Construction has been significantly advanced in many key project areas including detailed engineering, work in and around the mill building, the new water treatment plant clarifier foundation, the tailings storage facility and Cascade Creek Diversion Channel ('CCDC'), the Big Missouri water discharge pipeline, and portal establishment and initial underground mine development at the Big Missouri deposit.
As noted in the Company's news release dated
Importantly, the underground mine development work and exploration program will remain on track. The deceleration of project construction will provide more time for mine plan and sequencing optimization, and will enable exploration drilling to determine the size extent and high-grade continuity of the emerging
In the current inflationary environment and challenging financial markets, the Company is seeking a financing package to provide sufficient capital to complete the project and commence production at PGP. The Company has a limited weather window to conduct certain outdoor construction activities and needs to ensure it has sufficient funding to complete these activities and the rest of the project. Since the Company has not completed alternative financing at this time, the decision was made to delay certain construction activities until the next weather window and focus financial resources on mining development and exploration activities.
We are disappointed to have to slow down the pace of project construction while we actively pursue alternative financing options for the remaining construction work at PGP. We have been approached by many interested parties and have progressed to advanced due diligence with various lenders and streaming/royalty companies. Although more time is required to secure this funding, all potential financiers have expressed their continued interest.'
PROJECT DEVELOPMENT
Underground development: Portal construction started in
Mill interior and exterior construction: Following the installation of the Ball and SAG mills in 2021, the Ball and SAG mill motors have now been installed. The main transformer has been installed and the high voltage power line has been established to the mill building. Most mill building electrical systems and the MCCs have been installed. The Falcon gravity concentrator has been delivered. The mine dry, washrooms, offices, and workshop areas have been installed and are being used. Outside the mill building, earth works, foundation, and erection work has been done on the tailings thickener and cyanide destruction tanks. Most of the activities in and around the mill building will be placed on hold until alternative financing is arranged, with a plan to restart in the Spring of 2023.
New water treatment plant: Excavation of the location for the new water treatment plant clarifier was done in 2021. Recently the foundation pad was prepared, and significant progress has been made on the 42-meter clarifier foundation and pedestals. The foundation for the Moving Bed Bio Reactor has also been completed. Work on the new water treatment plant will be placed on hold until alternative financing is arranged, with a plan to restart in the Spring of 2023.
Tailings facility earthworks: Earth works have continued on excavating the CCDC the material from which is being transported to the south dam of the tailings facility in order to achieve a 2:1 slope. These earth works activities will be placed on hold until alternative financing is arranged, with a plan to restart in the Spring of 2023.
Contact:
Tel: 778-725-1060
Email: dstewart@ascotgold.com
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
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 pursuit of alternative project financing solutions, 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 2022 and 2023. 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.com including the Annual Information Form of the Company dated
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