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Scotgold narrows loss, work continues to source funding for Cononish mine

29th September 2017

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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JOHANNESBURG (miningweekly.com) – Precious metals project developer Scotgold has narrowed its loss from A$1.5-million to A$1.3-million in the 2017 financial year, ended June, as the company started sales from gold produced at a pilot plant at the Cononish gold and silver project, in Scotland.

A bulk processing trial (BPT) is under way to demonstrate the marketability and profitability of gold production from Cononish, which is located near the Loch Lomond and Trossachs National Park. First gold was poured in August last year.

The company sold ten individual, one fine troy ounce, rounds of the first ever commercially produced branded ‘Scottish Gold’, realising sales of £45 579 in the six months ended June 30.

Scotgold is also selling gold in concentrate from the BPT, based on spot prices.

Total gold sales, including concentrates, amounted to 258 troy ounces in the 2017 financial year and, before costs, reduced deferred mineral and exploration expenditure by A$582 111.

At the end of June, Scotgold had A$572 332 in cash and a gold-in-concentrate inventory worth about A$222 000.

Meanwhile, Scotgold reported on Friday that work was under way to source funding for the Cononish project from debt and private equity providers. The directors, however, noted in the annual results statement that they might have to address the short and medium term working capital needs of the company separately.

A dry stack tailings storage facility has significantly lowered the capital expenditure needed to build the Cononish mine. Scotgold recently published a revised plan for the mine development, which lowered the peak funding requirement from £18.5-million estimated in the August 2015 bankable feasibility study to £7.4-million.

Edited by Creamer Media Reporter

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