Revised plan for Trossachs site
Chairman backs gold mine with £1m loan
In an update today it says a revised development plan is being drawn up and a pre-application consultation process has begun with the Loch Lomond and the Trossachs National Park Planning Authority.
It is anticipated that the full planning process should be completed by the end of 2017.
The funding from Mr le Roux amounts to £700,000 after repayment of an existing £300,000 facility.
The company says the loan will help it implement a funding plan for the development of the Cononish Gold and Silver project from the first quarter of 2018.
It says the peak funding requirement has fallen from £18.5m to £7.4m and it notes a higher assumed gold price of £920/oz ($1,150/oz) (previously $1,100/oz).
In a statement it said: “We have completed a review of our development strategy and we have, after considering a number of alternative production schedules, selected the Phased Project scenario as the most favourable overall under current economic conditions.”
The change of plan will result in a “more practical, lower capex (albeit a higher opex) and reduced environmental impact dry stack design. This has resulted in a much reduced peak funding requirement.
“The necessary revisions to the permitting requirements are underway and we expect final permission for underground development work to be granted by Q1 2018.”
Subject to permitting and securing the necessary finance, the company expects to start work underground in Q2 2018 and to reach a sustainable first phase by early 2019.
The second phase will be self-funded and is scheduled to be achieved by Q3 2021.