NIA's AOT Gained 30% Yesterday!

NIA's #1 overall stock suggestion for 2020, Ascot Resources (TSX: AOT), gained by $0.14 or 29.79% yesterday to close at $0.61 per share!

Since NIA's initial suggestion of AOT on October 31, 2019 at $0.51 per share, AOT has gained by 19.61% vs. SPDR Gold Trust (GLD) gaining by 8.78%, VanEck Vectors Gold Miners ETF (GDX) declining by 8.12%, the NASDAQ Composite declining by 10.67%, VanEck Vectors Junior Gold Miners ETF (GDXJ) declining by 16.19%, and the S&P 500 declining by 19.67%!

When AOT reached its 52-week high of $0.98 per share back on January 6, 2020 for a gain of 92.16% from NIA's suggestion price, gold was trading for $1,565.40 per oz. With gold settling yesterday at a price that is $94.80 or 6.06% higher than January 6th, look for AOT to explode north of $1 per share within the next few weeks!

AOT is well-funded having just raised CAD$10.3 million on February 25th at an average price of $0.771 per share! AOT's biggest catalyst in history is now imminent... the release of AOT's feasibility study for both its Premier Gold Mine and nearby Red Mountain Project!

NIA anticipates that AOT's feasibility study will show an after-tax net present value (NPV) that far exceeds initial capital expenditures (CAPEX). NIA expects AOT's initial CAPEX to be extremely low due to AOT's existing infrastructure, which includes the Premier Mill. AOT has already developed full plans to initially add a new SAG, Ball Mill, and gravity circuit to the Premier Mill while refurbishing the rest of the mill. In year 3 when AOT launches production at Red Mountain, which has a harder ore, AOT will add an additional fine grinder and thickener to the Premier Mill, which will maximize recoveries from Red Mountain.

No previous feasibility study, pre-feasibility study, or Preliminary Economic Assessment (PEA) has ever been released for the Premier Gold Mine, which for the 34 year period of 1918 through 1952 was the largest producing gold mine in North America producing 2 million oz of gold and 45 million oz of silver. However, AOT's 100% owned IDM Mining subsidiary that it acquired one year ago to become the largest landholder in the Southern Golden Triangle, previously released its own feasibility study for Red Mountain in September 2017. IDM's Red Mountain feasibility study from 2 1/2 years ago based on an assumed gold price of $1,250 per oz and a measured & indicated resource of 583,700 oz of gold gave Red Mountain a NPV of CAD$104 million.

AOT's feasibility study will be required to use an assumed gold price of $1,400 per oz, which is the current trailing 18-month average and 12% higher than IDM's September 2017 assumed gold price of $1,250 per oz. Since acquiring IDM Mining, AOT has grown Red Mountain's measured & indicated gold resource to 783,000 oz of gold for an increase of 34.14%. Factoring in both a 12% higher assumed gold price and a 34.14% larger gold resource, NIA estimates that AOT's feasibility study will give Red Mountain an after-tax NPV with a 5% discount rate of CAD$229 million!

AOT's 2019 infill drilling program at the Premier, Big Missouri, and Silver Coin deposits of the Premier Gold Mine, caused the Premier Gold Mine's total indicated gold resource to increase by a stunning 60% to 1,066,000 oz. Because the Premier Gold Mine's measured & indicated gold resource is 36.14% larger than Red Mountain, NIA estimates that the Premier Gold Mine will have an after-tax NPV with a 5% discount rate of at least CAD$312 million. Conservatively, we expect AOT's feasibility study to show a total after-tax NPV with a 5% discount rate of CAD$541 million!

AOT's feasibility study will provide a range of sensitivities to show how much its total NPV will increase/decrease based on changes in the price of gold, the CAD exchange rate, CAPEX, operating costs, and gold recoveries. Using the current gold price of $1,660.20 per oz, which is now 18.59% above the trailing 18-month average, NIA estimates that AOT's total after-tax NPV with a 5% discount rate will reach CAD$765 million!

NIA estimates that AOT's initial CAPEX to bring the Premier Gold Mine into production in 2021 will be CAD$100 million with an additional CAD$80 million in CAPEX likely to be needed to bring Red Mountain into production in 2023 for total initial CAPEX of CAD$180 million.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.