Mining firm Scotgold targets sparkling 2022 as production ramps up

Scotgold Resources has unveiled plans to extend the life of Scotland's first commercial gold mine in Cononish, while it has identified three “high-priority target areas” nearby to help operations gleam.

The Aim-quoted firm announced the developments as it flagged a loss of about $5 million (£3.7m) in the year to June 30, compared to $2.5m in the prior 12-month period.

Revenue amounted to about $300,000 in the latest results, with no comparable previous figure, while “as of August 2021, Scotgold has consistently achieved production revenues that exceed operational costs”. It also hailed “significant” progress made at gold and silver mine Cononish, near Tyndrum, as the firm targets production of about a 23,500 ounce per annum run rate of gold by the first quarter of 2023.

Scotgold's processing plant at the Cononish mine. Picture: Alix McIntosh.

Scotgold, which in April appointed a new management team, said that amid its “vision to build a multi-asset gold-production company in Scotland”, three prospective areas close to Cononish have been identified as high-priority target areas with further analysis regarding their suitability under way.

Chief executive Phil Day cheered milestones such as headcount increasing to 73 this month, with the intention to grow this further in 2022, while December production “currently looks to be another step-change higher than previous months”.

He also noted that the firm sees potential to develop Cononish into a life of mine operation of more than 18 years. "In addition, it’s our strategy to continue to explore our additional licence areas which run across the prospective Grampian area of Scotland… I’m excited for 2022 and I’m confident it will be a year of continued growth for the company."

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