June Quarterly Report
July 29 2010 - 4:14AM
UK Regulatory
TIDMSGZ
RNS Number : 1416Q
Scotgold Resources Ltd
29 July 2010
Scotgold Resources Limited ("Scotgold" or the "Company")
JUNE 2010 QUARTERLY REPORT
CONONISH GOLD AND SILVER PROJECT
· HIGH GRADE INTERSECTIONS FROM INFILL AND EXTENSION DRILLING RESULTS
INCLUDING:
o Con 10 02 - 15.82g/t Au, 52.6g/t Ag over 1.41m
o Con 10 05 - 5.00g/t Au, 22.8g/t Ag over 6.16m (including 14.82 g/t Au,
55.5g/t Ag over 2.15m)
o EA 02 - 7.84g/t, 12.2g/t Ag over 2.25m
· Progress to production decision
o Revised date for planning permission decision - anticipated 18 August
o AMC commissioned to update Studies to higher accuracy
GRAMPIAN GOLD PROJECT UPDATE
· Beinn Udlaidh PROSPECT
o Ground magnetic survey completed over selected pipes
o Further litho-geochemical sampling completed
o Eight AQ holes on Beinn Udlaidh pipes and vein completed
· Auch / Allt Kinglass PROSPECTS
o Three AQ holes completed
o Further litho-geochemical sampling completed
CONONISH GOLD AND Silver project
Infill and Eastern Extension Drilling
Scotgold has completed the first phase of its Infill and Eastern Extension
drilling program at the Cononish gold and silver project.
Infill drilling into the main vein within the Inferred Resource envelope above
the 400 metre level continued to encounter high grades and excellent widths of
gold and silver mineralization in most cases.
Drilling results from the Eastern Extension encountered additional
mineralization below the 400 metre level, where a westerly plunging payshoot may
extend over 300 metres beyond the eastern boundary of the previously defined
JORC resource. Further drilling in this area is hampered by extreme topography
and will be followed up from underground.
Drilling results are shown in Table 1 and Table 2 for Infill and Eastern
Extension results respectively. Drill statistics are shown in Appendix A.
Underground holes EA UG 03 and 02 were drilled to test the possible extension of
the high grade vein (the 'adit' vein) encountered in the adit. The results
indicate vein continuity with encouraging values and warrants further
investigation at a later stage.
Table 1: Resource Infill Drilling Results
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| Hole | From | To | Downhole | Est. | Au | Ag | Comment |
| | | (m) |intersection | true | g/t | g/t | |
| | (m) | | (m) |thickness | | | |
| | | | | (m) | | | |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| Con 09 |103.95 |106.00 | 2.05 | 1.98 | 9.84 |41.6 | Main |
| 01 | | | | | | | Vein |
| | | | | | | |intersection |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| Con 10 |103.00 |104.50 | 1.50 | 1.41 |15.82 |52.5 | Main |
| 02 | | | | | | | Vein |
| | | | | | | |intersection |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| Con 10 |126.90 |127.25 | 0.35 | 0.31 | 0.39 |42.4 | Main |
| 02a | | | | | | | Vein |
| | | | | | | | Sheared, |
| | | | | | | | dyke |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| Con 10 | 67.24 | 83.75 | 11.04 | 6.16 | 5.09 |22.8 | Mineralised |
| 05 | | | | | | |intersection |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
|Including | 66.24 | 70.46 | 4.22 | 2.35 | 2.55 | 7.2 | Upper |
| | | | | | | | vein |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
| and | 79.15 | 83.00 | 3.85 | 2.15 |14.82 |55.5 | Main |
| | | | | | | | vein |
| | | | | | | |intersection |
+-----------+--------+--------+--------------+-----------+-------+------+--------------+
Table 2: Eastern Extension Drilling Results:
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| Hole | From | To | Downhole | Est. | Au | Ag | Comment |
| | | (m) |intersection | true | g/t | g/t | |
| | (m) | | (m) |thickness | | | |
| | | | | (m) | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA 01 |49.30 | 51.60 | 2.30 | 1.99 | 2.68 | 1.8 | Main |
| | | | | | | | vein |
| | | | | | | |intersection |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA 02 |60.40 | 64.00 | 3.60 | 2.25 | 7.84 |12.2 | Main |
| | | | | | | | vein |
|Including |60.40 | 60.65 | 0.25 | 0.18 |28.35 |16.6 |intersection |
| |63.00 | 64.00 | 1.00 | 0.72 |15.67 |33.8 | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA 03 |46.73 | 47.30 | 0.57 | 0.52 | 3.67 | 4.8 | Main |
| | | | | | | | vein |
| | | | | | | |intersection |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| E | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA 04 |62.80 | 65.00 | 2.20 | 1.58 | 0.94 | 1.4 | Out of |
| | | | | | | | payshoot? |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA 05 |112.6 |113.15 | 0.55 | 0.25 | 0.54 | 0.5 | Out of |
| | | | | | | | payshoot? |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA 06 |74.92 | 76.00 | 1.08 | 0.68 | 1.24 |<0.5 | Out of |
| | | | | | | | payshoot? |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA UG | 2.50 | 3.00 | 0.50 | | 5.16 | 3.4 | 'Adit' |
| 03 | | | | | | | vein |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| | | | | | | | |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
| EA UG | 0.50 | 1.00 | 0.50 | | 7.50 | 5.4 | 'Adit' |
| 02 | | | | | | | vein |
+-----------+-------+--------+--------------+-----------+-------+------+--------------+
Progress towards Production Decision
Scotgold commissioned Australian Mining Consultants ("AMC") to update critical
components of the Cononish Scoping study to improved levels of accuracy.
The study is expected to be available in August and will enable the Company to
finalise development options for the project leading to a production decision.
Subject to certain project milestones, including grant of planning permission
and financing for the project, Scotgold anticipates first gold production in
late 2011.
AMC will review and update the mining development and production schedule and
mining capital and operating costs (with a target +/-15% accuracy) based on
recent additions to the resource at Cononish (see ASX and AIM Release 5 February
2010 - Cononish Drilling and JORC Update).
The study will also be updated with work completed since the 2009 study in the
areas of processing, tailings disposal and infrastructure to similar levels or
better levels of accuracy and review the financial model including gold price
forecasts.
Scotgold recently commissioned Gekko Systems Pty ("Gekko") to complete a
Definitive Costing Study (+/- 10% accuracy) for the Cononish project processing
plant. Gekko and Scotgold's metallurgical consultant recently finalised the
proposed flowsheet and Gekko will proceed to complete the study based on the
agreed flowsheet.
The flowsheet encompasses two stages of crushing, milling followed by a gravity
recovery section and subsequent flotation. Concentrates from both the gravity
and flotation process will be combined and reground to maximize recovery of
'free gold' and to reduce the mass of concentrate required to be transported for
further processing.
The study is due to be completed shortly.
A final metallurgical sample has been processed in accordance with the agreed
flowsheet to confirm the recoveries to be used in the AMC study.
AMEC Earth and Environmental (AMEC) has completed a feasibility level design for
the Tailings Management Facility for the Cononish project. The design provides
for a facility to retain 0.8Mt of tailings to cater for possible future
extensions to resources at Cononish and is designed in accordance with all
applicable EU and UK legislation. The design is undergoing costing for input to
the revised study.
Revised Date for Planning Permission Decision
Scotgold lodged its application for planning permission on 25 January 2010. In
response to recently introduced legislation and also the requests for further
information from the Planning Authority, Scotgold submitted further
documentation in early June. This submission required further advertisement and
consultation with statutory and other consultees. The Planning Authority has
indicated a decision date of 18 August for the application.
GRAMPIAN GOLD PROJECT EXPLORATION UPDATE
Beinn Udlaidh breccia pipes
An initial systematic litho-geochemical rock chip sampling program was conducted
over the Beinn Udlaidh breccia pipefield for characterization in order to
prioritize follow up work.
A number of small diameter AQ holes were drilled into Pipes BU 12, BU 22 and BU
13. Results are awaited
A hand held magnetic survey was recently completed by Aurum Exploration Services
Ltd over selected areas of the Beinn Udlaidh breccia pipe field and
interpretation is ongoing.
Beinn Udlaidh vein
Further rock chip outcrop sampling was carried out over the possible extension
to the Beinn Udlaidh vein.
Four small diameter AQ holes were drilled into the possible extension of the
vein, results are awaited.
Auch
Three small diameter AQ drillholes were drilled into a vein occurrence and
results are awaited.
Further litho-geochemical rock chip sampling was conducted in the area.
Regional
Further rock chip sampling was carried out on occurrences identified by previous
explorers, results are awaited.
For further information:
United Kingdom:
+---------------------+---------------------+-------------------------+
| Scotgold Resources | Westhouse | Bankside Consultants |
| Limited | Securities Limited | |
+---------------------+---------------------+-------------------------+
| Chris Sangster | Richard Baty / | Simon Rothschild / |
| (CEO) | Petre Norton | Oliver Winters |
+---------------------+---------------------+-------------------------+
| Tel: +44 (0)1838 | Tel: +44 (0)20 7601 | Tel +44 (0)20 7367 8888 |
| 400 306 | 6100 | |
+---------------------+---------------------+-------------------------+
Australia:
+---------------------+---------------------+
| Scotgold Resources | Professional Public |
| Limited | Relations |
+---------------------+---------------------+
| Shane Sadleir | Karen Oswald |
| (Non-Executive | |
| Director) | |
+---------------------+---------------------+
| Tel: +61 (8) | Tel: +61 (8) |
| 9428 2950 | 9388 0944 |
| Mobile: +61 (0) 411 | Mobile: +61 (0) 423 |
| 704 498 | 602 353 |
+---------------------+---------------------+
Competent Persons Statement:
The information in this report that relates to Exploration Results is based on
information compiled by Mr David Catterall. Pr Sci Nat, who is a member of the
South African Council for Natural Scientific Professions. Mr Catterall is
employed as a consultant to Scotgold Resources Ltd. Mr Catterall 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 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Catterall consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
.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.
Appendix A: Drill Statistics
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| Hole |Easting |Northing | Depth(m) |Elevation(m) |Azimuth |Inclination | Core |
| ID | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| 09 - | 228918 | 728277 | 114.8 | 558 | 322 | -45 | NQ |
| 01 | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| 10 - | 228871 | 728247 | 117.8 | 562 | 317 | -50 | NQ |
| 02 | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| 10 - | 228871 | 728247 | 142.5 | 562 | 306 | -66 | NQ |
| 02a | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| 10 - | 228641 | 728049 | 91.7 | 565 | 327 | -77 | NQ |
| 05 | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA 01 | 229094 | 728454 | 102.0 | 405 | 326 | -45 | NQ |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA 02 | 229094 | 728454 | 105.5 | 405 | 326 | -65 | NQ |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA 03 | 229125 | 728471 | 62.0 | 404 | 315 | -43.5 | NQ |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA 04 | 229125 | 728471 | 74.4 | 404 | 315 | -66 | NQ |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA 05 | 229125 | 728471 | 129.0 | 404 | 299 | -80 | NQ |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA 06 | 229156 | 728500 | 80.5 | 397 | 294 | -68 | NQ |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA UG | 229098 | 728556 | 16.0 | 400 | 316 | 0 | AQ |
| 03 | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
| EA UG | 229114 | 728574 | 9.0 | 400 | 316 | 0 | AQ |
| 02 | | | | | | | |
+--------+---------+----------+----------+--------------+---------+-------------+--------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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