REG - Scotgold Resources - Mining Review Update

Scotgold ResourcesAnnouncement

19/09/2023 09:15

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RNS Number : 9113M  Scotgold Resources Ltd  19 September 2023

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR
MAY HAVE QUALIFIED AS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

 

19 September 2023

 

 

Scotgold Resources Limited ("Scotgold", the "Company" or the "Group")
                                        Mining review update

 

On 11 September 2023, the Company announced an update on the Mining Plus
review of the Cononish mine plan for the next twelve months, encompassing a
geological review of the Cononish Mine mineral resource estimate ("MRE") and
grade control ("GC") process, mine design, schedule and production forecasts
stating that Initial findings have been fed back to the Board.

 

The Company further stated that while the Geological data and documentation
suggested 'no fatal flaws' in the MRE and GC modelling process, the draft mine
plan and associated cash flow forecasts are currently being reviewed by the
Company, but they indicate that to deliver to the plan, a significant capital
investment is required. The Company is actively seeking additional financing
and discussions are in an advanced stage and, should they materialize, are
expected to provide sufficient funding for the Company to continue as a going
concern. The outcome of the funding discussions is highly uncertain and if the
Company cannot conclude a significant fund-raise, it will cast material
uncertainty for the Company to continue as a going concern.

 

Forward Mine Planning update

 

The updated mine plan and associated schedule till July 2025, revised on 14
September 2023, has been received and remains under internal review.  The
revised mine schedule was developed using the latest grade control model and
focusses on the transition to sustainable and top-down Long Hole Open Stoping
("LHS"). The philosophy to focus on transitioning to sustainable top down LHS
is initially heavily development intensive, with the bulk of development
scheduled over the next 6 to 9 months. Mine development over the next 6 - 9
months priorities:

 

 

 

 

·    Reaching levels beyond the 445L (replacing the lost ore from the 430
Level) and accessing new top down LHS areas above 445L. The ability to
transition away from LHS with waste fill to fully top down LHS method without
fill enables key efficiencies and cost reductions to be delivered.

 

·    Development of the return air way to improve mine ventilation further
enhancing the mine development.

 

·    Delivery on the key power and ventilation capital upgrades.

 

To achieve this mine development, power and ventilation upgrades will require
significant capital investment. The board have requested site management to
review key productivities and timing of capital infrastructure delivery and
commissioning, in order to combine and sequence the mine development
philosophy into a fully integrated operational plan. The Board will also
commission a review into the circumstances surrounding the initial power
upgrade completed in 2022 and what implications this may have had for the
achievement of the 2023 mine plan.

 

Scotgold will continue to provide updates on the progress of the mine design
and planning.

 

 

**ENDS**

 

 

Scotgold Resources Limited                                                                     Contact via Shore Capital

Sean Duffy, interim CEO and CFO

Peter Hetherington, Non-executive Chairman

 

Shore Capital(Nomad and Broker) Toby Gibbs / Tom Knibbs

Tel +44 (0) 20 7408 4090

 

 
 
 
 
 
Notes

 

Scotgold Resources Ltd (AIM:SGZ), is Scotland's first commercial gold
producer. The Company poured first gold in November 2020 at its Cononish Gold
and Silver Mine ('Cononish) in Tyndrum, Scotland and is developing it into a
+23,500-ounce gold mine per annum. Cononish is a high-grade underground mining
operation with a central processing plant producing gold concentrate for
off-take and gold doré for the Scottish Jewellery industry.

 

It is Scotgold's vision to build a mid-tier gold mining company in Scotland
with multiple operations in   the country that enhance the local environment
and economy in ways that have an enduring positive impact.

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