Scotgold to miss production target

Gold explorer and producer Scotgold Resources has reduced its production guidance for this year for its Cononish project in Scotland, citing processing equipment and Covid-19 related recruitment issues.
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Plant still expected to reach the full designed production rate of 3,000t per month

Scotgold is reducing its production guidance for 2021 from 9,910oz Au, as announced in December 2020, to 7,800-8,700 oz Au, from between 31,500t and 28,400t ore processed.

The miner said throughput for January at Cononish was negligible due to multiple materials handling issues between circuits but added that these have now been addressed.

The recruitment of plant operating labour in January was also slower than planned due to government-imposed Covid 19 restrictions, said Scotgold.

"Despite the frustrating but resolvable materials handling issues that arose this month, our confidence in the ultimate performance of the mine continues to grow," said Richard Gray, chief executive.

"The lessons learnt, as well as opportunities identified, during this Phase 1 ramp up will be used to optimise our plans for the Phase 2 expansion in 2022."

The company added that major processing components have operated at or above design capacity, and the plant is therefore still expected to reach the full designed production rate of 3,000t per month.

Scotgold poured first gold at Cononish last December.