Scotgold completes drilling at Cononish

THE DRILL SERGEANT: Scotgold Resources (ASX:SGZ / AIM:SGZ) has received the results from a recently completed drilling program at the company’s Cononish gold and silver project in the Grampian region of Central Scotland.

Scotgold conducted the drilling with the aim of converting inferred resources to the indicated category in the part of the resource that will be mined in the early years of the mine life.

The company considers this could enhance the debt capacity of the project.

 

Drilling results greater than 3g/t gold for 2010 – 2012 drilling program. Source: Company announcement

 

Scotgold said the results from this program will shortly be incorporated in an updated Resource Statement to be completed by Snowdens Mining Industry Consultants, which will form the basis for the definitive mining plan and the Cononish project Development Study.

“The final results from the drilling program demonstrate the high-grade nature of the Cononish vein,” Scotgold Resources chief executive officer Chris Sangster said in the company’s announcement to the Australian Securities Exchange.

“We are very encouraged by the results and now await Snowden’s updated resource statement.”

The company said it and RMB Resources, which has been mandated to provide a gold prepayment facility, will then be in a position to determine the optimum debt capacity of the project.

It is anticipated that this work will be complete in early 2013 enabling project commencement in the second quarter of 2013 and first gold production in early 2014.