Ascot shares up after it drills highest-grade gold intercept since 2015 at Big Missouri

Drilling at British Columbia-focused explorer Ascot Resources‘ (TSX: AOT; US-OTC: AOTVF) Big Missouri deposit has returned an assay grading 691.5 grams gold per tonne over 0.9 metre, the highest-grade intercept at the project since 2015, the company reported Friday.

Big Missouri is part of Ascot’s Premier gold project, where construction is underway, with first gold expected in the first quarter of 2024. The project is just north of Stewart on the southern edge of the Golden Triangle in northwestern B.C.  

At mid-year, the company had spent $200 million on construction. It estimates it will cost another $110 million to get to first production. 

The highlight interval was part of a wider 6.5 metre intercept grading 98.84 grams gold, starting from 51.5 metres depth. That interval is the all-time second highest-grade drill intercept at Big Missouri.

“With underground mine development at Big Missouri having started last year, this is an opportune time to have intercepted some of the highest-grade gold mineralization in Ascot’s history,” Ascot president and CEO Derek White said in a news release.

White noted the intercept, in hole P23-2490, is located in an area currently scheduled to be mined next year. 

That was within an interval of 98.84 grams gold over 6.48 metres from 51.5 metres depth, also marking it as the all-time second highest-grade drill intercept at Big Missouri, just north of Stewart on the southern edge of the Golden Triangle in northwestern B.C. 

The results also included 22.3 grams gold over 9.7 metres from a depth of 58.3 metres, including 98.1 grams gold over 1.9 metres; and 17.72 grams gold over 5.6 metres from 21.4 metres depth, including 31.9 grams gold over 1.6 metres.

Those results, from the third batch of drilling this year, were completed between early August and late October past week. A total of 6,539 metres across 72 holes were drilled from surface.

Big Missouri is located about 6 km north of the Premier mill, which Ascot plans to restart. After the Premier underground mine opened in 1918 it was the largest gold mine in North America until its closure in 1952. It produced 2 million oz. of gold and 45 million oz. of silver. 

Underground mine development commenced at Big Missouri in 2022, and crews are currently mining and stockpiling mineralized material as development advances.

According to a 2020 feasibility study that pegged initial capex at under $150 million, Premier will produce a total of 1.1 million oz. of gold and 3 million oz. of silver over an eight-year mine life.

In addition to Big Missouri, the project also hosts the Silver Coin and Premier deposits. 

Shares of Ascot rose as high as 15% to 44¢ apiece on Friday afternoon, valuing the company at $241.8 million. Its shares traded in a 52-week range of 33¢ and 80¢.