6 July
2021
Conroy Gold and Natural Resources plc
(“Conroy Gold” or “the Company”)
Completion of
joint venture due diligence drilling at Clontibret gold deposit
Update on other
drilling programmes
- Due diligence drilling at Clontibret gold deposit
completed
- Proposed joint venture with Demir Export A.S. (“Demir
Export”) progressing to final documentation
- Drill hole on Clay Lake gold target at Cargalisgorran
completed
- Drilling programme on other licences underway
Conroy Gold and Natural Resources
plc (AIM: CGNR), the gold exploration and development company
focused on Ireland and
Finland, is pleased to announce
the completion of due diligence drilling on its Clontibret gold
deposit, the completion of a drill hole on the Cargalisgorran
section of the Clay Lake gold target and the commencement of
drilling on other targets in the new district scale gold trend
which the Company has discovered in the Longford-Down Massif in
Ireland. The Company also confirms
it continues to make positive progress towards finalising the
documentation and other matters in connection with the proposed
joint venture with Demir Export.
The Clontibret gold target is one of a series of potentially
multi million ounce gold targets located along the 65km (40 mile)
new district scale gold trend which the company has discovered in
the Longford-Down Massif in Ireland. A (JORC 2012) gold resource of
517,000 ounces Au (320,000 oz Au indicated and 197,000 oz Au
inferred) has been estimated on part of the Clontibret gold
target.
Conroy Gold has signed a Letter
of Intent (“LOI”) with Demir Export A.S. for a planned Joint
Venture (“JV”) on an earn-in basis over the twelve licences held by
Conroy Gold in the Longford-Down
Massif (announced 25 February
2021).
The primary focus of the joint venture project (Project Inis) is
the development of the gold deposit at Clontibret to construction
ready status and then bringing it into operation as a gold mine.
The parties further aim is to have the other licences that are
subject to the JV given the same status one after the other, hence
providing a foundation for a long-term relationship between the
parties.
The due diligence drilling of two drill holes at Clontibret,
which has now been completed, is part of the overall process
leading to the finalisation of definitive documentation, including
the final JV agreement.
Key terms of the JV
The announcement released by the Company on 25 February 2021 provides details on the proposed
JV and the LOI that was entered into by Conroy and Demir Export on
25 February 2021 sets out the key
commercial terms and conditions that Conroy
Gold and Demir Export have negotiated and agreed on in
relation to the planned JV.
The key terms and proposed structure of the earn-in together
with the respective operational responsibilities are set out below
and remain unchanged from the LOI:
- Demir Export will make a cash payment of €1 million to the
Company upon final approval of the definitive agreement in
recognition of prior work carried out in relation to the
project.
The Earn-in Period is divided into three phases:
- Phase 1: expenditure by Demir Export in work commitments
(except Demir Export in-house costs, Operator fees and Minimum
Regulatory Work Commitments) of €4.5 million to earn a 25% interest
in the project.
- Phase 2: expenditure by Demir Export in work commitments
(except Demir Export in-house costs, Operator fees and Minimum
Regulatory Work Commitments) of €4.5 million to earn an additional
15%.
- Phase 3: expenditure by Demir Export of the additional funds
required to reach declaration of construction-ready status (i.e. a
bankable feasibility study or equivalent) – for Clontibret and/or
other mine developments will earn an additional 17.5% interest thus
increasing Demir Export’s holding to a total of 57.5% in the
development(s). At which point Conroy
Gold would hold 42.5% of the construction-ready mine.
Further details on the JV are set out in the announcement
released by the Company on 25 February
2021.
Drilling at Clay Lake gold target
A drill hole in the Cargalisgorran section of the Clay Lake gold
target, designed to intersect a gold zone between two previous
intersections of 6.6m @ 6.2 g/t Au
and 5.3m @ 0.7 g/t Au, and to provide
additional information on the width and grade of the gold
mineralisation and other geological characterisation in this
section of the Clay Lake gold target, has also been completed.
The extensive Clay Lake gold target stretches from
Cargalisgorran in the South-west to Derryhennet in the North-east,
encompassing over 200 ha in area. The Clay Lake target lies at the
north-eastern end of the gold trend and is named after the Clay
Lake Nugget; a 30.05g nugget with a gold content of 28g, which is
now on display in the Ulster Museum in Belfast.
The wide zones of gold mineralisation, up to 100 metres, and the
results of structural studies indicate the potential for both high
tonnage and high overall gold content in the Clay Lake target.
Other drilling underway
The drilling programme on the Company’s licences in the
Longford-Down Massif is continuing. Also underway are soil
and deep overburden sampling programmes at the Company’s Glenish,
Rockcorry, Tullyvin and other gold and base metal targets.
Sampling of core from the completed drilling is underway and
assay results will be released in due course.
Professor Richard Conroy,
Chairman, commented:
“I am delighted that due diligence
drilling for the Company’s proposed joint venture with Demir Export
has been completed and we look forward to completing the final
parts of the JV documentation and signing the definitive
agreement.”
For further information please contact:
Conroy Gold and
Natural Resources plc |
Tel: +353-1-479-6180 |
Professor Richard
Conroy, Chairman |
|
Allenby Capital Limited (Nomad) |
Tel: +44-20-3328-5656 |
Nick Athanas/Nick
Harriss |
|
First Equity Limited (Broker)
Jason Robertson
Lothbury Financial Services |
Tel: +44-20-7330-1883
Tel: +44-20-3290-0707 |
Michael
Padley |
|
Hall
Communications |
Tel: +353-1-660-9377 |
Don Hall |
|
Visit the website at: www.conroygold.com