Ascot Resources Ltd.

Ascot Resources Ltd.

February 13, 2013 09:00 ET

Ascot Updated Resource Estimate Significantly Increases Grade and Tonnage at Premier

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 13, 2013) - Ascot Resources Ltd. (TSX VENTURE:AOT) (the "Company") is pleased to announce that P&E Mining Consultants Inc. ("P&E") has completed an updated independent National Instrument 43-101 compliant mineral resource estimate for the Company's Premier property located near Stewart, British Columbia. The updated mineral resource estimate incorporates the Big Missouri and Martha Ellen deposits and replaces the previous mineral resource estimate for the Big Missouri deposit.

Highlights for the 2013 mineral resource estimate: all mineral resources have been reported inside an optimized pit shell at a cut-off grade of 0.25 g/t gold-equivalent (AuEq), and contains a total of 2.43 million ounces AuEq at a grade of 0.85 g/t AuEq in the Indicated category and 0.49 million ounces AuEq at a grade of 0.74 g/t AuEq in the Inferred category.

The updated mineral resource estimate is based on 155,153 m of drilling from 1,080 drillholes, incorporating results from three target areas: the Big Missouri deposit, the Martha Ellen deposit, and the Dilworth deposit. At present a mineral resource has not been defined for the Company's Dilworth zone. All three target areas remain open for expansion as shallow dipping sheets within a six square kilometer area. This latest resource represents approximately 15% of the total target area.

These targets have the advantage of having favorable moderate topography and developed infrastructure from previous mine operations and on ongoing hydroelectric construction at nearby Long Lake.

Fred Brown, P.Geo. of P&E is the Independent Qualified Person responsible for preparing the updated mineral resource estimate. The mineral resource estimate involved three dimensional modeling methods and statistical and grade continuity analysis. Gemcom GEMS modeling software was used for the three dimensional block model and subsequent grade estimates. Grade capping was used to restrict the influence of statistical outliers during Inverse Distance Cubed (1/d3) interpolation of block grades.

The updated mineral resource estimate is summarized in the following tables:

Big Missouri Deposit mineral resources (in-pit) at a gold-equivalent (AuEq) cutoff of 0.25 g/t.(1)(2)(3)(4)(5)
Classification Tonnes Ag Au AuEq Ag ozs Au ozs AuEq
(000's) g/t g/t g/t (000's) (000's) (000's)
Indicated 80,987 5.1 0.76 0.83 13,290 1,969 2,168
Inferred 19,935 4.3 0.67 0.73 2,734 428 469
Martha Ellen Deposit mineral resources (in-pit) at a gold-equivalent (AuEq) cutoff of 0.25 g/t.(1)(2)(3)(4)(5)
Classification Tonnes Ag Au AuEq Ag ozs Au ozs AuEq
(000's) g/t g/t g/t (000's) (000's) (000's)
Indicated 8,433 7.6 0.87 0.98 2,049 235 266
Inferred 554 12.0 0.83 1.01 213 15 18
Total (Big Missouri and Martha Ellen Deposits) mineral resources (in-pit) at a gold-equivalent (AuEq) cutoff of 0.25 g/t.(1)(2)(3)(4)(5)
Classification Tonnes Ag Au AuEq Ag ozs Au ozs AuEq
(000's) g/t g/t g/t (000's) (000's) (000's)
Indicated 89,420 5.3 0.77 0.85 15,339 2,204 2,434
Inferred 20,489 4.5 0.67 0.74 2,947 443 487
  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
  3. The mineral resources in this estimate were calculated with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
  4. The resources and gold-equivalent ratio of 68 g/t silver = 1 g/t gold was calculated using a gold recovery of 90% and a silver recovery of 65%. Metal prices used (Jan 31, 2013 two year trailing average) were Au US$1,632/oz for gold and US $33.25/oz for silver.
  5. All resources are reported within an optimized pit shell derived from a processing cost of CDN$11.00/tonne and a G&A cost of CDN$1.00 per tonne. Mining cost used is CDN$1.75 per tonne and optimized pit slopes are 50 degrees. The US$/CDN$ exchange rate used was 1:1

An in-situ global sensitivity analysis to the updated mineral resource estimate of the economic potential for the Premier deposits was also completed simultaneously with the in-pit mineral resource estimate, and is not restricted to the optimized pit shell. The inclusion of this sensitivity analysis is not meant to supersede or replace the results of the in-pit mineral resource estimate and should not be construed as a mineral resource.

In-Situ Global Sensitivity Table: Total Indicated Inventory
Cutoff AuEq Tonnes Ag Au AuEq Ag
(000's) g/t g/t g/t (000's) (000's) (000's)
5.00 g/t 1,219 15.1 7.28 7.50 591 285 294
4.00 g/t 1,890 13.4 6.22 6.42 816 378 390
3.00 g/t 3,112 12.1 5.06 5.24 1,206 506 524
2.00 g/t 6,212 11.4 3.66 3.83 2,270 730 764
1.00 g/t 18,705 9.3 2.05 2.19 5,578 1,230 1,314
0.50 g/t 48,699 6.8 1.16 1.26 10,717 1,818 1,979
0.45 g/t 55,000 6.5 1.08 1.17 11,575 1,901 2,075
0.40 g/t 62,683 6.2 0.99 1.08 12,532 1,992 2,180
0.35 g/t 71,411 5.9 0.91 1.00 13,504 2,082 2,285
0.30 g/t 81,154 5.6 0.83 0.92 14,540 2,168 2,386
0.25 g/t 92,581 5.3 0.76 0.84 15,697 2,252 2,488
0.20 g/t 104,902 5.0 0.69 0.76 16,740 2,325 2,577
In-Situ Global Sensitivity Table: Total Inferred Inventory
Cutoff AuEq Tonnes Ag Au AuEq Ag
(000's) g/t g/t g/t (000's) (000's) (000's)
5.00 g/t 154 11.3 7.28 7.45 56 36 37
4.00 g/t 226 10.1 6.29 6.44 74 46 47
3.00 g/t 540 8.5 4.60 4.73 148 80 82
2.00 g/t 1,028 10.2 3.47 3.62 336 115 120
1.00 g/t 3,220 8.9 1.93 2.06 916 199 213
0.50 g/t 11,538 5.6 0.98 1.06 2,088 363 394
0.45 g/t 13,930 5.2 0.88 0.96 2,347 395 431
0.40 g/t 16,424 4.9 0.81 0.88 2,597 426 465
0.35 g/t 19,346 4.6 0.73 0.80 2,873 457 500
0.30 g/t 22,285 4.4 0.68 0.74 3,141 484 531
0.25 g/t 25,361 4.2 0.62 0.68 3,407 507 558
0.20 g/t 28,411 4.0 0.58 0.64 3,652 525 580

Further discussion and analysis: this updated mineral resource estimate clearly demonstrates the amenability of the mineralization to an open pit scenario, which can be further enhanced with expansion of the current drilling results. A much higher percentage of mineralization is within the present Indicated category compared to the 2012 resource, as a better understanding of controls on mineralization is gained with further work. The optimized pit for the mineral resource estimate is based on a 0.25 g/t AuEq cut-off aided by the favorable infrastructure and topography of the project. The 2012 drill program again demonstrates the good lateral continuity of the shallow dipping system of which the present resource has only tested approximately 15% of the target area. This is regarded as a baseline mineral resource to allow expansion over all three target areas (Big Missouri-Martha Ellen-Dilworth) with an aggressive 2013 program.

The Dilworth target has been tested with 135 drill holes to date. Numerous gold and silver intersections have been reported, similar to those reported at Big Missouri and Martha Ellen, that is high grade intervals contained within lower grade zones. In 2013, the Company, plans to do sufficient drilling at Dilworth to delineate a viable resource. A few select examples of previously released intersections from the Dilworth area include:

Hole # Interval (m) Au g/t Ag g/t
HL-08-03 31.50 0.65 76.6
P-10-97 3.02 77.8 99.5
P-10-100 140.00 0.41 11.7
P-10-109 204.00 0.62 11.2
incl. 58.06 1.40 22.9
P-11-213 126.37 1.95 22.4
include 2.00 73.00 34.8
P-11-221 79.03 3.60 109.5
include 0.97 246.00 7840.0
P-12-391 0.45 3550.00 2180.0
P-12-398 52.10 0.88 6.6
P-12-401 127.50 0.54 14.7
P-12-402 1.71 64.80 37.0
P-12-405 189.70 0.48 7.2
P-12-422 31.52 1.37 11.2

N.B. Estimated true widths are generally 10-20% less than reported drill widths, as holes fan across gently dipping sheets.

Qualified Persons

The Independent Qualified Persons as defined by NI 43-101 for the purpose of this news release are Fred Brown, P.Geo. and Eugene Puritch, P.Eng., both of P&E Mining Consultants Inc. of Brampton, Ontario. The contents of this press release have been reviewed and approved by Mr. Puritch. P&E Mining Consultants Inc. is an established and internationally recognized geological and mine engineering consulting firm specializing in resource estimates, scoping, pre-feasibility studies and participation with other consulting firms on feasibility studies, with over 150 projects undertaken in the last eight years. Graeme Evans is the Company Qualified Person responsible for the supervision of the drilling programs. Mr. Evans has also reviewed and approved the contents of this news release.

An updated mineral resource report will be filed on SEDAR within 45 days of this news release.

On Behalf of the Board of Directors


John A. Toffan, President and Director

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute 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" 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, including, without limitation; the completion of the Offering on the terms set forth herein, the anticipated closing date of the Offering and the use of proceeds from the Offering are forward looking statements. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from the Company'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 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; and uncertainty as to timely availability of permits and other governmental approvals. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not 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 press release.

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