The Premier Gold Project (“PGP”) is located 25 kilometres from the town of Stewart, British Columbia and Hyder, Alaska in the prolific Golden Triangle. Stewart is situated at the end of the Portland Canal across the border from Alaska and has excellent infrastructure, including a paved highway to major transportation routes, a deep-water port (ice free in the winter), a concentrate load facility and extensive hydro power facilities for supporting mining and mineral exploration activities.
PGP comprises a land position of 8,133 hectares with three key deposits and a number of exploration targets. The key deposits are Premier, Silver Coin and Big Missouri, which all had historical mining activities and underground access. In addition, to the north are two smaller resource areas known as Martha Ellen and Dilworth. The PGP combined resources are as follows:
2020 Mineral Resource Estimate at Premier Gold Project
In August of 2019, the Company engaged Ms. Sue Bird, P.Eng. of Bird Resource Consulting Corp. (“BRCC”), an independent “qualified person” (as defined in NI 43-101) to prepare an updated Mineral Resource estimate for the Premier Gold Project. The new estimate incorporates the drill results from the 2019 field season and required an update to the modeled mineralized zones and the modelling methodology for Premier, Big Missouri and Silver Coin to accommodate the results from the new drill holes in these three areas.
Mineral Resources at PGP reported at a 3.5g/t AuEq cut-off (effective date of December 12, 2019).
|Class||Deposit||In situ Tonnes|
|Average In situ|
|Au g/t||Ag g/t||AuEq g/t||Au||Ag||AuEq|
|Total Indicated||All Above||4,141||8.01||35.1||8.25||1,066||4,669||1,099|
|Total Inferred||All Above||5,061||7.25||28.7||7.45||1,180||4,673||1,213|
Notes for above:
- Mineral Resources are estimated at a cut-off grade of 3.5 g/t AuEq based on metal prices of US$1,300/oz Au and US$20/oz Ag.
- The AuEq values were calculated using US$1,300/oz Au, US$20/oz Ag, a silver metallurgical recovery of 45.2%, and the following equation: AuEq(g/t) = Au(g/t) + 45.2% x Ag(g/t) x 20 / 1,300
- A mean bulk density of 2.84 t/m3 is used for Premier and of 2.80 t/m3 for all other deposit areas
- A minimum mining width of 2.5 m true thickness is required in order to be classified as Resource material
- Numbers may not add due to rounding.
The Company has also identified a number of exploration targets outside of the main deposits which can summarized into the following key areas ( see the map below) : Silver Hill, to the northeast of the property targeting high grade silver; Dilworth - Big Missouri ridge to the western side of the property and the eastern ridge to the east of the cascade creek fault targeting high grade epithermal gold.
To date there has been in excess of 840,000m of drilling in over 7,500 holes (over 500,000m in 2,280 holes drilled by Ascot) on the property mostly focused on the key deposits. PGP was acquired by the Company in a series of acquisitions and “earn in” agreements primarily from Boliden, private owners and Jayden Resources limited. The property is now wholly owned by Ascot. Boliden and the former owners of the Dilworth property will have net smelter royalties (“NSR”) of 1% and 5% respectively. Ascot will have the right to buy out the 5% NSR for C$13.7 million and a portion of the 1% NSR royalties for C$1 million.