Ascot Reports Second Quarter 2022 Results

VANCOUVER, British Columbia, Aug. 08, 2022 (GLOBE NEWSWIRE) -- 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 June 30, 2022 (“Q2 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 June 30, 2022, please see the Company’s filings on SEDAR (

Derek White, President and CEO, commented, "We continue to make progress towards arranging alternative financing to fund the remaining construction at PGP, and in the meantime much headway has been made during Q2 2022 on various construction activities. Approximately 95% of the remaining fixed equipment for the project has been ordered, which partially insulates Ascot from continued inflationary pressures in the mining industry.

Underground development, benefitting from excellent ground conditions, has been going very well and to date has progressed approximately 320 metres. Development is now accessing initial ore in the A Zone of the Big Missouri deposit, which will enable direct sampling and confirmatory work on ore grades, geometries, and stope shapes.

On the exploration front, drilling continues to impress at the emerging Sebakwe Zone, with the first batch of assay results from this season yielding coarse, visible gold and high-grade intercepts up to 193 g/t gold. We expect the second batch of assays from the drill program at Sebakwe in the near-term.

All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.


  • On April 4, 2022, the Company provided an update on construction financing and development plans for PGP, including an update on the availability of further drawdowns under the construction finance package of US$105M (see News Release dated December 10, 2020), where the Company had secured a US$80M senior credit facility (the “Senior Facility”) with Sprott Private Resource Lending II (Collector), LP (“Sprott”). After drawing down the initial US$20M tranche under the Senior Facility, Ascot was required to satisfy various conditions before drawing down the remaining US$60M, which was available until June 30, 2022. However, the Company has been unable to reach an agreement with Sprott on the satisfaction of the drawdown conditions for the remaining US$60M of the Senior Facility. Therefore, the initial US$20M drawdown remains outstanding and Ascot is pursuing alternative financing options to replace the remainder of the Senior Facility.
  • In April 2022, Ascot held a Public Information Session in Stewart, B.C. for the surrounding communities. In June 2022, Ascot attended the Nisga’a Business Forum in Gitwinksihlkw and supported the Prince Rupert Salmon Festival hosted by the Nisga’a Gitmaxmak’ay cultural dancers.
  • On May 9, 2022, the Company announced the start of the 2022 exploration drilling program, which comprises approximately 18,000 metres and is equally split between exploration and in-fill holes. Exploration drilling is largely concentrated on the Sebakwe and Day Zones and in-fill drilling focuses exclusively on the Big Missouri deposit.
  • On May 16, 2022, the Company announced the hiring of Vice President, Operations and General Manager, and the commencement of underground development work at PGP.
  • On June 23, 2022, the Company provided an update on the development, financing, and exploration of PGP, noting that construction had been significantly advanced in many key project areas. The Company had been working with a number of potential financing partners including project lenders and streaming/royalty companies in order to secure sufficient financing to complete its project construction. These discussions are ongoing and the Company is confident a financing solution can be achieved in the foreseeable future. Until this funding is secured and in order to preserve Ascot’s current cash balance, the Company began decelerating various construction activities and placing certain work packages on hold. Importantly, the underground mine development work and exploration program remain on track. The deceleration of project construction provided more time for mine plan and sequencing optimization, and enabled exploration drilling to determine the size, extent and high-grade continuity of the emerging Sebakwe Zone at the Premier deposit. Given the delays in construction areas which require seasonal conditions, the target for first gold pour will be delayed from the first quarter of 2023 until between late 2023 and early 2024. Ascot is developing a more detailed construction sequence based on this new timeline and will continue to assess any potential cost implications associated with this delay.
  • After completion of the portal preparation work in April 2022, underground mine development work and installation of surface infrastructure commenced in May 2022. To date, surface facilities including ventilation, water supply and handling, ventilation, gensets, compressor, material handling and stockpiles, offices, and satellite communications have all been established. Underground, approximately 320 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 is now accessing initial ore in the A Zone of the Big Missouri deposit.
  • As of June 30, 2022, the Company progressed detailed engineering to approximately 95% completion and overall construction to approximately 33% completion. Ascot has ordered approximately 95% of the remaining fixed equipment for the project. Key orders remaining in the plant relate mostly to piping, instrumentation, and bulk consumables.
  • 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 gold, they continue to highlight the high-grade tenor of the Sebakwe Zone. The second batch of drill results from Sebakwe is anticipated in the near term, and a corresponding update news release is planned for the upcoming weeks. The drill rig has been moved close to the S1 pit at Big Missouri, drill testing the early stopes in the area north of the S1 pit. Initial observations include quartz breccia with sulfide mineralization at or very near the expected location where high-grade mineralization has been wireframed from earlier drill holes. Assay results from the Big Missouri drill holes are pending. An assay lab is being set up in Stewart and it is anticipated to be operational in the first half of August coinciding with first access to ore in the underground development at Big Missouri. Ascot has signed a priority service contract with this new assay lab, and once it is in service, turnaround times are anticipated to be a fraction of what was experienced previously.


The Company reported a net loss of $1,054 for Q2 2022 compared to $3,751 for Q2 2021. The decrease in net loss is attributable to a combination of factors including an increase in the gain on valuation of the Company’s derivative liabilities and an increase in flow-through premium recognition, partially offset by an increase in foreign exchange loss due to the strengthening U.S. dollar and senior debt deferred financing costs expensed in Q2 2022.


As at June 30, 2022, the Company had working capital of $37,825 and cash & cash equivalents balance of $60,212.  In the first half of 2022, the Company issued 59,271,000 common shares, 13,710,500 warrants, 3,732,284 stock options, 176,312 deferred share units, 721,432 Restricted Share Units (“RSU”) and 162,162 performance share units. Also, 906,750 stock options expired and 17,902 RSUs were exercised during the first half of 2022.


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, which include:

  • Completion of an optimized life of mine plan
  • 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

Figure 1 – S1 Portal at the Big Missouri deposit at PGP, looking south

Figure 2 – Underground development into the A Zone at Big Missouri

Figure 3 – Tailings thickener and CN destruct tanks

Figure 4 – Big Missouri water pipeline installation

Figure 5 – New water treatment plant clarifier foundation pedestals and lime silo foundations

Figure 6 – South tailings dam lift earthworks

Figure 7 – Overview of tailings management facility south dam

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
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 or visit the Company’s web site at, or for a virtual tour visit 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 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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