Scotgold makes £9.7m gold concentrate shipments

Scotgold Resources Limited, the Australia-based gold exploration firm focused on Scotland, said on Thursday that third-quarter gold concentrate shipments from its Cononish Gold and Silver Mine near Tyndrum totalled 314 tonnes with a sales value of £3.4 million.

Scotgold said that in the nine months to September 30, 2022, gold concentrate shipments totalled 729 tonnes with a sales value of £9.7 million.

In a third-quarter production, sales and operations update, Scotgold said Q3 2022 gold production totalled 2,004 ounces as it achieved its revised guidance as set out on September 22.

The firm said reduced guidance for Q3 2022 was given “as a result of the successful but delayed power and ventilation upgrades in the underground mine, which stalled mine development on the waste ramp in September 2022”

For the nine months to September 30, gold production totalled 6,759 ounces.

Q4 2022 production guidance was set at 3,000 – 3,900 ounces of gold.

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.

“As a team we are working collegiately and 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 5,000tpcm, equating to an annualised production of c.20,000 ounces of gold per annum run rate, once the tailings thickener has been commissioned in the processing plant.

“In tandem underground resource definition and grade control drilling is underway to prepare for long hole stoping to commence in Q1 2023, which will enable the mine to produce ore at the phase 2 production level being 6,000tpcm.

“From here, final optimisation initiatives will be undertaken in the process plant to deliver a processing run rate of 6,000tpcm, equating to an annualised production run-rate of c.+23,500 ounces of gold, which we are on target to deliver in 2023.

“What differentiates us from our gold peers is the uniqueness of Cononish’s orebody.

“Running an average grade through the processing plant of 12g/t Au year to date 2022, coupled with a forecast low AISC of £544 per ounce of gold will place us as one of the highest margins, lowest cost gold producers globally.

“This coupled with our exploration opportunity in Scotland, I believe ideally places us for growth. I look forward to reporting on production, operational progress and further revenue generation into the New Year.”