Several other areas close to the Cononish mine in the Loch Lomond and Trossachs National Park are at least as good a prospect for gold exploration, Scotgold Resources has said.
The AIM-listed explorer has completed a prospectivity map covering around 250 square kilometres, or around six per cent of the total area it has under option.
It has identified “six highly prospective targets” within 2.5 kilometres of the Cononish mine at Tyndrum in Argyll, which is intended to be producing gold within 18 months. Another five highly prospective targets are said to be within the mapped area, and only four of the 11 targets are inside the boundaries of the national park. The two closest to the existing site are at Coire Nan Sionnach and Kilbridge, while the two strongest candidates overall are outside the park.
“The study has highlighted the Beinn Udlaidh and Arrivain areas in particular as having prospectivity at least comparable to the Cononish deposit and further exploration work for these is being prioritised accordingly,” the company said. “Based on the ranking in the study, the map shows the area to have a prospectivity at least comparable if not higher than the Cononish deposit.... and (also) indicates the high potential for Cononish style mineralisation in the Glen Orchy option area.”
It went on: “Further work is now planned to expand the collection of structural data and coverage of the prospectivity map regionally.”
It said the analysis would also help identify the best strategy for developing exploration at Cononish.
Richard Gray, chief executive, said: “It is very encouraging that this study has identified prospects comparable to Cononish and outside the LLTNP. Should these ultimately be successfully advanced to a planning stage as hoped, the invaluable experience we have gained through working with LLTNP will facilitate a more timely process.
“It is also encouraging that the study has cost- effectively unlocked value in the extensive database Scotgold now has over this area and should result in more focused and cost effective exploration programs in the future, hopefully leading to a fast-tracking of new exploration discoveries.
“Armed with this new tool, we look forward to continuing our field activities over these priority areas in 2016.”
Scotgold Resources raised £570,000 in October in its latest share placement to fund work at Cononish, and published full year results showing losses widening from £700,000 to £979,000. In August it published a financial study showing that the mine would be viable at a gold price down to $700 an ounce.
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