Cononish gold mine suffers production setback
The firm mining for gold in the central Highlands has suffered a production setback, only weeks after stepping up to commercial-scale operations.
Scotgold Resources has told shareholders the ramp-up of mining will be slower than originally planned. It said development of the Cononish mine near Tyndrum was "insufficient" for it to "provide optimal ore quantity and quality in the short term". The company added that its long-term plans were not affected. In a statement, Scotgold reported it had resolved "various outstanding technical issues" affecting the processing plant at Cononish, which was now "operating consistently and currently focusing on ramping up to full design capacity expeditiously". But the firm warned that it expected production for this year to be "materially less" than the guidance range it announced at the end of March. The company also reported that its mine team had undergone a "reshuffle in leadership and approach to ensure it can deliver reliable and robust short term mine plans". Scotgold, which raised £1.5m recently from investors to help it increase production, is now seeking further funding. It explained: "To ensure the company has adequate funds available for working capital through this production ramp-up period, the company is investigating financing options, including short-term debt financing from the directors." It added that it would provide a production update as soon as it completes a review of the mine plan.