LONDON (Alliance News) - Scotgold Resources Ltd on Wednesday said it has received the bankable feasibility study for the Cononish gold and silver project in Scotland, with the study backing the robust economics of the project, sending shares in the company higher in early trade.
Scotgold said the study showed the economics of the project are strong, with a low average operating cost. The study estimated average annual gold production from the site would be 23,370 ounces equivalent, with peak production to hit 28,540 ounces.
Completion of the study will allow Scotgold to work on securing its preferred financing route for the project and the signing of a financing deal is set to follow in the near future, it said.
"The study illustrates the robustness of the Cononish Project with the mine profitable down to USD700 per ounce and provides a very solid base for our ongoing discussions with potential project finance providers," said Richard Gray, Scotgold's chief executive.
Scotgold shares were up 4.7% to 0.7849 pence on the news.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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