Ascot Resources Ltd. Shifts Focus from Milling to Underground Mining
Located in Northern British Columbia, Ascot Resources Ltd. has made the decision to suspend milling operations at its Premier project in order to prioritize underground mining. This transition comes as Ascot works to transition from an exploration and development company to a gold producer at the historic Premier mine, located north of Stewart, B.C.
Building on Past Mining Operations
Premier has a rich history of mining operations that date back over a century, providing Ascot with a solid foundation for its current endeavors. Over the past few years, Ascot has been steadily building high-grade gold resources and expanding its infrastructure to establish a modern mine within the Stewart Mining District in Northern B.C.
Feasibility Study Reveals Significant Potential
A feasibility study conducted in 2020 outlined ambitious plans for Ascot’s underground mining operations at Premier. With the development of four mines expected to yield approximately 1.1 million ounces of gold and 3 million ounces of silver in the first eight years, the project holds significant potential for the company.
Challenges and Adjustments
Despite successfully pouring its first gold at the operation in April and achieving milestones in production, Ascot has faced challenges in underground mine development. This delay has prompted the company to suspend milling operations for three to six months to address the shortfall in available ore to run the mill profitably.
Financial Considerations and Future Plans
While Ascot is confident in its ability to fund care and maintenance of the milling operations over the winter with its current cash reserves, additional funding will be required to resume underground mine development and ramp up the mill to commercial capacity. The company is actively exploring financing options and engaging with creditors to navigate the temporary suspension of operations at Premier.
Insight:
The decision to suspend milling operations in favor of prioritizing underground mine development reflects Ascot’s strategic shift towards long-term sustainable and profitable operations. By addressing challenges in the early stages of production, the company aims to position itself for success in the competitive gold mining sector.
