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20/07/2011

Planning Application Lodged For Scottish Gold Mine

Plans to develop Scotland’s first commercial gold and silver mine at Cononish near Tyndrum moved a step closer today (20th July) with the lodging of a Planning Application by Scotgold Resources with Loch Lomond and the Trossachs National Park Authority.

The development, Scotland’s first commercial gold mine, is expected to produce 20,000 ounces of gold and 80,000 ounces of silver per year, of which 5,000 ounces of gold will be extracted as unrefined gold bars and identifiable as ‘Scottish Gold’, attracting a premium for jewellers and goldsmiths due to its scarcity and uniqueness should it be manufactured into jewellery. It is estimated that as much as £80m in additional economic activity will be generated in Scotland through the wider supply chain as a result of the establishment of the mine

The project has already received considerable local and national support, including from the likes of the Scottish Tourism Forum and Scotland’s leading economic development organisation, Scottish Council for Development and Industry (SCDI).

Subsequent to the narrow refusal of the original application by the Park Board in August 2010 Scotgold has met on a number of occasions with senior representatives of the Park Authority to discuss specific reasons for refusal and sought to address these concerns through a comprehensive restoration strategy and reducing by more than half the size of the tailings management facility. The Company beleieves the application meets the highest environmental and planning standards.

It is anticipated that the project will create 52 full time jobs in a rural community whose current active skills base is largely centred on the seasonal tourist trade, clearly of significant impact in the current economic climate.

The majority of these jobs can be filled by locally available skills, and there are obviously also indirect employment opportunities created through construction and by the goods and services required by the operation, with wider implications for the area. In respect of employment opportunities Scotgold is investigating the potential for an apprenticeship programme with ‘Edutrain’, the relevant training body. This will serve to benefit local employees through providing Modern Apprenticeships, giving them vital skills in this sector.

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A number of discussions with local and regional organisations regarding the project have been held and it is gratifying to note the support to date from such bodies as the Scottish Tourism Forum (the body which represents tourists businesses in Scotland), the local Chamber of Commerce – Helensburgh and Loch Lomond, the Scottish Council for Development and Industry (SCDI) and the Assay Office (the body responsible for applying Scotland’s national hallmark to precious metal since 1457) and the continued support of the community trust and community council.

In addition to the more obvious economic potential of the operation itself with its direct and indirect employment opportunities, there are additional potential significant and sustainable opportunities created by the development in both the local and national context.

The rich geological endowment of the area, its mining history and its location on a major tourist route and the potential of Scotland’s first commercial gold mine, make Tyndrum a unique location. Scotgold believes that the project will boost local tourist numbers and spend in the area.

Scotgold has also had preliminary discussions with a number of respected and influential participants in the Scottish jewellery industry and the indications are that there will be considerable interest in the manufacture in Scotland of gold and silver of verifiably Scottish extraction. Such gold and silver will also have been ‘locally sourced’ with ‘traceable’ origin from ‘responsible’ mining practices (no mercury or cyanide) and may also attract strong interest from the ‘responsible luxury’ sector of the jewellery market.

The project has the potential to significantly enhance the cultural heritage of the Park through the presence of Scotland’s only gold mine, and as a result of the mitigation proposed in the revised application, will not impact on the natural heritage of the area and is thus not at odds with the primary Aim of the Park.

In April Scotgold announced that it had accepted an offer of a Regional Selective Assistance (RSA) grant from economic development agency, Scottish Enterprise, of up to £600,000 for the establishment of mine facilities and job creation, conditional on the firm obtaining planning permission.

Chris Sangster, Director and CEO of Scotgold said: “We are delighted to be in a position to be lodging this planning application and are exceptionally pleased with the overwhelming support we have received both locally and nationally. Our project will assist in delivering significant direct and indirect employment opportunities, as well as considerable economic investment potential. A lot of time and effort has been taken to address the environmental concerns that had been raised by the Park Authority and we will hopefully be able to progress the project successfully through planning.”

Iain Herbert, Chief Executive of the Scottish Tourism Forum, the voice of Scotland’s tourism businesses, commented: “Our members are incredibly excited at the proposed gold and silver mine, which will provide a superb tourism opportunity for the area. Visitors will be attracted, not only to the locality, but to Scotland as a whole in order to visit the country’s first commercial gold mine. This will enhance tourism spend and employment opportunities, as well as developing a jewellery manufacturing industry based on the true branding of “Scottish Gold”. “The firm has also done well to address environmental concerns through a comprehensive restoration strategy, reducing considerably the tailings management facility, and we wish them well in their endeavours regarding this project.”

(GK)

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