In an operational update, the company reported that the long hole stoping along the 115m strike length at the Cononish gold and silver mine, located near Tyndrum, has been completed safely and on schedule. The operation has already moved onto the drilling of stope block 2, with blasting expected to occur in approximately a week’s time.

Scotgold has made further operational progress by enhancing air ventilation at the mine and finalising the waste ramp development. The recent activities have led to the commencement of mining on the 445 East level ore body. Current ore feed to the processing plant has shown positive signs, with average gold grades reaching 8.3g/t, surpassing the company’s expectations.

However, amidst this operational progress, Scotgold is preparing for a leadership transition. Mr Day has announced his intention to resign to spend more time with his family in Australia. He will continue in his post until a successor is appointed.

Peter Hetherington, Scotgold Resources chairman, said: “On behalf of Scotgold’s board of directors, I thank Phil for his dedication, unwavering support and very significant contribution to the company.

“Under his calm and steady leadership, since April 2021, Phil has guided the Cononish mine to safe and environmentally compliant commercial production, redesigned the mine schedule, implemented cut and fill stoping for faster access to higher grade zones, commenced long hole stope mining and ramped up the process plant for optimal continuous operation.

“Significant challenges obviously remain for Scotgold. We as a Board have a duty of care to all team members and respect Phil’s request for the time and space, away from CEO PLC duties, with his family in Australia.

“We remain committed to all stakeholders and the ongoing development and production from Cononish, Scotland’s first commercial gold mine and will update the market in due course on the new CEO appointment.”

Mr Day said: “I am very pleased with what we as a team have accomplished during my time as CEO. It has been a privilege to lead and develop the business.

The Company’s team and board are its greatest asset and I want to express my gratitude for their contribution.”

Notwithstanding the company’s successful evolution under Mr Day’s stewardship, Scotgold’s shares have seen a 75% decrease this year, resulting in a current market valuation of approximately £12 million. However, recent fundraising efforts through shares subscription and open offer have raised £2 million.

Despite the impending leadership transition and ongoing challenges, Scotgold’s board remains committed to its stakeholders and the continued development of the Cononish mine. The process of recruiting a permanent successor to Mr Day has commenced, and the market will be updated on the appointment in due course.