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Company Statement
Scotgold Resources Limited is a highly focussed exploration company that offers investors the opportunity to participate in the increasingly attractive gold mining industry.
The key assets of the Company are...
- An extensive gold, silver and base metal exploration database covering the Company’s Grampian Gold Project in Scotland;
- The Cononish gold and silver deposit (100% Scotgold Resources) Measured, Indicated and Inferred Mineral Resource (JORC Compliant) categories total 154,000 ounces of gold and 589,000 ounces of silver (using 3.5 g/t gold cut-off); and
- Three recently granted Exploration Licences (100% Scotgold Resources) covering about 2,200 sq km in Central Scotland.
The Company plans to carry out regional exploration activities within its large tenement position. A number of exciting gold prospects have been identified, including anomalous zones along the Tyndrum Fault Zone in Glen Fyne that represent high-quality, ready-to-drill targets for lode-hosted gold mineralization.
Scotgold Resources Limited has appointed an experienced Board of Directors and will also optimise its opportunities by engaging the services of specialist personnel, and by applying advanced technologies and the latest exploration methods.
Current Operations
Scotgold Resources exploration project is located in the Grampian Highlands of mid-western Scotland. The Cononish gold and silver deposit forms the core economic basis of the Company’s Grampian Project. The deposit is located on Cononish Farm within the north-western extremity of the Loch Lomond and Trossachs National Park and lies about 90km northwest of Glasgow.
Within Scotland, the large tectonic block known as the Grampian Highlands, bounded by the Great Glen Fault to the northwest and the Highland Boundary Fault to the southeast, is highly prospective for gold and base metals. This terrane, which consists mostly of metasediments and volcanics of Dalradian age, is a direct continuation of the Dalradian gold province of Northern Ireland which hosts the Curraghinalt and Cavanacaw gold deposits.
Within the SW Grampian Highlands is the Tyndrum Mineral Field, a historic mining area which contains several vein-hosted deposits of base metals, including lead, copper and zinc. The best known of these is the historic Tyndrum group of lead mines, which were discovered in 1741 and intermittently produced lead for more than a century. Less commonly some veins also contain gold and by far the most important example to date is the Cononish vein-hosted gold and silver deposit situated about 4km SSW of Tyndrum.
Previous exploration has also identified the Tyndrum-Glen Fyne Fault - one of the major fault structures of the Grampian domain - as a zone of significant potential for lode-hosted gold mineralisation in the Glen Fyne area. Additionally there is also scope for new precious metal and base metal discoveries through the identification of geological settings which, elsewhere in the world, host significant metalliferous deposits. The British Geological Survey (BGS), which has completed geochemical surveys over the entire area held by Scotgold, has repeatedly expressed the view that there are significant metalliferous deposits yet to be discovered in the Dalradian of Scotland.
THE CONONISH GOLD AND SILVER DEPOSIT
The Cononish gold and silver vein is hosted by a meta-sedimentary sequence belonging to the Dalradian Supergroup. The gold and silver occurs within a steeply-dipping quartz vein which is up to 8.3m wide and has an average width of about 2m. It has a known vertical dimension of about 500m and it can be traced along strike for more than 1km.
Table 1: Cononish Main Vein global Mineral Resources (reported at a zero g/t Au cut-off). Reported using the 2004 JORC Code (JORC, 2004). Tonnages and contained ounces rounded to the nearest 1,000 t or 1,000 oz. Grade rounded to the nearest 0.1 g/t Au or g/t Ag. The Inferred Resource grade is reported with a grade range to indicate the likely upside due to the information effect.
Classification | Tonnes (t) | Grade (g/t) | Ounces (Oz) | ||
Au | Ag | Au | Ag | ||
Measured | 60,000 | 12.7 | 55.1 | 25,000 | 107,000 |
Indicated | 72,000 | 11.8 | 48.2 | 28,000 | 112,000 |
Inferred | 431,000 | 8.9 [8-12] | 33.5 | 124,000 | 464,000 |
Incorporating the grade range, the Inferred Mineral Resource is estimated to lie between 111,000 ozs Au and 166,000 ozs Au for a total combined (Measured, Indicated and Inferred Mineral Resources) gold resource of between 164,000 ozs Au and 219,000 ozs Au at a zero g/t cut off.
Table 2: Cononish Main Vein Mineral Resources (reported at a 3.5 g/t Au cut-off). Reported using the 2004 JORC Code (JORC, 2004). Tonnages and contained ounces rounded to the nearest 1,000 t or 1,000 oz. Grade rounded to the nearest 0.1 g/t Au or g/t Ag. The Inferred Resource grade is reported with a grade range to indicate the likely upside due to the information effect
Classification | Tonnes (t) | Grade (g/t) | Ounces (Oz) | ||
Au | Ag | Au | Ag | ||
Measured | 53,000 | 17.9 | 75.0 | 31,000 | 128,000 |
Indicated | 63,000 | 10.1 | 42.2 | 20,000 | 85,000 |
Inferred | 285,000 | 11.2 [11-16] | 41.0 | 103,000 | 376,000 |
Incorporating the grade range, the Inferred Mineral Resource is estimated to lie between 101,000 ozs Au and 147,000 ozs Au for a total combined (Measured, Indicated and Inferred Mineral Resources) gold resource of between 152,000 ozs Au and 198,000 ozs Au at a 3.5 g/t Au cut off.
An initial drilling program is planned to test possible extensions to the resource base which will then be followed by a program to increase the categorization of the existing resource. The Company plans to commission a scoping study to examine the economic potential of the existing resource and the impact of possible increased resources which might result from exploration at Cononish
The JORC compliant resource report by Snowden notes that there is strong potential to prove up further resources close to mine (within a few kilometres). This is likely to be in the region of 160,000 to 320,000 ounces of gold.
REGIONAL EXPLORATION TARGETS
The key exploration targets are at Inverchorachan and Tom an Biorach:
- Inverchorachan –
initial rock chip sampling program included one 500g grab sample which assayed 277,000 ppb (277 g/t gold) and a 2kg composite chip sample which assayed 9.4 g/t gold, plus numerous other high gold assays. Subsequent rock chip and deep soil sampling programs identified an anomalous zone about 500m long and 50m wide oriented approximately northeast-southwest. Four trenches excavated within anomalous zone were highly anomalous in gold; one metre panel sampling along one trench (about 35m long) gave exceptionally consistent gold grades, with 85% of samples in the range 1 to 6 g/t gold. Detailed geological mapping and sampling indicates that several rock types here contain gold, pointing to lode-style mineralization within a wide shear zone in contrast to gold mineralization confined to a discrete quartz vein as at Cononish. The 500m long anomalous zone at Inverchorachan is ready to drill and is a high priority drilling target. - Tom An Biorach –
a deep soil anomaly defined by the 25 ppb gold contour occurs as an elongate zone of gold anomalism nearly 500m long approximately co-linear with Inverchorachan; best trench sampling results were 6m averaging 1.14 g/t gold, with the mineralization occurring within chloritic-altered quartzite and Green Beds containing abundant pyrite estimated at up to 30%. This well-defined anomaly at Tom An Biorach is ready for drill testing and the target zone is similar in size to Inverchorachan.
OTHER REGIONAL TARGETS
The entire Crown Licence area currently held by Scotgold has been previously sampled by the BGS as part of a nationwide program of stream sediment sampling which commenced in 1969. The samples were assayed for a wide range of elements and the data is available as regional atlases showing areas of geochemical anomalism.
Initially the Company intends to focus its exploration effort in areas of high immediate promise such as Cononish and Glen Fyne, but a systematic review of the literature and other databases combined with some field work will be used to progressively identify other targets in the Tyndrum-Pitlochry section of the Dalradian metamorphic belt.
Geographical Spread
Scotland UK
Board of Directors and Key Management
| Christopher Sangster | (Director and Chief Executive Officer) |
| John Bentley | (Non Executive Chairman) |
| Edmond William Edwards | (Non Executive Director) |
| Phillip Jackson | (Non Executive Director) |
| Shane Beatty Sadleir | (Non Executive Director) |
| Adam Davey | (Non Executive Director) |
Company AddressUpper Tyndrum Station
|
Additional Address/Key ContactRegistered Office |
CapitalExisting Shares 117,306,762
|
Year End30th June |
Nominated BrokersWesthouse Securities Limited | Nominated AdvisorsWesthouse Securities Limited |
Major Shareholders
| Shane Sadleir | 9.87% |
| Christopher Sangster | 4.01% |
| Saruman Holdings Pty Ltd | 3.61% |
| Shares not in public hands | 18.48% |
Related News
20/08/10 - Denying Planning Permission To Scotgold’s Gold Mine Could Have An Impact In The Region Akin To The Highland Clearances08/02/10 - Scotgold Resources Aims To Be Producing Scottish Gold Next Year
05/08/09 - The Anonymous Interests Keen To Take Scotgold’s Cononish Deposit Into Production Should Reveal Themselves Shortly
18/02/09 - Scotgold Has A Robust Enough Gold Project At Cononish Without Any Need To Rely On The Scottish Gold Premium
Most Recent Statement
19/08/10 - Scotgold Plans to Appeal17/08/10 - High Gold and Silver Grades in Veins at Beinn Udlaidh
11/08/10 - Planning Application at Cononish
13/07/10 - Drilling Report
02/06/10 - Project Update
04/05/10 - Quarterly Report