Ascot Increases Gold Resources at Red Mountain Project

October 31, 2019, Vancouver, BC – Ascot Resources Ltd (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) is pleased to announce the results of an updated mineral resource estimate for its 100%-owned Red Mountain Gold Project (“Red Mountain” or the “Project”), located near the Company’s Premier Project close to the town of Stewart, BC. The updated mineral resource estimate includes the results from 40 drill holes completed during Q4 2018. The resource estimate is authored by Dr. Gilles Arseneau, P.Geo. (of Arseneau Consulting Services, “ACS”) with input from Ascot’s technical team. This is the first step in the process of progressing studies for both the Red Mountain Project and the Premier Project to feasibility level with targeted completion in the first quarter of 2020. This new resource estimate contains almost 200,000 additional ounces of gold in the Measured and Indicated (“M&I”) categories compared to the 2017 feasibility study for Red Mountain. The substantial increase warrants an updated economic evaluation at feasibility level.

Results from this updated resource estimate and changes from the 2017 feasibility study and the 2018 resource estimate are listed in the table below:

Resources are reported at a 3.0 g/t Au cut-off for underground longhole stoping

Derek White, President and CEO of the Company commented, “We are very pleased with this increase to the gold resources at Red Mountain. We have added 198,000 ounces of gold to the resources compared to the 2017 feasibility study or 78,000 ounces in comparison to the 2018 resource. Both numbers refer to the M&I categories. The Red Mountain resources are now considerably larger than they were in 2017’s feasibility study. The Company has identified significant project synergies and optimization opportunities between the Red Mountain and Premier Projects. We are excited to complete the engineering studies for both projects in order to maximize the value to our shareholders.”

Mineral Resource Estimate

The updated mineral resources for the Red Mountain Project are reported at a 3.0 g/t Au cut-off for underground longhole stoping mining methods.

The mineral resource model prepared by ACS utilised a total of 699 drill holes, 230 of which were drilled by IDM Mining: 12 in 2014, 62 in 2016, 116 in 2017 and 40 in 2018. The resource estimation work was completed by Dr. Gilles Arseneau, P. Geo. (EGBC) an appropriate independent “qualified person” within the meaning of NI 43-101. The effective date of the Mineral Resource statement is August 30, 2019.

Block modelling was performed using 4 x 4 x 4 metre blocks. ACS considers that blocks in the Marc, AV and JW zones estimated during pass one and from at least 3 drill holes could be assigned to the Measured category. All other blocks interpolated during pass 1 in the Marc, AV and JW zones were assigned to the Indicated category. Blocks estimated with at least 3 holes during pass 2 in all zones were classified Indicated. All other estimated blocks were classified as Inferred. Interpolation was by ordinary kriging, or inverse-distance squared methods on smaller or dispersed data sets, with anisotropic search ellipsoids designed to fit the strike and dips of the zones.  An extensive quality control and quality assurance (“QA/QC”) review was completed on all 2018 and previous exploration work and a comparative analysis was performed on drill hole data, underground bulk sampling and geology. Bulk density was interpolated using inverse-distance squared method where there were sufficient data populations. For zones with sparse data, average values from the data available for a given zone were applied. Metallurgical studies have indicated that gold recoveries for the main resource zones (Marc, AV, JW, 141) range from 88.1% to 92.8% and average 90.9% (tonnage weighted).

For the mineral resource estimate, grade estimates were based on capped composited assay data. Gold values, depending on the zone, were top cut in a range from 20g/tonne to 75 g/tonne and silver values were top cut in a range from 45 g/tonne to 500 g/tonne. For the updated 2019 mineral resource estimate, it was decided to cap raw assays with top cuts for gold and silver on a zone by zone basis. The most significant capping was undertaken in the Marc and AV zones of the deposit.

Sensitivity

This mineral resource estimate is reported at a 3.0 g/t Au cut-off grade. Cut-off grades may be re-evaluated considering prevailing market conditions (including gold prices, exchange rates and mining costs). Opportunities identified during the engineering phase show potential for reduced operating costs and the potential for lowering the cut-off.

Next Steps

The feasibility study completed by JDS in 2017 was based on a standalone project with a smaller amount of resources in the Measured and Indicated categories. Engineering studies are being undertaken to analyze how to maximise the synergies of the two projects including assessing the potential for higher mining and processing rates. The Company plans to complete these engineering studies and report the results in the first quarter of 2020.

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

“Derek C. White”, President and CEO

For further information contact:
Kristina Howe
VP, Investor Relations
778-725-1060 / khowe@ascotgold.com

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