TIDMSGZ
RNS Number : 6973D
Scotgold Resources Ltd
01 February 2015
SCOTGOLD RESOURCES LIMITED
DECEMBER 2014 QUARTERLY REPORT
CONONISH GOLD PROJECT
The Company announced a new Mineral Resource Estimate ('MRE')
for the Cononish Gold Project, compiled by CSA Global (UK) Limited
(see ASX release: Resource Estimate Update - 22/01/2015). The MRE
has been classified and is reported as Measured, Indicated and
Inferred based on guidelines recommended in the JORC Code (2012) -
see figures 1 and 2 below.
The total MRE as at 12 January 2015 has been estimated at a
cut-off grade of 3.5 g/t gold and is presented below.
Classification K tonnes Grade Metal Grade Metal In-situ
AU AU Ag AU Dry
g/t Koz g/t Koz BD
----------------------- ----------- -------- -------- -------- -------- ----------
Measured - In-situ 60 15.0 29 71.5 139 2.72
----------------------- ----------- -------- -------- -------- -------- ----------
Indicated - In-situ 474 14.3 217 58.7 895 2.72
----------------------- ----------- -------- -------- -------- -------- ----------
Indicated - Mined
Stockpile 7 7.9 2 39.0 9 2.72
----------------------- ----------- -------- -------- -------- -------- ----------
Sub-total M &
I 541 14.3 248 59.9 1,043 2.72
----------------------- ----------- -------- -------- -------- -------- ----------
Inferred - In-situ 75 7.4 18 21.9 53 2.72
----------------------- ----------- -------- -------- -------- -------- ----------
Total MRE 617 13.4 266 55.3 1,096 2.72
----------------------- ----------- -------- -------- -------- -------- ----------
Reported from 3D block model with grades estimated
by Ordinary Kriging with 15 m x 15m SMU Local
Uniform Conditioning adjustment. Minimum vein
width is 1.2m. Totals may not appear to add up
due to appropriate rounding.
----------------------------------------------------------------------------------------
In comparison with the previously released MRE (JORC 2004):
-- Gold metal content of the Measured and Indicated Resource increased by 201% to 248 K oz;
-- Average gold grade of the Measured and Indicated Resource increased by 9% to 14.3 g/t;
-- Measured and Indicated Resource tonnes increased by 176% to 541 K tonnes;
-- Total MRE tonnes increased by 34% to 617 K tonnes; and
-- Average gold grade of the Total MRE increased by 18% to 13.4 g/t gold;
The MRE included data from 4 drill holes (CON12-14, 16, 17 and
18) reported in July 2013, in addition to all drilling and sampling
previously used in the November, 2012 MRE (reported in compliance
with JORC 2004).
Significantly, this MRE now utilises a detailed 3 dimensional
(3D) geological model which more accurately estimates the volume of
the vein deposit as well as assisting in the interpretation of
other key geological features, such as faults and dykes. It also
incorporates advances in geological interpretation, including the
use of local uniform conditioning to optimise the grade tonnage
distribution for the Selective Mining Unit (SMU) dimensions
achievable with the planned underground mining method.
The Cononish mineralisation is open at depth down plunge and to
the west along strike. There is therefore potential to add to the
resource by further extensional drilling. A long section through
Cononish vein coloured by gold grades can be found at Scotgold's
website www.scotgoldresources.com under ASX announcements (Figure
1). Figure 2 shows the long section through Cononish vein coloured
by MRE classification.
Work has now commenced to use the 3D geological model to
quantitatively assess the optimal mining methodology for the
Cononish deposit. The outcome of this, combined with the new MRE,
will inform a revised mine development plan which is scheduled for
completion in Quarter 2, 2015.
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 recently indicated that option agreements
will 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 indicated,
subject to the conclusion of the appropriate legal agreements, that
it has re-granted all the Company's existing option areas subject
to a reduction in area in the Inverliever option area. The Company
will update shareholders of the exact terms when the form of the
agreements are finalised.
CORPORATE
There were a number of changes to the Board of Directors during
the period with Mr Alexander Littlejohn appointed Non-Executive
Chairman, Mr Richard Gray as Managing Director and Chief Executive
Officer and Mr Nathaniel le Roux and Mr Richard Harris as
Non-Executive Directors. Although Mr Christopher Sangster stepped
down as Managing Director and Chief Executive Officer, however the
Company retains his experience as a Non-Executive Director of the
Company. Mr John Bentley resigned as Executive Director and
Chairman. Subsequently, on 15(th) December the Company announced
the partial completion of the rights issue to raise 84% of the
intended $ 3.41M and intends to place the shortfall as soon as
possible. At the same time Mr Alexander Littlejohn stepped down
from the Board and Mr Philip Jackson became interim Chairman having
previously served as a non-executive director. In line with its
stated intentions regarding the rights issue, the Company Scotgold
fully redeemed its loan from RMB for an approximate cost of
GBP1.2M.
Subsequent Events
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. The
approval is subject to the finalisation of the relevant legal
agreement which is expected to be concluded shortly. 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.
P J Newcomb
COMPANY SECRETARY
United Kingdom:
Scotgold Resources Westhouse Securities Capital Markets Consultants
Limited Limited
Richard Gray Martin Davison Simon Rothschild
Chief Executive
Officer
Tel: +44 (0)7905 Tel: +44 (0)20 Tel +44 (0)7703 167
884 021 7601 6100 065
Competent Persons Statement
The information in this report that relates to the 2015 Mineral
Resources for Cononish Gold Project (ASX release - Resource
Estimate Update 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 announcement and that all material
assumptions and technical parameters underpinning the estimate of
Resources 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 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
MSCUGUCUPUPAPPG
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
