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Scotgold Resources Shares Surge After Cononish Mine Update

Updated: 1 Dec 2020

Shares of Scotgold Resources (LON: SGZ) are rallying on Tuesday after the company said that the first gold was poured at its high-grade Cononish gold and silver mine in the Scottish Grampian Mountains area. 

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The Cononish project looks set to become Scotland's first commercial gold mine. 

The company described the first pour as a significant milestone and said they are now focused on increasing production at the site to 23,500oz per year. 

“Our first gold pour is not only a significant milestone in the development of our Cononish Gold & Silver Project but a milestone on the road to a Scottish gold mining industry. Today's news is therefore a landmark event both for the Company and for Scotland,” said Richard Gray, Scotgold's CEO. 

Phase 1 expansion plans for the mine see the company targeting an annual rate of ore production of 36,000 tonnes and a total gold production of 9,910oz in 2021 with Phase 2 aiming to double the rate of ore production to 72,000 tonnes and more than double gold production to 23,55oz. 

Scotgold said they expect to reach its Phase 2 expansion target by May 2022. 

Scotgold's share price rallied as much as 7.17% to 127p after the announcement. However, they have since given up some of the days gains and are trading at 124p, up 4.64% on the day. 

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