Ascot Resources Ltd. and Nisga'a Nation have signed a benefits agreement that renews and expands their relationship as Ascot closes in on the start of mine development at its Premier and Red Mountain gold-silver projects in the Nisga'a Nation traditional territory in Northern British Columbia.

"I am very delighted to represent the Nisga'a Nation in our partnership with Ascot," said Nisga'a Lisims Government President Eva Clayton. "Since the beginning, our relationship has been one based on the principle of mutual respect and a commitment to improving the quality of life of Nisg̱a'a citizens."

The mining company and First People of the Nass Valley area of northwestern BC already had a benefits agreement in place for Red Mountain, an underground gold-silver mine project roughly 15 kilometers (nine miles) northeast of Stewart, BC. This agreement was signed between Nisga'a Nation and IDM Mining Ltd. right before Ascot bought the latter and its Red Mountain project in 2019.

Rob McLeod, who was born and raised in Stewart and was the CEO of IDM Mining, entered into this original agreement with the Nisga'a Nation.

The new benefits agreement builds upon this work and has been expanded to include Premier, a past-producing mine on the outskirts of Stewart that last operated in the 1990s. With all the major infrastructure – mill, assay lab, crusher, tailings storage area, and underground workings – already in place, Premier is the site of the first mine to be developed by Ascot.

A feasibility study completed in 2020 envisions four mines in the Stewart area – Premier, Silver Coin, Big Missouri, and Red Mountain– providing ore to the existing mill at Premier. This 2,500-metric-ton-per-day operation is expected to produce roughly 1.1 million ounces of gold and 3 million oz of silver over an initial eight-year mine life.

This production is based on 3.63 million metric tons of probable reserves averaging 5.45 grams per metric ton (637,000 oz) gold and 19.1 g/t (2.23 million oz) silver within the Premier, Silver Coin, and Big Missouri deposits; plus 2.55 million metric tons of proven and probable reserves averaging 6.52 g/t (534,000 oz) gold and 20.6 g/t (1.69 million oz) silver at Red Mountain.

While a formal benefits agreement for the development of the deposit on the Premier property had not been entered, the Nisga'a Nation has been working closely with Ascot on this project, including assisting in putting together a Joint Mines Act-Environmental Management Act (Joint MA-EMA) application to amend the previously established permits for Premier.

"As I look back at how far we have come in just a few short years, our partnership and relationship with Nisga'a Nation has been instrumental in the advancement of the projects," said Ascot Resources President and CEO Derek White. "I am thrilled to have the updated Agreement signed as it sets the framework for the responsible development and operation of the projects and ensures prosperity for all stakeholders."

Under the terms of this comprehensive benefits agreement, Nisga'a Nation will provide ongoing support and continued consultation for the development and future operations of underground gold mines at Premier and Red Mountain, emphasizing respect for the land, protection of the environment, understanding of cultural use and knowledge, as well as health and safety, on and off the worksite.

Highlights of the agreement include:

• Cash payments tied to permitting, project development, and production milestones, as well as annual payments during production.

• Training, employment, and business development implementation activities and related committee oversight.

• Establishment of a business opportunities committee to identify and plan for requirements, build capacity, facilitate subcontracting, and manage direct-award contracts.

• Collaboration to implement environmental management plans and requirements under the projects' mines act and environmental management act permits, with special emphasis on tailings, waste rock, and water discharge.

• The formation of a management-level committee to monitor implementation and ongoing developments.

"The Nisga'a Nation is confident that this updated benefits agreement will better equip Nisga'a citizens and Nisg̱a'a businesses seeking a career, contracts and sub-contracts in mining through training, employment and business development initiatives with Ascot," said Clayton.

With an agreement in place that sets the basis for the long-term success of the projects and how they will benefit Nisga'a Nation, Ascot is looking forward to re-establishing the Premier Mine.

"Ascot is eager to work through the implementation of the Agreement, especially this year as we advance towards construction," said White.

Once permit amendments are complete, the feasibility study envisions it taking about 40 weeks to complete the construction to resume operations at Premier.

Ascot Resources Ltd.

Nisga'a Nation and Ascot Resources representatives during the signing of the updated and expanded benefits agreement.

Ascot has already begun ordering the long lead-time equipment it will need, including an order for the semi-autogenous grinding (SAG) and ball mills to upgrade and update the concentrator facility.

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Shane Lasley, Publisher

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