Scotgold Resources Limited's (AIM:SGZ) 33% increase in third-quarter mill throughput was encouraging even though production dipped, according to 'house' broker Shore Capital.
The mill is now handling around 4,000 tonnes per month at an average grade of 10.09 grams per tonne (g/t) gold, but management expects this to rise to 5,000 tonnes per month once the tailings thickener is connected and 6,000 tonnes per month with further optimisation of the processing plant.
These initiatives should keep Scotgold on track to deliver its annualised production rate of 23,500 ounces of gold by the end of the first quarter of next year, added the broker's analysts.
Scotgold shares rose 0.8% to 63.5p.