31st Oct 2013 14:17
LONDON (Alliance News) - Scotgold Resources Ltd Thursday said it has made significant progress towards preparing the Cononish Gold and Silver Project in Scotland for financing.
The Scotland-based gold, silver and base metal exploration company said a recent financial study by AMC Consultants found that the project has the ability to provide an estimated post tax 23% rate of return at USD1,300 per ounce, the low end of the current gold price trading range.
The company said at base case prices, the project will generate a GBP26.3 million pretax cashflow with a pretax net present value of GBP11.8 million.
Scotgold said that all necessary permitting has either been granted or is due to be granted shortly and the company believes it can rapidly start development once it has secured financing.
The company said it believes Cononish could be producing gold and silver within 18 months of obtaining financing.
Scotgold shares were up 2.5% to 1.23 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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