vfb
17 Jul 2015
Mine Visit Has been confirmed as the 7th of August I will contact all those who have already expressed interest via e-mailAnyone else interested , [email protected][link] out in less than 2 weeks , should be some enviable costs with the high grade and new mine plan and more efficient processing plant but wtfdik
vfb
10 Jul 2015
Thinking out loud Just on Cononish,With the BFS out at the end of the month I wonder how better we will fair from the old study with costs of £ 436 ( including 16.6 % contingency ) and production of 20,200 Au Eq Pa from 72,000 tpaSo what will the new costs be ? MmmWe have a better resource with a higher grade than beforeWe have been told that the we will be averaging 23,000 Au Eq Pa from 72,000 tpa ,a 14% increaseWe now have 24/6 processing , previously 16/6 , now much more efficientWe are having a new mining plan to increase efficiency and reduce wasteThe mine life has increased and Cononish is open at depth and to the westA 10% premium will be paid on the 25% Scottish Gold produced on site We have 40% of the company marketing the Scottish Gold So we will be producing more gold from less rock and at a higher grade through a more efficient processing plant with less waste and for longer and with a premium on Scottish GoldCount down till we see the real figures until then here are the FP calcsCononish Production18,000 Au Eq Pa @ £750 = £ 13,500,0005,000 Au @ 10% premium £ 825 = £ 4,124,000 ( Scottish Gold )Marketco5,000 Au @ £ 400 = £ 2,000,000 @ 40% = £ 800,000__________ _Sales Total £ 18,424,000Costs 23,000 Au Eq Pa @ £400 £ 9,200,000Gross Profit PA £ 9,224,000 1% = £ 92,240.00 Pa , NLR currently has 40% Quite easy to see why he is so keen !Assuming Marketco makes £400 per ounce from the Scottish Gold and production costs are £ 400 per ounce and that production targets are met etc , put your own figures in if you want I’m just thinking out loud . Scottish Gold may be more and costs may be less or the opposite , tick tock !Marketco Rns , 25/02/14The Finance Agreement includes a commitment from both the Company and the Investors to establish a new company ("Marketco"
which will market a proportion of the future gold and silver produced onsite at Cononish in the form of dore bars. This product will be identifiable and marketable as Scottish gold and silver and Scotgold will undertake to sell it to Marketco at a premium of 10% to the Comex Fix less any costs associated with refining the dore bars. Scotgold will hold 40% of the shares in Marketco with the remainder being held as to 20% by public interest entities including the Strathfillan Community Development Trust with the balance being held by the Investors.
vfb
07 Jul 2015
Herald Is the Carrot or the reward for work complete ?The HeraldSCOTGOLD Resources is set to offer chief executive Richard Gray options on 33 million shares at the current share price, exercisable only when gold is finally produced from its Trossachs mine.Mining engineer Mr Gray, who took over last October, will also be able to exercise options on five million shares when the company successfully concludes financing for the project. All the shares will vest and be exercisable at a price of 0.6p, just below the current price of 0.62p.Mr Gray said six weeks ago that the “bankable feasibility study” for the company’s Cononish Gold and Silver Project at Tyndrum in Argyll would be complete this month.He said then the latest estimate of ore reserves at the mine showed the project was robust even with gold at $1,100 an ounce (currently $1,164) and Scotgold was in “early stage discussions with potential financiers”. In March, Mr Gray said he believed construction work would start by the end of September, and “we will be pouring gold at the end of the first quarter 2017”.Scotgold listed on the Alternative Investment Market in 2010 and originally hoped to start production in 2011 but was hit when the gold price fell back from $1,600. It was rescued last year by Nat Le Roux, former chairman and chief executive of IG Group, now an independent director of the London Metal Exchange, who is chairman and holds more than 40 per cent of the shares.The company had last October appointed a Scottish chairman, Sandy Littlejohn, but other commitments forced him to resign after two months.The group’s shares peaked at 6.25p in October 2011.
oohthatscheep
06 Jul 2015
RNS late Why so late with the 7am RNS/Late again and again Duh, my ed urts.
vfb
05 Jul 2015
News / Options Looks like the Carrot is being dangled Incentive Option Package for Chief Executive OfficerScotgold announces that it has entered into two Incentive Option Agreements with Mr Richard Gray, Chief Executive Officer. The grant of the options is subject to shareholder and regulatory approval which will be sought at the earliest available opportunity.The Incentive Option Agreements are structured as two tranches.The first, Tranche A, is for 5 Million options to acquire ordinary shares at an exercise price of 0.6p, which will vest and become exercisable when the Company has successfully concluded the financing of the Cononish Gold and Silver Project.The second, Tranche B, is for 33 Million options to acquire ordinary shares at an exercise price of 0.6p, which will vest and become exercisable when the Cononish Gold and Silver Project produces its first dore.Each option is exercisable into one ordinary fully paid share in Scotgold. The options will lapse on 30 June 2025.Hopefully the carrot will be eaten long before then
vfb
04 Jul 2015
Pictures Added 3 pictures that where found by the Forestry Commission on our licence .Make your own minds up but these where of particular interest to our Geologist , why ?Answers to [email protected] .[link]
BurmahBoy
02 Jul 2015
Re: Tyndrum Fab work VFB....Appreciated !
vfb
01 Jul 2015
Tyndrum All those who e-mailed questions should have their replyGreat time had in Tyndrum with unusually good weather, lol , still snow on Ben Lui .Will confirm mine tour date in next few days
steelwatch1
30 Jun 2015
Re: Shares Magazine Received today
ear Shareholder, Scotgold has been featured in the June 25 issue of Shares Magazine, reproduced here with their kind permission. Richard Gray[link]
vfb
28 Jun 2015
Questions I will be in Tyndrum on tuesday and wednesday , anyone with any questions on the Shares Magazine article or in general can e-mail me on [email protected] and I will put them to our management . I have a good few of my own . On my return I will confirm the Mine Visit Date so anyone wishing to come along e-mail me as aboveI have read over Shares Magazine article a few times now and it gets better every time :1, "The CSA report also noted that as the vein structure is open to the west and at depth, there is good potential to further increase this resource base with further exploration drilling."2, "significant improvements have been made to the access design which will minimise waste development, reduce haulage requirements (and costs)"3, "These increases in the quantum and confidence level of both the estimated Mineral Resources and Ore Reserves (completed in compliance with the latest JORC 2012 code) dramatically improves the attractiveness of Cononish to potential project finance partners."4 , "A Bankable Feasibility Study will be completed by the end July 2015 and this will demonstrate the full economic strength of the project"5, 24/6 processing ,"This development will facilitate efficient plant operationand potentially capital expenditure reductions- under the original mine plan this was £23million, but the change to 24/6 plant operation plus improved understanding of the shape and scale of the orebody could improve that figure."6, After completion of the Bankable Feasibility Study at the end of July, the company will focus on concluding the best possible financial arrangements to fund the necessary capital. Once secured, and with all the material permitting already in place, an approximately 18 month construction period will commence forthwith.7, In the longer term the company has the ambition of looking for other small scale but potentially highly lucrative gold mining developments across Europe where it can apply its skills and expertise with small, high grade deposits similar to Cononish.So the short version of this is we have a very good chance of a much longer life of mine with higher grades and lower costs. The BFS will be with us in a month , demonstrating the economic strength of Cononish which will improve Cononish's appeal to Finance partners.Now on (5) The 24/6 processing is a big improvement adding an additional 8hrs a day of processing and removing the daily stop start process that the 16/6 caused and could allow for a smaller Plant but will we go that way ? Hence the "potentially " and not "will" reduce capital reductions ! With a new improved understanding of the ore body and the reductions in waste and the increased resource that is open at depth and to the west will we stay with the larger plant and increase production or take the saving on capital costs ? Increase production would be my choice .Now on (6) After the BFS at the end of July we will conclude the best possible finance arrangements .I believe that NLR and Co took this on with a clear plan and are more than aware of what Finance they could achieve long before now hence the confidence and the backing with hard cash which now sees the management hold almost half of the company.John Bentley , Richard Harris , Chris Sangster , Richard Grey , Peter Newcombe , Nat le Roux Now on 7,To the future we may well see further Cononish style deposits and we will role out our blue print National Park planning permission across Europe and may well see it within the year , I think our management have already identified some potential projects, this is based upon conversations I have had in the past with our geologists but we will have to wait on that one to see . As per I will be putting my money where my big GUB is and having some more on Monday
vfb
25 Jun 2015
Shares Magazine This is from Shares MagazineFormed in 2007, Scotgold listed on the ASX in 2008, and subsequently on AIM in 2010. The principal objectiveof the company was and remains the advancement of the company’s 100% owned Cononish Gold and Silver Project in Scotland’s Grampian Highlands. Cononish was identified in the 1980s but serious work only began by Scotgold in 2007.Since then much has been achieved, most importantly the gaining of planning permission for Cononish (which is situated within the Loch Lomond and Trossachs National Park) in 2012 and the completion of the Development Study conducted by AMC Consultants (UK) Ltd in 2013. However the company’s progress stuttered badly in 2013, when afall in the gold price (damaging investor sentiment towards the sector) coincided with the company’s intention to raise further funds to progress Cononish to development. Meanwhile the company’s financialresources were being drained by its requirement to service a short term loan. It was only when a consortium led by Nat Le Roux, seeing the potential in the project, injected new funds and new management into the company and underwrotea rights issue (enabling the loan to be redeemed in full) at the end of 2014 that the company’s prospects - and the prospect of constructing Scotland’s first ever gold mine at Cononish – were put firmly back on track.New ManageMent, New impetus, Improved Resource The consortium of new investors was led by Nat Le Roux, former chief executive of IG Group between 2002 and 2006, and Richard Harris, who founded Eleckra Mines, now Gold RoadResources. Richard Gray, who had undertaken due diligence for the consortium and has a strong operational background in the gold mining sector with Avocet, Gencor and Gold Star, became chief executive officer with the remit of taking Cononish into production.As part of this remit the company commissioned a new Mineral Resource Estimate from CSA Global, announced in January 2015, using the latest 3D modelling and geostatistical techniques. This dramatically increased the estimates in the measured and indicated categories to 541,000 tonnes at an average gold grade of 14.3 grams per tonne. The orebody also hosts over a million ounces of silver in the measured and indicated categories. The CSA report also noted that as the vein structure is open to the west and at depth, there is good potential to further increase this resource base with further exploration drilling.Using the new 3D resource model, the company then undertook a complete review of the mine access design and mining methodology using Bara Consulting. Whilst this review confirmed the use of Long Hole Open Stoping (LHOS) asthe most appropriate method for the bulk of the orebody, significant improvements have been made to the access design which will minimise waste development, reduce haulage requirements (and costs) and improve the flexibility/ early access to the identified wider higher grade zones.On the basis of the new Mineral Resource estimate and mine design, a new Ore Reserve estimate was completed and announced in May 2015. This again showed a significant improvement with 555kt in the Proven and Probable categories at average grades of 11.1g/t gold and 47.7g/t silver ( for 198koz and 851koz gold and silver respectively).These increases in the quantum and confidence level of both the estimated Mineral Resources and Ore Reserves (completed in compliance with the latest JORC 2012 code) dramatically improves the attractiveness of Cononish to potential project finance partners. A Bankable Feasibility Study will be completed by the end July 2015 and this will demonstrate the full economic strength of the project.Work with the National Park authority has continued – recently the company has been granted permission to operate its plant 24 hours per day for six days of the week (compared to the previously agreed 16 hours a day for six days per week). This development will facilitate efficient plan
buzzard stubble
23 Jun 2015
director buys RNS Number : 9366QScotgold Resources Ltd23 June 2015Scotgold Resources Limited("Scotgold" or the "Company"Director/PDMR ShareholdingScotgold announces that Mr Richard Gray, Chief Executive Officer of the Company, had yesterday purchased 2,912,946 ordinary shares in the Company ("Ordinary Shares" at 0.58 pence per Ordinary Share. Following this transaction, Mr Gray now holds 2,912,946 Ordinary Shares representing 0.28% of the issued share capital of the Company.ch
vfb
17 Jun 2015
Mine Tour Mine tour ,All those interested e-mail me on [email protected] will be app one months time .
BurmahBoy
12 Jun 2015
Re: Funding Thanks for that VFB. Fabulous article. Very exciting stuff.... Such a contrast to our friends down under.... I may have to cut my losses with that one soon (dependent on the latest little drilling cycle results). They're on final base as far as my patience is concerned.Again cheers !!!
vfb
11 Jun 2015
Re: Funding We won't have to wait long to find that one out as the BFS is due end of July . Below is Richard Grey's words form Minesite , 10/02/2015[link] FordThere’s a new man at the top at Scotgold. Richard Gray first came to Scotgold as a consultant more than a year ago. Back then, the gold price had collapsed, financing for junior mining companies had disappeared and Scotgold’s prospects of ever getting its Cononish gold project into production looked bleak.There was also the small matter of an outstanding loan to RMB. And that was a real deal-breaker.“The company had a study”, says Richard. “It had a project. It also had the loan from RMB and no way of paying it off.”What’s more, the burn rate simply from servicing the loan was unacceptably high.Something had to be done. And so it was that a new group of investors came to the company with a view to turning it around, sorting it out and finally, at long last putting Cononish into production.Among the new investors was Nat Le Roux, well-known among financial circles as the man who ran IG Group between 2002 and 2006, and Richard Harris, the man who founded Eleckra Mines, now Gold Road Resources, which is busy proving up a new gold camp in Yarmarna in Australia and who before that organising the syndicate which recapitalised Alcyone Resources in 2009.Between them Nat Le Roux and Richard Harris took just over 12 per cent of Scotgold in a placing organised back in 2014. But before they could close on the deal and deliver the money they needed someone to do the due diligence for them.Enter Richard Gray, late of Avocet Mining. “The group of investors came in”, he says, did a placing and got the company liquid again. They also wanted a change at the board level.”Chris Sangster, the man who’d done so much to keep Scotgold alive, and to deliver the company safely through the treacherous permitting process, was not to be dispensed with. Parting with such a store of knowledge on the company and its asset would not have been prudent. But a new public face, and a new go-to man for the City, was deemed desirable.Chris moved to non-executive. That left the CEO’s role open. “They invited me to take it on”, says Richard Gray. “There was a board meeting on October 10th of last year when the management changes were finalised. Our share price started moving from that point.”Not that things have gone entirely without hitch. New chairman Sandy Littlejohn, subsequently had to relinquish the role after he was unable to come good on underwriting commitments he gave in respect to a subsequent rights issue that was designed to bring in enough money to pay down that RMB debt in full.But the rights issue was also underwritten by Nat Le Roux so most of the money did come in, the RMB debt has been paid in full and the company is now funded until at least it can come up with a comprehensive restart plan to take to the market. At that point it will be looking for project finance, and the game will change again.But in the meantime Richard Gray has got one or two jobs in hand.“The feeling was that we weren’t putting our best foot forward”, he says. “So we employed CSA Global to redo the resource. Previously we used the polygonal methodology, which is poor in its prediction of grade. I felt it to be conservative. So we used the latest techniques and the result has been a phenomenal success for us.”What he means is that on 21st January the company was able to announce that total mineral resources had increased by 34 per cent to 617,000 tonnes and that the measured and indicated resource had more than tripled, to nearly 250,000 ounces.What’s more, the grade was 9% better, at 14.3 grams per tonne gold in the measured an indicated portion, and 18% better across the whole resource.“There’s more tonnes and more gold”, s
