Ascot obtains permit for Premier gold project, first production expected in Q1 2023

Ascot Resources (TSX: AOT) has obtained the Mines Act Permit for construction and operation of the Premier gold project located in northwestern British Columbia’s Golden Triangle. 

Premier is a past-producing underground gold mine with existing infrastructure, including a tailings facility, process plant, hydro-electric power plant and underground workings.

With the Mines Act Permit in hand, Ascot says it will now evaluate and prepare for an optimal transition from early works to full-scale construction. Project construction is expected to take about 12 months to complete.

The company had originally anticipated being fully permitted to restart operations at Premier in the third quarter, which would place the mine on track for a late 2022 production.

Due to high snowfall levels in B.C., the company is adjusting its project development plans throughout this winter season, which would push the target date for initial gold production by one quarter, from the fourth quarter of 2022 to the first quarter of 2023.

Ascot expects to soon receive its Environmental Management Act permit, for which there are no further outstanding requests for information.

“Receiving the Mines Act Permit for PGP is a momentous milestone for Ascot and the culmination of extensive collaboration and consultation with Nisga’a Nation and the provincial regulators,” Derek White, Ascot’s president and CEO, stated in a press release.

“This project will be a welcome source of employment for hundreds of people who live in the Northwest,” Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation, said.

Based on the 2020 feasibility study mine plan, the project is expected to employ a peak of about 140 people during the construction phase, and once in operation the mine will directly employ roughly 280 people.

The study outlined a low capital cost ($146.6 million) restart plan to feed the Premier mill at 2,500 tonnes per day, producing approximately 1.1 million ounces of gold and 3 million ounces of silver over an eight-year mine life.

Over the course of production, the mine is expected to generate approximately $403 million in provincial and federal taxes, and $746 million in after-tax free cash flow based on current spot metal prices.