IRON ore plays in Norway, magnesium in Mongolia, a potential goldmine in Scotland; have you noticed the geographical challenges that some of our smaller mining companies are setting themselves? It's no surprise given how well picked over the local scrub appears to have been, but we'd always thought it was good to invest in projects you might drive past. So it's logical that Scotgold Resources, an exploration tiddler based in Western Australia but looking for gold in the Scottish Highlands, is planning to list on the Alternative Investment Market in Britain.
Director Shane Sadleir said from Perth yesterday that there were currently 900 shareholders, "and most of them are in Australia". Which is a long way from Tyndrum, near Glencoe, where Scotgold has had a project for the past three years. The resource outlined so far is a modest 401,000 tonnes of ore but it grades 11.9g of gold and 45g of silver per tonne. The company intends to start producing 20,000 ounces of gold a year from next year. Scotgold's not totally in the sticks. The main railway from London to Fort William runs through the village and the company leases the Tyndrum Upper railway station, a heritage-listed building, as its exploration headquarters. That should stop the visitors getting lost.
SGZ Price at posting:
11.2¢ Sentiment: LT Buy Disclosure: Held
