1 Jun 2023 07:00
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 Peter Hetherington, Non-executive Chairman Phil Day, CEO Sean Duffy, CFO
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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.