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Chairman steps down as Scotgold reveals plans to increase gold production in 2022

Scotgold Resources' Cononish mine near Tyndrum, Scotland

Scottish listed miner Scotgold Resources has announced that Nathaniel Le Roux is stepping down from his position as non-executive chairman.

Mr Le Roux is handing over the chairmanship to Peter Hetherington with immediate effect but will remain on the board as non-executive director and major shareholder of the company.

Bosses at the mining operation at Cononish near Tyndrum also revealed a plan to “increase production rate” for 2022 is underway.

Positive revenue for consecutive months

The mine produced around 64 tonnes of concentrate at a grade similar to September. The company said this equated to around 600oz of contained gold and 2,450oz of contained silver for the month.

In a statement on the stock exchange, the company said for the third consecutive month production revenues exceeded operational costs.

Mr Le Roux, who was non-executive chairman since 2015, said: “Seven years ago, I recapitalised Scotgold and joined the board as chair.

“My aim from the beginning was to see Scotland’s first commercial gold mine in production.

“That objective has now been achieved, thanks to the dedication and hard work of our executive team.

“Therefore, I believe this is the right moment for me to stand down as chair.

“Peter Hetherington and I have worked together for many years, and as Scotgold’s major shareholder, I am wholly confident that he will prove an effective successor.”

Plan in place to increase gold output

Scotgold’s board and leadership team are preparing the operational, financial budget and strategic plan for 2022 which will incorporate initiatives to continue to increase the production rate of the Cononish mine and process facility gold output.

During October, the first Ball Mill reline was planned and completed.

In a statement the company said: “Scotgold is very well positioned to continue ramping up its gold production output towards design throughput for phase one, being 973oz per month until the end of 2021.

“The company therefore expects production for the remainder of the calendar year to be within the guidance range of between 1,300oz and 1,950oz of gold production for November and December combined.

“In addition, gravity gold production is continuing on track for delivery to the refiners in December.”

Multi-asset gold producer & signifcant employer

Mr Hetherington, who held the position of chief executive at both FTSE 250 trading platform IG Group and Schroders Personal Wealth, said: “The next phase for Scotgold is the continued professionalisation and commitment to sustainability of every aspect of the company’s operations.

“I look forward to working with our CEO Phil Day, and the board to facilitate this change and on our overarching growth strategy for 2022 and beyond.

“There is still much to be done but the task, now that we are repeatedly cash flow positive on a monthly basis, is much simpler than it was when Nat became chair.

“Our priorities remain: the safe, environmentally friendly, and profitable operation of the Cononish gold mine and process plant near Tyndrum, whilst we prospect and develop further mines within our extensive licenced area.

“We fully intend to become a multi-asset gold producer, significant employer and contributor to the local economy.”