what the papers say

As we all know, what we read in papers isn't always factual and can vary wildly from paper to paper. Some say their is no such thing as bad press coverage , each to their own on that one.

So to clear up :

£65 Million is an old figure from the RNS on 17/04/12 ( £65.9m ) which uses the POG of $1,655 and the POS of $20 and does not include the additional 6,200 Au and the 35,300 Ag additional ounces added to the resource from the infill drill program.

If you use today's figures for gold and silver plus the new ounces you will get £ 78 Million and if you remove the 16% contingency allowance on operating costs you will get £80,000,000.

RMB will forward sell 20,000 ounces of Gold , we will not only get £ 12 Million for this we will receive more in time . The deal is very complicated and I have asked for clarification on this and will share if and when received .

We will not repay RMB in Gold as stated , see RNS from 02/07/12
In addition to the Facility agreement, Scotgold has agreed to mandate RMB to arrange a gold pre payment facility to fund the development of the Cononish gold project. Scotgold has also agreed to mandate LN Metals International Ltd to market the gold-in-pyrite concentrate which will be produced at Cononish to end consumers.

The recent results are very significant to our funding . RMB requested this drilling due to the high level of the Inferred content of the resource at Cononish . Scotgold have achieved a significant increase in the measured and indicated resources . I would think that this significant increase was a lot more than we could have hoped for and if the truth be known RMB & SGZ would have been happy with much less .
15.9% additional tonnage and 16.5% additional contained ozs in blocks concerned.
See link below for diagram of blocks concerned, scroll down to page 3.

http://www.asx.com.au/asxpdf/20121114/pdf/42b5k99293s2v9.pdf

Scotgold have continually said the potential for upgrading the Inferred resource is possible.
They are anything but wrong so far.
Just think what we might get if we drilled the rest of the Inferred resource remaining (264,600 tonnes) at 10.2g/t Ag . If the recent drill results are anything to go buy we could be looking at a conservative average grade of 12.5 g/t Ag ( 10-15 ) or an additional 2.3g/t Ag per tonne over the existing inferred figure of 10.2g/t Ag .

264,600 t x 2.3 g = 608,580g = 19,631.61 ozs Ag = £ 21,234,923
I have not added any costs as I have not added any additional tonnage, only grade

£ 21,234,923 + £ 80,000,000 and I haven't included any Silver upgrade or possible additional tonnage.
Over £ 100,000,000 or $ 153,486,821 AUD

DYOR , GLA