Scotgold Resources Ltd said it had encountered “lower than expected grade” at 19m of the 115m strike length in Cononish gold and silver mine near Tyndrum in Scotland.
OPERATIONS
The company added that long hole stoping was “progressing well” and “for the most part” in line with the 2023 mine plan.
A total of 1,956 tonnes of ore have been extracted from long hole stope 1, at 19m of the 115m strike length, and all processed as of 3 May 2023, with an average grade of 4g/t.
INTERNAL DILUTION
The reduction from previous forecast grade is largely due to internal dilution from the hanging-wall and footwall and mucking on backfill, said Scotgold.
The company is completing the “production and geological reconciliation” after which it will have a better understanding of the factors contributing to the lower than expected grade.
“Initial reconciliation work of long hole stope 1 indicates the vein was stoped successfully, with higher-than-expected recovery of the orebody.
“Long hole stoping continues along the 115m strike length in line with the stope mine design and forecast grades.
“The 445 access has intersected ore. It is being continued to confirm the extent of any additional stockwork veins and to produce a stockpile.
“445 Ore Drive East has been turned out and has been established.”
GOING CONCERN
From 5 April to 30 April, the company produced 229 ounces of gold in flotation concentrate with 43 tonnes of gold concentrate shipped to the off-take partner at a sales value of £300,000.
Further Scottish gold doré sales were made to Scottish jewellery companies, totalling £183,478, from 1 January 2023 to 4 May 2023.
The company said it had “good visibility” for the next three months and work is underway on the mining schedule and plans for the balance of 2023 and beyond.
After a “very challenging” first quarter for Scotgold, Q2 2023 has started better but it said that its ability to continue as a going concern was entirely dependent on the quantity and grade of ore produced from now on.
DRY STACK TAILINGS
The company has completed tailings placement on Stack 1 and approximately 75% of restoration.
All layers in the stack have on-spec CQA testing results, and regrowth on the restored areas was very encouraging considering the only very recent placement, added Scotgold.
The Loch Lomond and Trossachs National Park (LLNTP) planning monitoring officer had no major queries or concerns on a scheduled site visit to Cononish on 26 April 2023.
The company said there had been no serious health and safety incidents or lost time injuries to date in 2023.