Cononish Project

Project status

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View of Cononish Mine showing (right to left) stockpiled ore, plant buildings and adit.

 

2017 Planning Application

Scotgold Resources Ltd is currently preparing a planning application for a revision of the extraction and processing operations at Cononish Gold Mine, originally permitted in 1996 and subsequently in 2012 and 2015.

The management of tailings is being redesigned in order that dry tailings may be ‘stacked’ on site, and landscaped into a number of naturalistic moraine landforms and not a single large tailings management facility, as in the previous schemes. This revised programme ensures that the project is scalable, thus reducing the initial capital expenditure. This scheme also has significant environmental benefits: facilitating progressive restoration of the site; avoiding the risks associated with the management of wet tailings; and, an improved final landform.

An Environmental Impact Assessment of the revised scheme is currently underway and will focus on the altered landscape and visual impacts and the management of site drainage.

In accordance with the Town and Country Planning (Development Management Procedure)(Scotland) Regulations 2013, two public Pre-Application Consultation events will be held at Tyndrum Village Hall, FK20 8SA on 10th and 24th May, 2017. The venue will be open from 10.30am to 8.30pm. Details of the proposal will be available for viewing and representatives from Scotgold Resources Ltd, and planning and environmental consultants – Dalgleish Associates Ltd, will be available to answer questions on all aspects of the proposal.

Comment sheets will be available at the public event for any party wishing to make written comment. Alternatively, comments in relation to the proposal may be sent to the applicant (Contact Us) or our agent (Contact DAL) for consideration in finalising the planning application, no later than 14th June 2017. Please note that this is a Pre-Application Consultation, these comments are not representations to the Planning Authority. When the application is submitted to Loch Lomond and the Trossachs National Park Authority there will be an opportunity to view the finalised proposals and to make representations to the Planning Authority.

Current Activities:

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Ore being loaded into processing plant as part of BPT

The Bulk Processing Trial is continuing and the conclusions drawn from this will be used to both optimize the final process plant design and to assess the potential for a revised development plant which include a phased production build up and lower peak funding requirement.

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