TIDMSGZ

RNS Number : 3721W

Scotgold Resources Ltd

08 February 2017

SCOTGOLD RESOURCES LIMITED

Grant of Planning Permission for Extension to Bulk Processing Trial ("BPT") to 31 March 2018

The Company is pleased to announce that the application made to the Loch Lomond and Trossachs National Park Planning Authority ("LLTNPPA") to extend BPT operations to the end of March 2018, as announced on 13 December 2016, was granted on 7(th) February 2017.

The original BPT planning permission (2016/0064/DET) granted in May 2016 included the installation of a small scale pilot plant to process 2,400t (approximately 1,200m3) of existing stockpiled ore over a nine month period. It is now planned to process around 4,800t (c.2,400m3) of additional material (the balance of the existing stockpile) over a period of approximately twelve months (at processing rate of around 400tpm).

As a result of the opportunities identified during the BPT, the development plan contemplated in the August 2015 Bankable Feasibility Study (BFS) is currently being revised and an updated economic assessment of the Cononish Gold and Silver Project is expected to be completed by the end of the first quarter 2017.

Richard Gray, CEO of Scotgold, commented:

"We continue to learn more about the metallurgy and the economics of the project as we process our stockpile under the BPT. This extension to the trial period not only affords us the opportunity to conclude our revisions to the economic assessment but it also throws off a small cash contribution to our costs from the resultant gold production."

For further information please contact:

 
 Scotgold Resources   Stockdale Securities   Capital Markets    Vicarage 
  Limited              Limited                Consultants        Capital 
                                                                 Limited 
-------------------  ---------------------  -----------------  ---------------- 
 Richard Gray         Robert Finlay/         Simon Rothschild   Rupert Williams 
  - CEO                Ed Thomas 
-------------------  ---------------------  -----------------  ---------------- 
 Tel: +44 (0)1838     Tel: +44 (0)20         Tel +44 (0)7703    Tel: +44 
  400 306              7601 6100              167 065            (0)20 3651 
                                                                 2911 
-------------------  ---------------------  -----------------  ----------------

This information is provided by RNS

The company news service from the London Stock Exchange

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