TIDMCDG
28 October 2010
Conroy Diamonds and Gold Plc
("CDG" or the "Company")
Preliminary results for the year ended 31 May 2010
A year of significant progress
Conroy (AIM: CDG; ESM: CDGI), the Irish based resource company exploring and
developing gold and other projects in Ireland, is pleased to announce its
results for the year ended 31 May 2010. A period during which the Company moved
from the purely exploration stage to the scoping stage for mine development.
Highlights
* Clontibret - 1 million oz gold resource identified: scoping and
environmental studies underway
* Drilling at Clay lake identifies potentially larger target: 13 mineralised
zones identified
* Extensive zinc anomaly discovered
* Over EUR3 million raised in period
Chairman, Professor Richard Conroy commented:
"We have made excellent progress during the year and this has continued into
the present year. The commencement of scoping and environmental studies at your
Company's gold project at Clontibret in Co. Monaghan marks a significant new
stage in your Company's development and the results from the nearby Clay Lake
gold target in Co. Armagh suggest that this target may be even more prospective
than Clontibret. The discovery of a large zinc anomaly to the south of these
targets is an additional bonus."
Further Information:
Professor Richard Conroy, Chairman, Conroy Diamonds and Tel: +353-1-661-8958
Gold plc
Simon Clements/Virginia Bull, Merchant Securities Limited Tel: +44-20-7628-2200
(Nomad)
John Tuite, IBI Corporate Finance Limited (ESM Adviser) Tel: +353-1-637-7800
John Grant/ Karen Kelly/ David Lawman, XCAP Securities PLC Tel: +44-20-7101-7070
(Broker)
Michael Padley/Michael Spriggs, Lothbury Financial Tel: +44-20-7868-2567
Services
Don Hall, Hall Communications Tel: +353-1-660-9377
Chairman's Statement
I have pleasure in presenting your Company's preliminary results for the 12
months ended 31 May 2010. The year has been a highly successful one for your
Company.
During the year the Company has moved from the purely exploration stage to the
scoping stage for mine development at Clontibret, in Co Monaghan. Clontibret is
but one of your Company's targets along the thirty mile gold trend, discovered
in the Longford - Down Massif. Seven km from Clontibret, drilling has confirmed
the presence of gold in bedrock at a potentially very large Clay Lake target in
Co Armagh. In addition, the zinc discovery on your Company's licence area to
the south of the Clay Lake target has been shown to be extensive.
The Company has also enjoyed the support of a number of investors for fund
raisings during the period, which raised in excess of EUR3 million, which has
allowed your Company to expedite its move from purely exploration towards
development.
GOLD EXPLORATION AND DEVELOPMENT
Clontibret Target
The transformation of your Company from being entirely focused on exploration
to a potential gold producer was marked by the initiation of scoping studies at
the gold target at Clontibret in Co Monaghan where your Company has identified
a one million oz gold resource on 20 per cent. of the target. Wardrop
Engineering Inc has been appointed to carry out this scoping study on this part
of the Clontibret target. Wardrop has been working in the global mining
industry since the early 1960's and is at the forefront of gold mining
expertise.
The scoping studies will involve a preliminary mine plan, which will be the
basis for determining whether or not to proceed with infill drilling on this
part of the anomaly and the more detailed engineering work involved in the
prefeasibility and feasibility studies.
The scope of the work includes the following: - Geology, including Regional
Geology, Resource Review, Deposit Types and Mineralisation; Mine Plan and
Production, Metallurgy and Plant Design, Infrastructure/Utilities and Ancillary
Facilities, Mine Water and Waste Management, Capital and Operating Costs
Estimates and Financial Analysis.
Post year-end Golder Associates were appointed as environmental consultants to
the project. Golder has extensive mine development experience in Ireland,
across Europe and worldwide. It is widely recognised for setting industry
standards in a range of fields including environmental and health and safety
standards for mining.
Clay Lake Target
The first drill holes at Clay Lake have returned positive results on this very
large gold target in Co Armagh, seven km to the Northeast of the Clontibret
target. The Clay Lake anomaly which covers an area of approximately 141 ha, is
larger than the Clontibret anomaly (125ha), and has returned the highest
gold-in-soil values ever recorded by your Company on its Irish exploration
licences, up to 1.53 g/t gold.
Further step out drill holes have also been successful. Intersections have
included 63 metres of 0.62g/t gold and 1g/t silver including nine metres of
1.48g/t gold and 1 g/t silver, 14 metres of 0.72g/t gold, four metres of 2.29 g
/t gold, three metres of 2.74 g/t gold and two metres of 1.78 g/t gold.
As well as a number of gold intersections being encountered a wide zone of
quartz stockwork mineralisation has also been established. Similar to the
Clontibret gold mineralisation it occurs at surface and continues at depth and
is open in all directions.
The presence of elevated silver values at Clay Lake is significant in its own
right and also indicates that the gold at Clay Lake has different
characteristics to that found in the Clontibret deposit.
The Clay Lake target which may well be the source area of the Clay Lake Nugget,
a 28 gramme gold nugget found in the mid 1980's and now in the Ulster Museum,
has shown very encouraging results to date. All the holes drilled so far at the
Clay Lake target are in the top corner of the anomaly (which is two km long and
one km wide) and all have intersected gold.
We believe that the size of the anomaly, its continuity and the results to date
confirm the Board's view that the Clay Lake target is even more prospective
than the Clontibret target.
ZINC DISCOVERY
An extensive zinc anomaly has been discovered during the course of your
Company's exploration on its prospecting licences in Counties Armagh and
Monaghan.
The discovery is located to the southeast of the gold discovery at Clontibret
and to the southwest of your Company's gold discovery at Clay Lake.
The anomaly at first was thought to be a series of separate anomalies, but has
now been shown to be a single extensive anomaly covering an area of
approximately 100 km2. Very high soil values of up to 4,047ppm have been
returned (normal back ground values in the Longford-Down Massif are generally
below 200ppm).
The geology of the area is comparable to the Caledonian geology of Scandinavia
which hosts stratabound base metal sulphide deposits. In the nineteenth century
shallow lead and zinc mines were worked in the local area as a well as the
antimony mine at Clontibret. These base metal findings provide further evidence
that a significant metalliferous system is present in the Clay Lake and
Clontibret areas.
Our primary focus as a Company remains the delineation of our gold discoveries.
However, we cannot ignore the possibility that we may have made a significant
zinc discovery. If confirmed it would be a welcome addition to the gold
potential of the Company's licence areas.
EXPLORATION ELSEWHERE
Exploration continued on your Company's exploration licences elsewhere in
Ireland, fulfilling all work commitments, and also in Finland.
CHANGE OF NAME
So much progress has been made in relation to your Company's gold and base
metal interests and as the Company no longer has any diamond interests, that it
would seem appropriate to rename the Company - Conroy Gold and Natural
Resources plc. A resolution will therefore be put forward for the shareholder's
consideration at the forthcoming Annual General Meeting.
ENTERPRISE SECURITIES MARKET OF THE IRISH STOCK EXCHANGE
The Company already attracts the interest of many Irish investors because of
our exploration success in Ireland and in December 2009 the Company's shares
were admitted to trading on the Enterprise Securities Market ("ESM") (The Irish
Stock Exchange's specialist market for smaller growth companies is an exchange
regulated market). The addition of a euro quotation on ESM also facilitates
trading in the Company's shares from both Irish and international investors who
choose to trade in Euros.
FINANCE
The loss after taxation for the year ended 31 May 2010 was EUR290,445 (2009: EUR
298,119) and the net assets as at 31 May 2010 were EUR9,344,116 (2009: EUR
6,159,903). Cash at bank as at 31 May 2010 was EUR1,648,160 (2009: EUR61,744).
As in previous years, I have supported the working capital requirements of the
Company and in the period under review have advanced loans to the value of EUR
190,000 and the balance of the loans due to me at the period end was EUR
1,284,576. The loans have been made on normal commercial terms. The other
Directors consider, having consulted with the Company's Nominated Adviser and
the Company's ESM Adviser, that the terms of the loans are fair and reasonable
in so far as the Company's shareholders are concerned.
During the year under review fund raisings totalling EUR3,000,632 were completed
and I converted EUR325,000 of my loans to the Company into shares.
AUDITORS
I would like to take the opportunity of thanking the partners and staff of
Deloitte & Touche for their services to your Company during the course of the
year.
DIRECTORS, CONSULTANTS AND STAFF
I would also like to express my deep appreciation of the support and dedication
of the Directors, Consultants and Staff, which has made possible the continued
progress and success, which your Company has achieved.
I am also pleased to welcome Dr Sorca Conroy-Sherman to the Board following a
successful medical career and having independently achieved success and broad
ranging city experience. Her knowledge, skills and experience will
significantly contribute to the Company as it moves into a new phase of
development.
FUTURE OUTLOOK
Much progress has been made; and the possibilities are very exciting as we move
into a new phase of development. We have already made further excellent
progress in the year to date and I look forward to the future with confidence.
Professor Richard Conroy
28 October 2010
INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2010
2010 2009
EUR EUR
Operating Expenses (290,522) (298,155)
Other Income 77 36
Loss BEFORE TAX (290,445) (298,119)
Taxation - -
Loss retained for the Year (290,445) (298,119)
Loss per ordinary share - basic and fully diluted (EUR0.0021) (EUR0.0025)
BALANCE SHEET
AS AT 31 MAY 2010
2010 2009
EUR EUR
ASSETS
Non-current Assets
Intangible assets 9,802,468 8,736,915
Financial assets 2 2
Property, plant and equipment 14,424 24,791
9,816,894 8,761,708
Current Assets
Trade and other receivables 56,381 24,982
Cash and cash equivalents 1,648,160 61,744
1,704,541 86,726
Total Assets 11,521,435 8,848,434
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 5,713,935 3,170,649
Share premium 6,273,383 5,491,037
Capital conversion reserve fund 30,617 30,617
Share based payments reserve 582,656 433,630
Retained losses (3,256,475) (2,966,030)
Total Equity 9,344,116 6,159,903
Non-current Liabilities
Trade and other payables: Amounts falling due after 1,284,576 1,928,473
more than one year
Total non-current liabilities 1,284,576 1,928,473
Current Liabilities
Trade and other payables: Amounts falling due within 892,743 760,058
one year
Total Current Liabilities 892,743 760,058
Total Liabilities 2,177,319 2,688,531
Total Equity and Liabilities 11,521,435 8,848,434
Cash Flow Statement
For the Year Ended 31 May 2010
2010 2009
EUR EUR
Cash flows from operating activities
Cash (used in)/generated by operations (150,092) 155,856
Tax paid - -
Net cash (used in)/generated by operating activities (150,092) 155,856
Cash flows from investing activities
Investment in exploration and evaluation (945,021) (786,164)
Payments to acquire property, plant and equipment (206) (5,409)
Net cash used in investing activities (945,227) (791,573)
Cash flows from financing activities
Issue of share capital 3,325,632 -
Advances of shareholder loan 190,000 755,000
Repayment and conversion of shareholder loan (833,897) (196,971)
Net cash generated from financing activities 2,681,735 588,029
Increase/(decrease) in cash and cash equivalents 1,586,416 (47,688)
Cash and cash equivalents at beginning of year 61,744 109,432
Cash and cash equivalents at end of year 1,648,160 61,744
Notes to the Financial Statements
1. Publication of non-statutory accounts
The financial information set out in this preliminary announcement is
abbreviated from the accounts as defined in Section 19 of the Companies
(Amendment) Act 1986.
The financial information for the year ended 31 May 2010 have been extracted
from the Company's financial statements to that date which have received an
unqualified auditors' report but have not yet been delivered to the Registrar
of Companies.
2. Earnings per share
The calculation of the loss per ordinary share of EUR0.0021 (2009 - EUR0.0025) is
based on the loss for the financial year of EUR290,445 (2009 - EUR298,119) and the
weighted average number of ordinary shares in issue during the year of
136,981,154 (2009 - 105,688,297). In August 2009, 10,833,333 ordinary shares
were issued in return for capitalisation of shareholder's loans amounting to EUR
325,000. The loss per share was adjusted retrospectively for this.
The effect of share options and warrants is anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the year ended 31 May
2010.
4. Copies of Accounts
It is expected that a copy of the Annual Report and Financial Statements will
be available on the Company's website www.conroydiamondsandgold.com and will be
available from the Company's registered office, 10 Upper Pembroke Street,
Dublin 2 in due course. It will also be forwarded to shareholders who requested
a hard copy. A further announcement will be made once the Annual Report and
Financial Statements have been published.
END
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