Mine host: Scotgold tests produce encouraging results

Scotgold Resources, the Aim-quoted firm set to open Scotland’s only commercial gold mine near Tyndrum, said it was “encouraged” by exploratory tests in another area five kilometres from its maiden project.

The company, which is also listed on the Australian stock exchange, said there were signs of gold, silver and molybdenum in its “river vein” prospect, situated to the north-west of the Cononish gold and silver deposit and outside the boundaries of the Loch Lomond and the Trossachs National Park.

In October, the firm won approval to extract gold worth more than £100 million from the hills at Cononish, in Perthshire, and also acquired the rights to explore 2,200 square kilometres of the Central Highlands.

Chris Sangster, chief executive, pictured, said the findings showed “similarities” to the Cononish vein “with high grades of silver and significant lead, zinc and tellurium values in addition to gold”.

Shares in the firm did not change following the announcement.