Scotgold Resources (LON:SGZ)

Scotgold Resources (LON:SGZ)

Share Price
37.50 p
0.5 (1.35 %)
Market Cap
£17.11 m
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Scotgold Resources

Scotgold Resources Limited is a company that offers investors the opportunity to invest in the increasingly attractive gold mining industry through the development of the Cononish Mine in Scotland and exploration in Scotland and other low risk jurisdictions.

Market: AIM:SGZ
52-week High/Low: 43.50p / 20.50p
Sector: General Mining - Gold
Market Cap: £17.11 m
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Big Picture – A Deep Dive Examination of Scotgold Resources

Scotgold Resources Snapshot

Scotgold was founded in 2007 and the Company’s shares were admitted to trading on the AIM market in 2010.

The Company is primarily focused on the development of its high grade Cononish Gold and Silver Project in the Scottish highlands, together with the exploration of highly prospective tenements in the Grampian region of Scotland (the Grampian Gold Project).

Cononish has a resource (estimate  in accordance with the JORC Code 2012) in the Measured, Indicated and Inferred categories of 541,000 tonnes at 14.3 g/t Au and 59.7 g/t Ag and Proven and Probable Reserves (JORC 2012) (included in the Resource figure  quoted) of 555,000 t at 11.1g/t Au and 47.7g/t Ag for 198,000 ozs of gold and 851,000 ozs of silver.

The Cononish Gold and Silver project is fully permitted and ‘shovel ready’. It received planning permission in 2011 from the Loch Lomond and Trossachs National Park and the Crown Estate Commissioners unconditional grant of the Cononish Lease was confirmed in May 2012. This planning permission was subsequently amended in January 2015 to allow 24/6 operations for the planned processing plant.

Cononish went into initial production in May 2016 with the commissioning of the Bulk Processing Trial (“BPT”) plant using ore from its stock pile, pending financing of the full project. The BPT, is a pilot scale processing trial that aims to demonstrate the marketability and profitability of Scottish gold production from Cononish whilst also advancing knowledge regarding the metallurgical performance of the ore. The trial will produce the first commercially produced gold in Scotland

The Grampian Gold Project comprises five Crown Option agreements of some 4,100 km2 in the south west Grampians of Scotland and covers some of the most prospective areas of the Dalradian geological sequence in the UK. This sequence extends westward from the UK to the eastern seaboard of Canada and the Appalachian belt in the US, and eastward into Sweden and Norway, has been identified by the British Geological Survey as being highly prospective for both significant gold and base metal deposits. On a more local scale, the Dalradian sequence extends to the south west from Scotland into Northern Ireland where it hosts other gold resources at Cavancaw (c. 0.5M oz of gold) and Curraghinalt (c. 3.5M oz of gold).

The Company is conducting a regional stream sediment sampling program over the wider Grampian gold project area whilst continuing to evaluate a number of previously identified high grade outcrops in the vicinity of the Cononish project. A recently completed prospectivity ranking exercise has highlighted a number of high priority targets for follow up.

The Company has recently been granted an exploration licence in Portugal targeting gold and antimony mineralisation and has made application for three exploration licences in France which are still under consideration by the authorities.

France Project

Consistent with Scotgold’s strategy of identifying and developing high, low impact projects with a focus on gold and other strategic metals located in low risk environments, the Company recently became aware of a number of suitable opportunities in France. The Company has submitted applications for three exclusive exploration licences covering the identified areas of interest. These applications are currently being considered by the French authorities.

Update on Exploration Assets in Portugal and France [1.06mb PDF]








Pomar Project

In May 2016, the Company announced the wholly owned Portuguese subsidiary, Scotgold Resources Portugal Ltda was granted an exploration licence for 3 years (with an option to extend) in eastern central Portugal, near Castelo Branco. The Pomar licence covers 264 km2 and includes the historic antimony (with gold) mines of das Gatas, Pomar and Casalinho, in addition to numerous small scale antimony trials and occurrences. These small high grade mines were active during the 1940’s producing antimony concentrate with associated gold. Some tungsten mineralisation has been identified in the licence area.

Re-evaluation of the mineralisation by the Company has indicated there may be two separate mineralising events, an early antimony and later gold-tungsten event. This opens up the potential for undiscovered gold prospects in zones with quartz-only mineralisation given previous exploration efforts have focussed on antimony mineralisation in the region.

The initial exploration program for the Pomar licence area will consist of historical data collection & analysis, a mapping program and a soil sampling assay program. There is significant historical data available from previous exploration companies, including Biliton and Indumetal, comprising assay results and geophysical data. The Company intends to access and evaluate the historical data available in the licence area to aid further exploration efforts.

Update on Exploration Assets in Portugal and France [1.06mb PDF]




Cononish Project

Project status


View of Cononish Mine showing (right to left) stockpiled ore, plant buildings and adit.


2017 Planning Application

Scotgold Resources Ltd is currently preparing a planning application for a revision of the extraction and processing operations at Cononish Gold Mine, originally permitted in 1996 and subsequently in 2012 and 2015.

The management of tailings is being redesigned in order that dry tailings may be ‘stacked’ on site, and landscaped into a number of naturalistic moraine landforms and not a single large tailings management facility, as in the previous schemes. This revised programme ensures that the project is scalable, thus reducing the initial capital expenditure. This scheme also has significant environmental benefits: facilitating progressive restoration of the site; avoiding the risks associated with the management of wet tailings; and, an improved final landform.

An Environmental Impact Assessment of the revised scheme is currently underway and will focus on the altered landscape and visual impacts and the management of site drainage.

In accordance with the Town and Country Planning (Development Management Procedure)(Scotland) Regulations 2013, two public Pre-Application Consultation events will be held at Tyndrum Village Hall, FK20 8SA on 10th and 24th May, 2017. The venue will be open from 10.30am to 8.30pm. Details of the proposal will be available for viewing and representatives from Scotgold Resources Ltd, and planning and environmental consultants – Dalgleish Associates Ltd, will be available to answer questions on all aspects of the proposal.

Comment sheets will be available at the public event for any party wishing to make written comment. Alternatively, comments in relation to the proposal may be sent to the applicant (Contact Us) or our agent (Contact DAL) for consideration in finalising the planning application, no later than 14th June 2017. Please note that this is a Pre-Application Consultation, these comments are not representations to the Planning Authority. When the application is submitted to Loch Lomond and the Trossachs National Park Authority there will be an opportunity to view the finalised proposals and to make representations to the Planning Authority.

Current Activities:


Ore being loaded into processing plant as part of BPT

The Bulk Processing Trial is continuing and the conclusions drawn from this will be used to both optimize the final process plant design and to assess the potential for a revised development plant which include a phased production build up and lower peak funding requirement.


Classification K tonnes Grade AU



Metal AU



Grade Ag



Metal Ag



Measured – In-situ 60 15.0 29 71.5 139
Indicated – In-situ 474 14.3 217 58.7 895
Indicated – Mined Stockpile 7 7.9 2 39.0 9
Sub-total M & I 541 14.3 248 59.9 1,043
Inferred – In-situ 75 7.4 18 21.9 53
Total MRE 617 13.4 266 55.3 1,096

Reported from 3D block model with grades estimated by Ordinary Kriging with 15 m SMU Local Uniform Conditioning adjustment. Minimum vein width is 1.2m. Totals may not appear to add up due to appropriate rounding

Note: MRE prepared by CSA Global (UK) Ltd in accordance with JORC 2012 – see AIM release: 22/01/2015 – Resource Estimate Update


Long section through Cononish vein coloured by MRE classification

Ore Reserves

Classification K tonnes Grade AU



Metal AU



Grade Ag



Metal Ag



Proven 65 11.5 24 51.5 108
Probable 490 11.1 174 47.2 743
Total 555 11.1 198 47.7 851


(Bara Consulting Limited – Ore Reserve Statement dated May 2015)

(Estimate based upon JORC 2012 reporting rules, Gold price US$1,100/oz, Silver price US$15/oz and Exchange rate 1.6 US$/£.)


Schematic of Full Mine Development Plan

Grampian Project

Scotgold Resources Ltd holds five Option agreements with the Crown Estates which constitute the Company’s Grampian Project in south west Scotland. These Option agreements cover a substantial area of ~4100 km2 with the majority (~85%) located outside of the Loch Lomond and the Trossachs National Park. The Company holds the Crown Options for six years (subject to satisfactory performance on a two yearly review process) and this can be extended further under certain circumstances.

The Grampian Project encompasses an area of the highly prospective Dalradian Supergroup sequence. Basic exploration data, including gravity and airborne magnetics, is available from government surveys carried out between the 1950’s and 1970’s but is of a quality and spacing that does not adequately reflect the prospectivity of the area. The lack of information and previous exploration has dictated the Company’s approach to exploration.

The exploration program for the Grampian Project aims to gain a baseline of data across the regional area to guide further detailed work. This includes a large stream sediment survey, historical data gathering and analysis and the re-evaluation of existing geophysical and geochemical data. In parallel with this regional program, the Company continues to evaluate high-grade outcrop samples and historic mine workings identified by previous exploration across the Grampian Project.

Exploration in the Glen Orchy option area, close to the Cononish Gold & Silver Project, is more advanced with extensive field mapping and rock chip sampling carried out in this area. In addition, initial short surface drilling and (in some cases) deeper diamond drilling has been undertaken on prospects in the option area. The Glen Orchy option area also formed the focus for the highly successful structural study, carried out by Dr. Pablo Gumiel and Dr. Monica Arias in 2015. The Company intends to extend this study across the option area holdings as sufficient data becomes available.

Exploration Grampian




Board of Directors and Executive


Nathaniel le RouxNon-Executive Chairman



Richard GrayManaging Director and Chief Executive Officer



Christopher SangsterNon-Executive Director



Phillip JacksonNon-Executive Director



Richard BarkerNon-executive Director & Company Secretary



David SwanChief Financial Officer




Name                                                                                                   Shares                                      %

1 HARGREAVE HALE NOMINEES LIMITED                                       6,325,616                                39.70%
2 HSDL NOMINEES LIMITED                                                              1,043,751                                6.55%
3 HARGREAVES LANSDOWN (NOMINEES) LIMITED                       936,450                                   5.88%
4 TD DIRECT INVESTING NOMINEES (EUROPE) LIMITED              754,052                                  4.73%
5 JIM NOMINEES LIMITED                                                                  611,237                                   3.84%
6 BARCLAYS DIRECT INVESTING NOMINEES LIMITED                  460,539                                   2.89%
7 INVESTOR NOMINEES LIMITED                                                      457,976                                  2.87%
8 BEAUFORT NOMINEES LIMITED                                                     353,079                                  2.22%
9 MR GRAHAM DONALDSON & MRS CHRISTINE DONALDSON     347,368                                  2.18%
10 ALLIANCE TRUST SAVINGS NOMINEES LTD                               294,497                                  1.85%
11 SVS (NOMINEES) LIMITED                                                             257,566                                  1.62%
12 GOLDEN MATRIX HOLDINGS PTY LTD                                         255,000                                  1.60%
13 SHARE NOMINEES LTD                                                                  226,771                                  1.42%
14 HSBC CUSTODY NOMINEES                                                         210,555                                   1.32%
15 HSBC CLIENT HOLDINGS NOMINEE (UK) LIMITED                     200,884                                   1.26%
16 WEALTH NOMINEES LIMITED                                                        184,873                                   1.16%
17 MR ALEXANDER LITTLEJOHN                                                       170,001                                   1.07%
18 PERSHING INTERNATIONAL NOMINEES LIMITED                      160,386                                    1.01%
19 VIDACOS NOMINEES LIMITED                                                      160,196                                    1.01%
20 MR RICHARD MILNE HARRIS                                                        150,000                                    0.94%

                                                                                                  TOTAL 13,560,797                               85.12%


4/189 Stirling Highway, Nedlands
Western Australia 6009
Phone: +61 419 790 875
General queries: [email protected]
Invoices and Account queries: [email protected]



Upper Tyndrum Station, Tyndrum,
Stirlingshire, SCOTLAND, FK20 8RY
Phone: +44 1 838 400 306
General queries: [email protected]
Invoices and Account queries: [email protected]

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