Staff at Scotland's only gold mine put on unpaid leave

Scotgold Resources said it hoped to retain some staff to maintain the site near Tyndrum

Eighty workers at Scotland's only gold mine have been put on short-term unpaid leave while the site's owner tackles financial issues.

Scotgold Resources warned earlier this month it needed to raise significant funds to allow it to continue as a going concern.

In an update, it said it hoped to avoid going into administration.

The firm also said it was in advanced talks about securing funds to retain some key staff at its Cononish mine.

Scotgold Resources said this team of mining, machinery and maintenance workers would look after assets at the site near Tyndrum, north of Stirling.

The staff would also ensure the company's regulatory and environmental obligations continued to be met.

In a statement, Scotgold Resources said: "As at 28 September, the company has placed the majority of its employees on short-term unpaid leave until further notice, allowing the company time to advance the financing discussions and preserve funds to help retain some key trained staff members across mining and plant and maintenance."

The firm said it was in discussions with an administration specialist as a precautionary measure.

Jewellery industry

Scotgold Resources reviewed its operations in July following "disappointing" production figures for the first half of the year.

Production was hit in the first quarter of this year after a key development was halted.

The mine is located near Tyndrum

Only 758 ounces of gold were produced between January and March, although gold concentrate production steadily increased in the second quarter to reach 1,556 ounces.

The company said 1,033 ounces of gold was produced in July.

The mine has been in development since 2007 and Scotgold Resources is Scotland's first commercial gold producer.

It has plans to develop Cononish into a 23,500-ounce gold mine per annum, with some of the metal to be made available to the Scottish jewellery industry.