Scotgold mulls use of hydro power while revealing widened interim losses

Scotgold Resources, which says it is Scotland's and the UK's first commercial gold-producer, has cheered “significant progress” at its Cononish Gold and Silver Mine – and said it is reviewing the use of hydro power at the site.

The Aim-quoted firm made the announcements as it revealed interim figures for the period ending December 31 last year. Total revenues amounted to 6.4 million Australian dollars – equivalent to £3.7m – compared to zero income in the first half of 2021, while its pre-tax loss widened to $5.3m from $2.8m), and its cash at December 31 was just under $1m, down from $2.6m on June 30.

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Scotgold also said it is in talks with debt-providers to fast-tack measures to maximise production at its Cononish site in Loch Lomond & The TrossachsNational Park. That comes as it has achieved a 9,910-ounce average run rate of gold production per year, looking to increase this to 17,500, then up to 23,500 – with the firm “reviewing” the use of hydro power at the site.

Chief executive Phil Day said the second half of 2021 “saw us lay the foundations for growth by implementing initiatives to increase Cononish's gold recoveries”.

He also touched on milestones since, saying: "During the past quarter we have been focused on preparing the access to the second cut and fill stope at Cononish and I'm pleased to report we accessed it as of 21 March 2022. This is a pivotal moment in our mine-development plan, allowing us to access reserve mine gold grade more readily, which should see our gold grades increase significantly inline with our mine plan during 2022 and beyond.”

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Scotgold says it has now completed the first phase of its production development at Cononish (file image). Picture: John Devlin.

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