StockMarketWire.com - Mining group Scotgold Resources said it had made the first shipment of concentrate from its delayed Cononish gold mine in Scotland.

Cononish had been producing gold concentrate and gravity separated gold Dore following the resolution of various outstanding technical issues affecting the processing plant.

The first shipment was made on 11 May and comprised 25 tonnes of concentrate at an average of 182.4 grams per tonne of gold.

Scotgold said that exceeded a target of 150 grams per tonne and that a maximum price had been achieved within the agreed terms of an offtake agreement.

Modest amounts of gravity gold Dore was also produced and sent to refiners this month for further treatment.

'Scotgold is encouraged with the mine and process plant performance, although performance has been intermittent to date,' the company said.

'On given days throughout April and May both the mine and process plant have been achieving near design rates of production.'

'The company is also pleased with the quality of ore that has been mined and produced through the process plant.'

'Scotgold's focus is to further enhance safe production through consistency and stability of mine and process plant operations in parallel with the opening of multiple faces of ore in the underground mine itself.'

'The current limited available number of ore faces does limit our immediate ability to focus on the highest-grade ore zones of the Cononish ore body.'

'Having proved that the mine and processing plant can operate as designed, our focus is on reducing outages through more efficient management of spares and having further redundancy in our mining mobile fleet with the arrival of the second haulage DUX truck.'




Story provided by StockMarketWire.com