Scotgold Resources Ltd (LON:SGZ) has poured its first gold from the Cononish mine in Scotland.
The company is now focused on completing an accelerated expansion plan to increase production at the mine to 23,500 ounces per year.
The current phase of production is targeting an annual rate of ore production of 36,000 tonnes and total gold production of 9,910 ounces for 2021.
The company is fully funded to achieve the second phase of expansion by May 2022, 17 months from the commencement of production.
The most recent estimates show the project is likely to generate £178mln in underlying earnings (EBITDA) and £156mln in pre-tax cash flow.
“Our first gold pour is not only a significant milestone in the development of our Cononish gold and silver project but a milestone on the road to a Scottish gold mining industry,” said Scotgold chief executive Richard Gray in a statement.