05 |
111 |
% |
OD1+2 |
Total |
2,620 |
4.17 |
4.54 |
109 |
% |
Figure 2 – Ore
Drive 2 intersecting the wireframe and associated chip samples. The
wall and face samples indicate presence of mineralization and are
independent of the muck samples is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2b595850-e23f-4175-a410-efab09f3e4b1
Ongoing drilling program
The 2022 exploration drilling program is nearing
completion and is expected to total approximately 13,400 metres
mostly drilled from surface. Since the last exploration news
release dated September 13, 2022, a further 49 surface holes and 11
underground holes have been drilled, for a total of 6,100 metres.
Surface holes were drilled from two pads at the big Missouri
deposit and one pad at the Day Zone on the western side of the Big
Missouri ridge. The Company will release additional assay results
as they become available in the coming weeks.
Qualified Person
Lawrence Tsang, P.Geo., the Company’s Senior
Geologist provides the field management for the PGP exploration
program. 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.
Quality Assurance/Quality
Control
Analytical work is being carried out by SEACAN
LABS CORP. (“Seacan”) in their facility in
Stewart, British Columbia. Ascot’s quality-assurance and
quality-control program includes the use of analytical blanks to
monitor for cross contamination and certified reference material
standards to assess analytical accuracy. This is in addition to the
internal quality assurance program employed by ALS.
Samples are dried and weighed by Seacan. They
are then crushed to 75% passing 2mm, with 250g split and pulverized
to 85% passing 105µm. Samples are analyzed for gold by fire assay
with AA finish.
Sampling and storage is located at the Company’s
secure facility in Stewart, British Columbia.
On behalf of the Board of Directors of
Ascot Resources Ltd.“Derek C. White”President &
CEO
For further information
contact:
David Stewart, P.Eng.VP, Corporate Development & Shareholder
Communicationsdstewart@ascotgold.com778-725-1060 ext. 1024
About Ascot Resources Ltd.
Ascot is a Canadian junior exploration and
development company focused on re-starting the past producing
Premier gold mine, located on Nisga’a Nation Treaty Lands, in
British Columbia’s prolific Golden Triangle. Ascot shares trade on
the TSX under the ticker AOT. 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 collaboration with Nisga’a Nation as
outlined in the Benefits Agreement.
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.
The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding
Forward-Looking Information
All statements and other information contained
in this press release about anticipated future events may
constitute forward-looking information under Canadian securities
laws ("forward-looking statements"). Forward-looking statements are
often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "expect",
"targeted", "outlook", "on track" and "intend" and statements that
an event or result "may", "will", "should", "could" or "might"
occur or be achieved and other similar expressions. All statements,
other than statements of historical fact, included herein are
forward-looking statements, including statements in respect of the
pursuit of alternative project financing solutions, the advancement
and development of the PGP and the timing related thereto, the
exploration of the Company’s properties and management’s outlook
for the remainder of 2022 and 2023. These statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements, including risks
associated with the business of Ascot; risks related to exploration
and potential development of Ascot's projects; business and
economic conditions in the mining industry generally; fluctuations
in commodity prices and currency exchange rates; uncertainties
relating to interpretation of drill results and the geology,
continuity and grade of mineral deposits; the need for cooperation
of government agencies and indigenous groups in the exploration and
development of properties and the issuance of required permits; the
need to obtain additional financing to develop properties and
uncertainty as to the availability and terms of future financing;
the possibility of delay in exploration or development programs and
uncertainty of meeting anticipated program milestones; uncertainty
as to timely availability of permits and other governmental
approvals; risks associated with COVID-19 including adverse impacts
on the world economy, construction timing and the availability of
personnel; and other risk factors as detailed from time to time in
Ascot's filings with Canadian securities regulators, available on
Ascot's profile on SEDAR at www.sedar.com including the Annual
Information Form of the Company dated March 21, 2022 in the section
entitled "Risk Factors". Forward-looking statements are based on
assumptions made with regard to: the estimated costs associated
with construction of the Project; the timing of the anticipated
start of production at the Project; the ability to maintain
throughput and production levels at the Premier Mill; the tax rate
applicable to the Company; future commodity prices; the grade of
Resources and Reserves; the ability of the Company to convert
inferred resources to other categories; the ability of the Company
to reduce mining dilution; the ability to reduce capital costs; and
exploration plans. Forward-looking statements are based on
estimates and opinions of management at the date the statements are
made. Although Ascot believes that the expectations reflected in
such forward-looking statements and/or information are reasonable,
undue reliance should not be placed on forward-looking statements
since Ascot can give no assurance that such expectations will prove
to be correct. Ascot does not undertake any obligation to update
forward-looking statements. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement.
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