Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) is pleased to announce the Company’s
unaudited financial results for the three months ended September
30, 2022 (“
Q3 2022”), as well as a summary of
recent development highlights 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. For details of the unaudited
condensed interim consolidated financial statements and
management's discussion and analysis for the three months ended
September 30, 2022, please see the Company’s filings on SEDAR
(www.sedar.com).
All amounts herein are reported in $000s of
Canadian dollars (“C$”) unless otherwise
specified.
Q3 2022 AND RECENT
HIGHLIGHTS
- The Company
continued to advance underground development during Q3 2022 and
subsequent to the quarter end. To October 17, 2022, approximately
921 metres have been developed in all headings, including muck
bays, sumps, ore access drift, and the main ramp. Ground conditions
have been excellent and heading advance and productivity have been
going well. Development accessed initial ore in the A Zone of the
Big Missouri deposit in August and sampling protocol was developed
for grade reconciliation to the block model.
- The surface
infrastructure at the Big Missouri, S1 pit portal area was
progressively prepared for winter snow conditions, which have
commenced at the end of October. The restart of mining development
is now planned for mid-2023 when the snow melts in Spring
2023.
- A 500-metre
geotechnical hole was completed on the planned centreline of the
new Premier Northern Lights (“PNL”) development
area next to the mill. The core from this hole was moved down to
Stewart where it was logged and analyzed by our Geotech consultant
the week of November 1, 2022.
- The Company
remains in discussions with potential capital providers with
respect to the refinancing of the current debt facilities and has
optimized the mine plan to improve the lateral development to ore
tonnages in the early years of the mine life.
- On July 14,
2022, the Company announced the first batch of assay results from
the 2022 exploration drill program at PGP. These results were from
surface exploration drilling at the emerging Sebakwe Zone near the
Premier mill, and with assays of up to 193 g/t Au over 1 metre,
they continued to highlight the high-grade tenor of the Sebakwe
Zone.
- On August 22,
2022, the Company announced the second batch of assay results from
the 2022 exploration drill program the Sebakwe Zone at PGP.
Highlights from the drill results included 20.10 g/t Au over
1.40m.
- On September 13,
2022, the Company announced the first batch of assay results from
the 2022 exploration drill program at Big Missouri at PGP. These
results are from surface drilling for in-fill and exploration
purposes at the Big Missouri deposit, approximately six kilometres
north of the Premier mill. Highlights from the drill results
included assays of up to 136.50 g/t Au over 1.00m. Drill holes were
targeting the A Zone of the Big Missouri deposit in planned stoping
areas, potential extensions of stopes, and gaps in previous
drilling on the deposit.
- On October 17,
2022, the Company announced initial positive grade reconciliation
between muck samples and the block model grade from underground
development at the Big Missouri deposit at PGP. 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 suggested good potential
to increase mined grades by continuously improving external mining
dilution.
- On October 27,
2022, the Company announced the second batch of assay results from
the 2022 exploration drill program at Big Missouri at PGP.
Highlights from the drill results included assays of up to 330 g/t
Au over 1.00m. A majority of high-grade intercepts were encountered
within or close to existing block model wireframes and in potential
extensions of those wireframes, further validating the resource
model at PGP.
FINANCIAL RESULTS FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2022
The Company reported a net loss of $2,396 for Q3
2022 compared to $1,700 for Q3 2021. The increase in the net loss
is attributable to a combination of factors including an increase
in foreign exchange loss due to the strengthening U.S. dollar, a
decrease in gain on valuation of the Company’s derivatives, an
increase in property maintenance costs due to additional
environmental compliance requirements in 2022, and an increase in
finance expense due to higher reclamation bond fees and higher
accretion of the Company’s reclamation obligations, partially
offset by an increase in flow-through premium recognition, and a
decrease in amortization and depreciation expense.
LIQUIDITY AND CAPITAL
RESOURCES
As at September 30, 2022, the Company had
working capital of $13,764 and a cash & cash equivalents
balance of $24,490. During the nine months ended September 30,
2022, the Company issued 59,288,902 common shares, 13,710,500
warrants, 3,932,284 stock options, 235,513 Deferred Share Units,
721,432 Restricted Share Units and 162,162 Performance Share Units.
Also, 906,750 stock options expired and 62,000 DSUs and 35,062 RSUs
were exercised during the nine months ended September 30, 2022.
MANAGEMENT’S OUTLOOK FOR 2022 AND EARLY
2023
As noted in the Company’s press release of April
4, 2022, the Company is undergoing a process to refinance its
Senior Facility with Sprott. As a result, the Company made the
decision to slow down certain work packages and the general project
construction until the refinancing has been completed.
Consequently, certain critical construction activities such as the
construction of the tailings dam and the new water treatment plant
will be deferred until the spring of 2023. The Company is now
targeting the start of production between late 2023 and early
2024.
Management is planning a number of activities
for the remainder of 2022 and early 2023, which include:
- Completion of
refinancing of the Senior Facility
- Advancement of
underground ramp development with target delivery of ore for pre
commissioning by Q4 2023
- Completion of a
site preservation plan for a construction restart in Spring
2023
- Surface
exploration drilling with a focus on the Day and Sebakwe zones
- Stope definition
drilling at Big Missouri both from surface and underground
- Underground
diamond drilling to probe additional historical openings
- Health and
safety initiatives related to health screening and construction
protocols
- Permit
amendments due to slow down of certain construction activities
The progress of construction activities which
are planned to restart in early 2023 are dependent on completion of
the refinancing.
Qualified Person
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.
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
Communications dstewart@ascotgold.com 778-725-1060 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
use of proceeds of the Offering, 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. 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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