TIDMSGZ
RNS Number : 9486L
Scotgold Resources Ltd
30 April 2015
30 April 2015
SCOTGOLD REOURCES LIMITED
MARCH 2015 QUARTERLY ACTIVITIES REPORT
HIGHLIGHTS:
-- Variation of planning permission to allow 24/6 processing operation approved.
-- Extension of date for development to commence to January 2018.
-- New Mineral Resource Estimate completed indicating
significant increase in tonnage and grade of Measured and Indicated
classifications.
-- Technical studies advancing well, with update expected by end
May 2015, and completion by end July 2015.
-- Option agreements with Crown Estate renewed, subject to
conclusion of amendments, to give longer period of tenure.
-- Mr Nat le Roux appointed as Non Executive Chairman.
-- Convertible note agreement completed with Mr Nat le Roux to provide funding of GBP300,000
-- Appointment of Vicarage Capital as co-broker and placement of 90m shares to raise GBP450,000
CONONISH GOLD PROJECT
On 24 January, the Board of the Loch Lomond and the Trossachs
National Park voted unanimously to approve the Company's
application to vary Condition 13 (relating to hours of operation of
the processing plant and work on site) of the existing planning
permission for the development of the Cononish gold mine. As a
variation to a condition of the existing consent, this approval
also has the effect of extending the date by which development
should commence to Jan 2018, The variation provides for a change to
the hours of work permitted for the operation of the processing
plant to a 24/6 basis (excluding Sundays and public holidays)
compared to the previously permitted 16/6 basis (excluding Sundays
and public holidays) and will facilitate efficient plant operations
and possible capital expenditure reductions in respect of the
processing plant.
A new Mineral Resource Estimate ('MRE') at a cut-off grade of
3.5 g/t gold was undertaken in Q4 2014; the results of which were
reported on 22 January 2015 and are summarised in the table
below.
Classification Tonnes Gold Contained Silver Contained
grade ounces grams ounces
grams of Gold per of Silver
per tonne
tonne
Measured - In situ 60,000 15.0 29,000 71.5 139,000
Indicated - In situ 474,000 14.3 217,000 58.7 895,000
Indicated - Mined
Stockpile 7,000 7.9 2,000 39.0 9,000
-------- ---------- -----------
Measured and Indicated 541,000 14.3 248,000 59.9 1,043,000
Inferred - In situ 75,000 7.4 18,000 21.9 53,000
-------- ---------- -----------
Total Mineral Resource
Estimate 616,000 13.4 266,000 55.3 1,096,000
======== ========== ===========
Reported from 3D block model with grades estimated
by Ordinary Kriging with 15m x 15m Selective Mining
Unit Local Uniform Conditioning adjustment. Minimum
vein width is 1.2m. Totals may not appear to add
up due to appropriate rounding. Cut-off grade
3.5 g/t gold. In situ dry bulk density 2.72.
Following on from this new MRE, work has continued on the
Cononish Gold Project with the focus being on the optimisation of
the mining plan. Bara Consulting have been appointed to complete
the revised Feasibility Study (due to be completed by end July
2015) and work undertaken this quarter has included a mining
methodology trade off study, revised mine access design and more
detailed geotechnical work. Various site visits have been
undertaken and an update on the results of the work done so far
will be announced by the end of May 2015.
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 technical studies
mentioned above are completed.
GRAMPIAN GOLD PROJECT
The Company holds five option agreements with the Crown over the
highly prospective Dalradian sequence in the south western
Grampians of Scotland. Previously, these option agreements had been
renewed annually. During 2014, the Crown indicated it was
undertaking a review of its option arrangements. Subsequent to its
review, the Crown has indicated that option agreements will now be
granted for period of up to six years (subject to satisfactory
performance) with review and appropriate area reduction after one
and three years. The Crown has informed the Company, subject to the
conclusion of the appropriate legal agreements, that it 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.
In order to advance its understanding of the regional setting,
over the past three years, the Company has embarked on a regional
scale stream sediment sampling program. In the initial wide spaced
regional program, in excess of 750 stream sediment samples were
taken over the area. Initial interpretation of these results
continues and this program is now being followed up by a more
detailed infill sampling program in the anomalous result areas in
order to further define target areas for detailed fieldwork and
prospecting. Field work aimed at the completion of the regional and
infill programs will commence shortly, predominantly in the
Knapdale, Inverliever, Ochils and Glen Lyon areas.
In parallel with this regional program, Scotgold continues to
evaluate previously identified high grade outcrop samples
identified by previous exploration close to the Cononish project to
identify possible Cononish' style deposits outside the immediate
Cononish area.
CORPORATE
Further to the resignation of Mr Sandy Littlejohn as
Non-Executive Chairman and the appointment of Mr Phillip Jackson as
Interim Chairman on the 15(th) December 2014, the Company was
pleased to announce the appointment of Mr Nat Le Roux as
Non-Executive Chairman on 19(th) March 2015.
Mr Le Roux has also demonstrated his continued financial support
for the Company and on 31st March agreed to provide funding of
GBP300,000 to the Company via convertible loan notes ("Loan Notes")
with a repayment date of 30 September 2016 ("Repayment Date"). The
Loan Notes carry an interest rate of 1% per annum and convert into
fully paid ordinary shares (at the election of the noteholder) at a
conversion price of GBP0.006 per share (being in line with the
Options exercise price of AUD$0.012). If Mr le Roux elects not to
convert the Loan Notes into Ordinary Shares prior to the Repayment
Date, the Company will repay him all or any of the unconverted
outstanding amount of the principal sum, and any accrued
interest.
The issue of any shares on conversion will be subject to and
conditional upon all shareholder and regulatory approvals (if
required).
Subsequent Events
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 has 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.
Completion of the Placement is scheduled to occur, and the
90,000,000 new Shares are expected to be issued on or about 5 May
2015 and admitted to trading on AIM and the ASX on or about 7 May
2015.
Following Admission, the Company's enlarged issued share capital
will comprise 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.
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 Mineral
Resources for Cononish Gold Project 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.
For further information please contact:
Scotgold Resources Westhouse Securities Capital Markets Vicarage
Limited Limited Consultants Capital Limited
------------------- --------------------- ----------------- -----------------
Richard Gray Martin Davison 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
------------------- --------------------- ----------------- -----------------
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 noted above, the Inverliever option area was reduced in
size.
No other beneficial interests are held in any farm-in or
farm-out agreements.
No other beneficial interests in farm-in or farm out agreements
were acquired or disposed of during the quarter
This information is provided by RNS
The company news service from the London Stock Exchange
END
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