High Gold Grades Continue at

RNS Number : 1161V

Scotgold Resources Ltd

28 October 2010

 



  

 

 

28 October 2010

Scotgold Resources Limited ("Scotgold" or the "Company")

High Gold Grades Continue at River Vein Prospect in Scotland

Mapping and sampling of rock outcrop exposed in the River Orchy continues to identify veins and zones with high grade gold mineralization, including

-     A grab sample between veins one metre apart assayed 145.5 g/t Au and 28.5 g/t Ag

-     other exceptionally high gold values in grab samples from narrow quartz veins, such as:

-     134.5 g/t Au, 31.8 g/t Ag and 1.1% Pb, and

-     15.0 g/t Au and 7.7 g/t Ag

Scotgold Resources Limited (ASX: SGZ, AIM: SGZ) is pleased to provide an update on the Company's continuing exploration at the high grade River Vein prospect, which was first reported on 17^th August 2010.

The River Vein prospect is located in the Beinn Udlaidh area, five kilometers northwest of the Cononish gold and silver deposit and outside the boundaries of the Loch Lomond and Trossachs National Park (refer to figure 1 available at www.scotgoldresources.com under ASX releases).

Scotgold's Chief Executive Officer, Chris Sangster said: "Scotgold is very encouraged by these high grade assays. Although exploration in the area is still at an early stage, the results continue to highlight the potential of the River Vein Prospect to host high grade, narrow vein gold and silver deposits."

Outcrop in the River Vein area is sparse, except in the rivers and streams where it has been exposed by erosion.  Broad areas either side of the River Orchy up to the 400m RL above sea level are covered by glacial till (refer to Figure 2 available at www.scotgoldresources.com under ASX releases) in many places deeper than 10 metres.

Exploration by Scotgold has identified numerous lamprophyre sills and dykes in the River Vein area, in addition to at least 24 breccia pipes in the nearby Beinn Udlaidh area. Previous exploration in this area by Ennex International plc in the 1980s identified high grade boulders, up to 358.9 g/t Au. 

Recent detailed mapping and further outcrop sampling in the River Orchy to follow up previous high grade results continues to outline significant areas of interest. Details of the latest sample results from Area B are shown in Appendix A.

Further high grade values have been recorded at Area B (refer to figure 3 available at www.scotgoldresources.com under ASX releases). Scotgold previously reported assays from rock chip samples from these quartz veins which returned 171.8 g/t Au and 59.0 g/t Au. 

Recent sampling by Scotgold in this area has confirmed the high grade nature of the gold minerlisation, including a grab sample between these veins one metre apart which assayed 145.5 g/t Au and 28.5 g/t Ag. Other high gold values in grab samples from the narrow quartz veins in this area included 134.5 g/t Au, 31.8 g/t Ag and 1.1% Pb, and 15.0 g/t Au and 7.7 g/t Ag.

The previously reported, narrow quartz sulphide vein, trending approximately 300° at area A (refer to figure 4 available at www.scotgoldresources.com) which returned exceptionally high gold assays of 383.2 g/t Au, 321.5 g/t Au and 197.3 g/t Au in rock chip samples, is now mapped as intersected and displaced by molybdenite-rich quartz veins assaying up to 0.62% molybdenum.

Scotgold's immediate objective at the River Vein prospect is to map out more fully the distribution of the high grade gold mineralization and to determine the orientation of any possible extensions under the adjoining glacial till cover.

Exploration activities in the area are currently hampered by the high water levels in the River Orchy.  Further sampling, including AQ drilling into the high grade outcrops, will be undertaken when the water level has dropped.

Chris Sangster

Managing Director

For further information please contact:

United Kingdom:

Scotgold Resources Limited	Westhouse Securities Limited	Bankside Consultants
Chris Sangster (CEO)	Richard Baty / Petre Norton	Simon Rothschild / Louise Mason
Tel: [phone]	Tel: [phone]	Tel [phone]

Australia:

Scotgold Resources Limited	Professional Public Relations
Shane Sadleir (Non-Executive Director)	Karen Oswald
Tel:       [phone] Mobile: [phone]	Tel:       [phone] Mobile: [phone]

Competent Persons Statement:

The information in this report that relates to Exploration Results is based on information compiled by Mr David Catterall. Pr Sci Nat, who is a member of the South African Council for Natural Scientific Professions. Mr Catterall is employed as a consultant to Scotgold Resources Ltd. Mr Catterall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Catterall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements:

This release includes certain "forward looking statements." All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties.

There can be no assurances that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

Appendix A:  Recent rock chip sample results from outcrop at River Vein Prospect - Area B

Sample ID	X co	Y co	Z co	Area	Description	Au g/t	Ag g/t	Mo ppm	Pb ppm	Zn ppm
GO50-05	225922	734654	105	B	Wh to gy qtz veins abundant sulphide and galena	15.03	7.70	14	183	32
GO50-06	225922	734654	105	B	Wh to gy qtz veins with abundant sulphide and galena	8.79	3.00	9	42	36
GO50-07	225922	734654	105	B	Wh to gy qtz veins with abundant sulphide and galena	145.52	28.50	2	600	286
GO50-08	225922	734654	105	B	Wh to gy qtz veins with abundant galena and py and possible sphalerite	134.53	31.80	12	10747	2818
GO50-09	225922	734654	105	B	Lamprophyre with thin py filled fractures	0.05	0.00	1	25	76
GO50-10	225922	734654	105	B	Lamprophyre with thin py filled fractures	0.08	0.00	1	17	100
G050-11	225907	734656	109	B	Wh qtz veins with coarse py	1.30	1.70	2	6	13
GO50-12	225907	734656	109	B	Wh qtz veins with coarse py	6.97	1.00	3	15	23
GO50-13	225907	734656	109	B	Wh qtz veins with coarse py galena	4.56	13.00	22	10812	14

 

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