Last week Gordon Watson, the executive director of planning and rural development of the National Park, recommended board members reject the Scotgold’s application submitted in January.
The 23-person board comprising ministerial appointees, local authority nominees and locally elected members held a meeting held yesterday in the Scottish town of Tyndrum, near the Cononish mine site.
Scotsgold’s planning application was rejected by a narrow majority.
Watson made the recommendation on the grounds that the proposal went against the aims of the National Park designation. He also was concerned about the long-term impact on landscape, visual appeal and recreation, as well as the fluctuating gold price.
Scotgold non-executive director and largest shareholder Shane Sadleir told MiningNews.net today that Watson’s recommendation was the first sign of opposition to the project.
“Cononish was discovered when it wasn’t within the national park,” he explained.
Former owner, Toronto-listed Caledonia Mining Corporation bought the project in 1995 and received planning approval before putting it on care and maintenance due to low gold prices.
“When they got planning approval 14 years ago, it was outside the National Park,” Sadleir said.
“They adjusted the boundaries in the early 2000’s to incorporate that [the project].”
Sadleir said the project enjoyed strong community support and the company expected a community outcry to yesterday’s decision.
“Obviously, they got very upset when they saw the gold mine being canned by the National Park,” he said.
“I’m surprised there wasn’t a lynching there.”
Scotgold has three months to lodge an appeal with the Scottish Government and the company is likely to do so.
Sadleir added that there may be aspects of the tailings dam that could be altered to minimise visual impact to satisfy the National Park board.
“We’ll look at all the options,” he said.
Sadleir understands the appeals process may take around six months and he said all the work that needed to be done at Cononish had been completed.
“We haven’t really met as a board or had much chance to discuss it,” he said.
“Obviously we won’t get financing until we get approval.”
Meanwhile, the company is continuing its regional exploration program with its highly prospective Beinn Udlaidh project lying outside the park boundaries.
Earlier this week the company released outcrop sample results from Beinn Udlaidh, with grades of up to 383.8 grams per tonne gold and 102.4gpt silver.
“There’s some really good grades and that’s all outside the national park,” Sadleir said.
Scotgold shares have taken a hammering over the past week after the company first announced Watson’s recommendation.
After trading at more than A8c last week, shares slumped to 5.1c on Friday.
Shares made a partial recovery this week and dropped 0.1c this morning to 5.4c.
