Scotgold Resources (ASX: SGZ) is targeting gold and silver mineralisation within Scotland.
A producing gold mine in Scotland could soon become a reality if Scotgold Resources' (ASX:SGZ) pilot processing trial at its Cononish gold-silver mine, gains planning permission.
The trial is planned to begin in May this year for the project, which is in the Grampian Highlands in the north-east of the country and would produce an historic “first pour” of gold in Scotland.
Providing impetus for the pilot is an existing stockpile of ore on the surface of about 7,000 tonnes – grading 7.9g/t gold and 39g/t silver – for a low risk trial of the processing plant over a six month period.
A small scale portable pilot plant could treat about 2,400 tonnes of this material over approximately a six-month period at a low cost.
Of note, the gold produced from the trial could be sold at a significant premium, boosting the revenue case.
Results and experience gained from the trial would allow Scotgold to investigate whether a phased mine development would achieve higher returns to shareholders and lower peak funding.
Cash flows from this phase could enable a self-funding of certain elements of capital expenditure of a larger operation.
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