Scotgold Resources shares surge on Cononish gold project update

Shares in Scotgold Resources surged 12% on Tuesday after the company said that the total ore reserve estimate for its Cononish gold project in Scotland has nearly trebled.The total ore reserve estimate increased by 179% to 198,000 - nearly three times as much as the previous estimates - and 851,000 of silver.Meanwhile, the life of mine has increased to approximately eight years at a processing rate of 72,000 tonnes per annum, the company said.Chief executive Richard Gray said: "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 $1,100/ounce, some $100 below the current market price.""This improved confidence is a material factor in our early stage discussions with potential financiers and will assist us secure the best possible financial arrangements in the coming months," he added.