Ascot Resources has announced a temporary halt to mill operations at the Premier Gold Mine in British Columbia, Canada, to shift focus towards mine development activities. This decision comes less than five months after the mine’s initial gold pour.
Located 25 kilometers from Stewart on Nisga’a Nation Treaty Lands in the Golden Triangle of north-western British Columbia, the Premier Gold Mine has delivered impressive results, producing 3,430 ounces of gold over the past two months—significantly surpassing Q2’s output.
Despite these achievements, Ascot has encountered delays in mine development, particularly at the Big Missouri mine and the Premier Northern Lights (PNL) ramp. These delays have constrained the number of available stoping areas, resulting in insufficient ore supply for sustained mill operations.
The company is set to receive its first development ore from PNL this month. However, additional development is necessary to access deeper ore, which will extend the timeline for ramping up the PNL mine.
The decision to pause mill operations is intended to allow Ascot to focus on mine development until the Big Missouri and PNL mines can consistently provide sufficient ore for profitable mill operation. The company plans to seek funding to support the necessary development work.
Initial estimates suggest that three to six months of additional development work, mainly at the PNL mine, will be required. Ascot’s cash reserves, amounting to nearly C$15 million (approximately $11.06 million) as of the end of August, are expected to cover the costs associated with halting operations and maintaining environmental compliance during the winter.
Ascot President, CEO, and Director Derek White commented, “This is difficult news for all of our stakeholders, particularly our employees and contractors who have worked tirelessly during the commissioning phase. The company believes focusing on mine development is essential to prioritize asset value and ensure a sustainable and profitable path forward.”
The company is in discussions with secured creditors regarding obligations during the suspension period. There is no certainty that Ascot will secure the necessary funds to complete the development work and restart operations. While the company anticipates resuming operations post-development, the certainty of this outcome remains uncertain.
