12:06 PM EDT, 09/06/2024 (MT Newswires) -- Ascot Resources ( AOTVF ) shares were last seen down 61% after the company on Friday said it is suspending milling operations at its Premier gold mine in British Columbia as it looks to speed mining development.

The company said development at the Big Missouri mine has fallen one or two months behind schedule. With the delay in the start of the Premier Northern Lights (PNL) ramp from July to December 2023, PNL production has also been delayed. As a result, the number of stoping areas is not sufficient to provide enough production to adequately feed the mill.

"This is difficult news for all of our stakeholders, and especially all of our employees and contractors who have worked extremely hard during the commissioning period. The Company believes we need to focus on mine development to prioritize asset value and ensure we have the best path forward to sustainable and profitable operations," chief executive Derek White said in a release.

The company is on track for first development ore at PNL this month, but further development is required to access deeper ore than initially planned, delaying the completion of development and ramp up of the PNL mine.

To focus on mine development activities, the company decided to suspend operations until the Big Missouri and PNL mines can sustainably deliver enough ore feed to profitably run the operation. Ascot expects development to take three to six months, primarily at the PNL mine and said it intends to seek funding to complete the necessary mine development.

Over the past two months, mill operations at the Premier gold mine poured 3,430 ounces of gold, 418% above the amount produced in the second quarter. In August, the mill operated near or above its design capacity.

Ascot shares were last seen down $0.27 to $0.17 on the Toronto Stock Exchange.

Price: 0.17, Change: -0.27, Percent Change: -61.36