Scotgold believes there is up to £200m of precious metals in the hills above Strathfillan and plans toextract 72,000 tonnes of ore from which 21,000 ounces of gold and 83,000 ounces of silver would be recovered annually for a decade projected to bring 52 jobs to the area and more than £80m in direct or indirect economic benefits to Scotland’s economy.

Gold mine get RSA grant
In April 2011 Scotgold announced that it had accepted an offer of a Regional Selective Assistance (RSA) grant from economic development agency, Scottish Enterprise, of up to £600,000 for the establishment of mine facilities and job creation, conditional on the firm obtaining planning permission. In July 2011 the reapplication for planning permission was submitted and granted in October 2011

The Cononish Gold and Silver project consists of the establishment of a small underground mining operation with associated processing facilities and infrastructure. In production, it is estimated the mine would produce around 20,000ozs of gold and 80,000 ozs of silver annually.

A scoping study on the Cononish Project completed by Australian Mining Consultants Ltd (AMC) in mid 2009. At the current gold price of around US$ 1800/oz (GBP £1100 /oz), the project has the potential to generate significant cashflows for the Company.  Scotgold is in the process of updating this study prior to a production decision, subject to the finalisation of  planning permission.

 Some £325,000 will go towards enhancing conservation and the visitor experience in the national park over the next seven years. Scotgold will also give £30,000 a year for five years to Strathfillan Development Trust and an additional £200,000 to contribute to the development of a mining heritage visitor facility.

Opponents reports The Herald  said it to be a betrayal of the national park’s founding principles, which requires the greatest weight to be given to conservation of natural and cultural heritage. Bill McDermott, (right) chairman of the Scottish Campaign for National Parks that opposed the development, said he was saddened by the decision.

“The whole thing will have to be monitored, but for 10 years you are effectively talking about that area no longer being a wild, remote Highland glen,” he said. “Our position was one of principle – that national parks are designated for their environment and heritage. If you want large industrial processes, they should be somewhere else.”

Friends Of Loch Lomond and The Trossachs objected because of damage to the area and the Mountaineering Council Of Scotland is concerned about the impact in the upper parts of a relatively wild glen such as Cononish. Scottish Natural Heritage also objected because of the impact on the Ben Lui Special Area of Conservation, but withdrew its objection after an agreement to tighten up conditions.
Linda McKay, park convener, is quoted saying it had been the largest and most complicated planning application the authority had ever had to consider. “As guardians of some of the most stunning scenery in Scotland, it would have been easy to refuse the second application if we were considering the short-term impact on the landscape.

"But this National Park plans for long-term conservation management and that includes having the vision to see beyond the temporary life of the gold mine.
“We also have to take into consideration the support from Strathfillan Community Council which backs the proposals.”

"Scotgold’s first application was refused last year, because of the size and shape of the tailings waste management facility (TMF) and poor restoration proposals.

“With the second application, the applicant halved the size of the TMF and redesigned its shape to fit in the landscape. We have a 30-year commitment to improve the wider Glen Cononish. The Greater Cononish Glen Management Plan includes extending the native Caledonian pine forest and improving habitats and access tracks.”

Scotgold has to comply with almost 50 conditions and legal agreements which it is presumed will be closely monitored. If the mining venture fails to produce the anticipated returns, it could also have problems exiting gracefully.

However, Chris Sangster, Scotgold CEO is quoted saying: “The project provides a significant commercial opportunity in the interests of all stakeholders, in particular the local community, which has been a keen supporter for a development that promises increased local employment and economic activity.”