RSS UpdatesCompany Information for Ascot Mining Plc
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Company Statement
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 know-how and industry contacts to acquire and fast track near term gold production projects within the well defined Costa Rican Gold Belt. Using this strategy, the time and capital required to bring a property into production can be greatly reduced, thus avoiding the major difficulties and delays faced by many junior exploration and mining companies.
Ascot has recently announced the commissioning of its Chassoul Mill following the culmination of major infrastructure works including the completion of a 400 tpd capacity tailings pond. The company is already mining gold and has the necessary permits in place to operate four goldmines and three mills in Costa Rica.
Ascot benefits from an experienced management team 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.
The Gold production timetable has been accelerated by acquiring and rehabilitating multiple mining concessions and development is well advanced at all operations. The targeted production is 100,000 ounces of gold per annum within five years. Management’s first-hand 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.
Ascot has been financing its development programme through an innovative combination of equity and a programme of forward sales of gold. Ascot’s existing operations have been independently valued well in excess of current market capitalisation.
Current Operations
Ascot Mining plc operates in Costa Rica through three wholly owned subsidiaries; Veritas Gold, Veritas Resources and Veritas Mining.
Veritas Gold: The Chassoul Gold Mine which is being 100% acquired by Ascot's wholly owned subsidiary, Veritas Gold CR SA, is now processing gold ore.
Production operations at the Chassoul mill were commissioned on 29 September, 2009. The plant is initially operating at a modest throughput of 20 tons per day, at an average grade of 15 gpt, which will be increased to 50tpd as the circuit is balanced. The development plan is to move a second ball mill from current storage and set it up next to the operating mill. Tank capacity will be increased over the next few months and, once in place, production will then be stepped up to 150 tpd.
The property, Mina de Oro, is located near the city of San Ramon, some 76 km from San Jose along the Pan American Highway, and then approximately 22 km via a secondary road, the first 10 km of which are paved and in good condition. The access road to the mine has been upgraded. Other major cities in the immediate vicinity are Miramar and Puntarenas.
Although there are nine (9) identified veins, the initial mining and ore production is projected to come from the Veta Cajeta which has been mined in the upper levels. 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. A new adit (146m) has been driven some 40 meters below the current main entrance to develop sufficient headings to support the start up of the mill. The adit has reached the location where a planned raise will connect this new tunnel with the upper workings. Ore from above is moved to the lower levels and then to the plant for crushing and processing.
The mill design is based on work done by Lakefield Research, at a diluted head grade of 0.318 oz, and test results indicate a recovery of 92%. The tailings pond was built to accommodate a design mill capacity of 400 tons per day (tpd). Initial mill throughput is estimated to increase to 150 tpd as the Cajeta vein is developed for production. All main milling components needed to increase mill capacity are in Costa Rica and will be installed as needed to reach an ultimate 400 tpd capacity.
The report titled "Geology, Reserves and economic Feasibility" by Miguel Alan, Geologist, is a very good overview of the potential of the mine - Mina Chassoul - a copy of which is available from the Company. It is believed that the Chassoul Mine concession holds considerable potential as there is one explored vein and eight other, as yet unexplored, veins.
Additionally, a copy of the NI 43-101 technical report dated October 2007 is available on the Ascot Mining website.
Veritas Resources CR SA: Veritas Resources has a Joint Venture Agreement with Auro Magra, Sociedad Anonima, owner of the La Toyota concession. The property is located in the "Gold Mountain Country", Puntarenas, (Mirimar) Costa Rica, and Northwest of the "La Union mine in the same mining district as the Bella Vista Mine.
La Toyota is readily accessible, via paved roads, from the Company’s other operations at Tres Hermanos, El Recio, Boston and Chassoul. Most of the mill equipment is already on site and will be augmented by equipment owned by Veritas Resources. All permits are in place and construction of the mill and associated infrastructure as well as initial mining to build an ore stock pile is being fast tracked.
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 on its own 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 initial 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).
Veritas Mining: Ascot's wholly owned subsidiary, Veritas Mining CR SA, has acquired a 100% operational interest in the Tres Hermanos and El Recio Gold Concessions and has reached a ten year renewable agreement for the exploration and exploitation in the nearby Boston Concession.
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 at 30 to 35 oz daily based on the mill handling 50 tonnes per day. Additionally, 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 which reduces the operating cost considerably.
The Costa Rican Government’s mining department has viewed favourably Ascot’s proposal to neutralise the tailings and pump them 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). This resource was given no value previously and was not considered for exploitation until the lifting of the restrictions on open mining in June 2008. The Company plans to pursue mining these reserves and is developing a mining plan. A new 100% owned mill facility is planned for the Tres Hermanos concession which will process ore from El Recio.
Detailed satellite imaging is being interpreted by the Company’s consultants to identify further drill targets. A drilling program is planned to locate other as yet undiscovered gold veins and expand the known resources.
The initial lease term is 20 years and has a renewal option. The Company also has an option to purchase the concession outright after the second year for consideration of $1,200,000. The lease agreement is subject to a royalty of 3% of net sales revenue (NSR) to the owner.
The mine is located 110 km North West of the capital, San Jose, Costa Rica and is readily accessible via a good 7.5 km gravel road off the Pan American Highway. The concessions have water, power and telephone connections, and permits are in place. There is a ready and experienced workforce in the nearby village of Las Juntas. The Tres Hermanos vein system, which can be traced on surface for a considerable distance, has been mined to a depth of 210 metres, no workings are below this level (no. 7).
Historical records indicate that between 1884 and 1999, 2.2 million tons of ore at a reported average grade of 0.48 oz/ton had been mined. Since then only free miners (a free miner is a prospector or miner who extracts ore from mines on a non contractual basis) have been working the concessions, recovering small tonnages at a reported average grade of +1.0 oz/ton. Reserve calculations indicate diluted reserves of 825,000 tons at 0.319 oz/ton. The deposit is open at depth and on strike.
Boston Ore supply Agreement: The Boston deposit lies to the northeast of Tres Hermanos and El Recio. The Boston Concession is owned by a syndicate of some 60 local miners who wish to continue to work the property.
Veritas Mining has a 10 year renewable agreement with the Concession owners to accept delivery of ore produced based upon a formula of tonnage and ore grade, less certain deductions for equipment, explosives and safety supplies provided by the Company. This arrangement is commercially attractive to the Company. Four levels are readily accessible for immediate ore production and mining is underway.
The vein system is narrow with corresponding high grades. Available records indicate that an average mining grade of 0.3 to 1.00 oz/ton can be anticipated. As in other concessions in this area, bonanza type chutes with higher grades have been encountered and documented. There has been no recent formalized activity in these deposits except for the mining done by the free miners who simply follow the vein system and mine material that is in excess of 1.0 oz/ton to make it worth their efforts. Consequently no recent grade and reliable and documented tonnage reserve figures are available at this time. Veritas Mining has commenced mining and an inventory is being compiled based on underground drilling and detailed mapping.
Tres Hermanos, El Recio and the Boston concessions are located in close proximity and exhibit the same characteristic vein structures. Veins in the El Recio deposit are wider than Tres Hermanos; the wider veins will allow the use of larger underground equipment resulting in lower mining costs, thus offsetting the slightly lower grades. As with all deposits in this area bonanza type chutes carry considerably higher grades.
Geographical Spread
Costa Rica
Board of Directors and Key Management
| David B. Jackson | CEO |
| Andrew von Kursell, P. Eng. | Chief Operating Officer, Director |
| Milo Filgas | Vice President, Mining, Director |
| Dr. Michael Green | Non Executive Director |
| Michael Sanguinetti, P. Eng. | Vice President, Exploration |
| Julio Ugarte Strunz | Administrative Executive, Veritas Gold CR SA |
| Damien Daly | Adviser |
| Stephen C. Jackson | Adviser |
| George R. Rawsthorne, P. Eng. | Metallurgical Consultant |
| Graham May | Corporate Secretary |
| Jeffrey Benavides Chaverri CA | Financial Director, Veritas Mining & Veritas Gold |
Company Address4th Floor, 36 Spital Square
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CapitalShares Authorized: 195,000,000
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Annual General MeetingDecember, London | Year End30th September |
Major Shareholders
| As of 1st October 2009 | |
| David Jackson | 17.08% |
| Andrew von Kursell | 14.26%. |
Related News
17/12/09 - Ascot Mining Plans To Be Producing 100,000 Ounces Of Gold Per Year Within Five YearsMost Recent Statement
30/09/09 - INCREASE AND CHANGES IN SHAREHOLDINGS29/09/09 - Statement re Chassoul Mill Commissioned, Updated Valuation, Share Placings
27/08/09 - Issue of Equity and Forward Gold Sale
30/07/09 - Shares in Issue
29/06/09 - Half-yearly report
07/06/09 - Statement re Non Dilutive Financing