Scotgold has discovered huge quantities of gold at Coconish in the Scottish village of Tyndrum and is pursuing planning permission to commence mining in the area.

The company, which has a small mine located close to Tyndrum that has never been commercially mined, says it is aware that the site contains 4.5t of gold worth £100m at the current gold price.

Scotgold says there could still be huge amounts of undiscovered gold in the Tyndrum area the company is not aware of, according to The Guardian.

The company has an exploration licence that is applicable for a further 2,200km2 expanse of the Scottish Highlands.

Scotgold has made a £2.5m investment in the venture.

Scotgold has set a target of annually generating 200kg of gold at the mine by 2011.