Going for gold in Scots mine for first time in decades

JODY HARRISON

concluded in parallel with this work, early in the new year, at a more appropriate stage of the project’s development. This exciting shift in operational focus means we will be progressing the Cononish Project to production in a timely manner.”

Scotgold acquired the Cononish site in 2007 and has embarked on a long journey to bring the mine up to a workable state and start producing gold.

Experts think there could be as much as five tonnes of gold to be found in the hills near Tyndrum, encased in quartz which must be dug out and crushed.

Up until now, the viability of the mine has depended on whether it would be economic to begin operations as the price of gold has fluctuated since the mine was first explored in the 1980s.

Up to 29,000 ounces of precious metals could be mined per year, and the project has an estimated life of eight years. Around 60 jobs could be created for local people.

Villagers in nearby Tyndrum, a popular stop on the route north to Glencoe and Fort William, hope to open a visitors’ centre and to market Cononish gold to tourists.

The mine recorded its first major success last year when it began processing ore, which was dug out of an exploratory tunnel during the 1990s by previous company Ennex.

The trial produced enough gold to make 10 one-ounce “rounds”, which were sold on to collectors. Just under £46,000 was raised by the auction – a mark-up of nearly 400 per cent on the current market price of £974 per ounce.

Scotgold Resources believes its gold will attract a premium price as a niche product for tourists, jewellers and couples keen on Scottish gold wedding or engagement rings. The first round, embossed, like all the coins, with a stag’s head, was snapped up by Graham Donaldson, a Scotgold shareholder who lives in Christchurch, Dorset.

His bid of £21,003.3p was the highest. “As to what I would do with it now, I would probably look at it and stroke it, and put it in a safe,” he said.

Mr Donaldson said he and his wife planned in time to get new engagement and wedding rings made from Cononish gold, to replace the budget rings they could afford when they originally married.