SGZ.L Regulatory News (SGZ)

Scotgold Resources Ltd

Planning Update - Withdrawal of Appeal and Reapplication for Permission

Following the continued progress of discussions between the National Park Authority and Scotgold Resources Ltd ("Scotgold" or the "Company") in respect of the Cononish Gold and Silver project, the Company has decided to withdraw its appeal against the National Park Authority's refusal of planning permission and focus on a reapplication for planning permission.

In August 2010 Scotgold's application for planning for the establishment of a gold mine at Cononish was narrowly refused by Loch Lomond and the Trossachs National Park and the Company subsequently lodged an appeal against that refusal with the Department of Planning and Environmental Appeals in November 2010.

The key issues relating to the refusal were the potential landscape and visual impact of the proposed Tailings Management Facility as a consequence of its scale and landform and the probability of success of the restoration techniques proposed. Scotgold has carefully considered these reasons and has engaged with the Parks Authority on a number of occasions to discuss these issues.

In these discussions, Scotgold has focussed on resolving these concerns and has sought additional independent input regarding restoration and landscape issues. The Company now believes that the proposed reduction in the scale of the Tailings Management Facility and clarification of the restoration techniques proposed by the Company has given the National Park Authority greater confidence that impacts can be mitigated satisfactorily.

Although there are other issues to be considered, Scotgold believes these can be successfully addressed in a revised application and intends to prepare and submit this within the next two months. The Company therefore announces that it has withdrawn the appeal against the National Park Authority's refusal.

Chris Sangster, CEO of Scotgold commented:

"The Company believes that the revised proposals provide a more positive and constructive way of progressing the Cononish project to the benefit of all stakeholders, particularly in view of the on going and in depth exchanges that have taken place with the Park Authority." 

For further information please contact:

United Kingdom:

Australia: