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Scotgold Resources

Scotgold Resources reports bonanza gold and silver from sampling at Glen Orchy licence, Scotland

by Ross Louthean, Mineweb.com

Bonanza grade gold and silver values were announced today by Scotgold as a prelude to follow up exploration next year.

Best values obtained from outcrop sampling were 217.2 grams/tonne and 196.8 g/t gold and 200 g/t silver at Halladay's Vein; 51.2 g/t gold and 14.4 g/t silver at Coire nan Sionnach.

The company said outcrop sampling was carried out over nine targets within the 100% owned Glen Orchy Licence.

"The recently received results provide confirmation for the significant number of high grade outcrop gold values and the prospectivity of the 250 km2 "principal zone of interest" which surrounds the Cononish gold and silver deposit," said managing director Chris Sangster.

Results gained verified the historical exploration data base.

The advanced Coronish project has a measured-indicated-inferred resource of 154,000 oz gold and 589,000 oz silver, based on a 3.5 g/t Au cut-off.

Testing will also take place on nearby quartz veins with historice intercepts averaging 30.5 g/t gold and with assay values up to 119.9 g/t Au.

Scotgold said results from the latest sampling show there is little difference when the gold and silver assays of 367 new outcrop samples were compared to their equivalent datasets within the historic database.

The historic database contains some 18,000 pieces of data from rock chips, soil samples, stream sediment samples and geophysical data points.

"The frequency of high grade outcrops in the new and historic datasets, and their alignment with regional structural features, are similar to that at the Cononish project," Sangster said.

This pattern supports Scotgold's contention that its Grampian gold project has the potential to host a number of other ‘Cononish style' gold deposits, in addition to other styles of mineralisation such as the breccia pipes at Beinn Udlaidh.

Most of the historic data is centred around Tyndrum and it extends over an area of 250 square kilometres, along the Tyndrum Glen Fyne Fault zone.

The Grampian project, which incorporates Cononish, covers some of the most prospective areas of the Dalradian geological sequence which has been identified by the British Geological Survey as being highly prospective for both significant gold and base metal deposits.

The Dalradian sequence extends to the south west from Scotland into the north of Ireland where it hosts other gold deposits at Cavancaw which has been operating as an open cut mine since 2006, and Curraghinalt (600,000 oz of gold).