Scotgold upbeat on 'encouraging' exploration results

Scotgold reported “encouraging” results from its ongoing exploration programme on Monday, which was focussed on increasing the resource inventory at the Cononish Gold and Silver Mine, where first gold was expected by 30 November.

The AIM-traded firm said the programme was also looking to further delineate existing prospects, and make new discoveries

It said it had identified gold and silver anomalies to the north east of the Cononish mine, that were consistent with the 'mother vein' structure.

At the Beinn Udlaidh prospect, an anomalous area was highlighted as part of a sampling programme, focussed on delineating multiple open-ended anomalies.

The company said the highest gold value returned from current sampling was 15.15 parts per billion, compared to a previous high of 9.06 parts per billion.

At the Inverchorachan prospect, Scotgold reported multiple discrete anomalies with “encouraging” values of 22 parts per billion gold and 44 parts per billion silver returned to date.

“Scotgold is now at an exciting juncture, with first gold expected from the Cononish Gold and Silver Mine by 30 November this year and a growing portfolio of exploration anomalies and targets,” said chief executive officer Richard Gray.

“We look forward to advancing our systematic exploration program, which holds out the promise of; increasing our mineral resources within reach of the Cononish Mine, identifying new orebodies at Beinn Udlaidh and Inverchorachan and of course making new discoveries over the rest of our extensive Option Area on the Dalradian belt.”

At 1254 BST, shares in Scotgold Resources were up 18.58% at 134p.