Vancouver-based Ascot Minerals has suspended operations at its Premier mine in British Columbia, just months after its first gold pour.

The company cited the need for mine development to align with the mill's capacity as the reason for the shutdown.

Ascot stated that while the mill's operations had progressed smoothly, development at the Big Missouri mine had fallen behind schedule by up to two months.

The delayed start of the Premier Northern Lights (PNL) ramp-up from July to December last year further postponed production from PNL. This resulted in an insufficient number of stoping areas to provide the necessary ore feed for the mill.

Although Ascot expects to achieve first development ore from PNL this month, the company noted that additional development was required to access deeper ore than initially planned. This would extend the timeline for completing the PNL mine's development and ramp-up.

The company estimates that an additional three to six months of development work is required, primarily at the PNL mine, pending further investigation and cost assessments.

Ascot also highlighted the need for further funding to complete the necessary mine development.

As of the end of August, the miner had C$15-million in cash resources, which it deemed sufficient to properly suspend operations during the upcoming winter season. However, the company warned that there was no certainty it would be able to secure the funds needed to complete the required mine development and resume operations.

"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 prioritise asset value and ensure we have the best path forward to sustainable and profitable operations,” said Ascot president and CEO Derek White.

Over the past two months, mill operations at the Premier mine have poured 3 430 oz of gold, which is 418% above the amount recorded over the entire second quarter.

Further, in August, the mill has operated near or above its design capacity.