Scotgold Resources Ltd Production and Corporate Update (2596K)
September 01 2021 - 2:00AM
UK Regulatory
TIDMSGZ
RNS Number : 2596K
Scotgold Resources Ltd
01 September 2021
1 September 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
August 2021.
Highlights
-- Significant improvement in production profile through
continued exploitation of high-grade area of vein and improvement
in processing plant efficiencies
-- 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
-- Two shipments of gold concentrate completed during August
with revenues from these exceeding operating costs.
Phil Day, Chief Executive Officer, 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."
Further Information
Mining
Mining activity at Cononish continued uninterrupted during
August, remaining focussed on the high-grade area of the vein and
necessary development to access future reserves. As previously
stated, 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 geological control to minimise dilution.
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.
As previously reported, a second DUX truck has been ordered and
is now expected to arrive in early September. It will be
immediately deployed underground and is expected to further reduce
the operational risk by providing additional redundancy alongside
providing the opportunity to increase the amount of material
hoisted. 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 time wastage.
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.
Processing
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.
HR & Reporting
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.
A comprehensive systems review is underway for a fully
integrated Enterprise Resource Planning system with a focus on
efficiency and real time reporting. This is intended to eliminate a
lot of double handling and manual processes and to streamline asset
management, inventory controls, workflow and full procurement to
pay into efficient finance module and reporting.
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 / Frank
Philip Day Ewan Leggat / Charlie Buhagiar
Bouverat
Tel: +41 791 390 354 Tel +44 (0) 20 3470 0470 Tel +44 (0) 20 7236
1177
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