The Scottish Cononish gold mine will start production in 2014 – but it’s only 0.03% of world mine supply
Scotgold, the owners of the Cononish gold mine have just announced that their gold mine based in Loch Lomond national park scotland will start producing gold in 2014. From the BBC:
The mining company said it was “very encouraged” by the results of drilling in the western section of the Cononish mine near Tyndrum.
A total of 14 holes were drilled to help form the basis of a mining plan.
The final results will be included in a report by mining consultants Snowden.
Drilling has also started in the eastern section of the mine, with a further five holes planned.Scotgold said it anticipated the report to be completed early next year, enabling mining to begin in the second quarter of 2013.
The first gold production is expected in early 2014.
So just how much gold is potentially in the Scottish gold mine? From Scotgold’s website:
Cononish has the potential to be an economic, small, high-grade, narrow vein underground mining operation producing between 20,000 to 30,000 ounces of gold per annum. There is some potential for increased gold grade locally at Cononish, due to a high nugget effect and an information effect due to sparse drilling in areas of the Cononish Vein. There is some potential for increased gold grade locally at Cononish, due to a high nugget effect and an information effect due to sparse drilling in areas of the Cononish Vein.
At today’s price of around £1100 per ounce that adds up to about £33m in gold per year. However don’t expect this new supply coming on to the market in 2014 to have any dramatic affect on the gold price.
30,000 ounces per year is a little under 1 ton per year. To put that into perspective the world’s gold supply from mines according to the GFMS survey is about 3000 tons.
Or to put that another way, the mine in Scotland will be producing about 0.03% of the worlds total mined gold per year.
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Link to this article: : http://www.goldmadesimplenews.com/mining/the-scottish-cononish-gold-mine-will-start-production-in-2014-but-its-only-0-03-of-world-mine-supply-8288/