Scotgold aims to restart gold project

Scotgold aims to restart gold project

Scotgold Resources (ASX: SGZ) has decided to reopen a gold mining project in the Scottish Highlands.

Gold-laced rocks have been found in Cononish, north of Loch Lomond, and two equipment containers will be sent from South Africa with supplies this week.

Richard Gray, Scotgold’s CEO, said the project was a significant achievement and the site could contain 200,000 ounces of gold. Gray said he anticipated the primary six-month bid to process 7,000 tonnes of ore and hopes it will create a larger mine.

The equipment coming from South Africa will be established in May at Grangemouth, depending on planning permission. The company has authorisation from Trossachs National Park and Loch Lomond for the larger mining plan.

Scotgold will have to pay an allowance to the Crown Estates on the precious metals, including any small amounts of the silver it generates.

Gray said a trial will assist the company in demonstrating the price it could ask for gold originating from Scotland.

“It is like De Beers with diamonds – you have to create the market,” noted Gray. “The more we can create a market the better the price will be.”