Why is AIM listed Scotgold Resources (LON: SGZ) trending?

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 Why is AIM listed Scotgold Resources (LON: SGZ) trending?
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Summary

  • Scotgold Resources Limited shares spiked after a documentary series Gold Town featuring the company started re-airing its episodes.
  • The series includes the Cononish gold mine, which Scotgold had recently released an update.
  • Scotgold reported accessing high grade iron ore zones much quicker than previously anticipated at the Cononish Gold and Silver Project.

AIM and Scotland focused gold mining company Scotgold Resources Limited (LON: SGZ) has extended its jubilation for the second day in a row, reacting to BBC docuseries, Gold Town, featuring the company that started re-airing episodes from 12 July, Monday on BBC Two.

The documentary series is about the gold mining sector in Scotland and had previously aired on BBC Scotland earlier this year.

Scotgold Resources Limited’s (LON: SGZ) share price performance

Scotgold Resources Ltd’s shares ended at GBX 57.00, up by 1.79 per cent on 12 July and have made a jubilant start, trading at GBX 59.50, up by 6.25 per cent at 9:25 AM on 13 July 2021. The company’s market cap stood at £31.48 million.

(Image Source: Refinitiv)

Meanwhile, the FTSE AIM All-Share index, which it is a part of, was at 1,249.68, modestly up by 0.11 per cent.

Also Read: 3 Golden Picks from Our Shining Metal Sector

Gold Town documentary series

The docuseries focuses on Scotland’s first gold mine and is made up of 3 episodes. The series features the Cononish gold mine, which Scotgold Resources is focused on and had recently announced production and corporate update of.

Scotgold Resources Limited’s production and corporation update

The company recently updated that it had accessed high grade iron ore zone much faster than previously estimated at the Cononish Gold and Silver Project, located in Scotland.

The company accessed iron ore, which peaked at 40 grammes per tonne (g/t) during late June. Scotgold thus plans to continue mining at the site for 2 more months and aims to have a blended grade average above 10 g/t.

Moreover, due to June’s uninterrupted mining activity, the company increased its ore volume storage in its stockpile.

Scotgold also stated in its update about the processing performance at the Cononish site that the company plans to continue its ongoing risk analysis approach roll out in order to limit unplanned downtime caused by one off issues.

The full implementation of the approach is expected to improve the reliability of plant operations and aid in having a more consistent routine. The extra ore stockpiled is expected to be processed at the plant in due course.

Furthermore, the company plans to have its second gold concentrate shipment by the first half of this month. Scotgold Resources also plans to continue its trend of making monthly updates and will also include more forward-looking statements, including data regarding production ramp-up and 2021 gold production estimates.

Also Read: Why these two gold stocks are making news: Chaarat Gold and SolGold PLC

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