Breakthrough At Scotlands Only Operating Gold Mine
Scotgold Resources Limited (AIM:SGZ) reports that first gold had been poured at the company’s high grade, low cost Cononish Gold & Silver Mine in the Scottish Grampian Mountains area.
CEO, Richard Gray, said that following this first pour, which is a major milestone in the commissioning of the processing plant, the company looks forward to ramping up production at Cononish to design level early in the New Year and taking its place as Scotland’s first commercial gold mine.
Mr Gray said that in line with its phased development programme, the company is now focused on completing an accelerated expansion plan to increase production at the mine to 23,500oz pa.
The current Phase 1 is targeting an annual rate of ore production of 36,000 tonnes and total gold production of 9,910oz in 2021.
Phase 2 will focus on doubling the annual rate of ore production to 72,000 tonnes and a more than doubling in average annual gold production to 23,500oz. The company is fully funded to achieve Phase 2 expansion by May 2022, 17 months from the commencement of Phase 1 production.
“Our first gold pour is not only a significant milestone in the development of our Cononish Gold & Silver Project but a milestone on the road to a Scottish gold mining industry,” Mr Gray said.
“Today’s news is therefore a landmark event both for the company and for Scotland.
“I would like to take this opportunity to commend the work of the Scotgold team both at the operational and managerial levels. All our personnel have worked tirelessly to make this happen in the face of unprecedented challenges caused not least by the ongoing pandemic and associated restrictions.
“I would also like to thank our shareholders, contractors, advisers, regulatory agencies, the Scottish Government and all stakeholders in the Project for their support throughout this journey.
“We look forward to continue working closely with all our partners, as we focus on realising the huge potential of gold mining in Scotland not just for the benefit of our shareholders but also for the country as a whole.”