SCOTGOLD Resources, the exploration company seeking to mine gold...

SCOTGOLD Resources, the exploration company seeking to mine gold in Argyll, has seen losses before tax more than double in the six months to the end of 2012, compared with the corresponding period in 2011.

The company, which is exploring the Cononish mine close to Tyndrum, reported a pre-tax loss of A$1.68 million (£1.15m) for the half-year ended December 31.

That compared to a loss of A$723,203 (£497,664) for the six months to December 31, 2011.

The half-year saw the company raise around £475,000 through the issue of 15,316,110 new ordinary shares at 3.1p per share (A$ 0.0475).

AIM-listed Scotgold, which formed in 2007, said its exploratory activities on the Cononish Gold and Silver Project has identified 169,200 ounces of gold and 631,300 ounces of silver in the measured, indicated and inferred categories.

It began an infill drilling programme at the mine in January 2012.

The aim was to convert inferred resources to indicated resources in the part of the resource that will be exploited in the early years of its mine life, and enhance the debt capacity of the project.

Scotgold confirmed 13 holes were drilled between January and September last year in the western section of the inferred resource.

The company said it is waiting for the results of a further five holes that have been completed in the eastern section.

Beyond Cononish, Scotgold said it is continuing to explore a "substantial land position" spanning 4200 square metres, confirming 85% of the area currently under option to it from the Crown Estate lies outside the Loch Lomond and the Trossachs National Park.

Fieldwork has included stream sediment sampling in the Inverliever, Cononish, Glen Orchy, Knapdale and Ochils areas.

Some 915 samples have been taken and the com-pany said the results will be analysed when the programme is complete.

Further follow-up field visits have been carried out on the prospective Knapdale and Glen Lyon areas.