Scotgold Resources Ltd BULK PROCESSING TRIAL PRODUCTION SALES UPDATE (3675Q)
November 29 2016 - 2:00AM
UK Regulatory
TIDMSGZ
RNS Number : 3675Q
Scotgold Resources Ltd
29 November 2016
SCOTGOLD RESOURCES LTD
BULK PROCESSING TRIAL PRODUCTION SALES UPDATE
Highlights:
-- Agreement entered into for sale of gold rich pyrite
concentrate to Ocean Partners UK Limited ("Ocean Partners").
-- Improved production of Scottish Gold.
Gold rich pyrite concentrate sales
Scotgold Resources Ltd yesterday (28(th) November 2016) entered
into an agreement with Ocean Partners for the sale of up to 120
tonne ("t") of the gold rich pyrite concentrate to be generated by
the Bulk Processing Trial ("BPT"). The first shipment to Ocean
Partners' premises in the Netherlands will take place as soon as
the appropriate logistics have been put in place. The Company has
now accumulated what is considered to be a cost effective shipping
load and as of 26th October 2016 the BPT had generated an estimated
mass of approximately 13.5t of pyrite concentrate with a
preliminary estimated gold content of 91oz from approximately
1,100t of treated stockpile material.
It should be noted that all estimates quoted are preliminary
figures and final reconciliation and payment will be based on 3(rd)
party independent sampling and assays.
Gold rich galena concentrate and the production of Scottish
Gold
In a separate development, the company has been working with SGS
United Kingdom Limited ("SGS") and Wheal Jane Laboratory ("Wheal
Jane") on the extraction of gold and silver from the gold rich
galena concentrate, also generated by the BPT.
To date the Company has generated approximately 17 oz of refined
Scottish Gold, which has been produced by the use of gravity
methods (tabling) to extract approximately 40% of the "free gravity
gold" contained within the gold rich galena concentrate. Given the
limited processing facilities available for the BPT, this has
proved an achievable but labour intensive process.
The work undertaken by SGS and Wheal Jane has now demonstrated
that virtually 100% of the gold contained in the galena concentrate
can be extracted by cupellation (a thermal process), using Wheal
Jane's facilities in Cornwall. Further trials at a production rate
to match the BPT output are now underway, however the significance
of this for the Company is that the Edinburgh Assay Office is
expected to be able to establish and certify a chain of custody
including Wheal Jane and our refiner, Baird & Co. (who have
already been audited). As such the Company will be able to supply
greater volumes of gold of proven provenance to the Scottish
jewelry industry in the next phase of our marketing strategy.
As at 26(th) October the BPT had generated approximately 300kg
of gold rich galena concentrate, containing approximately 77oz of
gold (inclusive of the approximately 17oz refined gold already
extracted by tabling) from the same approximately 1,100t of feed
material as discussed above.
Richard Gray, CEO of Scotgold, commented:
"We continue to find opportunities to improve the BPT and, more
importantly, the ultimate development plan for the Cononish Mine.
The technical work to verify these potential opportunities is
ongoing and we anticipate an update to the Cononish BFS to be
completed in Q1 2017."
Scotgold Resources Stockdale Securities Capital Markets Vicarage
Limited Limited Consultants Capital Limited
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Richard Gray Robert Finlay/ Simon Rothschild Rupert Williams
- CEO Edward Thomas
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Tel: +44 (0)1838 Tel: +44 (0)20 Tel +44 (0)7703 Tel: +44
400 306 7601 6100 167 065 (0)20 3651
2911
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This information is provided by RNS
The company news service from the London Stock Exchange
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