Scotgold Resources Ltd announced its first gold pour at the Cononish gold and silver mine in the Scottish Grampian Mountains area.
The gold exploration company achieved the milestone on St Andrew’s Day yesterday (30 November).
Scotgold said it would now increase production at Cononish to design level early in 2021 to become Scotland’s first commercial gold mine. The company aims to complete an accelerated expansion plan to increase production to 23,500oz pa.
The current Phase 1 is targeting an annual rate of ore production of 36,000 tonnes and total gold production of 9,910 oz in 2021.
Phase 2 will focus on doubling the annual rate of ore production to 72,000 tonnes and a more than doubling in average annual gold production to 23,500oz by May 2022.
Scotgold raised £3 million during October from a placing to conduct the production programme. bit.ly/3qi0rXT
The company’s remodelling exercise incorporating the accelerated expansion plan, based on prices of £1,400/oz gold and £19.23/oz silver predicts £178 million EBITDA, £156 million pre-tax cash flow, £127 million net cash flow, £96 million pre-tax NPV (8% discount rate).
Scotgold’s chief executive, Richard Gray said that the company’s first gold pour was a significant milestone in the mine’s development and for a Scottish gold mining industry.
“All our personnel have worked tirelessly to make this happen in the face of unprecedented challenges caused not least by the ongoing pandemic and associated restrictions.
“We look forward to continue working closely with all our partners, as we focus on realising the huge potential of gold mining in Scotland not just for the benefit of our shareholders but also for the country as a whole.”
Scotgold’s other interests are the Grampian gold project comprising 13 Crown Option agreements across some 2,900 km2 in the south west Grampians of Scotland and covering some of the Dalradian Series in the UK. This extends from southwest Scotland into Northern Ireland where it hosts other gold resources at Cavancaw which is currently being mined by Canadian company Dalradian Gold.
In May 2017, the company was granted the Vendrennes PER (Permit Exclusif de Recherche / exclusive exploration licence) in France.
In May 2016, Scotgold acquired the Pomar licence area in eastern central Portugal. However in July 2019, the company announced to terminate the licence and the process is in the final stages.