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Ascot Provides Update on Progress of Exploration for Premier Gold Project

Ascot Resources Ltd has offered an update on the progress of permitting, pre-construction engineering and exploration for the Premier Gold Project.

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In April 2020, Ascot announced a CAD $147 million initial capital estimate for the mine development, project construction and refurbishment of the project site. Since this date we have progressed the basic and pre-construction engineering studies and received proposals for construction and equipment from third party vendors.

Mr Derek C. White, President and CEO, Ascot Resources Ltd

These proposals reflect more up-to-date studies and current market conditions for construction materials, shipping, indirect costs the latest health and safety protocols. After these latest updates the project still remains a low capital cost project,” Mr White added.

Previously, Ascot reported its decision to continue with the fabrication of the Ball and SAG mills with the aim of delivery to the site by the end of June or early July 2021.

The focus of the team during the Basic Engineering studies was to decrease the operating risk by improving components of the grinding area and related electrical needs.

Cost inflation associated with steel prices and indirect costs also increased Ascot’s estimate for the initial capital. This has led to a revised initial capital estimate that is about 20% higher or CAD $176 million in total.

The 2020 April Feasibility Study underlined an after-tax NPV of CAD $341 million and a 51% after-tax IRR at US$1,400 per ounce of gold, as well as an estimated after-tax NPV of CAD $546 million and a 73% after-tax IRR at existing gold prices, at US$1,740 per ounce.

Toward the end of January 2021, Ascot submitted its permitting amendment application to the British Columbia regulators.

Once the permit amendment application was submitted, Ascot has received and responded to screening comments from Nisga’a Nation and several other regulatory bodies from the Government of British Columbia.

Once the screening phase is completed, Ascot expects to advance to the next phase of the permitting process by the end of March 2021.

Ascot is currently planning the early construction works, as part of which the cranes for the mill building and demolition of old piping and cabling will be prepared. This will in turn prepare the mill facility to obtain the Ball and Sag Mill components.

The management is advancing into elaborate engineering to promote the construction of the project. Ascot has received several contractor bids and has been engaged in concurrent discussions for construction and procurement management.

Ascot looks to engage in both surface and underground exploration activities in the forthcoming field season. In the Premier West area, initial drilling will start at a lower elevation, as part of following up with the fascinating drill results obtained from last season.

Thanks to the availability of road access at higher elevations, activities will shift to the new regions at Woodbine and the northern and southern extensions of the Day Zone.

Contingent on the high grade results achieved last year, Ascot intends to search for resources along strike into new regions.

A Notice of Work has been submitted by Ascot for an underground exploration drill program at Big Missouri to investigated deeper areas hard to explore from the surface. At a later date, Ascot will offer a more elaborate update on the summer exploration program.

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