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.
View of Cononish Mine showing (right to left) stockpiled ore, plant buildings and adit.
2017 Planning Application
Ore being loaded into processing plant as part of BPT
Long section through Cononish vein coloured by MRE classification
Schematic of Full Mine Development Plan
Board of Directors and Executive
TOP TWENTY SHAREHOLDERS
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%
Nominated Adviser and Broker
Stockdale Securities Limited
15 St Botolph Street
London EC3A 7BB
Smaller Company Capital Ltd
3rd Floor 25 Eldon Street
London EC2M 7LD
Harper MacLeod LLP
Citypoint 65, Haymarket Terrace
Edinburgh EH12 5HD
16 Milligan Street
Perth Western Australia 6000
Bara Consulting Ltd
17 Central Buildings
Market Place Thirsk
North Yorkshire YO7 1HD
CSA Global (UK) Ltd
2 Peel House
Barttelot Road Horsham
West Sussex RH12 1DE
HLB Mann Judd Chartered Accountants
130 Sterling Street
Perth WA 6000
3 Semple Street
Edinburgh EH3 8BL
Capital M Consultants Ltd
1 Royal Exchange Avenue