Scotgold Resources Ltd. (‘Scotgold’, ‘SGZ’ or the ‘Company’), is an ASX and AIM listed mineral exploration and development company, currently focused on its Cononish Gold & Silver Project in west-central Scotland. As of 22nd January 2015, Cononish hosts JORC compliant resources of M&I: 541 kt @ 14.3 g/t Au & 59.9 g/t Ag (for 248 koz Au & 1,043 koz Ag); & Inferred: 75 kt @ 7.4 g/t Au & 21.9 g/t Ag (for 18 koz Au & 53 koz Ag). A revised mine development plan to improve costs & optimise production is ongoing, with completion anticipated by mid-2015. SGZ also holds the wider Grampian exploration Project. Figure 1: One year stock price and volume chart. Source: www.ft.com Recent News / Activity
Scotgold Resources Ltd. 7th April 2015 Fig. 3: Trace of the Cononish Vein and Setting of Mine. Source: SGZ Fig. 4: Mine development plan for Cononish. Source: SGZ Project, compiled by CSA Global (UK) Ltd. The deposit now hosts M&I: 541 kt @ 14.3 g/t Au&59.9g/tAg(for248kozAu&1,043kozAg);andInferred:[email protected]/tAu& 21.9 g/t Ag (for 18 koz Au & 53 koz Ag). It is believed that mineralisation at Cononish remains open at depth down plunge and to the west along strike, with the potential to increase the current resource with further drilling. It is understood that Scotgold has commenced utilising the updated 3D geological model to quantitatively asses the optimal mining route for the deposit, and is undertaking a revised mine development plan during 2015. It is anticipated that the development plan will be complete by mid-2015, and result in P&P Reserves for the project, as well as improve production rates and costs. Grampian Project In addition to Cononish, Scotgold holds a 100% interest in the wider Grampian exploration Project, comprised of five option agreements with the Crown Estate Commissioners and covering an area of ~4,200 km2 in the SW Grampians of Scotland. The majority of this area is understood to lie outside of the Loch Lomond and the Trossachs National Park. In 2014, the Crown undertook a review of the option agreements, and recently indicated that they will be granted for period of up to six years (subject to satisfactory performance) with review and appropriate area reduction after one and three years. It is understood that, subject to the conclusion of legal agreements, the Crown has re-granted all of Scotgold’s existing option areas, with only a reduction in area of the Inverliever option area. The Grampian Project covers a large portion of the Dalradian sequence, which is thought to be prospective for gold and base metal occurrences. The Dalradian group rocks extend southwest from Scotland into Northern Ireland, where they host two known gold deposits – Cavanacaw and Curraghnialt. Previous exploration data over the project includes gravity and airborne magnetic surveys carried out from the 1950s to 1970s. Scotgold has carried out regional and infill stream sediment sampling programs (750 initial samples & 300 infill samples to date) over the Grampian Project, plus re-sampling to verify previously identified occurrences. Follow up work over these occurrences, including rock chip sampling and drilling, has defined three key prospects that SGZ believe warrant further exploration: the River Vein area, Sron Garbh mafic/ultra-mafic complex, & the Auch/Beinn Odhar veins. It is understood that SGZ believes the next stage of exploration may include an airborne geophysical survey in the central ‘Tyndrum’ option area to highlight any prospective structural features, with results from the infill stream sediment sampling program used to guide future exploration in areas outside the immediate Cononish area. Management Managing Director & CEO: Richard Gray Non-Executive Chairman: Nathaniel le Roux Mr Gray holds a BSc (Hons) Mining Engineering from the Royal School of Mines, and an MBA from the Graduate School of Business, Cape Town University. He most recently served as Head of Mining & Expansion at Avocet Mining PLC (AVM:LSE), and has extensive international experience in both underground & open pit mine operations. Mr Gray previously held various roles at both majors & juniors within the gold mining sector, including 15 years spent working for Gencor Ltd. in South Africa, & 10 years in West Africa for Golden Star Resources Ltd. (GSC:TSX). Mr le Roux spent most of his career in financial markets and was Chief Executive of IG Group plc between 2002 and 2006. He is an independent director of the London Metal Exchange and a trustee of various charities. Born in Scotland and schooled in Edinburgh, Mr le Roux holds an MA in Law from Cambridge University and an MSc in Anthropology from University College London. Non-Executive Director: Christopher Sangster Non-Executive Director: Richard Harris Mr Sangster holds a BSc Hons in Mining Engineering from the Royal School of Mines, and a GDE in Mineral Economics from the University of Witwatersrand. He has over 28 years of industry experience, with extensive production and technical experience at senior levels in both junior & multinational companies in gold, diamonds & base metals in Africa, UK & Canada. From 1996- 1999 Mr Sangster was General Manager of Caledonia Mining Corp. (CAL:TSX) for the Cononish Gold Project and a Director of Fynegold Exploration. After 1999, he moved to the Zambian Cu belt with Anglo American Plc (AAL:LSE) / KCM-Plc where he was VP Mining Services, and in 2005 joined Australian Mining Consultants as a Principal Mining Engineer. More recently, he worked as General Manager for European Diamonds Plc. Mr Harris is a mining engineer with over 30 years’ experience in the mining and finance industries as a mining analyst and public company director. He has considerable experience in evaluating mining projects, advising, restructuring and raising capital for mining companies. Previously, Mr Harris served as a director for Australian silver miner Alcyone Resources Ltd. (AYN:ASX) in 2009 after organising a syndicate group which recapitalised and relisted the company. From 2005-2008 as Managing Director (later Executive Chairman) he founded and listed as an IPO, Eleckra Mines Ltd. on the ASX. Mr Harris holds a BSc (Hons) degree in Mining Engineering from University of Wales. Compiled by: Victoria Lowe & Martin Wood
SGZ Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
