17 Jul 2012 10:23
17 July
Scotgold Resources Limited ("Scotgold" or the "Company")
Initial Infill Drilling Confirms Grades and Widths at Cononish
HIGHLIGHTS
·; High grade, true width intersections from first three infill holes :
o CF 12 01 - 13.95 g/t Au, 47.6g/t Ag over 2.0 m
o CF 12 02 - 14.21 g/t Au, 39.7g/t Ag over 2.4 m
o CF 12 03 - 27.21 g/t Au, 44.1g/t Ag over 3.3 m
·; Further five holes completed - results awaited
·; Drilling on-going to further infill portions of Inferred Resource
·; Objective of increasing the debt capacity of Cononish project in progress
Scotgold Resources Limited ("Scotgold Resources" or the "Company") (ASX:SGZ AIM:SGZ) is pleased to announce assay results from the first three holes from their infill drilling program at Cononish.
The infill program within the Inferred Resource zone above the 400m level continues to encounter high grades and excellent widths of gold and silver mineralization.
Chris Sangster, CEO, said:
"These results from the initial phase of the infill program continue to confirm the high grade nature of the Cononish vein. The program is designed to increase the debt capacity for the Project by demonstrating with increased certainty the presence and continuity in the high grade ore in the section that will be the first to be mined. Together with the Pre-Development Funding from RMB announced recently, the Company is well placed to progress towards first production."
Infill Program Phase 1- initial results
Holes CF 12-01, CF 12-02, CF 12-03 were drilled into the western section of the resource close to Indicated portion of the Resource associated with the West Raise. Hole Con 10 05, in a similar location, was drilled in 2010.
Drilling results, including that for Hole Con 10 05 which was announced on 05/02/2010, are shown in Figure 1 (available at www.scotgoldresources.com under ASX releases) and in Table 1 below.
Drill statistics are shown in Appendix A.
Table 1 - Infill Drilling Results
Hole | From (m) | To (m) | Downhole intersection (m) | Est. true thickness (m) | Au g/t | Ag g/t |
CF 12 -01 | 112.46 | 114.77 | 2.31 | 2.00 | 13.95 | 47.6 |
CF 12 -02 | 105.05 | 107.67 | 2.62 | 2.42 | 14.21 | 39.7 |
CF 12 - 03 | 125.00 | 130.43 | 5.43 | 3.34 | 27.21 | 44.1 |
Con 10 - 05* | 79.15 | 83.00 | 3.85 | 2.15 | 14.82 | 55.5 |
* 2010 Hole previously reported
The current holes reported represent the first three holes from an eight hole initial program of 1020 metres aimed at improving confidence 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. Results from the remaining 5 holes are awaited.
A further phase (Phase 2) comprising 5 holes (approximately 500m) to be drilled to the west of the Indicated resource has recently commenced and a subsequent phase (Phase 3) of 5 holes (800m) above the East Raise is being investigated with the same aim (see Figure 1 available at www.scotgoldresources.com under ASX releases).
For further information please contact:
United Kingdom:
Scotgold Resources Limited | Westhouse Securities Limited | Bankside Consultants |
John Bentley (Chairman) Chris Sangster (CEO) | Richard Baty / Petre Norton | Simon Rothschild / Elena Kuza |
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
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 |
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.