Ascot Mining Plc.
Operations Update - Changes to Mining Act
London 13 May 2010: Ascot Mining Plc is pleased to provide a follow up progress
report on its operations and address certain recently introduced changes to
mining laws in Costa Rica
Chassoul Operations:
Expansion - All three phases of the previously announced expansion are planned
to be completed by 30 May. Systems testing should be completed within one week
thereafter. Once commissioned, the mill capacity will be 150 tons per day.
Production - While the volume of production from its Chassoul project up until
now has been delayed and gold production has been considerably lower than
forecasted, the Company is encouraged by the progress being made with mine
development and mill construction. On May 10, 2010, a 30.1oz dore bar of gold
was poured. This is an increase from previous pours and is a material step
toward achieving a satisfactory level of commercial production. The Carbon in
Pulp milling process will take 3 weeks to saturate with gold. A further pour of
100 oz. is scheduled for May 21 followed by regularly scheduled pours of gold.
The ore for this most recent gold dore bar was from Stope 1 of the Cajeta vein
at the Chassoul Mine. Ascot Mining has completed all major construction to
access the ore, and will commence high volume, low dilution stope mining on June
1, 2010.
The mill at the Chassoul mine is being expanded and construction is scheduled to
be complete by May 31, 2010. The capacity for the expanded mill is 150 tons per
day. Together, these initiatives will enable the mine and mill to reach
forecasted production levels.
Tres Hermanos / El Recio Development:
As previously announced the Company continues to develop its plans for mining
and processing operations at its Tres Hermanos and El Recio properties. These
planned operations will be environmentally friendly and will not use chemicals.
Using Canadian made gravity concentrators Ascot will construct a 75 ton per day
mill on its property in the Costa Rica gold belt where the permits are already
in place. The operation will process ore from Ascot's wholly owned subsidiary,
Veritas Mining SA, as well as ore purchased from the region's many independent
miners. Ascot's gravity mill will be the only facility in the area compliant
with the changes to Costa Rica's mining laws described later in this Release.
Changes to Mining Law:
On May 8, 2010 the President of Costa Rica announced a moratorium related to
mining. Ascot is pleased to confirm that the moratorium does not impair its
operations as all current and existing mining and milling permits are explicitly
exempt.
In broad terms, the moratorium suspends open pit mining, the use of certain
chemicals in milling and new mining permits with immediate effect. The
suspension on open pit mining does not affect Ascot since it has no open pit
mining operations planned. Amongst its ore resources is a near surface resource
of 22,000 ounces which the Company plans to develop using methods other than
conventional open pit mining. The ban on using mercury for milling gold
similarly has no effect since Ascot does not use mercury. Ascot's milling sites
and mining sites, both current and proposed, are permitted. Apart from one other
very small operation, Ascot is currently the only operating gold mining company
in Costa Rica.
Ascot supports the President's ban on mercury. Artisan miners in Costa Rica
have for years been using mercury as part of rudimentary and inexpensive
processing of mined ore whereby waste mercury is discarded into the environment
and remains in the tailings.
Andrew von Kursell, the COO of Ascot Mining says "The announcement of this
moratorium leaves Ascot uniquely placed to benefit from the development and
operation of its permitted mines and mills".
Ascot's environmentally beneficial clean up:
Ascot is developing an economic business model that will benefit both the
Company and the environment. Even before the Presidential decree outlawing the
use of mercury was announced, Ascot's plan has been to access these numerous
waste dumps and mill the mercury contaminated tailings to recover the residual
unrecovered gold and safely remove mercury from the environment. The Company has
approached the Costa Rica Department of Mines with a plan to clean up the
mercury contamination caused by the historical use of Mercury by the free
miners. The Company's proposal has been well received and the Department of
Mines welcomes the initiative shown by Ascot in removing sources of
contamination.
Acquisitions:
In view of the suspension of permitting new mining applications the Company will
intensify its efforts to maximize its existing projects and limit its pursuit of
additional prospects within Costa Rica. The Company is aggressively pursuing
opportunities in other countries where it is in acquisition negotiations.
Canadian Listing:
As recently announced, the Board of Directors of Ascot Mining PLC ("the Board")
has been reviewing the relative merits of listing the Company's shares in
Canada. Having given this matter due consideration, the Board has retained
Canadian legal counsel to immediately assist in seeking Ontario and British
Columbia regulatory reporting status and to apply on behalf of the Company to
list its shares for trading on a recognized and fully regulated Canadian Stock
Exchange. In this regard, the Company expects to receive its recently
commissioned NI-43-101 technical report shortly. An independent corporate
valuation has been completed and will be released when the consultants provide
clearance at which time the documents will be posted to the Company's website.
The Company originally listed on Plus Markets on 16 April 2008. However, it has
been advised by some international shareholders and potential shareholders that
they have found it difficult to access this market. The Board believes that the
Company's existing and future shareholders will be better served by having
access to a more liquid, easily accessible and transparent marketplace and that
a listing in Canada, combined with its existing listings will provide a more
efficient route for maximizing shareholder value and liquidity. The Company's
shares have been trading on Xetra(R) since 15 December 2008 and this exchange
currently accounts for the majority of Ascot's share trading volume.
David Jackson, CEO of Ascot Mining, stated, "Our corporate strategy continues to
be accompanied by a commitment to our shareholders to facilitate ease of market
access and to enhance the value and liquidity of our common shares".
The Directors take responsibility for this announcement.
Enquiries: Damien Daly + 44 (0) 7880 55 46 47
Email: info@ascotmining.com
Website: www.ascotmining.com