Scotgold Resources Ltd New asset acquired (9973X)
May 12 2016 - 2:00AM
UK Regulatory
TIDMSGZ
RNS Number : 9973X
Scotgold Resources Ltd
11 May 2016
SCOTGOLD RESOURCES LIMITED ("Scotgold" or "the Company")
Five new Crown Option agreements with improved terms and
conditions entered into to replace existing agreements which
constitute the Company's Grampian Project.
New asset acquired with the granting of the "Pomar" Exploration
licence in Portugal.
Crown Options
Scotgold is pleased to announce that it has concluded agreements
with the Crown Estates regarding the terms of its five Crown
Options (and corresponding future leases) that constitute its
Grampian Project in Scotland and in particular includes the highly
prospective target areas identified in the previously reported
structural study.
The Crown Estate, which is the principal holder of gold and
silver mineral rights in the UK, has been working with Scotgold and
other industry participants to introduce revised Crown Options. A
key objective has been to encourage participation through, among
other things, a longer tenure that better reflects modern
exploration programmes. The new Crown Options are granted for six
years (subject to satisfactory performance on a two yearly review
process) and can be extended further under certain circumstances,
whereas the previous Crown Option agreements were renewable
annually.
A number of other aspects of the Crown Options relating to
option size and other commercial terms have also been agreed. The
Company will reduce areas under individual options to 250km2 per
option within the next three years; however, the Company would be
entitled to apply for areas relinquished under a separate option
agreement.
All Crown Options have initially been granted covering the same
areas as before, other than the previously notified agreed
reduction in the Inverliever option area. The granted option areas
comprising the Grampian Project cover approximately 4100km(2) and
can be seen on Scotgold's website at www.scotgold.com.au under ASX
releases (Figure 1). The Company's Cononish Gold and Silver
Project, which already has a lease granted, is unaffected by the
provisions noted above.
Pomar Exploration Licence in Portugal
The Company is also pleased to announce that wholly owned
Portuguese subsidiary, Scotgold Resources Portugal Ltda, has been
granted an exploration licence for 3 years (with an option to
extend) in eastern central Portugal, near Castelo Branco.
The 'Pomar' licence (see Figure 2 on Scotgold's website at
www.scotgold.com.au under ASX releases) covers 264km2 and includes
the historic antimony (with gold) mines of das Gatas, Pomar and
Casalihno and numerous small scale antimony trials and occurrences.
These small high grade mines were active during the 1940's
producing antimony concentrate with associated gold. Some tungsten
mineralisation has been identified in the licence area associated
with the antimony / gold veins.
In the 1980's, Indumetal and Billiton (in joint venture)
conducted a brief exploration program consisting of tip sampling
and metallurgical testwork, soil and stream sediment sampling, hand
held geophysics and limited drilling before withdrawing from
antimony exploration. The Company will shortly commence the process
of accessing historical exploration data through the relevant
Portuguese authorities and determining what modern exploration
techniques could be appropriate.
The focus of exploration is to examine potential extensions to
the existing mines as well as examining the regional prospectivity
for antimony / gold presented by the other occurrences and trials.
In addition, previous exploration has identified two antimony /
gold bearing regional scale felsite dykes which warrant systematic
exploration.
The licence area is situated 40kms south of the world class tin
tungsten mine at Panasqueira, which has produced more than 100,000t
WO(3) concentrate in over 100 years of production.
Initial expenditure commitments are modest (EUR40,000 in the
first year) and will comprise assimilation of historical data, an
initial soil sampling program and regional and localised mapping to
assist in target definition.
Further details regarding the Pomar licence area will be made
available in due course.
Richard Gray, CEO of Scotgold, commented:
"The Company continues to move forward on all fronts. Whilst the
previously reported developments associated with the Bulk
Processing Trial at our Cononish Gold and Silver project continue
apace, we are adding to and improving the quality of our
exploration assets. The application for and grant of the Pomar
licence is in accordance with Scotgold's strategy of identifying
and developing high grade, low impact projects with a focus on gold
and other strategic metals, located in a low risk European
environment. Together with the progress on our Grampian Project,
the Company is already demonstrating promising exploration
potential."
For further information please contact:
Scotgold Resources Stockdale Securities Capital Markets Vicarage Capital
Limited Limited Consultants Limited
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Richard Gray Alastair Stratton Simon Rothschild Rupert Williams
- CEO / Robert Finlay
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Tel: +44 (0)7905 Tel: +44 (0)20 Tel +44 (0)7703 Tel: +44 (0)20
884 021 7601 6100 167 065 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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