Scotgold Resources Ltd Production and Corporate Update (9304D)
02 July 2021 - 4:00PM
UK Regulatory
TIDMSGZ
RNS Number : 9304D
Scotgold Resources Ltd
02 July 2021
2 July 2021
Scotgold Resources Limited ('Scotgold' or the 'Company')
Production and Corporate Update
Scotgold Resources Limited (AIM: SGZ), the gold exploration and
production company focused on Scotland, is pleased to provide an
update on mine production and processing performance at the
Cononish Gold and Silver Project in Scotland, ('Cononish').
Mining: high grade ore zones accessed far quicker than
anticipated
As previously stated, Scotgold's dual focus is to further
enhance safe production through consistency and stability of mine
and process plant operations in parallel with the opening of
multiple faces of ore in the underground mine itself. During the
month, the successful roll-out of this strategy has enabled the
Company to optimise the mine design allowing access to higher grade
ore zones far quicker than anticipated. Mining in the latter part
of June was accessing ore which peaked at 40 grammes per tonne.
Mining in this general zone will continue for 2 months and expected
to achieve a blended grade average above 10 grammes per tonne.
Mining activity continued uninterrupted throughout June,
increasing the volume of ore stored on the stockpile. The haulage
DUX truck repairs conducted last month in combination with regular
maintenance has enabled expected utilisation of mining equipment to
be achieved.
Processing: ongoing roll-out of Risk Analysis approach targeting
continuous operations
In June, a bearing failure in the process plant ball mill
hampered efforts to make significant inroads towards achieving full
ramp up. The issue is expected to be resolved in the coming days
but serves to demonstrate the types of "one off issues" that can
impact production which are being targeted by the Risk Analysis
approach being implemented by the Company at Cononish. This
methodical approach, which involves analysing, predicting or
mitigating the effects of "one off issues" on production would
certainly have limited unplanned downtime arising from the bearing
failure to an almost negligible level - in this case by ensuring
the purchase of critical spare parts. The Directors are confident
that once fully implemented the Risk Analysis approach will greatly
increase the reliability of the mine and process plant operations
and enable more consistent runtime.
The extra ore stockpiled as a result of mining activity
continuing uninterrupted during the month is expected to be
processed by the plant in due course.
Shipments: second gold concentrate shipment planned
The Company is aiming for its second shipment of gold
concentrate within the first half of July. Gold doré sent to the
refiners in May was able to be refined through normal treatment
processes, providing validation of Scotgold's process plant
production.
Monthly updates
The Company expects to continue informing the market through
regular monthly updates going forward, where a focus on forward
looking statements is expected including the ramp-up of production
and new estimates for calendar year 2021 gold production.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please contact:
Scotgold Resources SP Angel Corporate Finance St Brides Partners
Limited LLP Financial PR
Chief Executive Officer Nomad and Broker Susie Geliher / Frank
Philip Day Ewan Leggat / Charlie Buhagiar
Bouverat
Tel: +41 791 390 354 Tel +44 (0) 20 3470 0470 Tel +44 (0) 20 7236
1177
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