Northern Miner Coverage Ascot Resources (TSX: AOT; US-OTC: AOTVF) is focused on re-starting the Premier gold project in B.C.’s Golden Triangle, 25 km from Stewart. The 25,000-hectare site includes four deposits. Ascot also holds the Red Mountain project, 23 km to the southwest, with an underground deposit.
A feasibility study from April 2020 on a development of both the Premier and Red Mountain projects suggests four underground mines across the two sites. The study outlined a restart of the Premier mill at 2,500 tonnes per day, to support an eight-year mining operation producing an average of 132,375 oz. of gold and 370,500 oz. of silver annually at all-in sustaining costs of US$769 per ounce.
With an initial capital cost estimate of $146.6 million, the net present value for the project, at a 5% discount rate, stands at $341 million with a 51% internal rate of return.
In December, Ascot closed a US$105 million project financing package with Sprott Private Resource Lending and Beedie Investments for development of Premier and to repay existing outstanding convertible notes. The package included a US$80 million senior credit facility and a US$25 million subordinated convertible facility.
In October, the company signed an agreement for the delivery of semi-autogenous and ball mills to the site, which are required to refurbish the concentrator to re-start Premier. The deliveries are expected around mid-2021.
In June, the company started a 15,000-metre exploration program at Premier and Red Mountain. By September, Ascot announced the discovery of a new, high-grade zone of gold mineralization, the Day zone, at Premier, 5 km north of the mill.
Measured and indicated resources across Premier and Red Mountain total 7.3 million tonnes grading 7.85 grams gold per tonne and 29 grams silver per tonne for a total of 1.8 million oz. of gold and 6.8 million oz. of silver. Additional inferred resources across the two sites stand at 5.5 million tonnes at 7.11 grams gold and 27.1 grams silver, for a further 1.3 million gold oz. and 4.8 million oz. of silver.
The Premier mine produced 2 million oz. of gold and 45 million oz. of silver between 1918 and 1952.
Ascot Resources has a $411.6 million market capitalization.