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Scotgold Resources presses button on Cononish mine in the Trossachs

First gold production is planned for the end of 2019
gold coins
Cononish is small but high grade

Gold miner Scotgold Resources Ltd (LON:SGZ) is to break ground on the Cononish mine in the Trossachs National Park following completion of all permitting conditions.

First gold production is planned for the end of 2019.

WATCH: Scotgold Resources presses button on Cononish goldmine

Richard Gray, chief executive, said: "We are delighted to have reached this point and are looking forward to a very exciting 2019, bringing the Cononish Project into production."

Scotgold expects to process around 3,000 tonnes of ore per month in the first phase, which will double in phase two.

A feasibility study last year estimated Cononish can generate between £67mln and £100mln in earnings over the life of the mine.

The pre-tax net present value was put at £43mln, using a 10% discount rate.

In early morning trading, Scotgold shares were 4.4% higher at 35.50p.

 -- Adds share price --

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