Would-be precious metals producer Scotgold Resources wants the processing plant at its Cononish prospect near Tyndrum to operate 24 hours a day, it has been revealed.
The group’s quarterly report for the three months to the end of March said the miner had completed work on a redesign of the operation it proposes for the Loch Lomond and the Trossachs National Park.
Evaluation of the revised approach is under way but the company said it was “examining further scenarios to optimise the mining and processing rates including the possibility of continuous processing”.
Scotgold said it would hold preliminary discussions with the National Park Authority over its hopes for a 24-hours-a-day, six-days-a-week operating licence shortly.
Its present permit allows works to take place for 16 hours each day.
It also revealed it was “in discussions” over asset financing for mining equipment and processing gear.
Technical consultants, including Australian Mining Consultants, are investigation the feasibility of its smaller-scale starter project, which focuses on easier-to-reach and higher grade reserves, but promises reduced returns.
The company has been forced into its fresh approach by a plunge in the value of precious metals.
It had anticipated gold and silver production worth up to £17 million per year over a seven-year lifespan, but those expectations suffered as the traded price of gold collapsed from around $1,650 an ounce early last year to around $1,280 now. Silver has fallen from more than $30 an ounce to less than $20 over the same period.
Around six weeks ago Scotgold was forced to recognise “a material uncertainty” over its ability to continue as a going concern, with pressure to secure a further extension to its corporate banking facility before the end of June.
No update on these efforts was provided.
It has already attracted fresh investment totalling 1.825m Australian dollars through three strategic investors, including London Metal Exchange director and spread betting expert Nat le Roux.
Scotgold also repeated its pledge that public interest groups, including Strathfillan Community Development Trust, would hold a 20% stake in a new company specifically established to market a proportion of the mine’s produce in the form of dore bars.
The precious metal, branded as Scottish gold and silver, will be sold to the new entity for a 10% mark-up, with Scotgold and the new investors sharing the remaining 80% interest in the enterprise.
The company, which holds further Crown Estate option agreements over locations in the Ochils, Glen Orchy, Glen Lyon, Inverliever and Knapdale, also restarted work in other areas of what it calls its Grampian Gold Project.
Stream sediment and chip sampling work has recommenced, with almost 500 tests expected to be completed over six “high priority target areas” during the next six months.
Stocks in the company closed the day at 0.575.