Scotgold Resources Limited (AIM: SGZ), Scotland's and the UK's first commercial gold producer, provides an update on production and operational progress at its Cononish Gold Mine, Tyndrum, Scotland ('Cononish').
Scotgold Resources CEO, Phil Day said, 'We are pleased to report that April and May have delivered record profitable gold production, a trend we expect to continue in June and the rest of 2022, in line with our mine schedule. Crucially, as we continue to develop the mine and access areas to stope mine - cut and fill, our mining visibility, mining efficiencies, gold grade definition and control further improve which places us in an ideal position to implement the processing plant and mine optimisation plans to yield further growth. With GBP1.915 million now received and drawn from our Fern Wealth Debt Facility, I am looking-forward to H2 2022 as we commission the tailings thickener and deliver step changes in performance, gold grade, stability of production and reduced costs per tonne of ore mining.'
Scotgold is pleased to announce that it is hosting an investor webinar today, Thursday 9 June, at 17:30 BST via the Investor Meet Company platform. The webinar is open to existing and prospective investors.
Production
Production for April and May 2022 is on track with management's expectations totalling 1,984 ounces of gold and 10,810 ounces of silver. June 2022 production is progressing very well, and in line with the mine schedule, based on detailed grade control, is expected to deliver a third consecutive month of production in line with guidance. As such the Board believes it will achieve the upper quartile and/or exceed its Q2 2022 production target (three months to 30 June 2022) of 2,600 - 3,200 ounces of gold. Gravity gold dore continues to be produced and the Company plans to do another gold pour in June 2022. Scotgold is committed to responsible mining and is pleased to report it is one of the only global gold producers that does not use cyanide for either its flotation gold concentrate production or gravity gold
Mine and Processing Plant Optimisation
As announced on 23 May 2022, the Company received Tranche 1 of the Fern Wealth Debt Funding totalling GBP1.2 million of a GBP3 million loan. As of 8 June, GBP1.915m has been received to fast-track optimisation initiatives in 2022/2023. Optimisation initiatives include the design, construction, and commissioning of a tailings thickener, enhancing mining efficiencies of the underground mine to ensure continuous operations and the installation of an ore sorter at the processing plant between the existing crushing unit and the mill to realise an increase in ounces of gold processed per tonne at lower tonnages and potentially lower CAPEX and OPEX. The tailings thickener has been pre-constructed in Turkey to allow for the fast and efficient installation at Scotgold's site. The thickener is in transit to site where it is planned for installation in August 2022, a delay of one to two months due to current global shipping issues. Once the tailings thickener is operational the expected gold ounces run rate of the process plant will be at 16,500 - 17,500 ounces of gold on an annualised basis.
The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this Announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain. Scotgold Resources Limited
Contact:
Tel: +44 (0) 20 3470 0470
Scotgold Resources Ltd (AIM: SGZ), is Scotland's first commercial gold producer. The Company poured first gold in November 2020 at its Cononish Gold and Silver Mine ('Cononish) in Tyndrum, Scotland and is developing it into a +23,500-ounce gold mine per annum. Cononish is a high-grade underground mining operation with a central processing plant producing gold concentrate for off-take and gold dore for the Scottish Jewellery industry. Once in full production, the mine has anticipated forecast operating costs of c.GBP544/oz AISC, which will place Cononish in the lowest quartile of gold mining operations globally. It is Scotgold's vision to build a mid-tier gold mining company in Scotland with multiple operations in the country that enhance the local environment and economy in ways that have an enduring positive impact.
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