Plans to reopen the Cononish mine near Tyndrum in Stirlingshire have been delayed due to falling gold prices.
Scotgold Resources said the project remained viable and would generate a cashflow of more than £39m before tax over its first seven years of operation, at current gold prices.
But it warned that the fluctuating price had dented market confidence.
As a result, Scotgold said it had decided not to seek further funding for the scheme until conditions improved.
A study has predicted that once operational, the mine could produce up of 20,200 ounces of gold a year.
At current prices, that would give the Cononish project a rate of return of about 37% before tax and see the initial investment repaid within 26 months of the start of production.
However, Scotgold said the market remained wary after gold prices fell by more than 9% at the beginning of April, the biggest drop for 30 years.
Challenging market The depressed market has made the company reconsider plans to seek additional funds to bring the mine into full production.
Executive chairman John Bentley said: "The recent sharp decline in the gold price has severely dented market confidence, albeit that there has been significant positive movement since the lows recorded on 15 April 2013.
"The potential to raise the required equity financing for the project is considered to be severely challenging under current market conditions.
"The board has thus decided to defer an immediate raise pending an im...