Crown Lease for Cononish

RNS Number : 8306D

Scotgold Resources Ltd

22 May 2012

 



22 May 2012

Scotgold Resources Limited ("Scotgold" or the "Company")

Crown Lease for Cononish

Scotgold Resources Limited ("Scotgold Resources" or the "Company") (ASX:SGZ AIM:SGZ) is pleased to announce that the Mining Lease for Cononish, granted by the Crown Estate, is now unconditionally in effect. This follows the expiry of a three month period without third party challenge following the issue of the Decision notice on 14 February 2012 by the National Parks Authority.

Scotgold Resources continues to work closely with the Planning Authority to set out detailed arrangements for the development in order to satisfy outstanding conditions

These include decommissioning and restoration plans, detailed construction method statements, peat handling plans and plans for improvements in the Cononish glen. The Company expects to meet these conditions within the next 4 months.

The company remains in discussion with various parties regarding the financing of the project. Subject to financing, project development could begin in Q4 2012 leading to the first production of gold in Q4 2013.

For further information please contact

United Kingdom:

Scotgold Resources Limited	Westhouse Securities Limited	Bankside Consultants
John Bentley (Chairman) Chris Sangster (CEO)	Richard Baty / Petre Norton	Simon Rothschild / Elena Kuza
Tel: [phone]	Tel: [phone]	Tel [phone]

Australia:

Scotgold Resources Limited	Professional Public Relations
Shane Sadleir (Non-Executive Director)	Belinda Newman
Tel:       [phone] Mobile: [phone]	Tel:       [phone] Mobile: [phone]

Forward Looking Statements:

This release includes certain "forward looking statements." All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties.

There can be no assurances that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

Background

Scotgold Resources

·     Scotgold Resources is a mining exploration and development company listed on the Australian Securities Exchange in January 2008 and the AIM market of the London Stock Exchange in the UK in February 2010.

·     The Company was formed with its sole focus on exploring for gold and silver in Scotland, with the already identified Cononish Gold and Silver Project as its core asset. Once in production, the Project will be Scotland's first commercial gold mine.

·     The Company holds Crown licences of some 3200km2 covering the highly prospective Dalradian terrain in the SW Grampians of Scotland

·     Scotgold acquired the Cononish Gold and Silver Project in 2007 and has been working towards bringing the project to production in conjunction with its ongoing exploration efforts at Cononish and in the south west Grampians.

·     In April 2011 Scotgold announced that it had accepted an offer of a Regional Selective Assistance (RSA) grant from economic development agency, Scottish Enterprise, of up to £600,000 for the establishment of mine facilities and job creation, conditional on the firm obtaining planning permission.

·     In July 2011 Scotgold submitted its reapplication for planning permission, which was recommended for approval in October 2011 subject to finalizing conditions and various legal agreements

·     In February 2012, the Decision Notice granting planning permission was issued by the Planning Authority

 

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