(Alliance News) - Scotgold Resources Ltd said Monday that development of Cononish Gold and Silver Mine in Scotland's Grampian Highlands has been extended by 12 weeks and first gold production is now expected in May 2020.
In August, Scotgold had said that gold production from Cononish project was expected in February 2020, following design delays.
The mining company said it has encountered schedule delays relating to the management of excavated materials necessary to construct the process plant building and to establish the site wide drainage required for the establishment of the "dry stack" tailings storage facility.
"The area of these sites is overlain by peat to varying depths, for which the company is utilizing all good practice to manage and preserve this environmentally sensitive material by minimizing storage," Scotgold said.
The company said it has also identified a "small number of design detail changes which have had a minor impact on the planned schedule".
"Whilst actions have been taken to minimise schedule impact, it has now become clear that an extension to the schedule will be required," the company said.
Richard Gray, chief executive officer, said: "We are obviously disappointed that our eagerly awaited first gold production has been delayed, however proper management of our local environment is our first priority and our team has found solutions to the challenges encountered."
"This has only been possible with the constructive approach taken by our contractors and the regulatory authorities," Gray said.
Scotgold shares were down 1.5% in London at 65.00 pence each on Monday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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