Scotgold Resources CEO Phil Day resigns

Scotgold Resources Limited, which owns the Cononish Gold and Silver Mine near Tyndrum, said on Thursday that its CEO Phil Day has notified the board of his intention to resign “and given notice under his contract of employment, citing a desire to spend more time with his family members in Australia.”

Scotgold said: “The board has reluctantly accepted his resignation.

“The process of recruiting a permanent successor will begin immediately and Phil Day remains in post at this time.”

On May 15, Scotgold said the firm’s ability “to continue as a going concern is entirely dependent on the quantity and grade of ore that is produced from now on.”

The company said on May 15 that its recent shares subscription and open offer had raised £2 million.

Scotgold shares are down about 75% year to date, giving the firm a current stock market value of about £12 million.

One Thursday, Scotgold Resources chairman Peter Hetherington said: “On behalf of Scotgold’s board of directors, I thank Phil for his dedication, unwavering support and very significant contribution to the company.

“Under his calm and steady leadership, since April 2021, Phil has guided the Cononish mine to safe and environmentally compliant commercial production, redesigned the mine schedule, implemented cut and fill stoping for faster access to higher grade zones, commenced long hole stope mining and ramped up the process plant for optimal continuous operation.

Significant challenges obviously remain for Scotgold.

“We as a board have a duty of care to all team members and respect Phil’s request for the time and space, away from CEO PLC duties, with his family in Australia. 

“We remain committed to all stakeholders and the ongoing development and production from Cononish, Scotland’s first commercial gold mine and will update the market in due course on the new CEO appointment.”

Day said: “I am very pleased with what we as a team have accomplished during my time as CEO. It has been a privilege to lead and develop the business.

“The company’s team and board are its greatest asset and I want to express my gratitude for their contribution.” 

Scotgold also published an operational update, saying: “As announced on 15 May 2023, Scotgold Resources Limited (AIM: SGZ), Scotland’s first commercial gold producer, commenced long hole stoping, along the 115m strike length in the underground mine at its Cononish gold and silver mine .

“Long hole stoping on block 1 was safely completed on time. Drilling of stope block 2 has now commenced with blasting targeted for around a week’s time.

“The raise air vent to establish better air ventilation between the 400 and 415 level has also been completed.

“In parallel the waste ramp development to the 445 level was also completed, this allowed development mining on the 445 East level ore body to commence.

“The 445 East level development ore currently being fed to the process plant is good gold grade ore, in line with our expectations, with an average grade of 8.3g/t, with the last three assays coming in at 13.7g/t, 12.9g/t and 16.9g/t respectively.”