Drilling results
August 17 2010 - 2:00AM
UK Regulatory
TIDMSGZ
RNS Number : 1609R
Scotgold Resources Ltd
17 August 2010
Scotgold Resources Limited ("Scotgold" or the "Company")
High Gold and Silver Grades in Veins at Beinn Udlaidh in Scotland
Scotgold Resources Limited ("Scotgold" or the "Company") (ASX: SGZ, AIM: SGZ) is
pleased to provide a progress report on the Company's continuing exploration for
gold and silver in the Beinn Udlaidh area, five kilometers northwest of the
Cononish gold and silver deposit (which is currently awaiting planning approval)
and outside the boundaries of the Loch Lomond and Trossachs National Park.
RIVER VEIN AREA
· Outcrop sampling in the River Orchy near where coarse gold has been panned
previously has returned exceptionally high gold and silver values, including:
- 383.8 g/t Au and 90.7 g/t Ag, 321.5 g/t Au and 102.4 g/t Ag and 197.3 g/t
Au and 69.8 g/t Ag in a quartz vein ('the 'River Vein'), and
- 171.8 g/t Au and 49.3 g/t Ag, 59.0 g/t Au and 9.8 g/t Ag and 1.9 g/t Au
from other veins some one and two km upstream
· Supports historical sampling in same area where boulders grading 359 g/t
Au and 101 g/t Au were recorded
· Indicates potential for narrow vein deposits which could be stand-alone
operations in their own right
BEINN UDLAIDH VEIN EXTENSION
· High gold and silver results in AQ drilling, including:
- 11.1 g/t Au, 167g/t Ag over 1m
- 2.39 g/t Au, 139.6g/t Ag over 3.2m
· High gold and silver results in recently sampled rock chips, including:
- 6.53 g/t Au and >200g/t Ag and 5.21 g/t Au and >200 g/t Ag
· Drilling and rock chip samples confirm continuity of vein a further 900m
eastwards (total 1900m to date)
Scotgold's Chief Executive Officer, Chris Sangster said: "The results continue
to highlight the potential of the Beinn Udlaidh area to host high grade, narrow
vein gold and silver deposits, in addition to the lower grade breccia systems
which are the main focus of Scotgold's current exploration program. Any such
high grade deposits could be stand-alone operations in their own right."
BACKGROUND
Scotgold first announced the identification of significant breccia-hosted
gold-silver mineralisation at Beinn Udlaidh in association with a lamprophyre
field on 29 September 2009 and subsequently announced an Exploration Target of
between 0.57 and 5.7Mt at 1 - 2g/t Au associated with the breccia pipes at Beinn
Udlaidh (see ASX release 18 February 2010).
Scotgold intensified its fieldwork at Beinn Udlaidh in March this year. In
addition to the breccia pipe targets, Scotgold considers the veins systems at
Beinn Udlaidh to be valid exploration targets in their own right. An extensive
mapping and rock chip sampling program in the Beinn Udlaidh area has now
identified a number of high grade, narrow vein systems, in addition to a
significant strike extension to the Beinn Udlaidh Vein. (A map showing location
plan of breccia pipes, lamprophyres and veins at Beinn Udlaidh can be found at
www.scotgoldresources.com, under ASX announcements).
River Vein Prospect Area
Detailed mapping and outcrop sampling in the River Orchy to follow up previous
explorers' rock chip sampling results at the River Vein Prospect area have
returned exceptional values of 383.2 g/t Au, 321.5 g/t Au and 197.3 g/t Au in
rock chip samples. High grade values were also recorded on some rock chip
samples at two additional new veins located upstream of the River vein,
returning 171.8 g/t Au, 59.0 g/t Au and 1.89 g/t Au.
Previous exploration in this area by Ennex International plc in the 1980s
identified high grade boulders, up to 358.9 g/t Au, and which are now thought to
be linked to these veins and further work will be undertaken to discover their
strike extents. Lamprophyre sills and dykes have also been mapped in close
proximity to these veins.
The veins trend at 3000 - 3200 and are perpendicular to the normal Caledonide
trend (2200 - 2400). Observed vein widths are between 10cms and 65cms and
exhibit typical pinch and swell characteristics. The veins occur individually
and in groups.
Significant rock chip sample values (11 from the 16 samples taken) are shown in
Appendix B.
Since 2009 Scotgold has been collaborating in a research project with Dr Robert
Chapman of the University of Leeds, studying mineralogical signatures in placer
gold grains from various localities in the rivers around Tyndrum. In 2009
sampling was extended to new areas of interest including the Glen Orchy area.
Dr Chapman has informed Scotgold that the grains of gold collected and studied
from a River Orchy tributary showed two clear contributing signatures, both
distinctive to the region by virtue of their anomalous bismuth signature and
possibly not from an explosion breccia source. More sampling is required to
further ascertain the nature of the local gold signature. (An illustration
showing rock chip sampling results from the River Vein Prospect area at Beinn
Udlaidh in relation to mapping of breccia pipes, veins and lamprophyre
intrusions and previous rock chip sampling can be found on the Company's website
www.scotgoldresources.com, under ASX announcements.)
Beinn Udlaidh Vein North East Extension.
A rock chip sample taken by previous explorers from the Beinn Udlaidh vein to
the north east of the drilled section of the vein returned 16.1 g/t gold and
2520 g/t silver. As part of Scotgold's initial reconnaissance of the Beinn
Udlaidh breccia vein, a confirmatory sample of 16.6 g/t gold, >200g/t silver and
449 g/t arsenic was returned as previously announced. Previous narrow diameter
AQ drilling into the vein returned highly prospective values (see ASX release 29
September 2009) over the previously identified portion of the vein.
Further rock chip sampling and mapping on the vein structure by Scotgold has
extended its strike extent to around 1900m with encouraging gold and silver
grades. Significant rock chip sample values (5 from the 16 samples taken) are
shown in Appendix B.
Following rock chip sampling, four further AQ holes were drilled into various
potential outcrop locations. Best drill intercepts on the vein include:
* BUAQ100 - 11.1 g/t Au, 167g/t Ag over 1.0m
* BUAQ101 - 2.39 g/t Au, 139.6g/t Ag over 3.2m
Two other holes (BUAQ102 and 103) did not intersect significant mineralisation
and appear to have been collared in the hanging wall of the vein. Assay values
for significant intersections are provided in Table 1 and drill statistics are
shown in Appendix A.
Table 1: Significant drill intersections for AQ drilling at Beinn
Udlaidh NE Vein extension
+---------+------+------+--------------+-------+---------+----------------------------+
| Hole |From | To | Downhole | Au | Ag | Comment/log |
| | (m) | (m) |intersection | g/t | g/t | |
| | | | (m) | | | |
+---------+------+------+--------------+-------+---------+----------------------------+
| BUAQ100 |0.00 |0.50 | 0.50 |19.40 | >200 | wh to gy qtz sulphide vein |
| |0.50 |1.00 | 0.50 | 2.74 | 147.3 | wh to gy qtz sulphide |
| |1.00 |4.00 | 3.00 | 0.87 | 30.3 | vein |
| |4.00 |4.50 | 0.50 | 0.07 | 5.4 | weathered lamprophyre and |
| | | | | | | core loss |
| | | | | | | gy pelitic psammite |
+---------+------+------+--------------+-------+---------+----------------------------+
| | | | | | | |
+---------+------+------+--------------+-------+---------+----------------------------+
| BUAQ101 |0.00 |0.35 | 0.35 | 7.11 | >200 | gy qtz sulph vein; minor |
| |0.35 |0.76 | 0.41 | 3.82 | >200 | gal, cpy and abdt py |
| |0.76 |1.36 | 0.60 | 0.17 | 6.8 | gy qtz sulph vein; minor |
| |1.36 |1.86 | 0.50 | 1.02 | 81.2 | gal, cpy and abdt py |
| |1.86 |2.74 | 0.88 | 1.99 | 173.8 | brecciated qtz vein and |
| |2.74 |3.20 | 0.46 | 2.66 | >200 | lamprophyre |
| |3.20 |4.10 | 0.90 | 0.01 | 6.3 | brecciated qtz vein and |
| | | | | | | lamprophyre |
| | | | | | | lamprophyre |
| | | | | | | brecciated qtz vein and |
| | | | | | | lamprophyre |
| | | | | | | lamprophyre |
+---------+------+------+--------------+-------+---------+----------------------------+
| | | | | | | |
+---------+------+------+--------------+-------+---------+----------------------------+
Scotgold plans to follow up the high grade intersections with further drilling
but will wait upon the results of an airborne magnetic survey to be carried out,
which the Company expects to be early next year.
Scotgold is still awaiting results of exploration within the breccias pipe
field, including NQ and AQ drill results, geophysical trials and detailed
lithological sampling.A location plan of breccia vein north-eastern extension at
Beinn Udlaidh showing significant previous and recent (highlighted) AQ drill
intersections and rock chips can be found on the Company's website
www.scotgoldresources.com, under ASX announcements.
Chris Sangster
Managing Director
For further information please contact:
United Kingdom:
+---------------------+---------------------+-------------------------+
| Scotgold Resources | Westhouse | Bankside Consultants |
| Limited | Securities Limited | |
+---------------------+---------------------+-------------------------+
| Chris Sangster | Richard Baty / | Simon Rothschild |
| (CEO) | Petre Norton | |
+---------------------+---------------------+-------------------------+
| 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 |
+---------------------+---------------------+
Note for Editors
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: Statistics of AQ diamond drilling at Beinn Udlaidh Vein North East
Extension
+-----------+--------+---------+----------+----------+--------------+---------+-------------+
| Hole | Pipe |Easting |Northing |Depth(m) |Elevation(m) |Azimuth |Inclination |
| ID | | | | | | | |
+-----------+--------+---------+----------+----------+--------------+---------+-------------+
|BUAQ100-0 | BU | 228298 | 733354 | 4.5 | 740 | 320° | -45° |
| | VEIN | | | | | | |
+-----------+--------+---------+----------+----------+--------------+---------+-------------+
|BUAQ100-1 | BU | 228293 | 733349 | 4.1 | 737 | 320° | -45° |
| | VEIN | | | | | | |
+-----------+--------+---------+----------+----------+--------------+---------+-------------+
|BUAQ100-2 | BU | 228347 | 733381 | 9.5 | 721 | 300° | -45° |
| | VEIN | | | | | | |
+-----------+--------+---------+----------+----------+--------------+---------+-------------+
|BUAQ100-3 | BU | 228191 | 733254 | 7.5 | 811 | 309° | -45° |
| | VEIN | | | | | | |
+-----------+--------+---------+----------+----------+--------------+---------+-------------+
Appendix B: Selected recent rock chip sample results from Beinn Udlaidh
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| Location | Type | Sample |Easting | Northing | Au | Ag | As | Mo | Pb | Zn |
| | | | | | ppb | ppm |ppm | ppm | ppm | ppm |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| Beinn Udlaidh | Outcrop | BUV11 | 228522 | 733500 | 6.53 | >200 |105 | 2 | 2428 | 455 |
| Vein NE | | | | | | | | | | |
| extension | | | | | | | | | | |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| Beinn Udlaidh | Outcrop | BU100 | 228298 | 733354 | 5.21 | >200 |402 | 9 | 519 | 97 |
| Vein NE | | | | | | | | | | |
| extension | | | | | | | | | | |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| Beinn Udlaidh | Outcrop | BUV05 | 228457 | 733470 | 0.91 |128.6 |278 | 12 | 402 | 1607 |
| Vein NE | | | | | | | | | | |
| extension | | | | | | | | | | |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| Beinn Udlaidh | Outcrop | BUV08 | 228491 | 733492 | 0.78 | 39.9 | 76 | 2 | 22 | 44 |
| Vein NE | | | | | | | | | | |
| extension | | | | | | | | | | |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| Beinn Udlaidh | Outcrop | BU10 | 227398 | 732795 | 0.61 | 4.5 | 70 | 41 | 162 | 20 |
| Veins | | | | | | | | | | |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO34-3 | 225150 | 733965 |383.21 | 91 |665 | 2 | 8257 | 9262 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO34-2 | 225150 | 733965 |321.47 | 102 |288 | 32 |>20000 |32748 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO34-1 | 225150 | 733965 |197.29 | 70 |315 | 4 |>20000 |31428 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO31-2 | 225920 | 734659 |171.77 | 49 |230 | 6 | 4115 | 741 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO31-1 | 225920 | 734659 | 59.01 | 10 |101 | 3 | 517 | 178 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO40-1 | 223746 | 733365 | 3.28 | 4 | 10 | 0 | 4284 | 102 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO28-1 | 226464 | 735581 | 1.89 | 1 | 35 | 2 | 89 | 20 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO34-4 | 225150 | 733965 | 1.33 | 3 | 0 |6206 | 230 | 34 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO35-1 | 224411 | 732541 | 0.70 | 1 | 8 | 7 | 122 | 73 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO28-2 | 226464 | 735581 | 0.59 | 1 | 23 | 1 | 48 | 30 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
| River Veins | Outcrop | GO31-3 | 225920 | 734659 | 0.53 | 1 | 32 | 0 | 27 | 88 |
+-----------------+---------+--------+---------+----------+--------+-------+-----+------+--------+-------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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