Scotgold Resources, the company developing a gold mine near Tyndrum, is closing down its mining operations in light of the ban on work at non-essential construction sites due to Covid-19.
Work to maintain health and safety at the Cononish site will continue but other workers will be furloughed until full activities at the mine can resume.
Scotgold said bad weather in January and February had already hit progress at the site and it had become apparent that first gold production will be delayed beyond the previous May forecast.
The company said the overall impact of the Covid-19 pandemic on the Cononish project is difficult to predict.
“Going forward, we are currently uncertain as to the impact the pandemic will have on our supply chain and our specialist contractor’s ability to mobilise for the building construction and plant assembly activities,” it said in a stock market statement. “We will continue to work with our various stakeholders in this regard to mitigate all such risks and to provide greater clarity in due course on what the ultimate impact on schedule and costs might be.”
CEO Richard Gray said: “These are difficult times and I am proud of the efforts being put in by our team to overcome these challenges, and we are doing this cognisant of our responsibilities to our local and national communities”.
At full capacity, the Cononish mine is expected to produce on average approximately 23,500 equivalent ounces of gold a year.
