Scotgold Resources Ltd (LON:SGZ) gas said it is on course to commence Phase 1 production at the Cononish gold and silver mine last today.

Phase 1 targets average annual gold equivalent production of 9,910 ounces.

Phase 2, which targets the expansion of production to 23,500 ounces, has been brought forward by 11 months to May 2022, the group added.

The mine is likely to deliver £156mln in pre-tax cash flow, according to modelling.

“To be on the brink of first pour at the Cononish gold and silver mine, despite the unprecedented challenge of navigating COVID-19 and associated lockdowns, is testament to the professionalism and hard work of both the team at Scotgold and all those connected with the project over the course of the year under review and beyond,” said chief executive Richard Gray in a statement. 

Scotgold made a loss before tax of £2.5mln in the year to June 2020.

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