REG - Scotgold Resources - Operational Update and Director Resignation

Scotgold ResourcesAnnouncement

01/06/2023 07:00

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RNS Number : 2558B  Scotgold Resources Ltd  01 June 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.

 

1 June 2023

 

Scotgold Resources Limited ("Scotgold" or the "Company")

Operational Update and Director Resignation

 

Operational Update

 

As announced on 15 May 2023, Scotgold Resources Limited (AIM: SGZ), Scotland's
first commercial gold producer, commenced long hole stoping, along the 115m
strike length in the underground mine at its Cononish gold and silver mine
("Cononish"). Long hole stoping on block 1 was safely completed on time.
Drilling of stope block 2 has now commenced with blasting targeted for around
a week's time. The raise air vent to establish better air ventilation between
the 400 and 415 level has also been completed. In parallel the waste ramp
development to the 445 level was also completed, this allowed development
mining on the 445 East level ore body to commence. The 445 East level
development ore currently being fed to the process plant is good gold grade
ore, in line with our expectations, with an average grade of 8.3g/t, with the
last three assays coming in at 13.7g/t, 12.9g/t and 16.9g/t respectively.

 

Director Resignation

 

Scotgold also announces that Phil Day has notified the board of directors of
his intention to resign as Chief Executive Officer ("CEO") of Scotgold, and
given notice under his contract of employment, citing a desire to spend more
time with his family members in Australia. The Board has reluctantly accepted
his resignation. The process of recruiting a permanent successor will begin
immediately and Phil Day remains in post at this time.

 

Peter Hetherington, Scotgold Resources Chairman said: "On behalf of Scotgold's
board of directors, I thank Phil for his dedication, unwavering support and
very significant contribution to the Company.Under his calm and steady
leadership, since April 2021, Phil has guided the Cononish mine to safe and
environmentally compliant commercial production, redesigned the mine schedule,
implemented cut and fill stoping for faster access to higher grade zones,
commenced long hole stope mining and ramped up the process plant for optimal
continuous operation.

 

Significant challenges obviously remain for Scotgold. We as a Board have a
duty of care to all team members and respect Phil's request for the time and
space, away from CEO PLC duties, with his family in Australia.  We remain
committed to all stakeholders and the ongoing development and production from
Cononish, Scotland's first commercial gold mine and will update the market in
due course on the new CEO appointment."

 

Phil Day, Scotgold Resources CEO said, "I am very pleased with what we as a
team have accomplished during my time as CEO. It has been a privilege to lead
and develop the business. The Company's team and board are its greatest asset
and I want to express my gratitude for their contribution."

 

 

**ENDS**

 

 Scotgold Resources Limited                   Via Celicourt Communications

 Peter Hetherington, Non-executive Chairman

 Phil Day, CEO

 Sean Duffy, CFO

 Shore Capital (Nomad and Broker)             Tel +44 (0) 20 7408 4090

 Toby Gibbs / John More / Tom Knibbs

 Celicourt Communications (Financial PR)      Tel +44 (0) 774 8843 871

 Felicity Winkles / Ariana Fanning

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
planned +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.
The mine has anticipated forecast operating costs of c.£610 per ounce Q4
2023, which will place Cononish in the lowest quartile of gold mining
operations globally.

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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