Scotgold Resources Ltd First Gold Pour at Cononish (0178H)
December 01 2020 - 1:00AM
UK Regulatory
TIDMSGZ
RNS Number : 0178H
Scotgold Resources Ltd
01 December 2020
1 December 2020
Scotgold Resources Limited
("Scotgold" or the "Company)
First pour at Scotland's first commercial gold mine
Scotgold Resources Limited (AIM:SGZ), the gold exploration and
production company focused on Scotland, is pleased to announce that
yesterday, 30 November 2020, first gold was poured at the Company's
high grade, low cost Cononish Gold & Silver Mine, ('Cononish')
in the Scottish Grampian Mountains area. Following this first pour,
which is a major milestone in the commissioning of the processing
plant, the Company looks forward to ramping up production at
Cononish to design level early in the New Year and taking its place
as Scotland's first commercial gold mine.
Images from the first gold pour will be made available to
shareholders on the Company's website at www.scotgoldresources.com
and on social media channels shortly.
Accelerated expansion plan underway
In line with its phased development programme, the Company is
now focused on completing an accelerated expansion plan to increase
production at the mine to 23,500oz pa. The current Phase 1 is
targeting an annual rate of ore production of 36,000 tonnes and
total gold production of 9,910oz in 2021. Phase 2 will focus on
doubling the annual rate of ore production to 72,000 tonnes and a
more than doubling in average annual gold production to 23,500oz.
The Company is fully funded to achieve Phase 2 expansion by May
2022, 17 months from the commencement of Phase 1 production.
Targeting highly attractive Life of Mine ('LOM') economics
A remodelling exercise incorporating the above accelerated
expansion plan for Cononish and gold and silver prices of
GBP1,400/oz and GBP19.23/oz respectively delivered highly
attractive LOM economics:
-- GBP178 million EBITDA
-- GBP156 million pre-tax Cash Flow
-- GBP127 million Net Cash Flow
-- GBP96 million Pre-tax NPV (8% discount rate)
For further details of the updated model, please see the
Company's announcement of 12 October 2020. Further updates on the
commissioning process and the roll-out of the expansion plan will
be provided to the market as and when it is appropriate to do
so.
CEO, Richard Gray, commented: "Our first gold pour is not only a
significant milestone in the development of our Cononish Gold &
Silver Project but a milestone on the road to a Scottish gold
mining industry. Today's news is therefore a landmark event both
for the Company and for Scotland.
"I would like to take this opportunity to commend the work of
the Scotgold team both at the operational and managerial levels.
All our personnel have worked tirelessly to make this happen in the
face of unprecedented challenges caused not least by the ongoing
pandemic and associated restrictions. I would also like to thank
our shareholders, contractors, advisers, regulatory agencies, the
Scottish Government and all stakeholders in the Project for their
support throughout this journey. We look forward to continue
working closely with all our partners, as we focus on realising the
huge potential of gold mining in Scotland not just for the benefit
of our shareholders but also for the country as a whole."
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.
**ENDS**
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
Tel +44 (0) 20 7236
St Brides Partners 1177
Financial PR
Susie Geliher / Frank
Buhagiar
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END
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