June 2011 quarterly report

RNS Number : 3656L

Scotgold Resources Ltd

29 July 2011

 



Scotgold Resources Limited

June 2011 quarterly report

Cononish Gold and Silver Project

·     Revised application submitted following extensive consultation with the National Parks Authority and other statutory and interested bodies.

·     Decision anticipated mid / late October.

·     Considerable local and regional support for application

Grampian Gold Project

·     Stream sediment sampling program over greater licence area continues

·     AQ drilling commenced over identified prospects at Beinn Udlaidh and Sron Garbh

·     NQ drilling commenced at Beinn Udlaidh

·     Assays awaited

Corporate

·     One for five rights issue announced

·     Closing date 23^rd  August 2011

Cononish Gold and Silver Project.

Planning

The Company announced that it had submitted its revised application for planning permission for the Cononish Gold and Silver Project on 19^th July 2011. The application has since been validated and a decision by the Board of the National Parks Authority (NPA) is expected in mid / late October 2011. The revised application was made following extensive discussions with the NPA subsequent to the refusal in August 2010. The Company had appealed to the Scottish Ministers against this refusal, though based on progress of the above discussions, withdrew the appeal on 18^th April 2011.

The application was prepared in conjunction with Scotgold's planning and environmental consultants, Dalgleish Associates Ltd., with specialized technical input provided by Scotgold's tailings consultants, AMEC Earth and Environmental UK Ltd, Cantab Consulting Ltd, Vibrock Ltd (vibration and noise) and Rathmell (archaeological studies).

Central to the new application is a material reduction in the scale of the Tailings Management Facility (afforded by a commitment to underground disposal post the creation of a suitable underground void) and a revised form for this Facility, in order to minimize the visual impact on the landscape. 

Against this background, the Board, is confident that the application provides the necessary economic and environmental details to satisfy the concerns raised by the NPA.

In the new application, Scotgold sought additional independent specialist input in respect of restoration, landscape assessment and socio-economic impacts from Ecological Restoration Consultants, Land Use Consultants Ltd and Professor David Bell of Stirling University respectively.  This specialist input has sought to address issues and concerns articulated in the reasons for refusal and give confidence to the NPA in the revised proposals incorporated in the new application. Further detail regarding the restoration proposals, their intended outcomes and a comprehensive independent analysis of the potential socio-economic benefits of the project to the local, regional and national economies, which underline the many positive impacts a mine at Cononish would be expected to bring to the local and national Scottish economy, is provided in the application, details of which will be shortly available on the Company's website (www.scotgoldresources.com) and currently on the NPA website 
www.lochlomond-trossachs.org/cononishgoldmine.

The Company believes that the revised application presents further environmental benefits above those previously proposed and has addressed, in discussion with NPA and other interested parties, those concerns previously raised.

Scotgold has received some significant support for recent its application

Chic Brodie, MSP and Member of Economy, Energy and Tourism Committee said:"I am delighted to see this planning application being lodged. Such a development is not just good for the local area, but will serve to put Scotland on the map in terms of mineral exploration. I wish Scotgold well with their proposals as they proceed through the planning process, and applaud the firm's approach in working constructively with the Park Authority to lodge a fresh planning application."

Stirling MP, Anne McGuire, said:

"Gold has been identified as a material which is strategically important to the UK and the mine has been designed to meet the highest environmental and planning standards. In addition, with a clear demand for these metals we have a responsibility to see that they are mined sustainably wherever they occur, and exploration and mining of critical metals within the UK would provide the country with some security of supply, as well as bringing economic benefits to rural areas. The most ethical method of ensuring supplies of strategic minerals to our economy is to provide them from our own resources."

John Riley, Chairman of the Strathfillan Community Council said:

"During the past months, the NPA and Scotgold have worked hard together to mitigate any environmental impact concerns. In light of this knowledge the community fully supports this second application, which will enable the realisation of immense social and economic benefits both local and national."

Exploration Update

The Company continues to actively conduct exploration activities on its substantial land position outside the National Park (please see illustrated at www.scotgoldresources.com).

It is noted the laboratory processing Scotgold's samples has informed the Company of a significant backlog of up to two months in sample turnaround due to ongoing problems with their ICP-MS instrumentation and as such results from fieldwork conducted during Q2 are expected to become available during Q3.

Grampian Gold Project

Fieldwork recommenced in April with ongoing regional stream sediment sampling over the Inverliever, Cononish - Glen Orchy and Glen Lyon licence areas. A total of 410 samples (out of a proposed program of around 800) have now been taken and results are awaited.

Beinn Udlaidh Vein and River Vein area

Scotgold considers the veins systems in the Beinn Udlaidh area (Beinn Udlaidh Vein and River Vein) to be valid exploration targets in their own right in addition to the already identified breccia pipe target (see Press Release 18 February 2010 - Beinn Udlaidh - Breccia Pipes - Exploration Target Confirmation).

Following high grade rock chip samples on the Beinn Udlaidh Vein north east extension and River Veins (see March 2011 Quarterly report), the Company has begun an initial program of NQ and AQ (short surface) diamond drilling over a number of priority prospects in the area.

Two NQ holes will be drilled on the Beinn Udlaidh vein north east extension to be followed by a number of holes to test the high grade River Vein gold occurrences as well as the high grade molybdenum occurrences.

A comprehensive program of AQ drilling has commenced at Coire Ghamhnain, Sron Garbh (in progress) and will shortly move to test priority occurrences in the Auch project area.

Corporate Activities

Rights Issue

On 22^nd July 2011, the Company announced a non renounceable rights issue to raise          Aus$ 1.6M, on the basis of one share for every five held at the record date of 4^th August 2011 with allotment of shares scheduled for 31^st August 2011. 

Funds raised will be employed towards progressing work on the Company's projects, general working capital and costs associated with the offer.

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
Tel: [phone]	Tel: [phone]	Tel [phone]

Australia:

Scotgold Resources Limited	Professional Public Relations
Shane Sadleir (Non-Executive Director)	Karen Oswald
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.

 

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