Ennex set to study Scottish gold bet

Northgate Exploration’s (TSE) 33% owned affiliate Ennex International is moving one step closer to bringing Scotland’s first gold mine into production by 1991. Dublin-based Ennex says it has commissioned a production feasibility study on its Cononish gold project, north of Glasgow, where the company has outlined one million tons of grade 0.30 oz. gold per ton and 1.5 oz. silver.

The study, expected to be completed by July, is budgeted to cost about $740,000 and it will be followed by a formal planning application for mine construction.

Ennex Secretary David Coyle didn’t predict how much a future mining operation would produce.

However, recent underground exploration has been successful in proving the grade, continuity and width of the vein structure which contains all of the reserves outlined so far.

At a cost of almost $2.5 million, Ennex recently drove a 9×9 ft. adit for 3,600 ft., and completed 570 ft. of raising. In addition, 28,500 ft. of diamond drilling was carried out on the vein structure, which remains open along strike and to depth.

Coyle says prospecting work on other parts of the property has identified a number of significant gold showings and the potential exists for new mill feed sources to be found.