Scotgold Resources Ltd has increased it production guidance after completing delayed work on power and ventilation at the Cononish gold-silver mine near Tyndrum in Scotland.
PRODUCTION
The Australian company’s report for the three months ended 30 September 2022 showed gold production of 2,004 ounces under September’s revised guidance.
The new guidance followed delays to improve access, operations and increase mining rate and ore extraction, which was completed in August.
In the first nine months of the year, Scotgold produced 6,759 oz gold.
Guidance for Q4 2022 production is set at 3,000 – 3,900 oz gold.
The company said it was on course to deliver Phase II, or full production, at Cononish of 23,500 oz per annum run rate of gold.
SALES
Q3 2022 gold concentrate shipments totalled 314 tonnes at a value of £3.4 million.
In the nine months to 30 September 2022, gold concentrate shipments totalled 729 tonnes with a sales value of £9.7m.
STOPING
In early October, Scotgold continued its optimisation plans with the start of underground resource definition and grade control drilling.
This will provide information on placing stopes and in turn deliver circa 6,000tpcm ore mining and processing rates in Q1 2023.
By December 2022, the company expects to complete risk assessments, planning and the preparation to transition the mine to long hole stoping in Q1 2023.
PROCESSING PLANT
During Q3, Scotgold completed incremental debottlenecking of process plant areas such as flotation and tailings filtration.
The company said that this had “enhanced gold recoveries and efficiencies beyond management’s initial expectations” enabling the plant to process feed of c.4,000tpcm prior to installation of tailings thickener.
October’s feed rate production at the process plant is currently above 4,000tpcm.
The tailings thickener has been erected in the processing plant with construction well under way and commissioning planned for Q4 2022.
Following commissioning, the process plant is estimated to achieve circa 5,000tpcm throughput.
During Q4 and Q1 2023, Scotgold will optimise the process plant tailings filter by adding further filter plates to the tailings filter and minor modifications around the Ball Mill and flotation areas.
This will increase the throughput of the processing plant to c.6,000tpcm to achieve production levels of 23,500 oz p.a. run rate of gold.
GROWTH
Scotgold is preparing for a 2023 resource drilling campaign to increase life of mine beyond 8.5 years.
Chief executive Phil Day added that the uniqueness of Cononish’s orebody differentiated the company from its gold peers.
“Running an average grade through the processing plant of 12g/t gold year to date 2022, coupled with a forecast low AISC of £544 per ounce of gold will place us as one of the highest margins, lowest cost gold producers globally.
“This coupled with our exploration opportunity in Scotland, I believe ideally places us for growth.”