13 Jul 2010 08:38
Scotgold Resources Limited ("Scotgold" or the "Company")
INFILL AND EXTENSION DRILLING RESULTS ADVANCE CONONISH GOLD AND SILVER PROJECT
The Directors of Scotgold Resources Limited (ASX:SGZ) (AIM:SGZ) are pleased to announce the completion of the first phase of the Company's Infill and Eastern Extension Drilling Program at the Cononish Gold and Silver Project in Scotland.
HIGHLIGHTS
·; High grade intersections from current infill drilling confirm vein continuity and robustness of the main vein mineralisation, including:
o Con 10 02 - 15.82g/t Au, 52.6g/t Ag over 1.41m
o Con 10 05 - 5.00g/t Au, 22.8g/t Ag over 6.16m (including 14.82 g/t Au, 55.5g/t Ag over 2.15m)
·; Drilling within Eastern Extension zone indicates additional mineralisation including:
o EA 02 - 7.84g/t, 12.2g/t Ag over 2.25m (including 15.67g/t Au, 33.8g/t Ag over 0.72m)
·; Mineralisation extends eastwards within a westerly plunging payshoot up to 300 metres beyond previously defined JORC resource
Infill drilling into the main vein within the Inferred Resource zone above the 400 level continues to encounter high grades and excellent widths of gold and silver mineralisation in most cases.
Drilling results from the Eastern Extension have encountered additional mineralisation below the 400' level, where a westerly plunging payshoot extends over 300 metres beyond the eastern boundary of the previously defined JORC resource.
The Company is now focusing its drilling activities at the Beinn Udlaidh prospect north of Cononish, where gold mineralisation was recently discovered in a number of breccia pipes.
Commenting on the drilling results, Scotgold's CEO, Chris Sangster, said:
"We consider the drilling results to date at Cononish as highly encouraging and supportive of the Company's plans to become Scotland's first modern commercial gold mine.
"The Resource Infill and Eastern Extension drilling program is an essential part of the mining development and production schedule for the Cononish project.
"A major step in this schedule is a decision by the Loch Lomond and The Trossachs National Park on the Company's application for Planning Approval, which is expected during August."
Infill Drilling of Inferred Resource Mineralisation:
Infill drilling into the main vein within the Inferred Resource zone above the 400 level continues to encounter high grades and excellent widths of gold and silver mineralisation in most cases.
Holes Con 09 01, 10 02 and 10 02a were drilled into the eastern section of the resource. Con 10 05 was drilled into the western section of the resource.
Drilling results, including those previously announced (05/02/2010) are shown in Table 1.Drill statistics are shown in Appendix A.
Table 1: Resource Infill Drilling Results
| Hole | From (m) | To (m) | Downhole intersection (m) | Est. true thickness (m) | Au g/t | Ag g/t | Comment |
| Con 09 01* | 103.95 | 106.00 | 2.05 | 1.98 | 9.84 | 41.6 | Main Vein intersection |
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| Con 10 02 | 103.00 | 104.50 | 1.50 | 1.41 | 15.82 | 52.5 | Main Vein intersection |
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| Con 10 02a | 126.90 | 127.25 | 0.35 | 0.31 | 0.39 | 42.4 | Main Vein Sheared, dyke |
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| Con 10 05 | 67.24 | 83.75 | 11.04 | 6.16 | 5.09 | 22.8 | Mineralised intersection |
| Including | 66.24 | 70.46 | 4.22 | 2.35 | 2.55 | 7.2 | Upper vein |
| and | 79.15 | 83.00 | 3.85 | 2.15 | 14.82 | 55.5 | Main vein intersection |
* Previously announced
Eastern Extension Drilling:
Results from the Eastern Extension indicate a westerly plunging payshoot extending over 300 metres beyond the eastern boundary of the previously defined JORC resource, delineated by surface holes EA 01, 02 and 03, underneath the recently announced extension of the resource to the east. Further drilling to define this area is hampered by extreme topography and will be followed up by underground drilling during mine development.
Table 2: Eastern Extension Drilling Results:
| Hole | From (m) | To (m) | Downhole intersection (m) | Est. true thickness (m) | Au g/t | Ag g/t | Comment |
| EA 01 | 49.30 | 51.60 | 2.30 | 1.99 | 2.68 | 1.8 | Main vein intersection |
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EA 02*
Including
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60.40 63.00 | 64.00
60.65 64.00 | 3.60
0.25 1.00 | 2.25
0.18 0.72 | 7.84
28.35 15.67 | 12.2
16.6 33.8 | Main vein intersection |
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| EA 03 | 46.73 | 47.30 | 0.57 | 0.52 | 3.67 | 4.8 | Main vein intersection |
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| EA 04 | 62.80 | 65.00 | 2.20 | 1.58 | 0.94 | 1.4 | Out of payshoot? |
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| EA 05 | 112.6 | 113.15 | 0.55 | 0.25 | 0.54 | 0.5 | Out of payshoot? |
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| EA 06 | 74.92 | 76.00 | 1.08 | 0.68 | 1.24 |
| Out of payshoot? |
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| EA UG 03* | 2.50 | 3.00 | 0.50 |
| 5.16 | 3.4 | 'Adit' vein |
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| EA UG 02 | 0.50 | 1.00 | 0.50 |
| 7.50 | 5.4 | 'Adit' vein |
* Previously announced
Underground holes EA UG 03 and 02 were drilled to test the possible extension of the high grade vein (the 'adit' vein) encountered in the adit. The results indicate vein continuity with encouraging values and warrants further investigation at a later stage.
Drilling results, including those previously announced (05/02/2010) are shown in Table 2. Drill statistics are shown in Appendix A.
Further images, including a long section of the drilling, can be found on the Company's website www.scotgoldresources.com, under ASX announcements.
For further information:
United Kingdom:
| Scotgold Resources Limited | Westhouse Securities Limited | Bankside Consultants |
| Chris Sangster (CEO) | Richard Baty / Petre Norton | Simon Rothschild / Oliver Winters |
| Tel: +44 (0)1838 400 306 | Tel: +44 (0)20 7601 6100 | Tel +44 (0)20 7367 8888 |
Australia:
| Scotgold Resources Limited | Professional Public Relations |
| Shane Sadleir (Non-Executive Director) | Karen Oswald |
| Tel: +61 (8) 9428 2950 Mobile: +61 (0) 411 704 498 | Tel: +61 (8) 9388 0944 Mobile: +61 (0) 423 602 353 |
Appendix A: Drill Statistics
| Hole ID | Easting | Northing | Depth(m) | Elevation(m) | Azimuth | Inclination | Core |
| 09 - 01 | 228918 | 728277 | 114.8 | 558 | 322 | -45 | NQ |
| 10 - 02 | 228871 | 728247 | 117.8 | 562 | 317 | -50 | NQ |
| 10 - 02a | 228871 | 728247 | 142.5 | 562 | 306 | -66 | NQ |
| 10 - 05 | 228641 | 728049 | 91.7 | 565 | 327 | -77 | NQ |
| EA 01 | 229094 | 728454 | 102.0 | 405 | 326 | -45 | NQ |
| EA 02 | 229094 | 728454 | 105.5 | 405 | 326 | -65 | NQ |
| EA 03 | 229125 | 728471 | 62.0 | 404 | 315 | -43.5 | NQ |
| EA 04 | 229125 | 728471 | 74.4 | 404 | 315 | -66 | NQ |
| EA 05 | 229125 | 728471 | 129.0 | 404 | 299 | -80 | NQ |
| EA 06 | 229156 | 728500 | 80.5 | 397 | 294 | -68 | NQ |
| EA UG 03 | 229098 | 728556 | 16.0 | 400 | 316 | 0 | AQ |
| EA UG 02 | 229114 | 728574 | 9.0 | 400 | 316 | 0 | AQ |
Competent Persons Statement:
The information in this report that relates to Exploration Results is based on information compiled by Mr. David Catterall. Pr Sci Nat, who is a member of the South African Council for Natural Scientific Professions. Mr Catterall is employed as a consultant to Scotgold Resources Limited. Mr. Catterall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Catterall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The Information in this report that relates to Mineral Resources is based on resource estimates complied by EurGeol Dr S C Dominy FAusIMM (CP), FGS (CGeol), FIMMM (CEng), MAIG, General Manager (UK) and Executive Consultant with Snowden based in the London, England Office. Dr. Dominy has sufficient experience that is relevant to the style of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves. Dr Dominy consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Forward Looking Statements:
This release includes certain "forward looking statements." All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties.
There can be no assurances that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.
Note for Editors
Scotgold is an Australian company which listed on the ASX in January 2008 and subsequently on AIM in February 2010. Its operations are exclusively focused on the Dalradian sequence of mineralisation in the central highlands of Scotland which is highly prospective for both precious and base metal deposits. The Company owns a 100% interest in the Cononish project and its 3,200 sq km licence area over which it is carrying out an extensive exploration program where both high grade narrow vein quartz mineralisation and lower grade breccia hosted mineralisation have been identified. The Cononish project is at an advanced stage with over 15km of resource drilling and an adit developed over 1km along strike. A recently revised planning application has been made to the Loch Lomond and The Trossachs National Parks Authority and a decision is anticipated in August 2010 which, if positive, may lead to development of the mine with gold production at the rate of 20,000oz/year from late 2011.