Scotgold Resources Ltd reported its highest production level since first gold pour as it issued guidance for the Cononish mine near Tyndrum in Scotland.
PRODUCTION
Production for Q4 2021 totalled 1,508 ounces of gold, with 101 tonnes of concentrate produced in December equating to some 700 ounces of contained gold.
Scotgold said this represented a 60% increase to the company’s previous best monthly concentrate production.
Covid-related supply of explosives for the mine negatively affected November production.
The company has resolved short-term supply issues during the month and ore extraction now continues in line with the mine plan.
SHIPMENTS
Gold concentrate and shipments during Q4 2021 totalled 231.5 tonnes with a sales value of more than £2.6m
As at 31 December 2021, Scotgold had nearly completed Phase I of increasing production, with the processing plant achieving 2,500 tonnes feed rate for the last month of the year.
GUIDANCE
Scotgold’s guidance range for Q1 2022 gold production is 1,400 to 2,200 ounces of gold
The company has started adding a thickener into the tailings circuit to achieve 16,000 – 17,500 ounces per annum.
PHASE II – 2023
Phase II – the expansion phase – is targeted for Q1 2023 to achieve 23,500 ounces p.a. run rate of gold.
| Phased Production Development | Expected to commence by end | Annual Rate of Ore Production | Target Average Annual Rate of Gold Production |
| Phase 1 | Q1 2022 | 36,000 tonnes | 9,910oz |
| Optimisation Phase Production | Q2 2022 | 51,000 tonnes | 17,500oz |
| Phase2/Expansion Phase | Q1 2023 | 72,000 tonnes | 23,500oz |
DEBT FINANCE
The company has renegotiated the tranches of the Bridge Barn Loan that were repayable in 2022.
Scotgold has an additional loan of £500,000 to provide buffer through Q1 2022 short-term mine plan grade variability.