Ascot Mining Plc
ASSAY RESULTS AND OPERATIONS UPDATE
London, 8 April 2010, Ascot Mining (Ascot" or the "Company) (PLUS Markets: ASMP,
XETRA(R): AM3.DE) is pleased to provide this update to its Chassoul and Tres
Hermanos / El Recio mining and processing operations:
Chassoul Mine and Mill:
The first raise (a vertical opening) connecting the lower Cajeta tunnel to the
upper tunnel was successfully completed, allowing immediate access to higher
grade material, facilitating development of the ore block and improving
ventilation on the lower level. The South and the North walls of the raise were
sampled every meter and assayed, the results are appended. A second raise of a
total of 8 planned will access ore between the two levels in the Cajeta vein.
With the exception of a few isolated areas the ground is very competent
requiring very limited support. Mining will be via stope and crown pillar, with
subsequent pillar recovery, thus minimizing dilution. The Company intends to
reclaim the tailings from the tailings pond and pump them underground after
adding Portland cement. There is no danger of pollution and this method of back
filling is a standard procedure in many mines.
The mill circuit is functioning well after the completion of a number of small
changes as recommended by the Company's Senior Metallurgist. The laboratory was
completed and provides timely assay results. An immediate expansion of manpower
will permit a 24 hour seven days per week operation to deal with the increasing
demand for sample analysis associated with the underground activities and the
exploration program.
The bigger ball mill is scheduled to be moved into place within 10 days and
connected to the circuit. Depending on the hardness of the ore and metallurgical
characteristics the recently announced expansion of capacity of the mill will be
150 tons per day. The ore from the Boston concession, which is scheduled to be
processed at Chassoul until the first gravity mill is in operation, has not been
tested for millability since the vein was only recently uncovered and ore
extraction is about to commence.
Assay results:
The following assays were obtained in the raise between the lower and upper
Cajeta tunnels on the Chassoul property.
Assay results
Raise between lower and upper Cajeta tunnels
Note: values in gm/ton, width in cm
Sample South North widthS widthN Grade xm S Grade xm N
1m 6 2 95 120 570 240
2m 4 4 90 80 360 320
3m 4 6 125 50 500 300
4m 8 4 120 72 960 288
5m 8 4 95 80 760 320
6m 6 2 95 77 570 154
7m 6 2 110 115 660 230
8m 10 5 130 80 1300 400
9m 11.67 15 90 50 1050.3 750
10m 6 4 80 63 480 252
11m 14 4.67 60 50 840 233.5
12m 6 13.33 30 30 180 399.9
13m 4 4 20 20 80 80
14m 16 4 25 56 400 224
15m 26 14.67 20 63 520 924.21
16m 8 8 60 22 480 176
17m 11.33 6 25 50 283.25 300
18m 10.67 9 44 60 469.48 540
19m 3.33 8.33 36 45 119.88 374.85
20m 2.67 6.67 50 50 133.5 333.5
21m 6 8.33 55 50 330 416.5
22m 10 19.33 87 80 870 1546.4
23m 10.33 5.33 70 70 723.1 373.1
24m 9 38.33 67 90 603 3449.7
25m 7 19 52 67 364 1273
26m 6 11.67 74 180 444 2100.6
27m 13 8 85 86 1105 688
28m 7.33 8.33 70 70 513.1 583.1
29m 8 2 65 57 520 114
30m 16.67 9.33 68 65 1133.56 606.45
31m 43.33 4.67 70 70 3033.1 326.9
32m 5.33 3.33 62 88 330.46 293.04
2225 2206 20685.73 18610.75
average 0.2989 0.2713 oz/ton
average 9.3 8.44 gm/ton
Notes: The numbers 2225 and 2206 represent the sum total of the individual width of the vein at the sample point on the
South and North wall of the raise respectively.
The numbers 20685.73 and 18610.75 represent the product sum total of the individual assay multiplied by
the width of the vein at the sample point on the South and North wall. The average grade of the South wall is obtained
by dividing 20685.73 by 2225 to obtain 9.30gm/ton or 0.2989oz/ton. Similarly the average grade of the North wall is
18610.75 divided by 2206 is 8.44gm/ton or 0.2713oz/ton. The foregoing
assays were obtained at the Company's new onsite laboratory.
Supplementary Ore Supply:
Arrangements have been made to truck ore with a grade of +9g/t from Las Juntas to Chassoul commencing
immediately. This will ensure that the plant can operate at full capacity if the Chassoul mine, while
continuing with mine development, cannot supply sufficient ore to operate at full capacity. This will
ensure full utilization of plant capacity. Ore from Las Juntas will be stockpiled at Chassoul and processed separately
once approximately 300 tons have been accumulated.
Mr. Andrew von Kursell, P.Eng., Ascot's COO states "Production for the first three months of 2010 fell short of our
target due to a number of unrelated events. Processing was interrupted due to changes that were made to the leach
circuit to convert from a batch operation to a continuous process; a delay in carbon delivery from Mexico forced a mill
shut down, a crusher break down required a 5 day mill shut down, and a delay in obtaining a governmental permit to
use an alternate explosive supplier forced a
cessation of all mining activity underground resulting in a shortage of ore being delivered to the mill. As of April 1,
all short comings have been corrected; the surface ore stockpile is being increased to
ensure the mill does not run out of feed again".
Tres Hermanos:
The municipality has approved the development of a gravity mill. The environmental report is expected to
be completed this week and will be submitted to the Government for approval. Once approval is received construction of
the gravity mill will commence.
The mine, referred to as Marvin's finka (farm) has been rehabilitated and, subject to reinstallation of service lines,
is ready to resume production of ore. Once production starts, a raise (a vertical opening) will be driven in ore to
surface. The purpose of this raise is twofold, one is to improve ventilation, and secondly to access 20 to 24 gm/ton
gold bearing material (0.64 to 0.77 oz/ton). Based on current information, the average grade of ore to be mined is 11
gm/ton (0.35 oz/ton) with high grade pockets.
The gravity mill, consisting of a crusher, screen, ball mill, Humphry spirals and/or a Long Tom sluice box, will
upgrade the ore to produce a concentrate which will be shipped to the Chassoul mill or be
processed in Las Juntas. No chemicals are used to produce the concentrate.
Depending on the efficiency of the plant the tailings will either be stored for further processing or mixed with
Portland cement and pumped underground to fill old workings. The plant will be built to have a daily capacity of 75
tons/day, but will initially operate at 10 tons/day until the circuits are balanced. When stabilized, the plant will
operate at full capacity.
Revised Production Target:
As a result of the unforeseen loss of La Toyota and resulting delays in the expansion at Chassoul projected production
to September 2010 has been revised from 28,000 ounces to approximately 20,000 ounces. While a setback, this adjustment
is not considered to be of longer term significance as the Company is aggressively moving forward with its development
and acquisition plans.
The Directors take responsibility for this announcement.
Enquiries: Damien Daly +44 (0) 7880 55 46 47
Email: info@ascotmining.com
Website: www.ascotmining.com