Scotgold reports widening losses

Image source, Getty Images

Image caption, Scotgold spent more than 拢100,000 on exploration in the second half of 2014

The company mining for gold in Scotland has reported widening losses.

Scotgold Resources said it made a pre-tax loss of 1.2m Australian dollars (拢622,000) in the six months to the end of December.

For the same period in 2013, it announced a loss of about 拢518,000.

Its latest results were impacted by ongoing exploration costs, which amounted to more than 拢100,000 during the period.

Scotgold, which is looking to produce gold at Cononish near Tyndrum, was boosted last month by a positive assessment of its potential reserves.

A report by consultants showed a 201% increase in the estimated amount of gold in the area.

The comparison was with a previous study published in November 2012.

The new assessment suggested 248,000 ounces of gold could be found on the basis of rock that has already been assessed at the Cononish site.

The consultants also calculated that the quality of that gold was 9% better than previously estimated.

Work has now started on a 3D geological model to assess the "optimal mining methodology" for the Cononish deposit.

A revised mine development plan is scheduled for completion in the second quarter of this year.