Scotgold hires as revenues exceed costs for first time

Scotgold Resources Limited, the Australia-based gold exploration firm focused on Scotland, announced it is looking to build the company’s workforce at its Cononish Gold and Silver Project amid a “significant improvement” in its production profile.

Scotgold said Cononish produced two shipments of gold concentrate in August, with revenues from these exceeding operating costs for the first time.

“Based on the continually improving tonnages and combined with the average >12g/t gold grade expected over the following months in 2021, the company is assessing an upward adjustment to the previously referenced mine plan and further updates will be announced once the Cononish mine plan has been finalised …” said Scotgold in a London Stock Exchange statement.

The Scotgold processing plant team has successfully focussed on the de-bottlenecking of the tailings filter through the optimisation.

This is a significant achievement which will support the continued upward trajectory of Scotgold’s production profile targeting processing capacity of 4,000 tonnes per month. 

“Following the completion of the debottlenecking process, expected in September, gravity circuit optimisation will occur, supporting gold doré production which commands a premium price. 

The processing plant operated for 25 days during the month of which the last 21 days feed rate averaged 90 tonnes per day.

“The monthly feed rate estimate for August is between 2,100 and 2,200 tonnes (70% to 73% of design for full month).

“This included an unplanned six-day shutdown from 4th-10th August, these planning issues have now been addressed and unnecessary shutdowns will now be avoided.

Just over 50 tonnes of concentrate were produced in August at an average of 333g/t Au per tonne, equating to >450oz of contained gold and >1,900oz of contained silver total production for the month.

“Production revenues have exceeded operating costs for the first time in Scotgold history.”

On its hiring plans, Scotgold said: “The company continues to focus on the recruitment of personnel to further bolster Scotgold’s highly trained workforce.

“The management team is specifically looking to build the company’s workforce with additional mining and processing plant operatives, as well as purchasing and warehouse staff.

“This recruitment and training programme is being conducted in parallel with a cost rationalisation exercise to minimise excess expenditure with a focus on reducing external contractors and targeting fixed costs.”

Scotgold CEO Phil Day said: “Everything is going according to our overall strategy which is to be a consistent and stable producer.

“I am delighted to report a significant improvement in our overall mining and production activities during August. 

“Furthermore, this is indicative of an overall upturn in our production profile for the remaining months of 2021 and the board and management are now assessing an upward adjustment to the mine and production plan reported in Q2 2021.

“The progress made at Cononish has been driven by the commitment and skill of the Scotgold operational and support teams and I am grateful to the entire workforce for their dedication and efforts.

“I look forward to providing further updates in the coming weeks and months as we look to build on this momentum, drive further advances, and ramp up operations to the next stage.”