Today Scotgold Reserves was floated on the Alternative Investment Market (AIM) to raise capital enabling it to develop its gold mining operation in Glen Cononish near Tyndrum.
In the 1990s gold was selling for $400 per ounce and the mine was abandoned in 1997 as uneconomic to develop at that price.
Over a decade later, in the midst of the current recession, with negligible interest rates and a widespread loss of confidence following the collapse of major banks and financial institutions, gold is selling for $1,100 per ounce.
This creates a very different picture and the company clearly now feels that development is a viable proposition.
The 1,000 metre long tunnel into the hill on Glen Coronish may see serious action in the near future.
It would be good to see the mining industry returning successfully to the Tyndrum area. There is ample evidence in the district of previous activity.
I am wondering if I have made a personal breakthrough here. When BBC Scotland reported this on Wednesday at lunchtime I was once again irate to hear Jackie Byrd calling the Pertshire village TIN DRUM. Not for the first time I telephoned Atlantic Quay and explained that the name was proniunced TYNEdrum as it meant in Gaelic the House at the Pass. At 6.30 it was reported as TYNEdrum. Will it last, though?
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The cost to the enviroment may turn out to be more costly than the 8million scotgold resources are worth. Extracting gold is one of the most damaging processes for any material. The river Tay is to be redirected and the tailings concealed at the edge of Loch Lommond nature reserve. 72,000 tons of crushed rock every year to get 20 onces of gold. 4% to the crown and apart from the wages off a dozen or so workers over the 5or6 years all the profits will be traveling far from Scotland. Scotgold resources say with a disclaimer attached that they will not use mercury or cyanide to extract the metals. the flotation method they describe may be even less efficient than is claimed. Why is this such a good idea? all they offer is a jewlery store in Tyndrum or tindrum or what. Dont you think the place is more important than the name. It seems reasonable to be cautious when you look to the practices of modern gold mining throughout the world.
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If the benefits of extracting gold from Scottish soil do not benefit Scotland, particularly Scotland’s (responsible) artisan jewellery industry then this surely has to be an extremely exploitative project. I am in the process of trying to find out how this mine can be justified and sincerely hope this is not a disaster for Scotland in terms of it’s precious environment. We have just secured a fair trade artisanal mining supply of gold for our small scale bespoke jewellery business in Argyll as we feel we either trade fairly or not at all. (http:///www.mahailia.com) The idea that there may be an unnecessary (apart from to Scotgold’s pockets) new mine opening right here in Scotland is worrying to say the least….I absolutely agree we need to be cautious considering the effect gold mining has on local areas. There is enough gold already mined so we can recycle it or use artisanal mining that has minimal impact and local benefit…
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good luck to Scotgold,and Tyndrum hope it all works out.Can only be good for the area and Scotland
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