Ascot Resources (TSX: AOT) announced on Tuesday that it had received permission to build and operate the Premier Gold project in the Golden Triangle in northwestern British Columbia.
Premier is an underground gold mine produced in the past, with important existing infrastructure, including tailings facilities, processing plants, hydroelectric power plants and underground works.
With the Mining Law license, Ascot will now evaluate and prepare for the best transition from early engineering to full construction. The construction of the project is expected to take about 12 months to complete.
The company initially expected full approval to restart Premier operations in the third quarter, which would put the mine on track for production at the end of 2022.
Due to heavy snowfall in British Columbia, the company is adjusting its project development plan throughout the winter, which will delay the target date for initial gold production from the fourth quarter of 2022 to the first quarter of 2023.
In addition, Ascot is expected to receive permits from its Environmental Management Act soon, so there are no further outstanding requests for information.
"obtaining the mining law license for PGP is an important milestone for Ascot and the result of extensive cooperation and consultation with Nisga'a Nation and provincial regulators." CEO Derek White said in a press release.
Bruce Ralston (Bruce Ralston), minister of energy, minerals and low-carbon innovation, added: "the project will be a popular source of employment for hundreds of people living in the northwest."
According to the 2020 feasible research mine plan, the project is expected to employ about 140 people during the peak construction period and about 280 people directly after it is put into production.
The study outlines a low-capital (C $146.6 million) restart plan to feed Premier steel mills at a rate of 2500 tons per day, producing about 1.1 million ounces of gold and 3 million ounces of silver over an eight-year mine life.
During the production process, the mine is expected to generate about C $403 million in provincial and federal taxes and C $746 million in after-tax free cash flow, based on current spot metal prices.
