24th Feb 2016 08:32
LONDON (Alliance News) - Shares in Scotgold Resources Ltd jumped Wednesday after it said it is proposing trial gold production at its Cononish project in Scotland.
Scotgold said it will conduct a bulk processing trial using a 1.5 tons per hour pilot plant, to begin in May of this year subject to getting planning permission. It has submitted pre-planning application enquiry in relation to planning permission to the Lock Lomond & The Trossachs National Park Planning Authority, with a formal planning application to be filed shortly.
It expects to process 2,400 tons of its 7,000 ton stockpile of ore graded at around 7.9 grammes per ton gold and 39 grammes per ton silver over a six-month trial period.
Scotgold said that early discussions indicate that the Scottish mined gold produced from this trial can be sold at a "significant premium."
The company said that it has been in talks with various financial institutions since releasing its bankable feasibility study last August, but it has not yet reached a commitment for the full funding on "acceptable terms" for the project.
"This is the most tangible and exciting development undertaken by the company since incorporation. In addition to anticipated positive technical results, the trial will produce an historic 'first pour' gold output, sufficient to determine whether there are grounds to review the mine development plan and moreover to establish Cononish as a low cost, low risk, near term production, gold project," said Chief Executive Officer Richard Gray in a statement.
Shares in Scotgold were up 21% at 0.666 pence Wednesday morning, one of the best performers in the AIM All-Share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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