Scotgold launches review of Tyndrum mine operations

Scotland's only commercial gold producer is reviewing its operations following "disappointing" production figures for the first half of the year.

Scotgold said the third-party review would "recalibrate" its mine plan at Cononish, near Tyndrum.

It has withdrawn its 2023 production guidance, and will provide an update once the review has been completed and its findings have been analysed.

Production was hit in the first quarter after a key development was halted.

Only 758 ounces of gold were produced between January and March, although gold concentrate production steadily increased in the second quarter to reach 1,556 ounces.

In a statement, Scotgold said: "The ability of the group to continue as a going concern over the long term will remain dependent on the quantity and grade of ore mined and processed being within a reasonable tolerance of the forecast quantity and grade and adherence to the previously planned product shipment schedule.

"This schedule is being reviewed as part of the third-party review of the mine plan commissioned by the company."

Last month, Scotgold chief executive Phil Day informed the company that he was leaving in order to spend more time with his family in Australia.

The board said it had "reluctantly" accepted his resignation.