TIDMSGZ
RNS Number : 2878H
Scotgold Resources Ltd
29 November 2015
SCOTGOLD RESOURCES LIMITED
Initial Structural Study and Database review on Scotgold's
Cononish and Grampian Gold Projects highlights 11 significant
prospects within Study area, including 2 comparable to
Cononish.
Highlights
-- Structural Study completed and used with existing data to
develop a prospectivity map for gold in the Cononish / Glen Orchy
option area, comprising approximately 250 km2 out of 4,100 km2 in
total under option.
-- 6 highly prospective targets are identified within 2.5 km of
the Cononish Gold and Silver Project
-- 5 further highly prospective targets are outlined within study area.
-- The study has highlighted the Beinn Udlaidh and Arrivain
areas in particular as having prospectivity at least comparable to
the Cononish deposit and further exploration work for these is
being prioritised accordingly.
-- Further work now planned to expand the collection of
structural data and coverage of the prospectivity map
regionally.
-- The study also indicates that structural analysis will be a
key tool for the identification of "pay shoots" within the Cononish
deposit and therefore is expected to assist with future resource
expansion at depth and on strike.
Results of Structural Study
In June 2015, Scotgold Resources Ltd engaged the services of Dr.
Pablo Gumiel and Dr. Monica Arias, of Consulting de Geología y
Minería, S.L., to conduct a structural study and initial analysis
of Scotgold's extensive Geographic Information System (GIS)
database covering the Grampian Gold project.
The study aimed initially to develop a structural model,
focussed on the Cononish deposit, to improve the understanding of
the evolution of gold / silver mineralisation in the Tyndrum area.
The study then combined the extensive existing geochemical database
with structural data from Drs Gumiel and Arias' recent fieldwork,
using new analytical techniques to assess various aspects of
prospectivity and develop an initial prospectivity map.
The prospectivity map uses techniques that take account of a
number of geological parameters identified in the study as critical
to potential economic mineralisation, including:
-- High grade rock outcrop data
-- Fracture density
-- Typology (characteristics) of the vein structures / systems
-- Other GIS based data
Through 3 Dimensional (3D) geological and GIS modelling, a
preliminary prospectivity map was then developed for the study area
to identify areas of high priority using a weighted gridding
method.
Based on the resulting prospectivity map, the study has
identified a series of high priority targets, with 6 being located
within a 2.5 km radius of Cononish, including 2 outside the Loch
Lomond and Trossachs National Park (LLTNP). A further 5 have been
identified within the studied area, all of which are outside the
LLTNP.
Close to the Cononish deposit, Coire Nan Sionnach and Kilbridge
are highlighted as highly prospective, along with two further
parallel anomalies between the Cononish deposit and Coire Nan
Sionnach.
Outside this area, the map has re-highlighted the Beinn Udlaidh
and Arrivain areas in particular as important targets for ongoing
exploration. Based on the ranking in the study, the map shows the
area to have a prospectivity at least comparable if not higher than
the Cononish deposit.
In addition, Glen Orchy (River Vein and Tom a Chro), Sron Garbh
and Coire Chailein are indicated to have a high ranking warranting
further exploration.
Detail from the Study Area Prospectivity map can be found at
Scotgold's website www.scotgoldresources.com under ASX
announcements
The study has distinguished a number of high priority vein
systems / structures from those less likely to carry economic
mineralisation and indicates the high potential for Cononish style
mineralisation in the Glen Orchy option area. Further work is
planned for these targets during 2016 and will include applying the
techniques used in this study to veins / structures in the highly
prospective areas, in addition to traditional exploration
techniques.
CEO Richard Gray said 'It is very encouraging that this study
has identified prospects comparable to Cononish and outside the
LLTNP. Should these ultimately be successfully advanced to a
planning stage as hoped, the invaluable experience we have gained
through working with LLTNP will facilitate a more timely process.
It is also encouraging that the study has cost effectively unlocked
value in the extensive database Scotgold now has over this area and
should result in more focused and cost effective exploration
programs in the future, hopefully leading to a fast tracking of new
exploration discoveries. Armed with this new tool, we look forward
to continuing our field activities over these priority areas in
2016'.
Study background
Dr. Gumiel is an expert in structural geology and the structural
control of mineral deposits, with over 38 years' experience in
research and mining exploration. Dr. Arias has over 15 years'
experience as a specialist in database management of geological and
mining data, Geographical Information Systems (GIS) and 3D
geological modelling.
An illustration showing the Study area in relation to Scotgold
option areas can be found at Scotgold's website
www.scotgoldresources.com under ASX announcements
Their initial work has focussed around the Cononish deposit and
Glen Orchy option area due to the high volume of data within this
region. The study used the Cononish deposit as a test case given
the gold content and therefore, prospectivity of the deposit is
known. Some veins believed to have little or no gold
mineralisation, such as the Mother Vein, were also studied for
comparison to ensure the veracity of the gold prospectivity
map.
The preliminary gold prospectivity map uses a weighted overlay
tool considering a number of key attributes deemed to determine
prospectivity. The final result is a combined raster map weighted
according to the established geological ore-controls relating to
the Cononish deposit and indicating areas of significant
interest.
Drs. Gumiel & Arias state 'this preliminary prospectivity
map has been generated using a knowledge driven model, based on the
established geological ore-controls of the Cononish Au-Ag deposit
translated into mappable criteria. This type of model is suitable
for exploration terrains with limited number of deposits available
for statistical assessment, as is the case of the Cononish area.
Areas that fulfil the majority of the geological criteria are
highlighted as being the most prospective.'
The prospectivity map, while developed initially for the
exploration in the Glen Orchy option area, is expected to be
applicable to other parts of the Grampian Gold project area;
however, further refinement may be required to take account of
differing possible deposit styles. Data coverage relating to the
key criteria in parts of the licence areas is insufficient at this
stage to generate similar prospectivity maps and immediate regional
exploration efforts will focus on acquiring that data to enable
development of a similar prospectivity map to guide early stage
exploration.
An illustration showing the Initial Prospectivity Map of Study
Area Study can be found at Scotgold's website
www.scotgoldresources.com under ASX announcements
In addition, the study conducted an initial multi element
analysis and correlation of the wider regional stream sediment
program that Scotgold has been conducting over the past four years.
The analysis uses the Concentration Area (C-A) fractal method to
distinguish background levels and anomalous areas of interest. This
analysis is ongoing as further results from the program are added.
A number of highly anomalous areas have been identified over the
five option areas and infill sampling is continuing to refine the
model.
Forward Looking Statements
This announcement contains certain statements that may
constitute "forward looking statements". Such statements are only
predictions and are subject to inherent risks and uncertainties,
which could cause actual values, results, performance achievements
to differ materially from those expressed, implied or projected in
any forward looking statements.
Competent Persons 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 2012
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.
Note: No new exploration results are presented in this
release
For further information please contact:
Scotgold Resources Westhouse Securities Capital Markets Vicarage
Limited Limited Consultants Capital Limited
------------------- --------------------- ----------------- -----------------
Richard Gray Robert Finlay Simon Rothschild Rupert Williams
- CEO
------------------- --------------------- ----------------- -----------------
Tel: +44 (0)7905 Tel: +44 (0)20 Tel +44 (0)7703 Tel: +44
884 021 7601 6100 167 065 (0)20 3651
2911
------------------- --------------------- ----------------- -----------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLPKCDQDBDBCDB
(END) Dow Jones Newswires
November 30, 2015 02:00 ET (07:00 GMT)
Scotgold Resources (LSE:SGZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Scotgold Resources (LSE:SGZ)
Historical Stock Chart
From Apr 2023 to Apr 2024
