Scotgold Resources Ltd (LON:SGZ) said it has produced gold concentrate and gravity separated gold Dore from the Cononish gold project in Scotland following the previously announced resolution of various technical issues affecting the processing plant.
READ: Scotgold resolves outstanding issues at Cononish, looks at short-term financing options
The first shipment of concentrate, a major milestone for the company, was made on May 11. It shipped 25 tonnes of concentrate at an average gold grade of 182.4 grams per tonne (g/t), exceeding the target of 150g/t, and achieved the maximum price under the terms of an offtake agreement.
Modest amounts of gravity gold Dore was also produced and sent to refiners this month for further treatment, it said.
“Scotgold is encouraged with the mine and process plant performance, although performance has been intermittent to date,” it said. “On given days throughout April and May both the mine and process plant have been achieving near design rates of production.”
The company said it was also pleased with the quality of ore that had been mined and produced through the process plant.