TIDMCDG
23 February 2009
Conroy Diamonds and Gold P.l.c
("the Company")
Half-yearly results for the six months ended 30 November 2008
Chairman's Statement
I have great pleasure in presenting your Company's half-yearly report for the
six months ended 30 November 2008, a period during which your Company continued
the delineation and evaluation of its one million plus ounce gold discovery at
Clontibret in County Monaghan, Ireland and, more recently, discovered an
extensive new gold anomaly at Clay Lake in County Armagh, larger in size than
Clontibret and with higher gold-in-soil values.
Clontibret
The JORC-compliant gold resource has been identified in less than 20 per cent.
of the Clontibret target. The directors believe that the discovery of the
Clontibret gold resource, together with initial exploration of the remaining 80
per cent., suggests there is potential for a significantly larger deposit.
Mineralisation at Clontibret comprises a mix of narrow high grade lode zones
and a more extensive lower grade stockwork. A recent drill hole, 287m deep and
designed to intersect the stockwork at depth achieved this objective and also
intersected four additional gold lode zones lying above the stockwork. This
increases the number of mineralised lode structures or zones identified at
Clontibret to 38.
Clay Lake
More recently, your Company announced the discovery of an extensive
gold-in-soil anomaly on its Clay Lake target in County Armagh, 7km north-east
of Clontibret. Values ranging up to 1,531 parts per billion gold (1.53g/t) have
been returned, the highest gold-in-soil values yet encountered on your
Company's Irish exploration licenses.
The new anomaly measures about 2km by 1km (141 ha), is larger than Clontibret,
and carries average gold-in-soil values that are twice the average of those
recorded at nearby Clontibret.
The anomaly is named after the Clay Lake nugget containing 28g of gold, found
in a stream bed in the 1980s. Your Company has long held the view that the Clay
Lake nugget is clear evidence of the area's gold potential, and has actively
been seeking the source of this nugget for a number of years. These latest
results, with the highest gold-in-soil values encountered anywhere in our
licence area, may well indicate that the source of the nugget lies within the
new anomaly. It could well be the Jewel in the Crown for your Company.
The new discovery lies within the 50km-long gold bearing trend delineated by
your Company on its licence area which straddles the border between Northern
Ireland and the Republic. The licences, which cover over 1,000km² in Counties
Armagh, Monaghan and Cavan, follow the surface expression of the Orlock Bridge
Fault, a major geological structure believed to have influenced mineralisation
in the area.
Potential Gold Mineralisation in the Licence Area
Your Company's technical staff now believe, on the basis of the one million
ounce gold resource outlined at Clontibret, the potential of the remaining 80
per cent of that target, the new discovery at Clay Lake and other large
gold-in-soil anomalies that have been outlined elsewhere on your Company's
exploration licences in Ireland, that the total gold potential on these
licences, although conceptual in nature, now lies in the 15-20 million ounce
range.
Whilst there has been insufficient exploration to date to define such a mineral
resource, and there is no certainty that further exploration will result in a
resource of this magnitude being realised, the directors believe that the
potential is clear and the possibilities exciting.
Technical and Economic Studies
Preliminary in-house technical and economic studies suggest that the one
million plus ounce resource at Clontibret has the potential to become an
economically viable mining project. These studies are at a very early stage,
however, and must be treated with caution as they are based on the resource as
estimated to date, over half of which is in the Inferred category at this
stage. We will continue to advance the delineation process with a view to
increasing both the total resource estimate and the proportion in the Indicated
or Measured categories. This would provide sufficient confidence in the
resource estimate to allow technical and economic parameters to be applied,
thus enabling evaluation of the economic viability of the deposit with a higher
degree of certainty.
Finance
The results for the half-year are set out below. The loss for the period was EUR
202,464 (2007: loss EUR166,698). As in previous periods I have supported the
working capital requirements of the Company and in the period under review have
advanced aggregate loans amounting to EUR1,831,111.
The loans have been made under normal commercial terms in accordance with a
letter of support dated 11 November 2008. This letter provides confirmation of
support from me for the current financial year ending 31 May 2009. The loans
have been and will continue to be made on normal commercial terms. The interest
on the loans is currently accruing at a rate of 8.25 per cent. per annum. The
loans may be repaid at anytime but I have confirmed to the Company that I will
not request repayment, other than in exceptional circumstances, within a period
of less than one year.
The other directors consider, having consulted with the Company's Nominated
Adviser, that the terms of the loan are fair and reasonable in so far as the
Company's shareholders are concerned.
Your Board is considering various options to finance your Company's activities
going forward.
Directors and Staff
I would like to thank my fellow directors, staff and consultants for their
support and dedication, which has enabled the continued success of the Company.
I look forward to the future with confidence.
Professor Richard Conroy
Chairman
23 February 2009
This release has been approved by Kevin McNulty PGeo, who is a member of the
Company's technical staff, who holds a BSc/MSc in Geology and Remote Sensing,
in accordance with the guidance note for Mining, Oil & Gas Companies issued by
the London Stock Exchange in respect of AIM Companies, which outlines standards
of disclosure for mineral projects.
Further enquiries:
Conroy Diamonds and Gold Plc Tel: 00 353 1 661 8958
Professor Richard Conroy
John East & Partners Limited Tel: 020 7628 2200
Simon Clements / Virginia Bull
City Capital Corporation Limited Tel: 020 3178 3399
Charles Dampney
Lothbury Financial Limited Tel: 020 7011 9411
Ron Marshman / Michael Padley
UNAUDITED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2008
Six months Six months Year
ended ended
ended
30 November 30 November
31 May
2008 2007
2008
(Unaudited) (Unaudited)
(Audited)
EUR EUR EUR
OPERATING EXPENSES (202,478) (166,698) (374,890)
Other Income 14 - 16
LOSS BEFORE TAXATION (202,464) (166,698) (374,874)
Taxation - - -
LOSS RETAINED FOR THE PERIOD (202,464) (166,698) (374,874)
Loss per ordinary share - Basic and (EUR0.0019) (EUR0.0016) (EUR0.0035)
diluted
UNAUDITED BALANCE SHEET
AS AT 30 NOVEMBER 2008
30 November 30 November 31 May
2008 2007 2008
(Unaudited) (Unaudited) (Audited)
EUR EUR EUR
Non-current Assets
Intangible assets 8,297,538 7,337,620 7,830,219
Financial assets 2 2 2
Property, plant and equipment 26,921 30,934 29,934
8,324,461 7,368,556 7,860,155
Current Assets
Trade and other receivables 44,110 35,264 36,229
Cash and cash equivalents 90,676 50,606 109,432
134,786 85,870 145,661
Total Assets 8,459,247 7,454,426 8,005,816
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 3,170,649 3,170,649 3,170,649
Share premium 5,491,037 5,491,037 5,491,037
Capital conversion reserve fund 30,617 30,617 30,617
Share based payments reserve 359,117 181,982 284,604
Retained losses (2,870,375) (2,459,735) (2,667,911)
Total Equity 6,181,045 6,414,550 6,308,996
Non-current Liabilities
Trade and other payables: Amounts 1,831,111 942,413 1,421,948
falling
due after more than one year
Total non-current liabilities 1,831,111 942,413 1,421,948
Current Liabilities
Trade and other payables: Amounts 447,091 97,463 274,872
falling
due within one year
Total Current Liabilities 447,091 97,463 274,872
Total Liabilities 2,278,202 1,039,876 1,696,820
Total Equity and Liabilities 8,459,247 7,454,426 8,005,816
unaudited Cash Flow Statement
For the SIX MONTHS Ended 30 NOVEMBER 2008
30 November 30 November 31 May
2008 2007 2008
(Unaudited) (Unaudited) (Audited)
EUR EUR EUR
Cash used by operations (18,768) (105,012) (159,261)
Tax paid - - -
Net cash used in operating activities (18,768) (105,012) (159,261)
Cash flows from investing activities
Investment in mineral interest (407,053) (200,743) (561,640)
Payments to acquire property, plant and (2,098) (4,837) (10,401)
equipment
Net cash used in investing activities (409,151) (205,580) (572,041)
Cash flows from financing activities
Shareholders loan advances 409,163 255,245 734,780
Net cash from financing activities 409,163 255,245 734,780
(Decrease)/Increase in cash and cash (18,756) (55,347) 3,478
equivalents
Cash and cash equivalents at beginning of 109,432 105,954 105,954
period
Cash and cash equivalents at end of 90,676 50,607 109,432
period
Notes to the Financial Statements
1. Publication of non-statutory accounts
The financial information set out in this document does not comprise the
statutory accounts of the Company.
2. Loss per share
The calculation of the loss per ordinary share of EUR0.0019 (2007: loss EUR0.0016)
is based on the loss for the half year of EUR202,464 (2007: loss EUR166,698) and
the weighted average number of ordinary shares on a basic and fully diluted
basis during the period of 105,688,297 (2007: 105,688,297). Share options and
warrants are not included in the calculation of fully diluted shares since the
Company incurred a loss in both periods which results in these potential shares
being anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period ended 30
November 2008.
4. A copy of the half-yearly report 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. It will also be
forwarded to shareholders who requested a hard copy.
END
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