Additionally, at the corporate level we have made steady progress on important agreements including the signing of a 3-year mining contract with
The 2023 exploration program has been steadily progressing, with encouraging results encountered in both the drilling program and the IP geophysics program. We anticipate starting to release exploration results in the coming weeks as we receive them.”
All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.
Q2 2023 AND RECENT HIGHLIGHTS
- The earthworks contract for the tailings storage facility was signed in
March 2023 and the contractor was mobilized to the site inApril 2023 . Tailings pond de-watering was completed inJune 2023 and the construction of the tailings storage facility commenced. - On
April 20, 2023 , the Company closed a previously announced non-brokered private placement (the “Offering”). The Offering raised total gross proceeds of$4,050 and consisted of 5,000,000 common shares of the Company, which qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada ) (the “FT Shares”), at a price ofC$0.81 per FT Share. The proceeds from the Offering will be used to fund the 2023 exploration program at PGP. - On
May 11, 2023 , the Company announced the 2023 exploration program at PGP. The program consists of an initial 10,000 metres of surface drilling and will include exploration drilling for resource expansion as well as in-fill drilling of initial mining areas at the Big Missouri and Premier deposits. The exploration drilling will focus on extending theDay Zone at Big Missouri and theSebakwe Zone north of the Premier mill. Up to an additional 4,000 meters of drilling have been budgeted and will be deployed towards surface and underground drilling depending on results of the initial 10,000 metres. The 2023 exploration program commenced onJune 21, 2023 . - On
June 27, 2023 , the Company closed a previously announcedUS$14 million subordinated convertible credit facility (the “Convertible Facility”) withNebari Gold Fund 1, LP (“Nebari”). The full proceeds from the Convertible Facility were used to repay principal, accrued interest and fees of Ascot’s existing subordinated convertible credit facility withBeedie Investments Ltd. (“Beedie”). - On
July 31, 2023 , the Company entered into a master lease agreement withCaterpillar Financial Services (“CAT Financial”) for an equipment lease facility up toUS$15 million on an uncommitted basis for surface mining equipment and construction equipment. The lease terms of the equipment are 4 to 5 years at an interest rate of the Canadian Dollar Offered Rate plus 4.25%. - On
August 8, 2023 , the Company entered into a contract withProcon Mining & Tunnelling Ltd. for underground mining services for an initial term of 3 years with option to renew for two consecutive 1-year periods.
PROJECT CONSTRUCTION
In
Progress key performance indicators (“KPI”) and budget
At the end of Q2 2023, overall construction excluding mine development was 48% complete, with engineering at 99% and procurement at 99%. The Project remains on schedule and budget for first gold production in the first quarter of 2024. Capital costs, including mining, incurred as of
Safety
The Project continues to have an excellent safety record with 633,224 hours of work to date and zero lost time incidents. The total recordable incident frequency has been reduced from 1.28 at the end of Q1 2023, to 0.95 by the end of Q2 2023. However, with the increased activity on site and additional work areas, the number of incidents has increased including property damage, first aid injuries, and near misses. Reporting activity has been encouragingly high, and the Company will continue to work on proactive safety training and measures to reduce overall incidents at the Project site.
Processing Plant
Mechanical work continued in the mill during Q2 2023; various trommels, dust collection and chute infrastructure were installed around the SAG and Ball mills. The Intensive Leach Reactor was assembled. Electricians continued installing electrical cabinetry, pulling wire, installing cable trays, and working in the mine control centre room. Piping installation at the mill is approximately 50% complete. The tailings thickener and cyanide destruction tank outside the mill was also substantially completed in the quarter. Concrete and structural steel contractors also have been restarted and their scope updated for the mill completion.
Tailings Storage Facility (“TSF”) and Cascade Creek Diversion Channel (“CCDC”)
The earthworks contract for the TSF and CCDC was signed in
Crews have also made progress on the new WTP and associated infrastructure, including the tailings thickener, lime silos, moving bed bio-reactor (“MBBR”) tanks and clarifier foundation pedestals. Construction remains targeted for July and August to coincide with new WTP completion in September and subsequent commissioning.
Site Infrastructure
During Q2 2023, much work was completed on constructing the new electrical substation near the Premier mill. With the substation mostly complete, crews are now working on the 138kV power line to connect to the power grid less than 500 metres away. Crews also have been making progress on relocating the Big Missouri water pipeline from one side of the Big Missouri haul road to the other, which is expected to enhance the long-term safety and integrity of the pipeline.
After an extensive and competitive process involving six contracting companies, Ascot selected
In 2022, work commenced on the S1 portal and approximately 907 metres of underground development was completed in the Big Missouri area before being paused for the winter.
In late summer 2023,
Recruitment
During Q2 2023, Ascot hired and onboarded a full-time recruitment professional to lead the Company’s staffing efforts as it advances towards operations in 2024. Recruitment has already begun to ramp up for a number of key positions added recently, including Health, Safety, Training and Emergency Preparedness, Human Resources and Fixed Maintenance Planner.
As recruitment efforts continue to ramp up in the coming months. The interest in Ascot is high and many good quality candidates continue to apply for open positions. Encouragingly, local interest is high, as many applications are coming from candidates in the area of Stewart and northwestern B.C.
Permitting and Environmental Compliance
As a result of the project slowdown in 2022 due to the required re-financing process, a Joint Permit Amendment Application (“JPAA”) will be submitted in
2023 EXPLORATION PROGRAM
The exploration program commenced on
The ground geophysical induced polarization (“IP”) survey commenced on
The second grid was completed around the Dilworth deposit in the northern part of the property. The geology of this area is not as well understood as Premier and Big Missouri and the exploratory induced polarization data should help with effective targeting of prospective areas. A third grid is currently being laid out at the northern extension of the
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED
The Company reported a net loss of
LIQUIDITY AND CAPITAL RESOURCES
As at
As at
MANAGEMENT’S OUTLOOK FOR 2023
With the financing package closed on
- Construction of the processing plant and associated surface infrastructure such that the plant is expected to be in pre-commissioning by the end of 2023
- Completion of the tailings dam improvements and start up of the new water treatment plant by Q4 2023
- Advancement of the Premier portal and underground development and additional underground development of the Big Missouri mine, as well as initial production stoping to provide mill feed for commissioning.
- Maintaining a Health and Safety record of zero lost time incidents and achieving the 2023 goals outlined in the Company’s 2022 Sustainability Report
- Advancing the recruitment of site personnel in line with the site personnel plan by the end of 2023
- Maintaining permitting and environmental compliance so that there are no delays in the project construction schedule
- More exploration and infill drilling north and west of existing resources at the Premier Northern Light and Day zone resources areas
CONSTRUCTION PROGRESS PHOTOS
Figure 1 – New electrical substation construction
https://www.globenewswire.com/NewsRoom/AttachmentNg/f4031c7f-d5dd-4684-bcc5-a6386ed781c1
Figure 2 – New WTP overview
https://www.globenewswire.com/NewsRoom/AttachmentNg/642c8f63-f145-45ef-99ce-a5d54f897a2f
Figure 3 – New WTP clarifier construction
https://www.globenewswire.com/NewsRoom/AttachmentNg/b3285f8d-f345-4bd2-8ef6-194c26bbf579
Figure 4 – New WTP MBBR tanks and electrical building
https://www.globenewswire.com/NewsRoom/AttachmentNg/2bafa887-b5e7-46a1-8ba4-7161d952f378
Figure 5 – Tailings thickener and CN destruction tank
https://www.globenewswire.com/NewsRoom/AttachmentNg/06e91084-3316-4373-88e1-63762df9fd29
Figure 6 – CCDC excavation overview
https://www.globenewswire.com/NewsRoom/AttachmentNg/8e7bd5df-bf39-4ad0-b617-ba4609314307
Figure 7 – CCDC excavation looking south
https://www.globenewswire.com/NewsRoom/AttachmentNg/ecbed584-0a96-4e08-8ae7-bcb1d107d5f8
Figure 8 – Tailings south dam earthworks
https://www.globenewswire.com/NewsRoom/AttachmentNg/8de29e0f-56b0-44a9-bf0f-7cbb22739a66
Figure 9 – Temporary crushing plant for tailings earthworks
https://www.globenewswire.com/NewsRoom/AttachmentNg/036c60dd-d6d5-48aa-b2b0-3c7c6b53d573
Qualified Person
On behalf of the Board of Directors of
“Derek C. White”
President & CEO
For further information contact:
VP,
dstewart@ascotgold.com
778-725-1060 ext. 1024
About
Ascot is a Canadian junior exploration and development company focused on re-starting the past producing Premier gold mine, located on Nisga’a Nation Treaty Lands, in British Columbia’s prolific
For more information about the Company, please refer to the Company’s profile on SEDAR+ at www.sedar.ca or visit the Company’s web site at www.ascotgold.com, or for a virtual tour visit www.vrify.com under
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
All statements and other information contained in this press release about anticipated future events may constitute forward-looking information under Canadian securities laws ("forward-looking statements"). Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeted", "outlook", "on track" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein are forward-looking statements, including statements in respect of the advancement and development of the PGP and the timing related thereto, the exploration of the Company’s properties and management’s outlook for the remainder of 2023 and beyond. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including risks associated with the business of Ascot; risks related to exploration and potential development of Ascot's projects; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and indigenous groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; risks associated with COVID-19 including adverse impacts on the world economy, construction timing and the availability of personnel; and other risk factors as detailed from time to time in Ascot's filings with Canadian securities regulators, available on Ascot's profile on SEDAR+ at www.sedar.ca including the Annual Information Form of the Company dated
Figure 1
New electrical substation construction
Figure 2
New WTP overview
Figure 3
New WTP clarifier construction
Figure 4
New WTP MBBR tanks and electrical building
Figure 5
Tailings thickener and CN destruction tank
Figure 6
CCDC excavation overview
Figure 7
CCDC excavation looking south
Figure 8
Tailings south dam earthworks
Figure 9
Temporary crushing plant for tailings earthworks
2023 GlobeNewswire, Inc., source