Cononish Mine and Exploration

New Developments

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Current Planning Status

The Cononish Gold and Silver Project planning application was received by SGZ Cononish Ltd a subsidiary company to Scotgold Resources Ltd incorporated on 21 June 2017.

The company is currently focused on concluding the final planning obligations and commitments from the Trossachs National Park Planning Authority in to order to commence mining activities. Richard Grey (CEO) commented that:

‘We are hopeful that the efforts that have been made in satisfying the conditions and the constructive engagement of the various agencies will result in the commencement of Cononish in the very near future.’

Alongside activities to conclude planning and environmental obligations, Scotgold Resources Ltd has been active in preparing for work on the ground and in recruiting key staff.

The company has been offered a Regional Selective Assistance Grant for the development of Cononish from Scottish Enterprise. The proposed grant of £430,000 would be conditional to the employment of 36 full-time staff and first phase capital expenditure of £8.6 million. Discussions are currently in hand to finalise the grant contract.

Current Activities:

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Mining equipment arriving on site ready for action, November 2018.

Resources

Classification K tonnes Grade AU

g/t

Metal AU

Koz

Grade Ag

g/t

Metal Ag

Koz

Measured – In-situ 60 15.0 29 71.5 139
Indicated – In-situ 474 14.3 217 58.7 895
Indicated – Mined Stockpile 7 7.9 2 39.0 9
Sub-total M & I 541 14.3 248 59.9 1,043
Inferred – In-situ 75 7.4 18 21.9 53
Total MRE 617 13.4 266 55.3 1,096

Reported from 3D block model with grades estimated by Ordinary Kriging with 15 m SMU Local Uniform Conditioning adjustment. Minimum vein width is 1.2m. Totals may not appear to add up due to appropriate rounding

Note: MRE prepared by CSA Global (UK) Ltd in accordance with JORC 2012 – see AIM release: 22/01/2015 – Resource Estimate Update

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Long section through Cononish vein coloured by MRE classification

Ore Reserves

Classification K tonnes Grade AU

g/t

Metal AU

Koz

Grade Ag

g/t

Metal Ag

Koz

Proven 65 11.5 24 51.5 108
Probable 490 11.1 174 47.2 743
Total 555 11.1 198 47.7 851

 

(Bara Consulting Limited – Ore Reserve Statement dated May 2015)

(Estimate based upon JORC 2012 reporting rules, Gold price US$1,100/oz, Silver price US$15/oz and Exchange rate 1.6 US$/£.)

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Schematic of Full Mine Development Plan