Canadian mining company Ascot Resources has announced a strategic review of its Premier Gold Project situated in northwestern British Columbia, Canada.
This decision follows unsuccessful negotiations with Procon Mining over proposed price increases for mining services, leading to delays in mobilising equipment to the Big Missouri deposit. Consequently, the mill is not expected to commence operations by early August as initially scheduled.
In light of these developments, Ascot Resources has decided to place the project on care and maintenance to conserve capital. This pause will allow the company’s management team to explore strategic alternatives aimed at advancing the project towards sustainable production.
Ascot Resources fully owns the Premier Gold Mine, which poured its first gold in April 2024. The mine is located on Nisga’a Nation Treaty Lands within the Golden Triangle region.
Ascot Resources CEO Jim Currie said: “In the five months since the new management team took over, we have made significant progress. However, like many mine construction projects, operational challenges continue to surface, which in turn take time and capital to address.
“Over the next couple of months, we will be assessing our options to help us access the capital needed to successfully bring the project into sustainable production.”
A special committee has been appointed by Ascot Resources to oversee the strategic review process. The committee has engaged financial advisers to evaluate various strategic options, although there is no certainty that this process will result in a transaction.
The Premier Gold Project, located 25km from Stewart, encompasses 8,133ha and includes key deposits such as Premier, Silver Coin, and Big Missouri. These sites have a history of mining activities and underground access.
Additional resource areas include Martha Ellen and Dilworth.
