A South African mining company is planning to get Scotland’s only commercial-scale gold mine back in action following a two-year shutdown. Eighty locals lost their jobs when operations ceased in 2023, but it looks like they may have the opportunity to return.
Acrux Sorting Technology’s gold subsidiary has purchased an 80 per cent stake in the Cononish mine for an unspecified sum. The move was significantly inspired by the all-time high price of the yellow metal, currently sitting at about US$2,910 per ounce.
“The growing value of gold presents an exciting investment landscape,” chief executive Sean Browne said in a release from the Johannesburg and London-based firm. He expects the site to be capable of churning out up to 2,000 gold ounces per month once it gets back in full swing.
The Scottish gold produced from this mine can be sold at a premium because of its rarity. Jewellers will pay a high dollar for it so they can use it in their Celtic-style pieces, wedding rings and even limited edition coins. Between 20 to 50 per cent more, approximately.
Scotgold intended to produce about 23,500 ounces when production last started in late 2020, but was unsuccessful with the speed of operations hindered by the pandemic. The former operator had significant cash flow issues too, which ultimately brought work to a halt.
📹 Drone footage showing the Vein hosting gold mineralisation exposed from initial longhole open stop firings at our #Cononish Gold Mine in #Scotland.
This was the first long hole stope, undertaken both safely and successfully to plan. pic.twitter.com/rzLvyFBtAh
— Scotgold Resources (@scotgoldresltd) April 14, 2023
Read more:Â Equinox Gold acquires Calibre Mining for $2.6B
Read more:Â Calibre Mining beats updated gold production guidance with 242,487 ounces
National park location means stringent regulations
The operation is situated within Scotland’s Loch Lomond & The Trossachs National Park, one of only two in the country. This location brings strict rules with it such as limitations on noise, prohibition of visible surface disturbances and adherence to wildlife protection measures.
Gold was first discovered in a quartz vein at the site in the 1980s. Now, it is estimated to still hold about 198,000 gold ounces and over 850,000 ounces of silver.
One of the veins exploited previously had grades as high as 91.3 grams per tonne Au.
It became a popular destination for illegal exploration during the time that it has been stagnant. Local police warned people about the dangers of entering the mine.
rowan@mugglehead.com
