Scotgold Resources Ltd Production and Corporate Update (8250N)
04 Octubre 2021 - 1:00AM
UK Regulatory
TIDMSGZ
RNS Number : 8250N
Scotgold Resources Ltd
04 October 2021
4 October 2021
Scotgold Resources Limited ('Scotgold' or the 'Company')
Production and Corporate Update
Scotgold Resources Limited (AIM: SGZ), the gold exploration and
production company focused on Scotland, is pleased to provide an
update on mine production and processing performance at the
Cononish Gold and Silver Project in Scotland, ('Cononish') during
September 2021.
Highlights
-- Roughly a 24% increase in gold concentrate produced from
previous month: produced 62 tonnes of gold concentrate during
September 2021 (50 tonnes: August 2021)
-- Second consecutive month where production revenues exceeded operational costs
Phil Day, Chief Executive Officer, said: "The operational
turnaround at Cononish continues to gain pace and we are really
encouraged by the performance of the mine and the overall
improvement in our production profile. Importantly, September
marked our second month where production revenues exceeded
operational costs and we are confident that we are now on the
correct growth trajectory to realise the full potential of
Cononish."
Further Information
Mining
Mining activity at Cononish continued uninterrupted during
September, and the third of four planned cuts of the cut and fill
stope was completed. As previously referred to, the Company has
adopted a vertical cut and fill stoping method, as the ore grade
continuity is better vertically. This is as an interim measure
prior to the long-term production plan predicted to commence in
2022. This method allows vertical extraction of ore using familiar
mining methods to the Scotgold mining team and allows better
control of gold grade to the process plant. Scotgold is very
pleased with this adaptation to the short term mine plan as it has
delivered continuous high grade gold ore to the process plant in
this critical ramp up phase of the mine. In addition, significant
waste mining occurred during September to support the long term
mine plan. Mining during Q4 2021 will focus on the options for
continuing development mining on the original portal 400 level
and/or ore ramp to the development tunnel at the 415 level.
The second DUX truck arrived on-site during September.
Furthermore, the Company continues to focus on critical and
necessary spares for maintenance to achieve target availability for
mining and the process plant and to eliminate lost time.
Processing
Following several weeks focussed on the de-bottlenecking of the
tailings filter, it has now been successfully performing during
September and will support the continued improvement of Scotgold's
production profile. The gravity circuit is also now consistently
operational and during October it will be optimised to commence
providing gold to Scotgold's partners in the jewellery industry
this quarter.
Approximately 62 tonnes of concentrate were produced during
September, an increase of roughly 24% over the previous month. The
concentrate graded at an average of about 311 g/t gold equating to
around 580oz of contained gold and 1,200 g/t silver equating to
>2,400oz of contained silver total production for the month
(August: >450oz of contained gold and >1,900oz of contained
silver).
The process plant is continuing to operate encouragingly, and
the team is focusing on achieving more consistent runtime to allow
for increased production. The current barrier to achieving higher
throughputs relates to the quartz in the ore, which causes higher
wear on certain parts of the process plant. The Scotgold team is
capitalising on this information to fine tune the intervals for
replacing various wear parts and as such, the management expects
that the changeouts will become more scheduled using the Company's
planned maintenance system which will result in higher throughput
per month. A focus on critical and necessary spares for maintenance
to achieve target availability for mining and process plant will
continue to be a priority for the process plant team during Q4
2021.
Finance & HR
The financial performance of the mine continued to improve
during September, with revenue exceeding operational costs for the
second consecutive month. In parallel with improving revenue
figures, Scotgold also completed a cost base optimisation which
focussed on removing inefficiency such as use of external
contractors and reducing fixed costs.
The HR team had a successful month onboarding new members of the
operational team exactly in line with expectations and supports
continuous 24-hour operation for the mine and process plant. The HR
team are also looking to establish a dedicated team to focus on
debottlenecking and growth projects to further lift processing
capacity.
With operational stability being achieved, going forward,
detailed operational updates will not be provided rather detailed
updates will be provided on a frequency in line with industry
standard,
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please contact:
Scotgold Resources SP Angel Corporate Finance St Brides Partners
Limited LLP Financial PR
Chief Executive Officer Nomad and Broker Susie Geliher
Philip Day Ewan Leggat / Charlie
Bouverat
Tel: +41 791 390 354 Tel +44 (0) 20 3470 0470 Tel +44 (0) 20 7236
1177
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