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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	SGZ
Latest Price:	0.07 (0.00%)
52-week High:	0.11
52-week Low:	0.05
Market Cap:	13.27M

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Scotgold Resources

Scotgold Resources (ASX: SGZ) is targeting gold and silver mineralisation within Central Scotland. Its key assets include the Cononish gold and silver deposit, which has a Measured, Indicated and Inferred JORC Resource of 154,000 ounces of gold and 589,000 ounces of silver.

Scotgold Resources encouraged by River Vein drill results

Saturday, January 28, 2012 by Jamie Ashcroft

Scotgold Resources (LON:SGZ) today said it is encouraged by results from the first two deep drill holes at the River Vein prospect near Loch Lomond in Scotland.

The River Vein is located around 5 kilometres from the Cononish Vein, which has been a key focus for the company. This area is outside the boundaries of the Loch Lomond and the Trossachs National Park.

Today’s exploration results have shown high gold grades and confirmed good silver, lead, zinc and molybdenum grades

"Scotgold is encouraged by the results of these first two deep NQ diamond holes drilled at the River Vein Prospect,” said chief executive Chris Sangster.

“They indicate the continuity of the gold vein structures with depth whilst the geochemistry of the veins encountered hold a number of similarities with the Cononish Vein with high grades of silver and significant lead, zinc and tellurium values in addition to gold.”

Sangster added: “Whilst these initial two holes were targeting the gold vein below the high grade gold rock chip samples taken in the river, they also intersected a number of the molybdenum bearing fractures with highly anomalous values."

Scotgold said that the RV01 hole encountered mineralisation 60 metres from surface with grades of 9.7 grams per tonne gold and 13.3 grams per tonne silver as well as 0.6 per cent lead and 2.1 per cent zinc. This intersection was 40 centimetres wide.

A further 52 centimetre intersection contained 3.5 grams per tonne of gold, more than 200 grams per tonne silver, 1.4 per cent lead, 100 parts per million molybdenum and 34 grams per tonne tellurium. This section was at a depth of 78 metres.

Similarly the other hole, RV02, found a 40 centimetre intersection at a depth of 70 metres. This had 4.39 grams per tonne gold, more than 200 grams per tonne silver, 1.8 per cent lead, 167 parts per million moly and 43 grams per tonne tellurium.

The company also confirmed that rock chip sampling continues to define and expand the extent of gold and molybdenum mineralization.

This work has mapped a wide extent of molybdenum-bearing fractures. While sampling on the gold vein, at surface, confirms high grade mineralization. It revealed grades from sampling at 74.58 grams per tonne gold and 20.6 grams per tonne silver.

Scotgold is still waiting to receive assay for two more holes that were drilled on the River Vein.

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