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Gold & silver

Scotgold begins to hit its stride at Cononish, with 24% production boost

Scottish gold can command a significant premium in some markets

Scotgold Resources Limited (AIM:SGZ) produced 62 tonnes of gold concentrate from its Cononish mine in Scotland during September, an increase of roughly 24% on the previous month.

The concentrate produced graded at an average of about 311 grams per tonne gold and 1,200 grams per tonne silver, equating to around 580 ounces of contained gold and over 2,400 ounces of contained silver.

This marked the second consecutive month where production revenues exceeded operational costs

"The operational turnaround at Cononish continues to gain pace and we are really encouraged by the performance of the mine and the overall improvement in our production profile,” said chief executive Phil Day.

“Importantly, September marked our second month where production revenues exceeded operational costs and we are confident that we are now on the correct growth trajectory to realise the full potential of Cononish."

Mining activity at Cononish continued uninterrupted during September, and the third of four planned cuts of the cut and fill stope was completed.

On the processing side, the gravity circuit is also now consistently operational. During October it will be optimised to commence providing gold to Scotgold's partners in the jewellery industry this quarter.

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