Underground development and ore stockpiling has resumed at the Big Missouri deposit, coinciding well with record-high gold grades recently intercepted from drilling in that deposit. Additionally, the surface work has been completed for the new Premier portal, and underground development will commence shortly and advance towards the
The 2023 exploration program has been very successful so far in achieving both short- and long-term goals. In-fill drilling at the
All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.
Q3 2023 AND RECENT HIGHLIGHTS
- At the end of Q3 2023, overall construction excluding mine development was 66% complete (73% as of
October 31, 2023 ), compared with 48% complete at the end of Q2 2023. Detailed engineering and procurement are substantially complete. The Company anticipates the first gold pour by the end of Q1 2024. - On
August 8, 2023 , the Company entered into a contract withProcon Mining & Tunnelling Ltd. for underground mining services for an initial term of three years with the Company having the option to renew for two consecutive one-year periods. InAugust 2023 , excavation work commenced on the new Premier portal close to the mill, including establishing the start of an access road for waste disposal in the historic Premier pit. Dewatering of the existing Big Missouri development and re-establishing surface infrastructure also commenced in August. - The Company’s 2023 exploration program at PGP consisted of 88 holes totaling 11,886 metres and included exploration drilling for resource expansion as well as in-fill drilling of initial mining areas at the Big Missouri and Premier deposits. On
August 25, 2023 , the Company announced the first batch of assay results with highlights including 32.85 g/t Au and 216.18 g/t Ag over 4.90m from a depth of 273.1m in hole P23-2468 and 54.28 g/t Ag over 6.52m from a depth of 253.48m in hole P23-2465. OnOctober 19, 2023 , the Company announced the second batch of assay results with highlights including 18.93 g/t Au over 6.87m from a depth of 278.1m in hole P23-2475 and 21.98 g/t Au over 4.28m from a depth of 279.2m in hole P23-2472. OnNovember 3, 2023 , a third batch of assay results was announced which was the initial batch of assay results from the surface drilling at the Big Missouri deposit. Highlights include 98.84 g/t Au over 6.48m from a depth of 51.5m in hole P23-2490, including 691.50 g/t Au over 0.90m. This is the all-time second highest-grade drill intercept at Big Missouri and is the Company’s highest-grade drill intercept property-wide since 2015. - 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 29, 2023 , the Company announced positive results from the 2023 induced polarization (“IP”) geophysics program at PGP. These results were from 28 IP lines totaling 29 line-kilometers across three grids. Highlights of the results included a strong IP anomaly showing potential that theSebakwe Zone structure extends approximately 1,000 metres beyond the westernmost extent of surface drilling from 2022, Day Zone IP signature continuing approximately 800 metres to the north of previous surface drill results and Dilworth IP showing strong chargeability anomaly to the west and below where most drilling was previously focused. - On
September 19, 2023 , the Company acquired a full-service laboratory facility (“Assay Lab”) inStewart, BC fromSeacan Labs Corp. The Assay Lab will be used to perform the testing required by Ascot for mineral exploration, mining operation, and environmental monitoring. - Construction of the new water treatment plant (“WTP”) is substantially complete. Commissioning process commenced in October.
- On
October 3, 2023 , the town council ofStewart, B.C. approved a Temporary Use Permit (“TUP”) to install a camp facility in the town to provide additional accommodations for workers at the Project. The TUP is for a three-year term with potential to renew for another three years afterwards. The Company quickly started to mobilize and install living quarters for the camp and expects an initial capacity of 76 beds to be ready by the end of November. The addition of bed capacity in the near term is expected to alleviate some of the pressure caused by the extended earthworks schedule.
PROJECT CONSTRUCTION
In
Construction Progress Key Performance Indicators (“KPI”)
At the end of Q3 2023, overall construction excluding mine development was 66% complete (73% as of
Previously, the Company had anticipated to complete earthworks by the end of September. The bedrock in the north dam area was deeper than anticipated and this required the removal and replacement of ~100,000 bank cubic metres of material that was not previously planned for. In addition, the drill and blasting of Cascade Creek Diversion Channel (“CCDC”) for new construction material was more complicated and took longer than previously expected. The earthworks contractor is now anticipated to complete the work by the end of November. The earthworks contractor’s personnel also increased from the originally planned 70 to 120 people, resulting in an increase in accommodation costs and delays in ramp up of other construction activities.
Capital costs, including mining costs, incurred as of
The company is assessing its working capital requirements to progress the project from construction to commissioning, initial production, and ramp-up phases, and is evaluating various potential financing options.
Safety
The Project continues to have an excellent safety record with 865,016 hours of work to the end of Q3 2023 and zero lost time incidents. The total recordable incident frequency has been reduced yet again from 0.95 at the end of Q2 2023 to 0.69 by the end of Q3 2023. In addition, despite the expanding construction activity on site resulting in a 30% increase in exposure hours compared to last quarter, the absolute number of incidents including property damage, first aid injuries, and near misses, decreased by 12% in Q3 2023. Reporting activity has been improved, and the Company will continue to work on proactive safety training and measures to reduce overall incidents at the Project site.
Processing Plant
In Q3 2023, mechanical and electrical work in the mill has been substantially completed. The work in the mill is currently focused on piping and systems and controls.
The tailings thickener and cyanide destruction tank outside the mill are mechanically complete. The freshwater collection point has been constructed and all lines have been completed to the pumphouse. Piping installation at the mill is over 70% complete. Instrumentation and controls installations are advancing well. All concrete works have been completed. Commissioning of some selected subsystems has commenced focusing on electrical rooms within the mill.
Tailings Storage Facility (“TSF”) and Cascade Creek Diversion Channel (“CCDC”) Earthworks
The earthworks contract for the TSF and CCDC was signed in
During Q3 2023, the earthworks contractor focused the reconstruction of the
Despite these challenges, the earthworks contractor completed the
Crews have also made progress on the new WTP and associated infrastructure, including the clarifier, lime silos, moving bed bio-reactor (“MBBR”) tanks and other reagent tanks. Construction of all major pieces of equipment is now complete with major milestones of mechanical completion tests for the clarifier and MBBR tanks successful. Most components are being commissioned in isolation, and upon the delivery and installation of two additional transformers, full commissioning of the WTP is anticipated before year-end.
Site Infrastructure
During Q3 2023, most of the new electrical substation was mechanically completed. The only remaining component is a protection and control panel, scheduled to be installed by the end of November. Crews have completed the 138kV power line to connect to the power grid less than 500 metres away. All 138kV lines have been pulled and the physical link up with the BC Hydro grid is currently taking place. Site electrification is planned for mid-December. Overland piping is over 70% complete and will be completed once the TSF work area has been opened. Medium voltage overhead lines are 80% complete and are expected to be completed in early
As reported last quarter and after an extensive and competitive process involving six contracting companies, in
In 2022, work commenced on the Big Missouri portal and approximately 907 metres of underground development was completed before being paused for the winter. In
In
Ascot also received various pieces of mine operating equipment during Q3 2023. For the underground mine,
Recruitment
As recruitment efforts continue to ramp up in the coming months, Ascot continues to have many qualified candidates applying for open positions. Encouragingly, local interest is high, as many applications are coming from candidates in the area of Stewart and northwestern
During Q3 2023, Ascot made significant recruitment efforts focusing on mill and maintenance operations. Recently recruited positions include a Supply Chain and Logistics Manager, Operations Superintendent and two Site Services Supervisors. Approximately one third of Ascot’s site-based employees are Nisga’a citizens.
Permitting and Environmental Compliance
As a result of the refinancing and project slowdown in 2022, a Joint Permit Amendment Application (“JPAA”) was required to be re-aligned with the project completion dates and was submitted in
2023 EXPLORATION PROGRAM
The exploration program commenced on
The 2023 ground geophysical induced polarization (“IP”) survey was completed in the summer. The program comprised of 28 IP lines totaling 29 line-kilometers across three grids – one grid near the Premier mill targeting the western extension of the
- Strong IP anomaly shows potential that the
Sebakwe Zone structure extends approximately 1,000 metres beyond the westernmost extent of surface drilling from 2022; - Day Zone IP signature continues approximately 800 metres to the north of previous surface drill results, and
- Dilworth IP shows strong chargeability anomaly to the west and below where most drilling was previously focused.
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
Looking forward, the key items for the Company for the remainder of the year include:
- Completing the earthworks on the TSF and CCDC by the end of November
- Increasing the number of piping contractors at the mill to finish the piping and systems and controls at the process plant to mitigate the impact from the delay in earthworks at the TSF
- Completing the new temporary camp in
Stewart - Fully commissioning the WTP
- Energising the new substation with full connection to the
Long Lake power plant in mid-December - Advancing the mining development at Big Missouri and at Premier
- Continuing to ramp up the operating team personnel
- Ensuring there is sufficient capital to complete the project and provide the working capital for start up at the end of Q1 2024
UPCOMING CONFERENCE PARTICIPATION
Ascot management will be participating in two upcoming conferences in
November 13-15 –Precious Metals Summit Zurich , SwitzerlandNovember 20-21 – 121 Mining InvestmentLondon, UK
CONSTRUCTION PROGRESS PHOTOS
Figure 1 – Premier Portal construction
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/21ebe11d-6b80-41d2-9ee9-8f84bfc80deb
Figure 2 – New electrical substation construction
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fa614f3e-4f23-4462-afe9-4c6e45bf4bef
Figure 3 – New WTP overview
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/94146c94-390e-4b10-a624-566584d6a529
Figure 4 – New WTP MBBR tanks and electrical building
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/00dbc413-7f8e-4363-b390-b54171f73da5
Figure 5 – Process plant interior
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e7df5666-3470-4e3d-bbeb-b2ebab15ea30
Figure 6 – TSF construction looking north
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e0580995-3540-4d7d-b03f-1e46f238d0fa
Figure 7 – TSF spillway liner installation
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/67761d26-f7b1-4c6c-b5c4-d789092e4492
Figure 8 – TSF north dam liner installation
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/68437f6a-a0fd-40a6-82af-79ce0491bc43
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
Premier Portal construction
Figure 2
New electrical substation construction
Figure 3
New WTP overview
Figure 4
New WTP MBBR tanks and electrical building
Figure 5
Process plant interior
Figure 6
TSF construction looking north
Figure 7
TSF spillway liner installation
Figure 8
TSF north dam liner installation
2023 GlobeNewswire, Inc., source