8 Oct 2012 07:00
Scotgold Resources Limited
Completion of Cononish Drilling Program
Scotgold Resources Limited ("Scotgold Resources" or the "Company") (ASX:SGZ AIM:SGZ) is pleased to announce the final results from the recent drilling program at Cononish. The drilling program was aimed at converting inferred resources to indicated resources in that part of the resource that will be mined in the early years of the mine life, thereby enhancing the debt capacity of the project. The results from this program will shortly be incorporated in an updated Resource Statement to be completed by Snowdens Mining Industry Consultants Ltd (Snowden). The updated Resource Statement will form the basis for the definitive mining plan and the Cononish Project Development Study to be compiled by Australian Mining Consultants UK Ltd (AMC). The Company and RMB Resources, who have been mandated to provide a gold prepayment facility, will then be in a position to determine the optimum debt capacity of the project. It is anticipated that this work will be complete in early 2013 enabling project commencement in the second quarter of 2013 and first gold production in early 2014. |
Results
A total of fourteen holes were drilled (including one in 2010) into the western portion of the Inferred Resource. Final results from the whole program are shown in Table 1 and Figure 1 below.
Figure 1
An illustration showing the location of the drill holes can be found on Scotgold's website at www.scotgoldresources.com under ASX announcements.
Table 1 - Infill drilling results (2010 - 2012) - West Raise Area
Hole | From (m) | To (m) | D/H Width (m) | Est. true thick (m) | Au g/t | Ag g/t | Comment |
CF 12 - 01 | 112.46 | 114.77 | 2.31 | 2.0 | 13.95 | 47.6 | Previously reported |
CF 12 - 02 | 105.05 | 107.67 | 2.62 | 2.4 | 14.21 | 39.7 | Previously reported |
CF 12 - 03 | 125.00 | 130.42 | 5.42 | 3.3 | 27.21 | 44.1 | Previously reported |
Con 10 - 05 | 79.15 | 83.00 | 3.85 | 2.1 | 14.82 | 55.5 | Previously reported 2010 hole |
CF 12 - 04 | 107.00 | 112.60 | 5.60 | 3.8 | 14.90 | 40.8 | |
CF 12 - 05 | 109.42 | 113.16 | 3.74 | 3.3 | 1.30 | 11.6 | Core loss in vein Deviated, close to CF12-08 |
CF 12 - 06 | 112.35 | 115.66 | 3.31 | 2.6 | 27.43 | 68.6 | |
CF 12 - 07 | 104.87 | 106.92 | 2.05 | 1.9 | 5.24 | 37.2 | Core loss in vein |
CF 12 - 08 | 110.21 | 112.60 | 2.39 | 2.2 | 2.05 | 15.7 | Core loss in vein |
CF 12 - 09 | 64.05 | 69.02 | 4.97 | 2.4 | 22.47 | 45.9 | |
CF 12 - 10 | 66.98 | 69.88 | 2.90 | 1.3 | 9.84 | 35.7 | |
CF 12 - 11 | 74.67 | 76.86 | 2.19 | 1.40 | 3.9 | Faulted / sheared | |
CF 12 - 12 | 83.89 | 86.37 | 3.27 | 2.42 | 13.4 | Sheared / Core loss in vein | |
CF 12 - 13 | Deviated - abandoned |
Drill statistics are shown in Appendix A
Drilling has also commenced in the Eastern Section of the Inferred Resource with 5 holes planned and an initial hole completed.
Chris Sangster, CEO, said "The final results from the drilling program demonstrate the high grade nature of the Cononish vein; we are very encouraged by the results and now await Snowden's updated resource statement."
For further information please contact:
Scotgold Resources Limited | Westhouse Securities Limited | Bankside Consultants |
John Bentley (Chairman) Chris Sangster (CEO) | Richard Baty / Petre Norton | Simon Rothschild / Harry Gourlay |
Tel: +44 (0)77 2562 9509 | Tel: +44 (0)20 7601 6100 | Tel +44 (0)20 7367 8888 |
Australia:
Scotgold Resources Limited | Professional Public Relations |
Shane Sadleir (Non-Executive Director) | Belinda Newman |
Tel: +61 (8) 9428 2950 Mobile: +61 (0) 411 704 498 | Tel: +61 (8) 9388 0944 Mobile: +61 (0) 401 802 210 |
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.
Competent Person's 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 Ltd. 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.
Appendix A Drill statistics - full program
Hole No. Easting Northing Altitude Dip Azimuth EOH Core CF 12-01 228690 728043 538 -50 317 126.6 NQ CF 12-02 228690 728043 538 -41 319 121.9 NQ CF 12-03 228690 728043 538 -55 314 139.4 NQ CF 12-04 228690 728043 538 -45 305 122.9 NQ CF 12-05 228690 728043 538 -35 297 123.1 NQ CF 12-06 228690 728043 538 -45 294 135.7 NQ CF 12-07 228690 728043 538 -45 330 129.2 NQ CF 12-08 228690 728043 538 -30 295 124.2 NQ CF 12-09 228569 728008 542 -50 348 77.6 NQ CF 12-10 228569 728008 542 -63 330 85.2 NQ CF 12-11 228569 728008 542 -63 275 95.5 NQ CF 12-12 228569 728008 542 -67 260 104.1 NQ CF 12-13 228569 728008 542 -72 250 168.3 NQ CON 10-05 228641 728089 565 -77 327 91.7 NQ |
Background
About Scotgold
Scotgold Resources Ltd is a mining exploration and development company listed on the Australian Securities Exchange (ASX) and the AIM market of the London Stock Exchange (AIM). The Company's principal asset is the Cononish gold and silver project situated near Tyndrum in the Scottish Grampians.
The current resource for the project, estimated in accordance with the JORC code, stands at 163,000 ozs Au and 596,000 ozs Ag in the Measured, Indicated and Inferred categories (estimated using a 3.5g/t cut off) (see Table 2 below for breakdown).
Planning approval for the development of an underground mine at Cononish has been granted and Australian Mining Consultants (UK) Ltd has completed a development study which demonstrates that the project is commercially attractive with a cash operating cost of around US$575/oz.
The Company also holds Crown exploration licences over some 3200 km2 covering the highly prospective Dalradian terrain across the south west Grampians.
Table 2:
Cononish Main Vein Gold 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. 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) |
Gold | Gold | ||
Measured | 53,000 | 17.9 | 31,000 |
Indicated | 73,000 | 10.2 | 24,000 |
Inferred | 311,000 | 10.8 (10 - 16) | 108,000 |
Scotgold Note: Incorporating the grade range, the Inferred Mineral Resource is estimated to lie between 100,000 oz Au and 160,000 oz Au. It should be noted that any upside may not exist or it may only be present in a portion of the resource.
Cononish Main Vein Silver 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.
Classification | Tonnes (t) | Grade (g/t) | Ounces (oz) |
Silver | Silver | ||
Measured | 53,000 | 75.0 | 128,000 |
Indicated | 73,000 | 43.1 | 101,000 |
Inferred | 285,000 | 40.1 | 367,000 |
Competent Persons Statement:
The Information in this report that relates to Mineral Resources is based on resource estimates compiled by EurGeol Dr S C Dominy FAusIMM (CP), FGS (CGeol), FIMMM (CEng), FAIG (RPGeo), Executive Consultant with Snowden based in the Ballarat, Australia 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.