Scotgold Resources announces record production at Cononish mine with £5.5m in sales
Scotgold Resources has had an excellent Q2 exceeding targets and having achieved £5.5 in sales.
Shares in the mining company went up in response to the Q2 results and the share price has gone up more than 10% in the last month.
Scotgold’s main operation is at the Cononish mine in Scotland. During Q2 2022 production continued to be ramped up in line with the Cononish 2022 mine plan to develop the site further. Scotgold exceeded its Q2 2022 production target with production totalling 3,531 ounces of gold and 18,382 ounces of silver from Cononish, a 188% increase in total gold production from Q1 2022 which saw 1,224 ounces of gold produced. Gold production for H1 2022 totalled 4,755 and 24,263 ounces of silver from Cononish. Scotgold is committed to responsible mining and is pleased to report it is one of the few global gold producers that does not use cyanide for either its flotation gold concentrate production or gravity gold at Cononish.
Q2 2022 gold concentrate shipments totalled 415 tonnes with a sales value of £5.0 million. Gold
concentrate is sold directly to Scotgold’s off-take partner MRI Trading AG.
Phil Day, Scotgold Resources CEO, said: “This has been our strongest quarter yet for Scotgold, characterised by record gold production which exceeded guidance, record gold sales translating into significant cash generation and continued progress on the ground to meet our production and operational targets.
“In the short term, we are focusing on our transitional optimisations at Cononish, undertaking low capex initiatives to continue to drive the production ramp up. The recent arrival of our thickener, currently undergoing installation in our process plant, will bolster our throughput of ore, generating further increases in gold concentrate output. Furthermore, with our 2022 mine development work, we continue to move rapidly towards phase 2 production levels of 23,500oz run rate of gold.
“Our team are performing exceptionally well and, together, have facilitated the achievement of our forecasted results. We remain impressed with Cononish’s high-grade gold geology and anticipate that the operations and cost control discipline of our team will enable the mine to be even more cash generative and profitable as it moves from phase 1 to phase 2 production.”