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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Scotgold Resources Limited | LSE:SGZ | London | Ordinary Share | AU000XINEAK5 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 13.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMSGZ
RNS Number : 9515A
Scotgold Resources Ltd
29 March 2017
Hot Features
Premium
30 March 2017
SCOTGOLD RESOURCES LIMITED
(The "Company" or "Scotgold")
Activities Update
HIGHLIGHTS
* The Bulk Processing Trial ("BPT") is operating above
design throughput rate of 1.5tph and has achieved an
average monthly production of 424 WMT since September
2016.
* The average grade of material treated so far at
6.3g/t Au is lower than global estimate of material
contained in the ore stockpile of 7.9g/t Au.
* The metallurgical recovery of 64% achieved with the
simplified gravity only BPT circuit and tailings
analysis confirms recovery of 93% is achievable in
the planned production plant as stipulated in the
Updated BFS.
* Gold rich Pyrite concentrate sales to Ocean Partners
are proceeding as envisaged.
* Positive test work results have been received on the
leaching of gold rich Galena concentrates. This
improves potential viability of long term off site
leaching facility and also potentially offers a lower
cost alternative to the current BPT cupellation
route. Further cupellation has therefore been put on
hold whilst this is investigated further.
* The Company has today drawn down the GBP1.0m of funds
under the secured loan from Nat le Roux, details as
announced on 15 March 2017.
* Several longer term project funding proposals are
currently under review. At the reduced capex
requirements of the revised, phased approach to
development, management is confident that project
funding will be available.
UPDATE TO THE BULK PROCESSING TRIAL ("BPT")
The Company is pleased to announce the results of the BPT up to the end of February 2017.
Tonnage: The BPT has processed approximately 2,600t of material during the period from May
2016 to February 2017. Throughput rates for the hammer mill have been consistent, and operational
improvements to the primary crushing regime have resulted in the current rates exceeding the
design rating of 1.5tph. Experience operating the plant has reduced unscheduled stoppages
and the plant went from single to double shift in September 2016, achieving average production
rates of 424WMT per month in the period to end February 2017. It is planned to introduce an
extended double shift system in April, which will further increase overall production rates.
Grade: The stockpile being processed contains an indicated resource estimated at 7,000t at
a grade of 7.9g/t Au, compared to the average achieved for the first 2,600t of 6.3g/t Au.
A high degree of variability has been observed within the stockpiled material, which reflects
upon operational issues during the material's original excavation and deposition, and has
no relation to the accuracy of the project's in-situ mineral resource estimate. A final reconciliation
of the stockpile will only be practically possible once it its fully treated.
Recovery: Estimated monthly metallurgical recoveries have averaged 64% to date. Analysis of
the BPT tails indicates that the coarse grind achieved with the hammer mill (approximately
p80 500micron) does not fully liberate the fine free gold and sulphides, but that when these
tails are further milled to the BFS design size of p80 125 micron, the design recoveries of
93% can be achieved. A less significant factor is that a proportion of the fine sulphides
that are liberated by the hammer mill, are not recovered by the BPT spiral circuit (which
works better on the coarser material). The BFS design circuit utilises a flotation circuit,
rather than spirals, which is more efficient at recovering this finer fraction.
Products: The BPT generates 3 products, namely; Pyrite concentrate (which is the most significant
in terms of volume and gold/silver content), Galena concentrate (which has the potential to
provide the bulk of the "Scottish" gold for the jewellery trade, and a "Goldkacha" gravity
concentrate which although not a significant in terms of gold/silver content, is extremely
high grade and therefore amenable to direct smelting on site for demonstration purposes.
In November 2016, twelve 1oz rounds were minted from gold extracted from the Galena concentrate,
11 of which were sold. Subsequently in January 2017 21 bags (18.3 DMT) of Pyrite concentrate
containing approximately 110oz Au and 445 oz Ag was shipped to Ocean Partners in Holland for
smelting. A further 10 bags were shipped in February (awaiting final assays and weights) and
it is anticipated another similar shipment will take place in April.
To date approximately 1,100kg of Galena concentrate have been produced from which, as mentioned
above, the initial Scottish gold rounds were produced. This gold was extracted from the Galena
concentrate by manually re-tabling the material and though effective, this proved to be very
labour intensive and disruptive to the ongoing BPT operation. An alternative whereby the gold
can be extracted by cupellation was devised and material was sent for processing using this
method by Wheal Jane Laboratories in Cornwall. In parallel, test work has been conducted on
extracting the gold by leaching, which is an important factor in assessing the future opportunity
for an off-site in country leaching process for the concentrates. This has demonstrated that
high recoveries (approximately 95%) can be achieved and this therefore could offer a more
cost effective alternative. Further cupellation of the Galena concentrate has therefore been
put on hold whilst the practicalities of the leaching alternative are being assessed. Once
the most appropriate processing route for this material has been determined and as a consequence
a more confident assessment of the quantity of Scottish gold likely to be made available to
the jewellery trade, the emphasis will move to finalising these discussions and determining
an appropriate premium for the sale of this gold and silver.
The Goldkacha concentrate is currently held in inventory and will ultimately supplement the
Scottish gold sales.
UPDATE TO THE BANKABLE FEASIBILITY STUDY ("BFS")
The Executive Summary for the Update to the BFS, key results of which were recently announced,
will be made available by 7(th) April 2017.
CORPORATE UPDATE
The Company is pleased to announce that the loan agreement with Nat le Roux as previously
announced on 15 March 2017 has been completed and the funds drawn down. After careful consideration
of the options available, the Company believes this funding mechanism offers the best value
to all existing shareholders, as well as demonstrating Nat le Roux's continued support for
the project.
Scotgold CEO, Richard Gray said "Although the BPT does not, and was never intended to replicate the process route envisaged in the original BFS, for which extensive metallurgical test work has been conducted, it continues to meet its primary objectives and provide valuable operational experience, particularly with regards to alternative tailings management systems. Scottish Gold has been sold as commemorative rounds, gold is being sold as pyrite concentrate and Scottish Gold will be sold to the jewellery trade in the coming months. Whilst we continue to optimise the BPT operations, our key focus now is securing the much reduced finance needed to put our mine into commercial production and achieving the necessary permitting."
For further information please contact:
Scotgold Resources Stockdale Securities Capital Markets Smaller Company
Limited Limited Consultants Capital
Ltd
------------------- --------------------- ----------------- ----------------
Richard Gray Robert Finlay Simon Rothschild Rupert Williams
- CEO / Ed Thomas
------------------- --------------------- ----------------- ----------------
Tel: +44 (0)1838 Tel: +44 (0)20 Tel +44 (0)7703 Tel: +44
400 306 7601 6100 167 065 (0)20 3651
2911
------------------- --------------------- ----------------- ----------------
Forward Looking Statement
Statements regarding plans with respect to the Company's mineral properties are forward-looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.
Appendix A: Glossary of technical terms
Term Description
------------- -----------------------------------------------
GBP or GBP Pound Sterling
------------- -----------------------------------------------
% Percent
------------- -----------------------------------------------
Ag Silver, atomic number: 47. Measured
in parts per million (grams per tonnes)
------------- -----------------------------------------------
Au Gold, atomic number: 79. Measured
in parts per million (grams per tonnes)
------------- -----------------------------------------------
CAPEX Capital Costs (short for Capital Expenditure).
------------- -----------------------------------------------
CP Competent Person
------------- -----------------------------------------------
Cupellation Cupellation is a refining process
in metallurgy, where ores or alloyed
metals are treated under very high
temperatures and have controlled operations
to separate noble metals, like gold
and silver, from base metals like
lead, copper, zinc, arsenic, antimony
or bismuth, present in the ore
------------- -----------------------------------------------
DMT Dry metric tonne
------------- -----------------------------------------------
g/t Grams per tonne (equal to parts per
million)
------------- -----------------------------------------------
Galena Galena is a lead sulphide mineral
with a chemical composition of PbS
------------- -----------------------------------------------
Goldkacha Goldkacha is a proprietary name for
a low g centrifugal separation device
------------- -----------------------------------------------
Leaching Leaching is the loss or extraction
of certain materials from a carrier
into a liquid (usually, but not always
a solvent)
------------- -----------------------------------------------
m metre
------------- -----------------------------------------------
M Million
------------- -----------------------------------------------
micron a micron is an SI derived unit of
length equaling 1×10(-6) of a
metre; that is, one millionth of a
metre
------------- -----------------------------------------------
Mineral A concentration or occurrence of material
Resource of intrinsic economic interest in
or on the Earth's crust in such form,
quality and quantity that there are
reasonable prospects for eventual
economic extraction. The location,
quantity, grade, geological characteristics
and continuity of a Mineral Resource
are known, estimated or interpreted
from specific geological evidence
and knowledge. Mineral Resources are
sub-divided, in order of increasing
geological confidence, into Inferred,
Indicated and Measured categories
------------- -----------------------------------------------
MRE Mineral Resource Estimate
------------- -----------------------------------------------
Mtpa Million tonnes per annum
------------- -----------------------------------------------
OPEX Operating Costs
------------- -----------------------------------------------
oz. Troy ounce (31.1034768 grams)
------------- -----------------------------------------------
P80 Maximum size of 80% of the particles
------------- -----------------------------------------------
Probable A 'Probable Ore Reserve' is the economically
Ore Reserve mineable part of an Indicated, and
in some circumstances, a Measured
Mineral Resource. The confidence in
the Modifying Factors applying to
a Probable Ore Reserve is lower than
that applying to a Proved Ore Reserve
------------- -----------------------------------------------
Proved Ore A 'Proved Ore Reserve' is the economically
Reserve mineable part of a Measured Mineral
Resource. A Proved Ore Reserve implies
a high degree of confidence in the
Modifying Factors
------------- -----------------------------------------------
Pyrite An iron sulphide with the chemical
composition of FeS(2)
------------- -----------------------------------------------
Reserves Mineable geological resources
------------- -----------------------------------------------
Resources Geological resources (both mineable
and un-mineable)
------------- -----------------------------------------------
Silver Precious metal (Ag), atomic number:
47
------------- -----------------------------------------------
t Tonne
------------- -----------------------------------------------
TSF Tailings Storage Facility
------------- -----------------------------------------------
tph Tonnes per hour
------------- -----------------------------------------------
tpm Tonnes per month
------------- -----------------------------------------------
WMT Wet metric tonne
------------- -----------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCKKLFLDXFLBBQ
(END) Dow Jones Newswires
March 30, 2017 02:00 ET (06:00 GMT)
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