Scotgold Resources said it could be producing precious metals from the hills near Tyndrum just 18 months after raising the capital necessary to develop its mining prospect.
The group which is in the throes of applying for the extended planning permission which would allow workings to take place 24-hours-a-day, six-days-a-week said many of the conditions governing the development, in the Loch Lomond and The Trossachs National Park, had been satisfied, with detailed design work also completed.
Permission to operate on a full-time basis would reduce operating costs and permit plant installation.
The firm, also exploring other areas of Scotland, said work at Cononish was at a stage at which it could be “rapidly finalised on securing finance, thus ensuring a rapid start to development”.
The update came as Scotgold revealed its annual results for the year to June 30, posting a pre-tax loss of £1.5m after securing minimal revenues of £20,413 during the year.
Backed by new investors, the company has since agreed terms for a partial repayment and extension of a finance agreement with RMB Australia.
Auditors’ notes to Scotgold’s annual report said the loan contributed to a “material uncertainty” which may “cast doubt about the company’s ability to continue as a going concern”.