In reply to melville18:
Isn't the price of gold rather relevant? Here's an extract from the prospecting company's presentation to the national park authority:
"The operation will produce around 20,000 ozs of gold and 80,000 ozs of silver annually [about 3 tons] from the treatment of 72000 tons of material. With the currently defined resource, production operations are expected to last about 8 years. From an independent study completed last
year, the project requires around £12.5M in capital expenditure.
At current gold prices (£760 /oz), the project will generate around £110M in gross revenue over its duration and will create 52 full time jobs in a rural community whose current active skills base is largely centred on the seasonal tourist trade. The majority of these jobs can be filled by locally available skills. There are obviously also indirect employment opportunities created by the goods and services required by the operation which have wider implications than the Tyndrum area."
The discrepancy between the amounts of gold/silver and waste is striking. Yet gold is expensive stuff and so there's money to be had. The presentation notes that "The economic study conducted by independent consultants in mid 2009 indicated a viable project at a ‘floor’ gold price of £450 per oz ($720/oz). At higher prices, the project provided exceptional returns with significant free cashflows generated post the repayment of project capital. The current price is around £760 /oz (or $1200 per ounce) – in excess of 60% above that considered in the study, with a period of continued moderate strengthening expected over the next few years due to uncertainties in the global financial position." See, it's all about the price of gold.
Balancing development and preservation needs is not easy. The area could surely do with some extra development, but at what price to the natural environment? An important point is that mining is expected to continue for only eight years, yet the spoil heap will be left forever. The presentation talks about restoration work and claims that the resulting spoil heap will be similar to nature landscape features in the area. This sounds bizarre to me but I'm not an expert in the field. What is clear is that the spoil heap was one of the national park's main concerns.
Where next? This from the company's announcement following the planning permission refusal:
"Scotgold is considering its options in relation to this refusal but is likely to appeal to the Scottish Ministers. Any appeal would need to
be lodged within three months and Scotgold will make a further release shortly to advise its intentions.
Looks like this will rumble on for a while yet. In the meantime, go and do Eas Anie if you haven't yet - it's a nice route and it's located right behind an exploration rig, so I imagine access would be compromised if the development does go ahead, nor would it be as nice a location.
As for Ben Udlaidh, the press release states that "We remain committed to exploration at our other prospects located outside the National Park’s boundaries at Beinn Udlaidh and other areas." There a couple of maps showing the exploration areas here:
http://www.scotgoldresources.com/assets/pdf/asx/High%20Gold%20and%20Silver%...
This shows that there is a gold vein running along the left hand side (looking in) of the summit plateau and descending into Coire Ghamhnain. Clearly this would be a landscape issue and could present an access issue. The company is continuing its exploration work (there is reference to an airborne magnetic survey early next year), so we're still some time away from a planning application (I'm assuming one would be required, even though it's outside the NP). Once the application is lodged, it will be time to start making objections and hopefully MCofS will be on the case. Coire Daimh is a stunning place and a great winter climbing location, so it would be a real pity to have it damaged. I'd rather they got the ok for the Cononish development, not just because the winter climbing is much more limited but also because it's not a particularly striking place.
And on a lighter note... The company's press release in relation to Ben Udlaidh mentions "River Orchy near where coarse gold has been panned previously". Next time you rock up at Ben Udlaidh and it's not in condition, you know what to do instead - pack that seive!