Scotgold Resources exploration project is located in the Grampian Highlands of mid-western Scotland. The Cononish gold and silver deposit forms the core economic basis of the Company’s Grampian Project. The deposit is located on Cononish Farm within the north-western extremity of the Loch Lomond and Trossachs National Park and lies about 90km northwest of Glasgow.
Within Scotland, the large tectonic block known as the Grampian Highlands, bounded by the Great Glen Fault to the northwest and the Highland Boundary Fault to the southeast, is highly prospective for gold and base metals. This terrane, which consists mostly of metasediments and volcanics of Dalradian age, is a direct continuation of the Dalradian gold province of Northern Ireland which hosts the Curraghinalt and Cavanacaw gold deposits.
Within the SW Grampian Highlands is the Tyndrum Mineral Field, a historic mining area which contains several vein-hosted deposits of base metals, including lead, copper and zinc. The best known of these is the historic Tyndrum group of lead mines, which were discovered in 1741 and intermittently produced lead for more than a century. Less commonly some veins also contain gold and by far the most important example to date is the Cononish vein-hosted gold and silver deposit situated about 4km SSW of Tyndrum.
Previous exploration has also identified the Tyndrum-Glen Fyne Fault — one of the major fault structures of the Grampian domain — as a zone of significant potential for lode-hosted gold mineralisation in the Glen Fyne area. Additionally there is also scope for new precious metal and base metal discoveries through the identification of geological settings which, elsewhere in the world, host significant metalliferous deposits. The British Geological Survey (BGS), which has completed geochemical surveys over the entire area held by Scotgold, has repeatedly expressed the view that there are significant metalliferous deposits yet to be discovered in the Dalradian of Scotland.
In November 2007 Scotgold’s applications for exploration licences for gold and silver between Craignure in the southwest and Pitlochry in the northeast were granted. The recently granted exploration licences cover an area of about 2,200 km2 and include much of the prospective Dalradian Supergroup.