Ascot Resources Ltd. (
TSX: V.AOT,
Stock Forum) said drilling has coughed up more visible gold in an impressive intersection at its old Premier mine property in northwestern British Columbia.
The company said drilling in the West Zone area returned a 0.75-metre intersection (167.00 to 167.75 metres depth) averaging 14,394.5 grams per tonne.
Ascot said this intersection is located approximately 50 metres east and downdip of the visible gold intersection in a previously reported drill hole that returned an assay of 1,395.00 grams per tonne and 739 grams over 1 metre.
This leads the company to conclude that the high grade gold vein likely connects between these two intersections.
The Premier property covers more than 100 square kilometers near the town of Stewart, and includes the old Premier Mine, which is located at the south end of the property. It produced over 2.1 million ounces of gold and 45 million ounces of silver from 1918 to 1968.
Located about 7 kilometres further north are the three deposits that Ascot has outlined at Permier, including Big Missouri, Martha Ellen and Dilworth. The junior has been working on the property since 2007.
Ascot is working with a database for the Premier mine area that contains 4453 historic drill holes and extensive level and stope plans. This has allowed Ascot to test high grade underground targets which remain across much of the mine area, including the main Premier Mine.
Historic work and recent Ascot drilling shows that mineralization is focused in a structural zone, ranging from 30 to 150 metres in thickness, and has a known strike length of 1,600 metres, and a dip length of up to 1,200 metres.
However, the majority of the target area has only been loosely tested from underground, with most of the work dating back to the 1920s and 1930s.
Ascot has said it will spend the remainder of the 2014 season drill testing with up to 4 drill rigs, the southern two thirds of the system in a series of widely spaced drill patterns. The aim is to demonstrate the strike and dip continuity of this strongly altered, well mineralized system.
The priority is to define the potential for higher grade underground mineralization.
Ascot is currently exercising an option to earn a full ownership stake in the property from Swedish miner Boliden and is expected to spend up to $4 million this year.
Tuesday’s press release covers results for the third set of 42 holes for 2014. To date, Ascot has drilled 27,498 metres in 131 holes. A number of holes have assays pending.
Ascot shares fell 7% to $1.96 on Tuesday, leaving a market cap of $194 million, based on 99.1 million shares outstanding. The 52-week range is $2.40 and 59 cents.