Scotgold seals jewellery deal for first Cononish gold

Scotgold's precious metal is making its way to jewellers' shelves. Picture: John Devlin

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The company developing Scotland's first commercial gold mine has struck a deal to supply two jewellery manufacturers with precious metal from its Cononish site.

Scotgold Resources said the sales agreement covers the first refining batch of about 16 ounces of gold made available for jewellery from its bulk processing trial at its gold and silver mine near Tyndrum.

It added that the deal involved “significant input” from refiner Baird & Co and the Edinburgh Assay Office, while the overall management of the negotiations with the jewellers was carried out by marketing consultant The Dragonfly Initiative.

Richard Gray, chief executive of Scotgold Resources. Picture: John Devlin

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Scotgold chief executive Richard Gray said: “This is yet another pleasing milestone and validates our belief in the strength and value of combining Scottish gold of proven provenance with the skill and prestige of the Scottish jewellery industry”.

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Although all the parties involved have agreed to keep the terms of the sale confidential, Scotgold said the premium received was higher than the 30 per cent reserve stipulated for its auction in November of the first ten one-ounce coins, or rounds, minted by Baird & Co.

The auction, overseen by accountant Scott-Moncrieff, raised almost £46,000, with the highest price paid for a round – stamped with a stag’s head and unique serial number, accompanied by a certificate of authenticity from the Edinburgh Assay Office – was more than £21,000, with the lowest successful bid coming in at £2,300. The average price accepted was £4,557.90 an ounce.

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