Time to dig in: Scotgold plans to start mine work this year

Published on 17/03/2012 00:00

Scotgold Resources, the Aim-quoted firm set to open Scotland’s only commercial gold mine near Tyndrum, yesterday said it was now exploring financing options to start development.

The company, which announced losses of £433,000 for the six months to 31 December up from £371,000 the previous year, is keen to commence work on the Cononish project in the second half of 2012. Westhouse Securities yesterday reiterated its “strong buy” rating for the shares with an 11p price target, roughly double the current level.

“With the last major hurdles clear we see a clear path to production for Cononish, a small but attractive project which would offer significant returns at current gold prices,” said analyst Rob Broke.

Scotgold, led by chief executive Chris Sangster, pictured, said a planned aerial survey of its neighbouring Grampian gold prospect continues to be delayed as it has not received clearance from civil aviation authorities and the company was exploring alternative options.

PERRY GOURLEY