RCKS Talk – Mar 15, 2017 – Ascot Resources Ltd. & IDM Mining Ltd.

A recent article by RCKS Talk highlighted Ascot Resources Ltd. (TSXV:AOT) and IDM Mining Ltd. (TSXV:IDM).
As quoted in the article:

Ascot Resources Ltd. (TSXV:AOT) announced it has commenced surface drilling as part of the 2017 exploration campaign planned at its Premier property in British Columbia. As we discussed in a previous post, the C$20 million program is expected to consist of both surface drilling and underground development. Initially, 120 km of surface drilling is targeted at establishing an initial high-grade resource of 2-3 million oz Au. Later this year, Ascot expects to drill an additional 20 km to explore grassroots targets at the north of the property, spending a total of C$13 million on surface drilling in 2017. At C$47/oz, Ascot currently trades at a discount to peers (C$58/oz). However, based on the high-grade resource goal and ignoring the existing low-grade resource, the company trades at between C$70-105/oz, a premium to peers. This valuation reflects the project’s likely high-grades, existing infrastructure and key shareholders. Based on Ascot’s cash position at the end of 2016 (C$29.1 million), the company appears to be well-financed for its planned exploration and remaining option payment of C$6.85 million (due June 2017). We believe Ascot is likely to continue the success demonstrated during the 2016 exploration program and that results from the 2017 drill program should support the company’s valuation.
IDM Mining Ltd. (TSXV:IDM) announced it has commenced a spring 2017 Phase I drill program at its Red Mountain project in British Columbia. The underground drill campaign is expected to consist of ~35 holes, totaling 8,000m. The program is focused on expanding mineralization to the north as well as up-dip and down-dip of the AV and JW zones. The resources of these zones combined with that of the Marc zone currently have a strike length of 600m. Previous intercepts indicate the gold mineralization extends for an additional 800m to the north. Initial step-out drilling at the mostly undrilled SF zone, which is north of JW, is expected to cover a strike length of ~300m to the north of the existing resources. The company has also planned step-out drilling up-dip and down-dip from the AV and JW zones where previous drilling suggests that mineralization continues for hundreds of meters. The zones remain open down-dip along strike. IDM continues to trade at a discount to peers on a P/NAV basis (0.47x vs. peers at 0.51x) and on a per ounce basis (C$39/oz vs. peers at C$53/oz). We expect the pending drill results and feasibility study for Red Mountain, coupled with the project’s ongoing de-risking (engineering and permitting), should help close the valuation gap to peers.

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