Ascot Resources Announces 2020 Second Quarter Financial Results

VANCOUVER, British Columbia, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) announces the Company’s unaudited financial results for the three and six months ended June 30,2020 (“Q2 2020”). For details of the unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three and six months ended June 30, 2020, please see the Company’s filings on SEDAR (www.sedar.com).

All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.

Q2 2020 AND RECENT HIGHLIGHTS

• On April 15, 2020, the Company reported robust feasibility study results with after-tax internal rate of return (“IRR”) of 51% based on US $1400/oz gold price. The feasibility study was prepared in accordance with an NI 43-101 technical report for Ascot’s 100% owned Premier (“PGP”) and Red Mountain (“RMP”) gold projects and filed on SEDAR on May 22, 2020. The feasibility study outlines a low capital restart plan to feed the Premier mill at 2500 tonnes per day to produce approximately 1.1 million ounces of gold and 3.0 million ounces of silver over eight years;
• On June 17, 2020, the Company closed its previously announced bought deal financing (the “Bought Deal”). A total of 29,412,000 common shares of the Company were sold under the Bought Deal at a price of C$0.85 per Share for aggregate gross proceeds to the Company of $25 million. The net proceeds of the Bought Deal will be used for the continued development of the Company's Premier Gold Project, including the purchase of long lead time equipment and for general working capital purposes;
• The Company commenced its 2020 exploration program at PGP and RMP in early June. Exploration activities this season consist of prospecting, geophysics and drill testing of a variety of different exploration targets at PGP and RMP. The focus of the program is on four highly prospective exploration areas, the west of the Premier deposit (“Premier West”), Silver Hill, Lost Valley and Woodbine;
• On July 29, 2020, the Company announced high gold grades in the first seven drill holes (1,930 metres) of the 2020 season. The drill site is strategically located at Premier West, potentially adding to existing resources outlined in the feasibility study;
• Drilling has been completed at Premier West for now and has moved to higher elevations as weather conditions permitted. One drill is on the Day zone and the other is on the Silver Hill prospect. The Exploration team will sequence back to low elevation targets as weather conditions dictate later in the season.