• Xetra: AM3.DE Recent Trading Range: €0.38 -€ 0.47
• London Plus Markets: ASMP Recent Trading Range: 30p – 34p
• Authorized share capital: 195 million shares
• Issued share capital: 29,301,664 shares
Key points:
• Low cost gold production planned for Q2 2009
• Target of 100,000 oz of gold per annum within four years
• Management team with a track record of successfully developing mining companies
• Fully permitted production infrastructure (4 mines and 3 mills permitted) (one is a JV)
• Ascot’s existing operations have been independently valued well in excess of current market cap
• Focus on fast tracking development / rehabilitation of known gold bearing concessions
• Properties have all previously produced gold, this further reduces production risk
Corporate Strategy:
Early cash flow is the goal of Ascot Mining. Through a combination of outright ownership, lease deals or joint ventures, the Board is using their mining knowledge and industry contacts to aquire and fast track near term gold production all within the well defined Costa Rican Gold Belt. Ascot is pursuing the acquisition of mining properties that are already permitted, or that can be quickly permitted, thereby generating early cash flow. Using this strategy, the time and capital required to bring a property into production can be greatly reduced, thus avoiding many of the difficulties and delays faced by many junior exploration and mining companies.
Ascot is already mining and stockpiling ore. It has the necessary licences in place to operate four goldmines and three mills in Costa Rica. Mobilization has commenced at all mines.
Experienced management who individually, and as a team, have successfully completed a wide range of challenging mining projects. Their in-depth experience covers mining exploration through to production with a comprehensive understanding of metallurgy, mill design and recovery systems.
Planned Expansion through further acquisitions is planned to achieve a targeted production of 100,000 ounces of gold per annum within five years. Management’s firsthand knowledge of the regional geology and their extensive contacts in the mining industry throughout the Americas provides access to commercially valuable opportunities that are not generally available.
Projects in Hand:
• El Recio gold mine (100%)
• Chassoul gold mine (100%)
• Boston ore supply contract (10 + 10 years)
• Tres Hermanos gold mine (100%)
• La Toyota gold mine and fully permitted mill at advanced stage of development (50%)
Details of these projects are outlined below:
1. Veritas Gold: Chassoul Mine
The development of the Chassoul Mine is significantly advanced and the Company is currently developing sufficient tonnage of ore ahead of production beginning in Q2 2009. It is estimated that, once the mill circuit has been balanced, daily gold production will be between 25 to 30 oz per day with the mill working at an initial rate of 75 tons per day. Allowing for downtime and circuit adjustment, the mill is expected to operate at about 25% of projected capacity for four weeks before reaching design capacity.
An exploratory tunnel has already been driven which has intersected the Cajeta vein. Independent assays have officially certified results of up to 106.75 grams of gold or 3.43 oz per ton, which are in the upper levels of the expected range.
The tailings pond will be completed once the liner is installed. The mill will be fully operational once the refurbished crusher is delivered to the site. To ensure uninterrupted mill operation, sufficient ore will be mined and stockpiled before the planned start-up of the mill. Completion of the laboratory is scheduled to coincide with the mill starting up.
2. Veritas Mining: Tres Hermanos – El Recio – Boston
Tres Hermanos and the nearby Boston concession consists of a series of mines with tremendous scope to significantly increase the already known resources. Records suggest an average mining grade of 0.3 to 1.00 oz/ton can be expected, plus bonanza type chutes with far higher grades that are well documented locally. Gold production is planned to begin in 2009 at 30 to 35 oz daily based on the mill handling 50 tonnes per day. Considerable quantities of high grade ore will be obtained from the “Free Miners” many of whom have agreed to work with the Company. Power is available from a nearby existing hydroelectric power line, thus reducing the operating cost considerably.
The Costa Rican Government’s mining department has viewed favourably Ascot’s proposal whereby tailings will be neutralized and pumped underground. This technique is environmentally beneficial, as it will stabilize former underground workings, and it is also cost effective.
Production will be boosted by development of the nearby El Recio concession which is a near-surface resource of 22,500 ounces of gold with an estimated value of US$18,000,000 (at US$800/oz).
Detailed satellite imaging is currently being interpreted by the Company’s consultants to identify further drill targets. A drilling program is planned during 2009 to locate other as yet undiscovered gold veins and expand the known resources.
3. Veritas Resources: La Toyota Mine Joint Venture
La Toyota is readily accessible, via paved roads, from the Company’s other operations at Tres Hermanos, El Recio, Boston and Chassoul.
There are four parallel veins approximately 300 meters apart on La Toyota concession. The initial development will be of the Toyota vein which is 4 meters wide, near surface, dipping at 85 degrees and narrowing to 1.5 meters nominally about 10 meters below surface. This vein extends for more than 1 kilometre and its horizontal limit has not yet been fully established. According to the Mining Department of the Costa Rica Government, the Toyota vein hosts “proven but not yet 43-101 compliant” reserves of 666,190 tons at an average grade of 0.48 oz/ton or 319,770 oz of gold.
The concession is permitted for 150 metric tonnes per day of mill throughput. The initial mill capacity will be 50 metric tonnes per day, increasing in two planned stages to full capacity. Veritas Resources, as Operator, will bring into production a 50 metric tonne per day mill and develop mining operations capable of sustaining the plant at capacity. Mill recovery, after stabilizing the circuit, will be in the order of 92%. Assuming an average grade of 0.48 oz/tonne, the daily production will be 18 to 20 oz/day. Once the mine has been developed to a stage where 150 tonnes per day of ore can be delivered to the mill on a regular basis, mill capacity will be increased to permitted levels. Assuming the same parameters as above, the expected production would be 55 oz/day. (50% to Veritas Resources).
Contacts:
David Jackson: david@ascotmining.com Damien Daly: damien@ascotmining.com
Email: info@ascotmining.com Website: www.ascotmining.com
April 20 2009 |
