TIDMSGZ
RNS Number : 2031A
Scotgold Resources Ltd
28 September 2020
28 September 2020
Scotgold Resources Limited
("Scotgold" or the "Company)
Grampian Project Exploration Update
Highlights
-- Encouraging results of ongoing exploration programme focused on:
o increasing the resource inventory at the Cononish Gold and
Silver Mine, where first gold is expected by 30 November 2020;
o further delineating existing prospects; and
o making new discoveries
-- Cononish mine - identification of gold and silver anomalies
to the north east of the mine that are consistent with the 'Mother
Vein' structure
-- Beinn Udlaidh prospect - anomalous area highlighted as part
of sampling programme focused on delineating multiple open-ended
anomalies - highest Au value returned from current sampling is
15.15 parts per billion ("ppb") (compared to previous high of
9.06ppb)
-- Inverchorachan prospect - multiple discrete anomalies
identified with encouraging values of 22 ppb Au and 44 ppb Ag
returned to date
Scotgold Resources Limited (AIM:SGZ), the gold exploration and
production company focused on Scotland, is pleased to update
shareholders with regards to its exploration activities on the
Cononish Project, ("Cononish") and Grampian Project, ("Grampian")
in Scotland. These are focused on increasing the Mineral Resources
in the area around the Cononish Gold and Silver Mine, (the
"Cononish Mine") which is on course to become Scotland's first
commercial gold mine by 30 November 2020; advancing the gold and
silver anomalies identified at Beinn Udlaidh and Inverchorachan;
and making new discoveries over the Company's extensive Option Area
on the Dalradian belt.
Since the last exploration update of 15 January 2020, Scotgold
geologists have continued to utilise the Ionic Leach [i] method as
further detailed in the Company's RNS of 1 April 2019, both to
stream sediment sampling and soil sampling programmes across its
option areas.
Subsequent exploration work has been focused on extending the
soil sampling grid at Cononish as well as extensions to the soil
sampling grids over the Beinn Udlaidh and Inverchorachan prospects,
which lie within the adjacent Glen Orchy Central and Inverliever
East option areas respectively.
Additionally, the regional stream sediment sampling programme
has continued, with samples collected from within 10 of the 13
option areas.
References to figures and maps relate to the version visible in
PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/2031A_1-2020-9-25.pdf
Ionic Leach Soil Sampling Programmes:
Cononish: The existing grid at Cononish, reported on 28 August
2019, has been successfully extended to the north east. A total of
146 samples were collected in an attempt to confine and further
define open-ended anomalies identified in previous soil sampling.
Further gold and silver anomalies (figure 1), have been identified
to the north east of the Cononish Mine which are consistent with
the 'Mother Vein' structure. Further sampling is planned over the
northeast part of the Cononish grid, with extensions across
Kilbridge and Coire Nan Sionnach to link the grids and assess the
extent, dispersion and distribution of currently open-ended
anomalies.
Beinn Udlaidh: Work previously reported on 15 January 2020 at
the Beinn Udlaidh prospect identified multiple open-ended anomalies
on all sides of the grid. In order to better assess the extent,
dispersion and distribution of these anomalies, the grid has been
extended to the north east, south east, south west and north west.
Results are reported for 147 samples collected to the south east of
the existing grid (figure 2). This extension has highlighted an
anomalous area where the highest Au value seen at the prospect so
far was collected of 15.15 ppb (compared to previous high of
9.06ppb). The highest Ag value seen from this part of the grid was
52.4 ppb (compared to previous high of 89.9ppb). Further work is
planned to the south to define this newly identified anomalous
area.
Results from a further 357 samples collected in the
aforementioned areas are awaited and will be reported in due
course.
Inverchorachan: Work on this grid previously reported on 15
January 2020 at the Inverchorachan prospect has been extended to
the south west and north east, where the previously identified Au
anomaly was open along strike in both directions. Results are
reported for a total of 232 soil samples that were collected to the
south west of the existing grid.
Promising results from the south west extension exhibit an
increased number of more discrete anomalies, rather than the large
more uniform anomaly previously identified in the core area (figure
3). Anomalous values from the extension report encouraging values
of 22 ppb Au and 44 ppb Ag. The grid remains open to the south
west, and further sampling is planned to constrain the anomaly.
Results are awaited by the Company for a further 100 samples
that have been collected to the north east and will be reported in
due course.
Regional Ionic Leach Stream Sediment Sampling Programme:
A total of 508 samples have now been collected as part of the
regional stream sediment sampling programme this year. Samples have
been collected from 10 of the 13 option areas with encouraging
results returned over several drainage catchments effectively
identifying targets for further follow-up. Sampling is ongoing as
well as follow up mapping in areas identified as anomalous.
CEO, Richard Gray, commented:
"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.
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."
(1) Ionic Leach(TM) is a static sodium cyanide leach using the
chelating agents ammonium chloride, citric acid and
Ethylenediaminetetraacetic acid ('EDTA') with the leachate buffered
at an alkaline pH (pH 8.5). Samples are digested as collected so
there is very little opportunity to lose or introduce elements
during the partial leach process. This innovative leach technique
is designed for near surface soil samples. It is designed to
improve geochemical mapping and enhance the potential to detect and
resolve geochemical anomalies for a range of commodity
elements.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please contact:
Scotgold Resources Limited Tel: +44 (0)1838 400
Richard Gray 306
SP Angel Corporate Finance Tel +44 (0) 20 3470
LLP 0470
Nomad and Broker
Ewan Leggat / Charlie
Bouverat
Tel +44 (0) 20 7236
St Brides Partners 1177
Financial PR
Susie Geliher / Frank
Buhagiar
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