Entering text into the input field will update the search result below

Ascot Resources: A Gold Mine Developer With A Very Attractive Valuation


  • Ascot plans to restart four high-grade underground gold mines in the southern corner of British Columbia's Golden Triangel.
  • The ore from the mines should be processed at a central facility at the Premier mine.
  • It is expected that the integrated mining operation will produce over 200,000 toz gold per year, at an AISC of around $800/toz.
  • As we are talking about a brownfield project, a lot of infrastructure and facilities is already in place and the initial CAPEX should be only around $100 million.
  • The numbers need to be confirmed by a feasibility study, that should be completed by the end of March.

The current stock and gold market volatility has a very negative impact on the share prices of companies in the mining industry. Steep share price declines experienced also companies with very good development projects. One of them is Ascot Resources (OTCQX:AOTVF).

Ascot is developing two high-grade gold projects (Premier Gold and Red Mountain) in a safe jurisdiction of British Columbia, Canada. Both projects are close to each other, they have good infrastructure and as they are brownfield projects, some facilities are already built, they need only some repairs and refurbishment. The CAPEX should be relatively low, the permitting process should be relatively easy, and a feasibility study is expected later this month. Despite all of the positive developments, Ascot's share price is more than 40% below its early January highs.

ChartData by YCharts

The Premier Gold Project

The Premier Gold project is located in the Golden Triangle region of British Columbia. The region is well known for its large gold and copper deposits, such as Brucejack (Pretium Resources (PVG)), KSM (Seabridge Gold (SA)), Schaft Creek (Copper Fox Metals (OTCQX:CPFXF)), or Galore Creek (Teck Resources (TECK)). Premier Gold is situated just to the south of Pretium's claims, around 30 km to the south-east of the Brucejack mine.

Source: Ascot Resources

The Premier Gold property contains three main (Premier, Big Missouri, Silver Coin) and several smaller gold deposits. According to the December 2019 resource estimate, the deposits contain indicated resources of 1.066 million toz gold and 4.669 million toz silver, at a gold grade of 8.01 g/t and silver grade of 35.1 g/t. It equals to 1.099 million toz of gold equivalent, at a gold equivalent grade of 8.25 g/t. The inferred resources contain 1.18 million toz gold at a gold grade of 7.25 g/t and 4.673 million toz silver, at a silver grade of 28.7 g/t. It equals to 1.213 million toz of

This article was written by

Peter Arendas profile picture
An in-depth analysis of the royalty and streaming industry

I am an associate professor at the University of Economics in Bratislava, Department of Banking and International Finance. My dissertation was focused on commodity markets and my habilitation was focused on the calendar anomalies. I have more than 15 years of investing experience. My investments mostly focus on small- and mid-cap companies in the resource sector. Since May 2019, I have been preparing regular monthly reports focused on the precious metals royalty & streaming industry. Based on positive feedbacks and numerous inquiries, I decided to launch a Marketplace Service named "Royalty & Streaming Corner", which provides an in-depth analysis of this exciting market segment, as well as investment ideas from the mining industry.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in AOTVF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.