Scotgold reports record production amid optimisation work

Commercial gold producer Scotgold Resources updated the market on production and operational progress at its Cononish Gold Mine in Tyndrum, Scotland on Thursday, reporting “record production” for April and May, totalling 1,984 ounces of gold and 10,810 ounces of silver.

The AIM-traded firm said production was on track to achieve upper quartile, or possibly exceed, its second quarter target of between 2,600 and 3,200 ounces of gold.

Gold grades in flotation concentrate of up to 324.4 grams per tonne were realised during April and May, while sales of £2.424m were made for 226.6 dry metric tonnes of gold concentrate over those two months.

Operationally, Scotgold said the tailings thickener had been pre-constructed and was in transit to site, with installation expected in August.

The cut and fill - stoping mining method was said to have progressed “well” during April, May and into June, to continue to improve the operation’s production profile.

It said the third cut and fill stope was targeted for the third quarter.

Finally, the board said the £3m Fern Wealth debt facility drawdown continued, with £1.915m received and drawn to date for its processing plant and mine optimisation initiatives.

“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,” said chief executive officer Phil Day.

“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 £1.915m now received and drawn from our Fern Wealth debt facility, I am looking forward to the second half 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.”

At 1513 BST, shares in Scotgold Resources were up 4.61% at 73.75p.

Reporting by Josh White at Sharecast.com.