LONDON (Alliance News) - Shares in Scotgold Resources Ltd surged higher on Tuesday morning after the company said the total ore reserve estimate for the Cononish gold project in Scotland has nearly doubled.
Scotgold said the total ore reserve estimate, provided by Bara Consulting Ltd, has been increased to 198,000 ounces of gold, nearly triple the previous estimate, and 851,000 ounces of silver.
The life of mine has been increased to approximately eight years, the company said, at a processing rate of 72,000 tonnes per year. The average annual gold equivalent production for Cononish has been increased to around 23,000 ounces per year.
"We continue on track to deliver the Cononish Project into production. I believe this Ore Reserve statement highlights the robustness of the project, even using a gold price of US$1,100/ounce, some US$100 below the current market price," said Richard Gray, Scotgold's chief executive.
Scotgold shares were up 24% to 0.745 pence in early trade, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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