Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) announces the Company's audited
consolidated financial results for the year ended December 31,
2021. For details of the audited consolidated financial statements,
Management's Discussion and Analysis, and Annual Information Form
for the year ended December 31, 2021, please see the Company's
filings on SEDAR www.sedar.com.
Derek White, President and CEO, commented,
"Ascot continued to make solid progress on the project last quarter
and early in 2022. The Early Works program was advanced with a
focus on installing the Ball and SAG mills, continuing work inside
the mill building, and preparing for this year’s outdoor
construction season. The Mines Act Permit was received in December
and the Environmental Management Act Permit was received in
January, enabling the commencement of full-scale construction and
underground development planned for late April 2022. The Company
recently closed a bought deal financing for gross proceeds of
C$64M, providing additional funding for project construction this
year. On the exploration front, we saw continued success and
expansion at the Day Zone, encouraging initial drill results at the
Sebakwe Zone, and high-grade stope definition drill results at Big
Missouri. We are eager to advance the Premier Gold Project this
year towards pre-commissioning in Q4 2022, first gold pour in Q1
2023, and becoming Canada’s next gold producer.”
All amounts herein are reported in $000s of
Canadian dollars (“C$”) unless otherwise specified.
Q4 2021 AND RECENT
HIGHLIGHTS
- On March 8,
2022, the Company closed a previously announced bought deal
financing (the “Offering”) for total gross proceeds of $64,241. The
net proceeds from the Offering will be used for capital costs at
the Premier Gold Project (“PGP”), for PGP’s exploration program and
for general corporate purposes.
- On
February 22, 2022, the Company announced the remaining assay
results from the 2021 drill program at PGP. These drill holes
targeted areas of early stopes at the Big Missouri deposit with the
aim of refining stope geometry and orientation as well as expanding
stope shapes where possible and gathering additional grade
information. The drill holes intercepted gold mineralization at or
near defined stope shapes with numerous high-grade assays as high
as 184.5 g/t gold. Highlights from the drill results included:
- 27.52 g/t Au and 11.40 g/t Ag over
8.00m from a depth of 68.4m in hole P21-2379, including 66.70 g/t
Au and 14.20 g/t Ag over 2.00m;
- 36.36 g/t Au and 24.1 g/t Ag over
4.65m from a depth of 56.4m in hole P21-2373, including 184.50 g/t
Au and 80.50 g/t Ag over 0.90m. The interval is carried by the
high-grade assay, but the width of the mineralized zone has been
selected considering base metal and sulfide content in addition to
gold and silver;
- 10.04 g/t Au and 15.91 g/t Ag over
7.00m from a depth of 139.8m in hole P21-2358, including 14.70 g/t
Au and 22.33 g/t Ag over 4.00m, and
- 7.25 g/t Au and 4.57 g/t Ag over
6.00m from a depth of 212.1m in hole P21-2363, including 19.00 g/t
Au and 6.10 g/t Ag over 2.00m.
-
On January 25, 2022, the Company provided an update on PGP with
respect to progress to date and development plans in 2022. The
update included a detailed project schedule and an updated capital
cost estimate for PGP. Building on the success of the Early Works
program in 2021, Ascot remains on track to commence full-scale
construction activities and underground development in April 2022,
with first gold pour targeted for the first quarter of 2023. With
the Mines Act Permit Amendment (“MAPA”) in hand and a more
definitive project schedule, Ascot reported an updated project
capital estimate of $224,000, reflecting an increase of 27% over
the previous (March 2021) project capital estimate.
- On
December 15, 2021, the Company announced additional assay results
from the first two drill holes of 2021 on the Sebakwe Zone near
existing resources and the Premier mill building, along with an
overview and background on the Sebakwe Zone itself. Highlights from
the drill results included:
- 36.17 g/t Au and 20.6 g/t Ag over
7.10m from a depth of 368.3m in hole P21-2385, including
103.00 g/t Au and 26.5 g/t Ag over 1.00m and 139.50 g/t Au and 80.1
g/t Ag over 1.00m;
- 29.60 g/t Au and 5.3 g/t Ag over
1.00m from a depth of 328.5m in hole P21-2385 – only 39m above
the aforementioned 7.10m interval, and
- 39.00 g/t Au and 28.5 g/t Ag over
0.90m from a depth of 324.5m in hole P21-2386.
-
On December 4, 2021, the Company received the MAPA for construction
and operation of PGP and on January 24, 2022, the Environmental
Management Act (“EMA”) Permit was also received, completing the
Joint MA/EMA Permit for PGP.
- On November 17,
2021, the Company announced additional assay results from the first
drill hole at the Day Zone near the Big Missouri deposit and the
balance of drill results from near the Premier deposit.
Importantly, the new drill hole at the Day Zone has expanded
mineralization approximately 400 metres to the south. Highlights
from the drill results included:
- 4.13 g/t Au and 3.5 g/t Ag over
2.46m from 291m depth in hole P21-2331, including 7.73 g/t Au and
4.1 g/t Ag over 0.96m at the Day Zone, and
- 17.05 g/t Au and 43 g/t Ag over
0.70m from 51m depth in hole P21-2323 in the area west of the
Premier deposit.
FINANCIAL RESULTS FOR THE THREE MONTHS
AND YEAR ENDED DECEMBER 31, 2021
The Company reported a net loss of $170 for Q4
2021 compared to $4,436 for Q4 2020. The lower loss in Q4 2021 was
mainly driven by a $1,799 gain on change in estimate of Production
Purchase Agreement (PPA) liability due to a change in anticipated
production schedule and a $1,659 decrease in loss on valuation of
the Company’s convertible debt, driven by fluctuations in the
variables used to calculate the fair value of the embedded
derivative.
The Company reported a net loss of $2,948 for
2021 compared to $8,427 for 2020. The lower loss in 2021 was mainly
driven by a $3,515 gain on valuation of the Company’s convertible
debt driven by fluctuations in the variables used to calculate the
fair value of the embedded derivatives and a $1,799 gain on change
in estimate of PPA liability.
LIQUIDITY AND CAPITAL
RESOURCES
As at December 31, 2021, the Company had working
capital of $47,002, cash & cash equivalents balance of $59,130.
During 2021, the Company issued 98,027,377 common shares, 603,190
stock options, 40,781 Deferred Share Units. Also, 1,400,000 stock
options expired, 505,558 stock options were forfeited, 66,667 stock
options were exercised and 29,167 RSUs were forfeited during 2021.
Subsequent to December 31, 2021, the Company closed a bought deal
financing for total gross proceeds of $64,241.
MANAGEMENT’S OUTLOOK FOR
2022
Management is planning a number of activities
for 2022, which include:
- Completion of refurbishment of the
mill and commencement of pre-commissioning in Q4 2022
- Completion of construction of the
new water treatment plant and tailings storage facility in Q4
2022
- Commencement of underground mine
development in late April and delivery of ores for
pre-commissioning in Q4 2022
- Surface exploration drilling with a
focus on the Day and Sebakwe zones
- Stope definition drilling at Big
Missouri both from Surface and Underground
- Health and safety initiatives
related to Covid and construction protocols
- Meeting a number of permitting
compliance requirements as the project transitions from
construction into operation
- Recruitment of operating
personnel
Figure 1 – Overview of mill building and
temporary construction
camphttps://www.globenewswire.com/NewsRoom/AttachmentNg/18b614da-3643-48d8-843f-70772b97b765
Figure 2 – Ball and SAG
millshttps://www.globenewswire.com/NewsRoom/AttachmentNg/0c991c0a-60bf-4f1b-ad77-bc5416a6329f
Figure 3 – Tank erection outside mill
buildinghttps://www.globenewswire.com/NewsRoom/AttachmentNg/07002c58-0e2e-481e-bb9a-79ad042f5097
Figure 4 – Snow removal reaching the
planned S1 underground portal
areahttps://www.globenewswire.com/NewsRoom/AttachmentNg/7b113467-7642-4ba2-bee8-1bfcc3d409c8
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
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
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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