Ascot Resources Ltd.
TSX VENTURE : AOT

Ascot Resources Ltd.

June 15, 2009 10:47 ET

Ascot Signs New Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2009) - Ascot Resources Ltd. (TSX VENTURE:AOT) is pleased to announce the signing of an Option Agreement to purchase all of the assets of the Premier Gold Mine held by Boliden Ltd. in the Premier Gold Camp, north of Stewart, British Columbia in the Cassiar Mining District (to view land map please click on the following link: http://media3.marketwire.com/docs/AOT0615.pdf).

The Premier Gold Mine is a historical producer of 2 million ounces of gold and 42.8 million ounces of silver, until operations were suspended in 1996.

Ascot plans an extensive $3 million surface and underground exploration program for 2009, to expand the historic geological gold reserves stated by Westmin Resources Limited (the mine owner prior to Boliden Ltd.) in a news release, dated February 5th 1997; quoted below:

Westmin is pleased to report that two successful 1996 programs of underground drilling at Premier, totaling approximately 50,000 feet, have substantially increased geological reserves. As of January 1, 1997 (geological) reserves are as follows:
 

Geological Reserves  
                   
  Tons Gold Grade   Gold Grade   Silver Grade      
Reserve (cut ) (uncut ) (uncut ) Zinc Grade  
Category (oz/ton ) (oz/ton ) (oz/ton ) (% )
                   
Proven/Probable 386,000 0.21   0.27   1.1   1.6  
 Diluted
                   
Possible 123,000 0.25   0.29   0.8   Not calculated  
 Undiluted
                   
- All individual assays greater than 1 oz/ton reduced to 1 oz/ton.  


These reserves were defined by partially testing the potential outlined in a Resource Evaluation Study, completed in February 1996. That study inferred a reserve potential of 1,122,000 tons at a gold grade of 0.23 oz per ton, located in several target areas. It is significant that areas representing only a small portion of the tonnage identified in the Resource Evaluation Study were tested by the 1996 drilling programs. The portion that was drill tested returned not only more than twice the projected tonnage of reserves (in all three categories), but also a gold grade 8% higher than expected.

This recently completed program, which led to the reserve expansion, was conducted by Westmin during the period April to December, 1996 – when Premier mining was suspended for lack of ore. This reserve increase and the additional demonstrated potential should support an early restart to Premier. The operation has a modern and efficient CIL milling facility and permitted tailings pond. Access to the reserves is good through extensive underground workings so that development capital required would be low.

It should be noted that:

  1. A qualified person has not done sufficient work to classify these historical estimates as a current mineral resources or mineral reserves.
  2. The Company is not treating the historical estimates as a current mineral resources or mineral reserves as defined in NI 43-101.
  3. These historic estimates should not be relied upon.

The Option Agreement is subject to approval by the TSX Venture Exchange. In order for the Company to purchase all of the assets of the Premier Gold Mine it must make the following payments:

  1. $100,000 within ten days of the later of the Execution Date and the approval of this agreement by the TSX Venture Exchange.
  2. $100,000 on or before the first anniversary of the Execution Date.
  3. $100,000 on or before the second anniversary of the Execution Date.
  4. $20,000,000 on or before October 1, 2012.

In order for the Company to exercise the Option it must:

  1. Have made all the above noted payments.
  1. Have exercised its option to acquire certain mineral claims under its option agreement dated March 2007 – see news release March 28, 2007. The terms of the 2007 option agreement have been amended to make the second anniversary payment, payable in two equal installments over a two year period, to defer the third year anniversary payment to year four and to extend the closing date to October 1, 2012.
  1. Grant Boliden Limited a 1% Net Smelter Royalty, and the first right to purchase at market prices all base metal concentrates produced from the Property.

The Qualified Person responsible for review of the technical data in this news release is K.M. Carter, P.Geo a director of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS OF ASCOT RESOURCES LTD.

"John A. Toffan", President and Director

Statements contained in this news release that are not historical fact, such as statements regarding the economic prospects of Ascot's projects, Ascot's future plans or future revenues, timing of development or potential expansion or improvements, are forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, Ascot's ability to raise sufficient capital to fund development, changes in economic conditions or financial markets, changes in prices for Ascot's mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in Canada or the United States, technological and operational difficulties or inability to obtain permits encountered in connection with our exploration and development activities, labour relations matters, and changing foreign exchange rates.

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
    Fax: (604) 684-9877
    www.ascotresources.ca