TIDMSGZ
RNS Number : 8932Z
Scotgold Resources Ltd
15 January 2020
Scotgold Resources Limited
15 January 2020
Scotgold Resources Limited
("Scotgold" or the "Company)
Grampian Project Exploration Update
Scotgold Resources Limited (AIM:SGZ) is pleased to provide an
update to exploration activities on the Grampian Project. Following
on from the successful orientation surveys as announced on 1st
April 2019, Scotgold Resources Plc ("Scotgold" or the "Company")
geologists have continued to apply the 'ionic leach' method as
detailed in the Company's RNS of 1(st) April 2019, both to stream
sediment sampling and soil sampling in programs across its option
areas.
References to figures and maps relate to the version visible in
PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/8932Z_1-2020-1-15.pdf
Since the last exploration update, the focus of exploration work
has been to continue with an extension to the soil sampling grid at
Inverchorachan (for results of this earlier grid, see RNS dated
28(th) August 2019) and to commence a large scale soil sampling
grid over the company's Beinn Udlaidh prospect. The location of
both exploration prospects within the company's Glen Orchy Central
and Inverliever East option areas is outlined in figure 1.
Additionally, a regional stream sediment sampling programme has
also commenced within 6 of the 13 option areas and will continue in
the upcoming 2020 field season.
Inverchorachan:
The existing sampling grid at Inverchorachan has been extended
to the south and southwest, where the identified soil anomaly was
open along strike and within the previously identified drainage
anomaly area (figure 2). A total of 177 samples were collected and
analysed, covering a distance along strike of approximately 500m
with the resulting data interpretation outlined in figure 3.
The most recent sampling has shown that the gold anomaly
continues along strike to the southwest (figure 3). The anomaly
follows the regional Tyndrum fault (shown as a red dashed line),
which runs through the area. The anomaly may also be related to an
altered intrusive which has been mapped in the area. The extension
of the grid to the south and southwest has better defined the
extent of the anomaly, which was previously, and still remains,
open. It is clear that further sampling is required, to extend the
soil grid further to the southwest and northeast, to determine the
extent and nature of the observed anomaly. The encouraging results
from stream sediment sampling (see RNS dated 28(th) August 2019),
indicate that the anomaly may extend further to the southwest for a
considerable distance along strike.
Consistently high gold and silver values have been detected at
Inverchorachan. In addition to the previous high gold and silver in
soil values reported previously of 124.5 parts per billion (ppb) Au
and 420 ppb Ag, further values of 70.4ppb Au and 54.8ppb Ag were
detected as part of the latest extension sampling programme. The
significance of these values is assessed by considering them as a
ratio to the background level, and this is illustrated in figure
3.).
Beinn Udlaidh:
The Beinn Udlaidh prospect has been the focus of several
exploration programmes in the past, by both Scotgold and Ennex
International Plc., with stream and soil sampling over and around
the prospect. Limited diamond drilling was also undertaken in the
late 1980's by Ennex and most recently in 2010/11 by Scotgold.
Results from the 2018 orientation drainage survey using Ionic
Leach (see RNS dated 1st April 2019), clearly highlighted the scale
of the Beinn Udlaidh anomaly (figure 4) and confirmed its
prospectivity, as indicated by the historical work. The objective
of the current program was therefore to improve the understanding
of the target area and potentially highlight previously undetected
anomalies by using the more sensitive Ionic Leach soil sampling
technique.
A total of 599 samples were collected and analysed with values
of 9.06ppb Au and 89.9ppb Ag detected, along a strike length of
approximately 2.4Km. Again, the significance of these values was
assessed by considering them as a ratio to the background level and
this is illustrated in figure 5.
Another linear anomaly is observed to the southwest and it is
possible that this is an extension to the main Beinn Udlaidh vein
(figure 5). As there is limited exposure at surface, this structure
has previously gone unnoticed. Isolated anomalies (figure 5, A
& B) to the north and south of the main vein are unexplained
and require further work to gain a better understanding and
determine their significance, as do anomalies (figure 5, C & D)
trending north-northwest - south-southeast.
A clear anomaly is associated with the exposed quartz vein at
the summit of Beinn Udlaidh, in addition to the probable northeast
extension of this vein. This correlates well with the historical
data and both areas require trenching and/ or drilling to better
understand their extent and structure.
As at Inverchorachan, the soil sampling grid requires further
extension to constrain the identified anomalies. Likewise,
encouraging results from stream sediment sampling, indicate that
the anomalous zone of gold mineralisation at Beinn Udlaidh
determined by soil sampling, may extend both for a considerable
distance along strike and also laterally to the northwest and
southeast.
Regional Ionic Leach Stream Sediment Sampling Programme:
A regional stream sediment sampling programme has been planned
across all 13 of the option areas currently held by Scotgold.
Sampling commenced in June of this year, with a total of 197
samples collected from 6 of the 13 option areas. The sampling
programme is ongoing and is aimed for completion within the 2020
field season. The results of this programme will be reported in due
course.
The Ionic Leach soil sampling technique continues to identify
gold anomalies which correlate well with the previously conducted
ionic leach stream sediment sampling results. Moreover, the Ionic
Leach soil sampling grid appears to provide more clearly
identifiable and focussed anomalies in comparison with historic
sampling techniques.
We look forward rolling out this systematic exploration approach
and to further advancing our understanding of the anomalies
identified using ground-based geophysics and ultimately
drilling.
Richard Gray, CEO commented:
"Although our prime focus continues to be the development of the
Cononish mine, our exploration activities continue to build an
exciting portfolio of anomalies which will form the basis for
potential future drilling programs in the years to come."
(1) Ionic Leach(TM) is a static sodium cyanide leach using the
chelating agents ammonium chloride, citric acid and
Ethylenediaminetetraacetic acid ('EDTA') with the leachate buffered
at an alkaline pH (pH 8.5). Samples are digested as collected so
there is very little opportunity to lose or introduce elements
during the partial leach process. This innovative leach technique
is designed for near surface soil samples. It is designed to
improve geochemical mapping and enhance the potential to detect and
resolve geochemical anomalies for a range of commodity
elements.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please contact:
Scotgold Resources Limited Tel: +44 (0)1838 400
Richard Gray 306
SP Angel Corporate Finance Tel +44 (0) 20 3470
LLP 0470
Nomad and Broker
Ewan Leggat / Charlie
Bouverat
Capital Markets Consultants Tel: +44(0)7703 167
Financial PR 065
Simon Rothschild
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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