Scotgold 'confident' as it develops projects

Scotgold Resources updated the market on its activities on Thursday, reporting that its bulk processing trial (BPT) was operating above the design throughput rate of 1.5 tonnes per hour, and achieved an average monthly production of 424 wet metric tonnes since September.

The AIM-traded firm said the average grade of material treated so far at 6.3g/t Au was lower than global estimate of material contained in the ore stockpile of 7.9g/t Au.

It said the metallurgical recovery of 64% was achieved, with the simplified gravity-only BPT circuit and tailings analysis confirming recovery of 93% as being achievable in the planned production plant.

Gold rich Pyrite concentrate sales to Ocean Partners were also proceeding as envisaged, the board said.

Positive test work results had been received on the leaching of gold-rich Galena concentrates, with the board saying that improved the potential viability of a long-term off site leaching facility, and also potentially offered a lower cost alternative to the current BPT cupellation route.

Further cupellation had therefore been put on hold whilst that was investigated further.

The company said it drew down the £1.0m of funds under the secured loan from Nat le Roux on Thursday.

Several longer-term project funding proposals were currently under review, the board added.

At the reduced capex requirements of the revised, phased approach to development, management remained confident that project funding would be available.

“Although the BPT does not, and was never intended to replicate the process route envisaged in the original BFS, for which extensive metallurgical test work has been conducted, it continues to meet its primary objectives and provide valuable operational experience, particularly with regards to alternative tailings management systems,” said CEO Richard Gray.

“Scottish Gold has been sold as commemorative rounds, gold is being sold as pyrite concentrate and Scottish Gold will be sold to the jewellery trade in the coming months.

“Whilst we continue to optimise the BPT operations, our key focus now is securing the much reduced finance needed to put our mine into commercial production and achieving the necessary permitting.”