Scotgold Resources foreshadows more delays for Cononish mine in Scotland

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Mining company Scotgold Resources again delayed the expected date for the commencement of production at its Cononish gold and silver mine in Scotland, citing bad weather and the Covid-19 crisis.

Wet weather in January and February had slowed progress at the development, despite mitigation attempts including using smaller, less weather dependent earthmoving equipment.

'Although the weather conditions have recently improved, it is apparent that first gold production will be delayed beyond May 2020 as previously forecast,' Scotgold said.

It added that the impact of the Covid-19 pandemic on the project was difficult to predict.

Mining operations had been closed as of Friday, though care and maintenance operations would continue.

'Going forward, we are currently uncertain as to the impact the pandemic will have on our supply chain and our specialist contractor's ability to mobilise for the building construction and plant assembly activities,' Scotgold said.

'We will continue to work with our various stakeholders in this regard to mitigate all such risks and to provide greater clarity in due course on what the ultimate impact on schedule and costs might be.'

At 8:56am: (LON:SGZ) Scotgold Resources Ltd share price was -3.5p at 48.5p


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