07:31 AM EDT, 04/16/2020 (MT Newswires) -- Ascot Resources (AOT.TO) overnight Wednesday reported "robust" results of an independent Feasibility Study for its Premier and Red Mountain gold projects in British Columbia, Canada.

The study, based on a proven and probable reserve of 6.2 million tonnes (Mt) from the project, outlined a low capital restart plan to feed the Premier mill at 2500 tonnes per day (tpd) to produce near 1.1 million ounces (Moz) of gold and 3.0Moz of silver over eight years.

Highlights of the results included base case Pre-Tax Net Present Value (NPV5%) of $516 million, internal rate of return (IRR) of 62%, and base case After-tax NPV5% of $341 million and IRR 51%, and after-tax payback period of 1.8 years.

CEO Derek White said: "The completion of the Feasibility Study marks an important milestone for Ascot in the progression of restarting the project. The current strong gold price environment, robust projected economics and quick payback creates an attractive opportunity to build our mine.:

At these projects located in Golden Triangle, Ascot has also inferred resources of 5.1Mt at 7.25 grams per tonne (g/t) gold at Premier, with near 2.2Mt of this resource material at similar grade, near the planned development, which may potentially be converted to reserves during operations.

White said: "The study focused on maximizing the project economics, which involved optimizing mining methods and development to reduce operating cost per ounce. The result of this optimization was a conversion of 64% of indicated resources to reserves at Premier. Management believes that future underground drilling will help to improve conversion of some of the remaining inferred resources and improve annual production rates."

For its outlook, the management will focus on advancing the gold project with stakeholders while continuing to grow mineral resources and reserves.

Shares on Wednesday gained 5.1% at $0.82 apiece in a 52-week range of $0.37 - 0.98.