Scotgold frustrated after 'teething problems' at Cononish mine in Trossachs national park

Scotgold Resources, the company behind the development of a precious metals mine near Tyndrum, said it was frustrated after encountering “teething problems” as it looks to ramp up production at the site.

Richard Gray is the chief executive of Scotgold Resources, the company behind the development of a precious metals mine near Tyndrum. Picture: John Devlin

In an update to investors the firm said tonnage throughput for January had been “negligible” as “multiple materials handling issues” were identified but which to a large extent have now been addressed. The remaining issues are expected to be addressed by the end of February.

Meanwhile, three prospective areas, close to the Cononish mine, have been identified as “high priority target areas” and data modelling is in progress to establish the best sites to test these targets in any potential future exploration drill programmes.

Chief executive Richard Gray said: “Scotgold remains in a strong position to continue our commercial growth trajectory after achieving first gold on November 30.

“Despite the frustrating but resolvable materials handling issues that arose this month, our confidence in the ultimate performance of the mine continues to grow. The lessons learnt, as well as opportunities identified, during this Phase 1 ramp up will be used to optimise our plans for the Phase 2 expansion in 2022.

“The year ahead will also see us advance our exploration programme, which is focused on identifying areas with the potential to increase our mineral resources within reach of the Cononish Mine, identifying potential orebodies at Beinn Udlaidh and Inverchorachan and notably making new discoveries within the company’s option areas.

“We have had encouraging results back with further follow work planned and we look forward to keeping you updated on our findings.”

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