SGZ.L Regulatory News (SGZ)

24 Feb 2010 07:00

Scotgold Resources First Day of Dealings on AIM RNS Number : 5810H Scotgold Resources Ltd 24 February 2010 Scotgold Resources Limited ("Scotgold" or the "Company") Admission and first day of dealings on AIM The directors of Scotgold, a company established in Australia to undertake gold andsilver exploration and mining in the Grampian region of central Scotland, announcethat the Company's ordinary share capital has been admitted to trading on the AIMMarket of the London Stock Exchange ("AIM") under TIDM code SGZ. Scotgold's share capital has been listed on the Australian Stock Exchange ("ASX")since January 2008 where it has traded under the same market code, SGZ. In conjunction with the AIM admission, the Company has raised approximately £704,000before expenses through a placing of 15,300,000 new ordinary shares at 4.6 penceper ordinary share (the "Placing"). The total number of ordinary shares in issueon commencement of trading on AIM will be 117,306,762. Westhouse Securities Limitedis acting as the Company's AIM nominated adviser and broker. The net proceeds of the Placing will be used by the Company to progress the developmenttowards production of its high grade Cononish gold and silver project and continueits exploration programme on a number of identified targets surrounding Cononishand across its wider licence area. Further information on the AIM admission can be found in the 20 business day Pre-AdmissionAnnouncement and Appendix, both of which have been submitted to the London StockExchange in connection with admission and which are available, together with furtherinformation at www.scotgoldresources.com. Commenting on the admission to AIM, John Bentley, Chairman of Scotgold, said: "We are delighted with the growing support from UK investors for Scotgold. "The dual listing has broadened the Company's shareholder base, particularly inthe UK and we believe that the AIM admission will better enable UK and European investorsto participate in the Company. We look forward to building shareholder value aswe progress the Cononish project and increase definition of the mineral resourcesthrough our exploration programme." The Company's fully paid ordinary shares and listed options will continue to belisted on the ASX and, following admission, all of the Company's issued ordinaryshares will also be capable of being traded on AIM. Background Scotgold has two distinct areas of focus in Scotland: the development towards productionof its high grade Cononish gold and silver project; and the continuing explorationfor gold and silver on numerous identified targets surrounding Cononish within thehighly prospective Grampian Terrane of the Dalradian Supergroup. In accordance with the JORC Code, Measured, Indicated and Inferred Mineral Resourcecategories have been reported at Cononish totalling 437,000 tonnes containing 163,000ounces of gold and 596,000 ounces of silver (using 3.5 g/t gold cut-off). Scotgoldbelieves that there is scope to define further resources close to the Cononish mine(see Appendix A for full details). Scotgold lodged an application for revision and extension of existing planning permissionfor the development of the Cononish gold and silver mine on 25 January 2010, witha decision expected in early June 2010. If the application is granted, the Companyexpects to commence underground and site works around September 2010 with first productionanticipated in the third quarter of 2011. The Company has been carrying out a drilling programme at Cononish to infill theexisting inferred JORC Mineral Resource as part of the Company's programme to advancethe project to production, and to test high grade gold targets (up to 119.9g/t gold)in the recently identified eastern extension of the Cononish mineralisation. Scotgold has recently stepped up its exploration programme as a result of the discoveryin 2009 of significant breccia-hosted gold-silver mineralisation at Beinn Udlaidh,which is located five kilometres north northwest of Cononish. Breccia-hosted golddeposits occur throughout the world and have been known to host very large resources. Scotgold announced in February 2010 that further drilling results for Beinn Udlaidhshowed wide intersections of anomalous gold mineralisation and confirmed an explorationtarget for the breccia pipefield of between 0.57 and 5.7 Mt at a grade of between1 and 2 g/t Au (down to a depth of 100 m). The potential quantity and grade of theexploration target is conceptual in nature; there has been insufficient explorationto define a mineral resource and it is uncertain if further exploration will resultin the determination of a mineral resource. For further information on the Company contact: United Kingdom: Scotgold 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: Shane Sadleir Karen Oswald Non-Executive Director Account Manager Scotgold Resources Limited, Professional Public Relations Tel: +61 (8) 9428 2950 Tel: +61 (8) 9388 0944 Mobile: +61 (0) 411 704 498 Mobile: +61 (0) 423 602 353 E: ss@scotgoldresources.com E: Karen.Oswald@ppr.com.au Settlement In order to satisfy settlement of trades undertaken on AIM, existing shareholderswill need to switch their holding from the Australian Share Register. This processrequires an appropriate account to be set up with a broker suitably qualified andexperienced to deal in AIM securities. Following a trade, the broker concerned willmake the necessary arrangements to move the required number of shares to CREST usingexisting procedures to dematerialise stock into the CREST system. As a guide, movementsbetween Australia and the UK will normally take place on a same day / next day basis. Shareholders have the option of holding their shares through CREST, (in the formof Depositary Interests) or on the Australian share register, with ownership evidencedby a share statement. Further information Share and options pricing and trading results may be checked at www.asx.com.au forASX trading and www.londonstockexchange.com for AIM trading. Competent Person's Statement: The information in this report that relates to Exploration Results is based on informationcompiled by Mr David Catterall. Pr Sci Nat, who is a member of the South AfricanCouncil for Natural Scientific Professions. Mr Catterall is employed as a consultantto Scotgold Resources Ltd. Mr Catterall has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person as defined in the2004 Edition of the 'Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves'. Mr Catterall consents to the inclusion in the reportof the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Results and Mineral Resourcesis based on information compiled by EurGeol Dr S C Dominy FAusIMM (CP), FGS (CGeol),MAIG, General Manager (UK) and Executive Consultant with Snowden Mining IndustryConsultants Limited based in its London office. Dr. Dominy has sufficient experiencethat is relevant to the style of deposit under consideration and to the activitywhich he is undertaking to qualify as Competent Person as defined in the 2004 Editionof the Australasian Code for Reporting of Exploration Results, Mineral Resourcesand Ore reserves. Dr Dominy consents to the inclusion in the report of the mattersbased on this information in the form and context in which it appears. Forward Looking Statements: This release includes certain "forward looking statements." All statements, otherthan statements of historical fact, are forward looking statements that involve variousrisks and uncertainties. There can be no assurances that such statements will prove accurate and actual resultsand future events could differ materially from those anticipated in such statements. Appendix A. Table 1: 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 roundedto the nearest 1,000 t or 1,000 oz. Grade rounded to the nearest 0.1 g/t Au. TheInferred Resource grade is reported with a grade range to indicate the likely upsidedue 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 estimatedto lie between 100,000 oz Au and 160,000 oz Au. It should be noted that any upsidemay not exist or it may only be present in a portion of the resource. Table 2: 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 roundedto 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 This information is provided by RNS The company news service from the London Stock Exchange END