TIDMSGZ
RNS Number : 8130U
Scotgold Resources Ltd
02 August 2015
SCOTGOLD RESOURCES LIMITED
JUNE 2015 QUARTERLY ACTIVITIES REPORT
CONONISH GOLD PROJECT
A thorough review of the 2013 Cononish Development plan was
completed in order to identify opportunities to not only improve on
the plan but to also improve the confidence in the plan. As a
result of this review, further work was undertaken on the mining
methodology, access design, geotechnical evaluation and overall
mine design.
The outcome of this work was that a revised Development plan was
completed in all areas to at least a Prefeasibility Study level and
consequently the Company was able to estimate an Ore Reserve based
on the Mineral Resource Estimate (MRE) issued in January 2015.
The new Reserve Estimate is shown below:
As at 25 May 2015 (JORC 2012 Code)
------------------------------------------------------
Classification Proven Probable Total
--------------------- --------- ----------- -------
Tonnes ('000) 65 490 555
--------------------- --------- ----------- -------
Au Grade (g/t) 11.5 11.1 11.1
--------------------- --------- ----------- -------
Au Metal (k oz) 24 174 198
--------------------- --------- ----------- -------
Ag Grade (g/t) 51.5 47.2 47.7
--------------------- --------- ----------- -------
Ag Metal (k oz) 108 743 851
--------------------- --------- ----------- -------
(Bara Consulting Limited Ore Reserve Statement
dated May 2015)
------------------------------------------------------
As at 30 April 2013 (JORC 2004 Code)
------------------------------------------------------
Classification Proven Probable Total
--------------------- --------- ----------- -------
Tonnes ('000) 0 200 200
--------------------- --------- ----------- -------
Au Grade (g/t) 0 11 11
--------------------- --------- ----------- -------
Au Metal (k oz) 0 71 71
--------------------- --------- ----------- -------
Ag Grade (g/t) 0 45 45
--------------------- --------- ----------- -------
Ag Metal (k oz) 0 289 289
--------------------- --------- ----------- -------
(Development Plan dated 30 April 2013)
------------------------------------------------------
Variance - Increase / (Decrease) 2013 to
2015
------------------------------------------------------
Classification Proven Probable Total
--------------------- --------- ----------- -------
Tonnes ('000) n/a 145% 177%
--------------------- --------- ----------- -------
Au Grade (g/t) n/a 1% 1%
--------------------- --------- ----------- -------
Au Metal (k oz) n/a 145% 179%
--------------------- --------- ----------- -------
Note: the Ore Reserve estimates reported Development Plan dated
30/04/2013 under the JORC 2004 code are no longer applicable (as
discussed in the 2014 Annual Report) but are presented here for
comparative purposes only.
For greater detail on the parameters derived from this work and
used for the Ore Reserve estimation process, refer to ASX
announcement (26/05/2015 - Cononish Gold Project Study Update and
Reserve Estimate) on the Company's website.
The most significant factor underlying the increase in the 2015
Ore Reserve estimate is the Mineral Resource Estimate (MRE)
published in January 2015. The increased confidence in this MRE and
the consequent increase in material classified as Indicated,
together with the work done to verify the modifying factors, has
resulted in the estimation of both Proven and Probable categories
of Ore Reserve.
The Bankable Feasibility Study (BFS) is now complete and
awaiting final sign off by the consultants. The results will be
released in the coming week.
In parallel various financing options are being considered for
the necessary capital to bring the project into production. These
will be advanced in more detail once the BFS results are
available.
GRAMPIAN GOLD PROJECT
The Company holds five option agreements with the Crown over the
highly prospective Dalradian sequence in the south western Grampian
Highlands of Scotland. The Crown has informed the Company, subject
to the conclusion of the appropriate legal agreements, that is has
re-granted all the Company's existing option areas for a further 3
years, subject to a reduction in area in the Inverliever option
area. The Company are currently finalising these agreements with
the Crown and expects them to be concluded shortly.
The Company has engaged the services of Dr. Pablo Gumiel and Dr.
Mónica Arias of Consulting de Geología y Minería, S.L., to conduct
a structural study of the Cononish deposit and Tyndrum area. 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-mining data, Geographical Information Systems (GIS) and
3D geological modelling. To date, Drs. Gumiel & Arias have
spent 20 days, over two 10 day periods in May and July 2015,
collecting data, in conjunction with the exploration team. In
addition, significant work has been undertaken on the existing
database to develop 2D and 3D representations of data. This study
aims to place structural and geochemical controls on the
distribution of gold across the Cononish/Tyndrum area. The
structural and geochemical criteria for the Tyndrum area are
anticipated to be applicable across the Grampian Project region to
aid and focus regional exploration. The final results of this study
are expected in September 2015.
In order to advance its understanding of the regional setting,
over the past four years, the Company has embarked on a regional
stream sediment sampling program. To date >1100 stream sediment
samples have been taken across the regional area. During the last
quarter a detailed quality assurance/quality control program has
been applied to the existing stream sediment database. This program
has reconciled an on-going sample numbering issue and set out
procedures for sample numbering going forward. The program has also
re-evaluated the outstanding samples within the proposed program
and indicated a further 375 samples should be collected. The
outstanding samples form an infill program which aims to follow up
anomalous results or to increase data coverage. Interpretation of
the stream sediment results is on-going, in conjunction with work
undertaken by Drs. Gumiel and Arias.
In parallel with this regional program, Scotgold continues to
evaluate high grade outcrop samples identified by previous
exploration close to the Cononish project. This includes
re-evaluation of the Arichastlich, Coire Thoin and Crusty's Veins
in light of the early results from Drs. Gumiel and Arias.
CORPORATE
On 20(th) April 2015 the Company announced the appointment of
Vicarage Capital Limited ("Vicarage") as the Company's joint
broker.
Further to Vicarage's appointment, the Company announced that
Vicarage had placed 90,000,000 new ordinary Scotgold shares
("Shares") at an issue price of GBP0.005p each with new
shareholders to raise GBP450,000 (before brokerage fees of 6%) for
the Company ("Placement"). The funds raised will be used to
complete the Company's ongoing technical studies.
Following admission, the Company's enlarged issued share capital
comprises 1,135,392,472 Shares, with voting rights. The Company
does not hold any Shares in treasury. Therefore the total number of
Shares in the Company with voting rights will be 1,135,392,472.
This figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.
The new Shares were issued under the company's 15% capacity
under ASX Listing Rule 7.1
For further information:
Scotgold Resources Limited Westhouse Securities Limited
Richard Gray
Chief Executive Officer Martin Davison
Tel: +44 (0)7905 884 021 Tel: +44 (0)20 7601 6100
Capital Markets Consultants Vicarage Capital Limited
Simon Rothschild Rupert Williams
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 the 2015 Ore
Reserves for Cononish Gold Project (refer ASX announcement dated
25/05/2015) is based on information compiled by Pat Willis, a
Competent Person who is registered as a Professional Engineer
(Pr.Eng.) with the Engineering Council for South Africa (ECSA) and
a Fellow in good standing and Past President of the Southern Africa
Institute of Mining and Metallurgy (FSAIMM).. Mr Willis is employed
by Bara Consulting Limited, an independent consulting company. Mr
Willis 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 Willis consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
The information in this report that relates to the 2015 Mineral
Resources Estimate for Cononish Gold Project (refer ASX
announcement dated 22/01/2015) is based on information compiled by
Malcolm Titley, a Competent Person who is a Member of The
Australasian Institute of Mining and Metallurgy. Mr Titley is
employed by CSA Global (UK) Limited, an independent consulting
company. Mr Titley 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 Titley consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
Further, the Company confirms it is not aware of any new
information or data that materially affects the information
contained in the original announcements and that all material
assumptions and technical parameters underpinning the estimate of
Resources and Reserves continue to apply and have not materially
changed.
Tenement details
The Company holds a Lease (100%) from the Crown Estate
Commissioners over Cononish Farm, county of Perth, Scotland UK.
The Company holds a Lease (100%) from the landowner over
Cononish Farm, county of Perth, Scotland UK.
The Company holds five Mines Royal Option Agreements (100%) with
the Crown Estate Commissioners as detailed below:
-- Glen Orchy: Location - counties of Perth and Argyll, Scotland UK
-- Glen Lyon: Location - counties of Perth and Argyll, Scotland UK
-- Inverliever: Location - counties of Dunbarton, Argyll and Perth, Scotland UK
-- Knapdale: Location - county of Argyll, Scotland UK
-- Ochils: Location - county of Clackmannan, Perth, Kinross and Stirling, Scotland UK
No tenements were acquired or disposed of during the quarter,
although as previously noted, the Inverliever option area will
reduce in size on finalization of matters with the Crown
Estates.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBLLLBEVFLBBK
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
