Ascot Resources (TSX: AOT) has officially placed its Premier Gold Mine on care and maintenance, stating that further mine development is required in order to efficiently run mill operations on site.
“The Company believes we need to focus on mine development to prioritize asset value and ensure we have the best path forward to sustainable and profitable operations,” commented Ascot CEO Derek White.
In making the decision, the company indicated that mine development at the Big Missouri Mine was behind schedule by up to two months, while production from Premier Northern Lights was delayed by up to five months due to a late start on the ramp. These delays in turn resulted in the number of stoping areas being insufficient to properly feed the mill on site.
Adding to the problems at hand, further development is required at Premier Northern Lights to access ore that is deeper than originally planned for, extending the timing for the completion of the mine ramp.
With these delays in mind, Ascot has concluded that it is in its best interest to suspend operations in an effort to focus on sufficient mine development, until such time that both Big Missouri and Premier Northern Lights can sufficiently feed the mill to profitably operate. Additional development is expected to take up to six months to complete.
Ascot indicated that it currently has cash reserves of $15 million, which is sufficient to properly suspend operations for the winter season, but further funding is required to complete the required mine development.
The company meanwhile indicated that over the last two months, the project poured 3,430 ounces of gold, 418% more than was poured in the entire second quarter.
Ascot Resources last traded at $0.15 on the TSX, down 66% on the news.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
