Scotgold Resources has posted third-quarter gold production of 2,004 ounces, down from its previous forecast of between 2,900 to 3,500oz, which it says is due to “delayed power and ventilation upgrades” in the underground mine.
The production number was in line with Scotgold’s earlier forecast of around 2,000oz of gold between July 1 and September 30.
The London-listed company which mines at Cononish, near Tyndrum, Argyll, also noted the nine months to September 30 saw gold production reach 6,759oz.
Scotgold adds production guidance for the fourth-quarter of this year is set at 3,000 – 3,900oz of gold and that it “remains on track” to deliver its phase2/full production at Cononish of 23,500oz per year run rate of gold.
Third-quarter gold concentrate shipments totalled 346 tons with a sales value of £3.4 million, while the nine months to 30 September saw gold concentrate shipments of 804 tons with a sales value of £9.7m.
Exploration under way to increase mine life
Underground power and ventilation upgrades were completed on August 28 to improve access, operations and increase mining rate and ore extraction.
Exploration preparation works are also underway for a resource drilling campaign next year to increase the life of the mine beyond eight and a half years.
Scotgold Resources CEO Phil Day said: “Q3 2022 has been another period of substantial progress as we continue to implement optimisation initiatives across our underground mining operation and processing plant to ramp up towards ‘Phase 2/Full’ production at Cononish in 2023.
“We remain driven as the new year approaches. Q4 2022 production is anticipated to be ahead of Q2/Q3 2022 production levels and I believe the quarter will mark a significant step change as we progress towards a processing rate of 5,000t pcm, equating to an annualised production of around 20,000oz of gold per annum run rate.”
“What differentiates us from our gold peers is the uniqueness of Cononish’s orebody.”
What differentiates us from our gold peers is the uniqueness of Cononish’s orebody”
Scotgold Resources CEO Phil Day
Once in full production, the mine has anticipated forecast operating costs of about £544 per ounce, which Scotgold says will place it in the lowest quartile of gold mining operations globally.
It is Scotgold’s ambition 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.”
The company poured first gold in November 2020.
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