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Recent reports of the discovery of ‘exciting new, potentially significant’ gold deposits in the hills around Cairndow are, it turns out, not so new after all.
In a recent update for investors, Scotgold Resources Ltd reported promising results from preliminary investigation work in Glen Fyne, with the potential for gold deposits significantly greater than its existing mining site at Cononish, Tyndrum.
The report notes ‘an exciting new, potentially significant anomalous target area at Inverchorachan [in Glen Fyne].
‘The highest gold values detected at Inverchorachan of 124ppb compare favourably with the highest gold values recorded at Cononish of 39.9ppb.’
Scotgold’s longstanding interest has been at Cononish, where it established Scotland’s first commercial gold mine. Commercial production is set to begin in February 2010.
The company is now predicting investors could see earnings of £147 million over the lifetime of the Cononish mine, up from £101 million with an improved gold price.
Scotgold is carrying out exploration work under what is known as the ‘Grampian Project’, which has revealed a previously unknown area of promise Cononish as well as the new find in Glen Fyne.
Richard Gray, CEO of Scotgold Resources, commented: ‘Overall progress on the development of Cononish is pleasing. There is a short delay in production of first gold from our previous expectations, but a stockpile of ore will be accumulated during this period which will provide an opportunity to exceed targets later in the year.
‘The combination of the gold price being in excess of £1,200 per ounce, and the pipeline of projects that we anticipate will result from our Grampian exploration work, bode well for the company’s long-term outlook.’
The people of Cairndow, though, have known for years of metal deposits in Glen Fyne.
One local man said: ‘I have been around these hills for 70 years and I remember mines in Glen Fyne, at Inverchorchan and further up the glen.
‘The Cononish mine and the area they are talking about in Glen Fyne is not far apart at all, just over the hill in fact.’
It is believed that gold and lead were the targets of miners in decades long past.