Scotgold Resources Ltd Cononish Commissioning & Ramp Up progress update (4112J)
December 21 2020 - 08:20AM
UK Regulatory
TIDMSGZ
RNS Number : 4112J
Scotgold Resources Ltd
21 December 2020
Scotgold Resources Limited
("Scotgold" or the "Company)
Update on Commissioning and Ramp up progress 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
following the commissioning of the comminution and gravity
circuits, which enabled the achievement of First Pour on 30(th)
November 2020, further good progress has been made.
During December work has focussed on supplier commissioning of
the outstanding circuits, principally the flotation and dewatering
circuits, as well as operator training and punch listing minor
items. The Company is pleased to report that the complete plant has
now operated at the design throughput rate of 7.5tonnes per hour,
including the commencement of tailings deposition on "Dry Stack 1"
of the Tailings Management Facility. There is currently
insufficient data available from the commissioning process to
assess the metallurgical performance of the plant, however visual
indications are that the flotation circuit is successfully
recovering the sulphide minerals and therefore overall recoveries
are also expected to be as planned.
Further punch listing activities will be completed over the
coming Festive period and the planned production ramp up will
accelerate in January with the commencement of 24 hour processing
operations. Under the Company's accelerated expansion plan, Phase 1
production is targeted to increase to 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 as it looks to deliver the
highly attractive LOM economics, (based on GBP1,400/oz gold and
GBP19.23/oz silver prices) of GBP178 million EBITDA; GBP156 million
pre-tax Cash Flow; GBP127 million Net Cash Flow; and GBP96 million
Pre-tax NPV (8% discount rate).
CEO, Richard Gray, commented: "I would like to wish all our
Stakeholders a Merry Christmas. Although this Christmas and New
Year may be more sedate than usual, it is gratifying and exciting
to know we enter 2021 having achieved our first Gold Pour on
schedule, and we do so with an operating mine that is well placed
to achieve our planned production ramp up. May we all have a Happy
and Prosperous 2021!"
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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