Scotgold Resources Ltd Cononish Development Schedule Update (7910H)
March 27 2020 - 2:00AM
UK Regulatory
TIDMSGZ
RNS Number : 7910H
Scotgold Resources Ltd
27 March 2020
Scotgold Resources Limited
27 March, 2020
Scotgold Resources Limited
("Scotgold" or the "Company)
Cononish Development Schedule Update and Temporary Cessation of
activities due to Covid-19 measures.
Scotgold Resources Limited (AIM:SGZ) provides an update to the
development schedule of the Cononish Gold and Silver Mine (the
"Cononish Project").
Further to the update provided on 16 December 2019, bad weather
delays, particularly during January and February which was one of
the wettest starts to the year on record, have exceeded the planned
allowances. The Company has attempted to mitigate these conditions
by utilising smaller, less weather dependent earthmoving equipment
and to mitigate the cost implications by undertaking these
activities "in house" and utilising our own skilled workforce.
Although the weather conditions have recently improved, it is
apparent that first gold production will be delayed beyond May 2020
as previously forecast.
The overall impact of the Covid-19 pandemic on the Cononish
Project is difficult to predict. The Company has been fully
complying with the Government's emergency measures to date, such as
ensuring all staff who are not absolutely necessary on site are
operating from home and those still working onsite observing social
distancing and hygiene requirements. The Scottish Government has
now advised that all non-essential construction sites be closed
down until further guidance is issued on how this sector can
operate safely.
As of today, the Company will close down the mining operations
at Cononish but will continue with care and maintenance operations
to ensure the health, safety and in particular environmental
aspects of the site are secured. Our on-site team members not
involved with care and maintenance will be furloughed in accordance
with the Government's Job Retention Scheme, so full activities can
resume as soon as permissible.
Going forward, we are currently uncertain as to the impact the
pandemic will have on our supply chain and our specialist
contractor's ability to mobilise for the building construction and
plant assembly activities. We will continue to work with our
various stakeholders in this regard to mitigate all such risks and
to provide greater clarity in due course on what the ultimate
impact on schedule and costs might be.
Richard Gray, CEO commented: "These are difficult times and I am
proud of the efforts being put in by our team to overcome these
challenges, and we are doing this cognisant of our responsibilities
to our local and national communities".
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please contact:
Scotgold Resources Limited Tel: +44 (0)1838 400
Richard Gray 306
SP Angel Corporate Finance Tel +44 (0) 20 3470
LLP 0470
Nomad and Broker
Ewan Leggat / Charlie
Bouverat
Capital Markets Consultants Tel: +44(0)7703 167
Financial PR 065
Simon Rothschild
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END
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