Scotgold Resources Ltd announced it had resolved outstanding technical issues but production would be slower than originally planned at its Cononish gold and silver mine near Tyndrum, Scotland.
The company added that the delay to production had also resulted in a look at financing options, including from its directors.
The Australian miner, with headquarters in Nedlands in Perth, began a review of the mine plan at the start of April.
“Mine development is insufficient for the mine to provide optimal ore quantity and quality in the short term, however this is not predicted to have long term impacts,” said Scotgold in a statement.
“The mine team at Scotgold has undergone a reshuffle in leadership and approach to ensure it can deliver reliable and robust short term mine plans.
“Accordingly, the company expects production for calendar year 2021 to be materially less than the guidance range previously announced on 31 March 2021.”
This was 28,500t – 25,700t of ore processed and 7,900oz – 7,000oz of gold produced.
The company added: “The recent delays to the production ramp-up have had and are expected to have a negative impact on the company’s cash position.
“To ensure the company has adequate funds available for working capital through this production ramp up period, the company is investigating financing options, including short-term debt financing from the directors.”
The miner had previously considered a Coronavirus Business Interruption Loan Scheme but was ineligible.
Scotgold will announce new estimates for ore to be processed and gold production for 2021 after completing its review of Cononish mine.