Ascot Resources holds 100% interest subject to a 1.5 NSR and a federal royalty to be negotiated in the Mt. Margaret property.
The Mt. Margaret porphyry copper-molybdenum-gold-silver deposit is located 22.5 km southwest of Randle Washington in Skamania county. The Mt. Margaret deposit was discovered by the Duval Corporation in 1969 and was actively explored annually from 1971-1980. By 1980, a total of 105 diamond drill holes totaling 20,729 meters had been completed.
The historic geological resource “non 43-101 compliant” stated by Duval, dated 1980 (Taylor ) using a 0.33% Cu Eq cutoff; is quoted below:
|Mt. Margaret Geological Resource* –Source(CIM Special Volume 37, 1986)|
|All are non “43-101”||Tonnes||Cu Grade|
|Geological Resource (Duval 1980)||523.0 MT||0.36||0.011||0.24||1.6||0.33% CuEq||0.56% Cu|
*Geological Resources for the Mt. Margaret deposit are referenced in CIM Special Volume 37 as well as several USGS and GSC data bases. These historical resources
estimates predate the implementation of National Instrument 43-101 (“N3-101”) guidelines and are not compliant with current accepted reserve and resource classifications as set forth by Canadian Institute of Mining and Metallurgy, Aug, 20, 2000 (CIM Guidelines).
The Mt. Margaret resource estimates are considered relevant as they have been calculated on the basis of 20,729 metres of diamond drilling in 105 drill holes, however Ascot has not completed the work necessary to have the historical estimate verified by a Qualified Person as a current mineral resource or mineral reserves estimate. The Company is not treating the estimate as a current NI-43-101 defined resource or reserve estimate and the historical estimate should not be relied upon. There is no current economic evaluation that demonstrates the potential economic viability of the stated resources therefore none of the geological resources should be considered “reserves”: under current CIM Guidelines.
In 2010 Ascot Resources drilled 11 holes at the Mt. Margaret with the intent of confirming and expanding the historic resource estimate. The drill results showed that the historic Mo, Ag, and Au, grades, were realistic and that actual Cu grades were 15 % higher than historic estimates. The deposit was also shown to be open to significant expansion at depth.
Ascot has submitted a 63 hole drill proposal to the government agencies which when completed would enable the company to prepare a NI-43-101 compliant resource on the property. The goal is to establish at least a billion ton resource at better than historic grades.