Scotgold Resources Limited production at record levels in December

Shipments in the quarter were 231 tonnes and equated to sales of over £2.6m

Scotgold Resources produced a record amount of gold concentrate from its Cononish mine in Scotland in December as it resolved issues affecting its ramp-up phase.

Gold production in the fourth quarter of 2021 totaled 1,508 ounces. In December, 700 ounces were produced from 101 tonnes of concentrate.

Last quarter production would have had higher bar issues with explosives supply in November due to the coronavirus (COVID-19), Scotgold added.

Shipments during the quarter amounted to 231 tonnes and represented sales of over £2.6 million.

Scotgold said the first phase of the ramp-up is now nearly complete and it expects production of 1,400-2,200 ounces this quarter, reaching an annual rate of 16,000-17,500 ounces by the end of June.

“I am delighted to report on our record gold concentrate production in December 2021, which saw an increase of approximately 60% in production compared to our previous record month,” said Phil Day, Managing Director.

“We have nearly completed Phase 1 of the production ramp-up and we continue to generate cash as our production revenues exceed operational costs.

“We expect this cash generation to continue into 2022 as we ramp up the production profile to first 4,000 tonnes of feed by Q2 2022 and then 4,500 tonnes of feed by Q2 2022. fourth quarter 2022 (which equates to 16,000 – 17,200 ounces of gold per year) and up to c 0.23,500 ounces of gold per year at the end of the first quarter of 2023.

“Scotgold has negotiated a newly restructured debt agreement with its original debt provider Bridge Barn, which provides us with continued operational flexibility for growth and expansion by removing the need to repay tranches 1 and 2 plus interest, in 2022. .”

The shares rose 13% to 76.5p.

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