3rd Feb 2014 09:39
LONDON (Alliance News) - Scotgold Resources Ltd Monday said it is evaluating its options for a smaller project at the Cononish Gold and Silver Project in Scotland.
The metals exploration company, which has sought a range of alternatives to finance the development of the site since April 2013, said it made the decision as continued global economic uncertainty and volatile metal prices meant the funding for mining projects remains difficult.
The company said it has been considering a smaller initial project, treating higher grade material through a smaller processing facility and is in the process of commissioning its external mining, metallurgical and tailings consultants to evaluate the options for the smaller project, including re-estimating the capital and operating costs.
Scotgold said the results from these studies will be incorporated into a revised Development Study, the results of which are expected in the next two to three months.
In November 2013, the company announced a rights issuance which closed on December 31, and raised a total of USD830,972 before expenses through the issue of 166.2 million new shares.
Scotgold Resources shares were down 17% to 0.352 pence, putting it in the top three AIM losers in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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