Ascot Resources Ltd.

Ascot Resources Ltd.

March 10, 2010 16:05 ET

Ascot Resources Ltd. Acquires the Mt. Margaret Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2010) - Ascot Resources Ltd. ("Ascot") (TSX VENTURE:AOT) is very pleased to announce the signing of an Option Agreement to purchase all of the interests of the Mt. Margaret property held by General Moly Inc. in the St. Helens Mining district of Skamania county in Washington state.

The Mt. Margaret property covers a large portion of the undeveloped resource known as the Mt. Margaret deposit. This is one of the largest of the Cu-Mo-Au-Ag calc-alkaline porphyries of Miocene age in Washington state. Since discovery in 1969 Duval Corporation conducted numerous exploration programs and mine/metallurgical studies on Mt. Margaret deposit until the eruption of Mt. St. Helens halted all fieldwork in 1980.

The Mt. Margaret porphyry copper-molybdenum-gold-silver deposit is located 22.5 km southwest of Randle Washington in Skamania county. The Mt. Margaret deposit was discovered by Duval Corporation in 1969 and was actively explored annually from 1971-1980. By 1980, a total of 105 diamond drill holes totaling 20,729 metres had been completed. This work defined a geological resource, at a 0.33% CuEq cut-off of 523 million tonnes grading 0.36% Cu, 0.011% Mo, 0.24g/t Au and 1.6 g/t Ag(i) containing 4.1 billion pounds of copper, 4.04 million ounces gold and substantial resources of molybdenum and silver. This drilling is based largely on vertical drilling with holes often spaced in excess of 150 meters apart. A few examples of these historic drill holes which commonly shut down in mineralization include:

Hole # From m's To m's Interval m's Cu %
DDH-25 39.6 183.5 143.9 0.54
DDH-29 6.7 195.7 189.0 0.80
  incl. 45.7 195.7 150.0 1.01
DDH-31 17.1 153.9 136.8 0.64
  incl. 76.2 103.6 27.4 1.77
DDH-40 12.5 159.4 146.9 0.63
  incl. 48.8 91.4 42.6 1.02
DDH-44 9.1 250.8 241.7 0.62
  incl. 76.2 103.6 27.4 1.36
DDH-55 3.1 228.0 224.9 0.51
DDH-61 5.8 200.3 194.5 0.60
DDH-78 45.7 385.9 340.2 0.64
  incl. 298.7 385.9 87.2 0.95
DDH-90 1.3 409.7 408.4 0.50
DDH-91 6.1 288.0 281.9 0.71
  incl. 121.9 204.2 82.3 1.17

Ascot plans a surface exploration program for 2010, upon receiving necessary permitting, to expand and confirm the historic geological resource "non 43-101 compliant" stated by Duval, dated 1980 (Taylor) using a 0.33% CuEq cutoff; quoted below:

Mt. Margaret Geological Resource (i) –Source (CIM Special Volume 37, 1986)
  Tonnes Cu Grade (%) Mo Grade (%) Gold Grade g/t Silver Grade g/t
Geological Resource 523MT 0.36 0.011 0.24 1.6

(i) Geological Resources for the Mt. Margaret deposit are referenced in CIM Special Volume 37 as well as several USGS and GSC databases. These historical resource estimates predate the implementation of National Instrument 43-101 ("NI 43-101") guidelines and are not compliant with current accepted reserve and resource classifications as set forth by Canadian Institute of Mining and Metallurgy, Aug 20, 2000 (CIM Guidelines). The Mt. Margaret resource estimates are considered relevant as they have been calculated on the basis of 20,729 metres of diamond drilling in 105 drill holes, However, Ascot has not completed the work necessary to have the historical estimate verified by a Qualified Person as a current mineral resource or mineral reserve estimate. The Company is not treating the estimate as a current NI 43-101 defined resource or reserve estimate and the historical estimate should not be relied upon. There is no current economic evaluation that demonstrates the potential economic viability of the stated resources therefore none of the geological resources should be considered "reserves" under current CIM Guidelines.

In order for the Company to purchase all of the interests of the Mt. Margaret property held by General Moly Inc. it must make the following payments:

1) $100,000 US on signing
2) $300,000 US fifteen months from the date of signing
3) $1,600,000 US twenty seven months from the date of signing.

General Moly Inc. will retain a 1.5% Net Smelter Return.

The Qualified Person responsible for review of the technical data in this news release is Graeme Evans, P.Geo. Mr. Graeme Evans is independent of the Company and a qualified person for the purposes of NI 43-101.


John A. Toffan, President and Director

This news release contains certain forward-looking information concerning the business of Ascot Resources Ltd. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; statements about the exploration of the Mt. Margaret Property and completion of the acquisition of the Mt. Margaret Property, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include 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 native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to explore and develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ascot Resources Ltd.
    John A. Toffan
    President and Director
    (604) 684-8950
    (604) 684-9877 (FAX)