RCKS Talk

04-Sep-2018

Ascot Resources Ltd.

Site Visit: High Grade Resource on the Way

Impact: Mildly Positive

We recently visited Ascot Resources’ (TSXV:AOT) Premier-Dilworth property in British Columbia. The visit was led by the recently appointed President and CEO, Derek White, an experienced mine builder brought on board to fast track the past-producing Premier mine to production. The tour was very useful in outlining the new strategic focus of the company, which consists of developing a high-grade underground mine using existing underground infrastructure to allow for a shorter timeline to production. Following mine and mill rehabilitation, we expect the company to be in position to restart operations in the next few years.

  • New strategic focus to feed Premier mill with high-grade ore
  • Existing infrastructure and permits put Ascot on the fast track to production
  • Addition of Silver Coin to the company's Premier/Northern Lights and Big Missouri deposits gives sufficient resources to re-start mill
In our view, the current valuation reflects the infrastructure and permitting advantage that Ascot has versus its peers. Based on the current resource on the property, Ascot trades at a discount to peers (C$21/oz versus peers at C$58/oz). However, if we adjust the resource to reflect the current high-grade plan (~1.5M oz Au Eq), Ascot trades at ~C$74/oz AuEq, a substantial premium, reflecting both its existing infrastructure and advanced permitting status. We expect the ongoing news from exploration and the Big Missouri and Silver Coin resource updates, followed by a PEA should provide support for the implied premium.

13-Aug-2018

Ascot Resources Ltd.

Ascot to Acquire Neighbouring Silver Coin Property

Impact: Positive

Ascot Resources has entered into definitive agreements with Jayden Resources Inc. (TSXV:JDN) and Mountain Boy Minerals Ltd. (TSXV:MTB) to acquire 100% interest in the Silver Coin property in northwestern B.C.
  • The Silver Coin property adjoins the Ascot property boundary, has a current resource of ~244,000oz AuEq at 4.4 g/t AuEq, appears to have meaningful exploration upside and has access to the Big Missouri haul road
  • Pursuant to the agreement, Ascot will acquire all shares of Jayden Resources in exchange for 14,987,497 Ascot shares plus an additional 1,715,684 shares and will issue 4,175,795 shares in exchange for Mountain Boy’s 20% joint venture, which equals a total value of C$19.63M based on last close or C$80/oz AuEq
  • We view the acquisition favourably as it moves Ascot a step closer towards its goal of building sufficient resources to justify the restart of the Premier Mill. It is worth noting that in the early 1990’s, the Silver Coin property was mined and fed into the Premier mill, which is ~5km away
Based on the company’s recent resource update (open pit & underground), Ascot trades at a discount (C$24/oz versus peers at C$78/oz). We expect the ongoing news from exploration and infill drilling on higher-grade underground resources to close the gap to peers.

09-Aug-2018

Ascot Resources Ltd.

High Grade Gold Intercepted at Big Missouri’s Unicorn and Province Zones

Impact: Mildly Positive

Ascot Resources has announced that it has intercepted high-grade mineralization in the Unicorn and Province zones at Big Missouri, as part of the release of results for 37 holes drilled at this area of the flagship Premier-Dilworth Property.
  • Highlights include: 14.30g/t AuEq over 5.8m (P18-1678) and 6.53g/t over 4.0m (P18-1708) at Unicorn as well as 2.0m of 25.45g/t AuEq (P18-1691) and 2.0m of 14.65g/t AuEq (P18-1696) at the Province zone
  • Ascot is working towards restarting underground production at the Premier site using existing infrastructure and identifying new high-grade mineralized zones for underground extraction using higher drilling density compared to historic drilling previously meant for an open pit operation
  • The results from this announcement increases management’s confidence that the resource update for Premier and Big Missouri will establish a resource base, in support of engineering studies that commenced in Q2 2018, that will be sufficient enough for the restart of the Premier Mill
Based on the company’s recent resource update (open pit & underground), Ascot trades at a discount (C$30/oz versus peers at C$94/oz). We expect the ongoing news from exploration and infill drilling on higher-grade underground resources to close the gap to peers.

18-Jul-2018

Ascot Resources Ltd.

Additional High-Grade Drill Results from Big Missouri and Premier/Northern Lights

Impact: Mildly Positive

Ascot Resources has released results from 9 drill holes at Big Missouri and 21 holes at Premier/Northern Lights, within the Premier-Dilworth property near Stewart, British Columbia.
  • Drilling at Big Missouri continues to identify new gold mineralization with intersections of 8.07g/t AuEq over 4.29m and 7.74g/t AuEq over 5.5m
  • Drilling at Premier/Northern Lights has demonstrated that the current resource has growth potential in this area, with notable intercepts of 9.91g/t AuEq over 2m and 10.34g/t AuEq over 2m
  • The current drill program is designed to delineate a large enough high-grade underground resource to justify the restart of the Premier mine using the existing the infrastructure. These results continue to suggest this is a likely outcome, and the company plans to start on initial engineering studies in June
Based on the company’s recent resource update (open pit & underground), Ascot trades at a discount (C$30/oz versus peers at C$95/oz). We expect the ongoing news from exploration and infill drilling on higher-grade underground resources to close the gap to peers.

25-Jun-2018

Ascot Resources Ltd.

Ascot Intersects High-Grade Zones at Big Missouri

Impact: Positive

Ascot Resources has released results from the first 25 drillholes in the Big Missouri ridge area, the second target area at the Premier-Dilworth property near Stewart, British Columbia.
  • The company intercepted high-grade zones at the Big Missouri area, which includes 15.34g/t AuEq over 7.3m and 10.34g/t AuEq over 7.0m
  • Results support the company’s goal in defining a second high-grade underground resource to follow that of the Premier/Northern Lights resource update in the southern area of the property, which are both expected to enable the company to restart production and have sufficient feed for the Premier mill
  • Ascot is working towards recommencing underground production at the Premier site, with the current step being the 2018 drill program – designed to increase the existing resource base to have sufficient feed for the Premier mill
Based on the company’s recent resource update (open pit & underground), Ascot trades at a discount (C$32/oz versus peers at C$89/oz). We expect the ongoing news from exploration and infill drilling on higher-grade underground resources to close the gap to peers.

29-May-2018

Ascot Resources Ltd.

Initial 2018 Drilling in 602 Zone a Success; More Pending

Impact: Positive

Ascot reported high grade results from initial 2018 drilling from the 602 Zone (Figure 1) at the company’s Premier-Dilworth project, intersecting 11.65 g/t Au over 12.1m (P18-1605) and 24.64 g/t Au over 9.61m (P18-1609).
  • Infill results support geological model, 602 remains open to the northwest which will be tested later in the season
  • 2018 drilling stepping stone to restarting underground production at Premier, the never mined 602 Zone likely first area of focus
  • Results from 4 holes are pending with additional drilling being considered, 1 drill rig is in operation at Premier and 4 at Big Missouri
Based on the company’s recent resource update (open pit & underground), Ascot trades at a discount (C$33/oz versus peers at C$70/oz). We expect the ongoing news from exploration and infill drilling on higher-grade underground resources to close the gap to peers.

13-May-2018

RCKS Charts

Three Names with Positive Momentum

In this edition of RCKS Charts, Keith has evaluated Anaconda Mining Inc (TSX:ANX), Sierra Metals Inc. (TSX:SMT) and Ascot Resources Ltd (TSXV:AOT).

11-May-2018

Ascot Resources Ltd.

New Underground Resource First Step Towards Production

Impact: Mildly Positive

Ascot has shifted its focus to underground resource development at its Premier-Dilworth property with the announcement of a high-grade underground resource in the southern area of the property.

  • Ascot defines 601koz AuEq of high-grade underground resources at Premier/Northern Lights
  • Underground focus puts the project on the path to production
  • Drilling has revealed additional areas that may host high-grade resources
After incorporating Ascot’s resource update, the company trades at a discount (C$37/oz versus peers at C$65/oz). We expect the ongoing news from exploration and infill drilling on higher-grade underground resources to close the gap to peers.

01-Jan-2018

Ascot Resources Ltd. (TSXV:AOT)

RCKS Talk Blog Archive

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To access the historical archives of our original blog format, please click on the link(s) below to be re-directed. Please note that we no longer update those archive blog pages.

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