TIDMCDG
4 November 2009
Conroy Diamonds and Gold Plc
("Conroy" or "the Company")
FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2009
A PERIOD OF CONSIDERABLE PROGRESS
Conroy (AIM: CDG), the gold exploration and development company focused on
Ireland and Finland, announces its results for the year ended 31 May 2009.
Highlights:
* One million ounce JORC compliant gold resource confirmed at Clontibret with
potential to become a much larger deposit
* Preliminary in-house technical studies suggest Clontibret has potential to
be economically viable
* Clay Lake gold-in-soil anomaly largest yet found on Company's Irish
licences
* Retained loss for the year EUR298,119 (2008: EUR374,874): in line with
managements expectations
Post Period
* Discovery of an extensive zinc-in-soil anomaly south of Clay Lake
* EUR560,000 fundraising completed
Richard Conroy, Chairman, commented:
"The gold resource currently delineated at the Clontibret target now stands at
over one million ounces and our initial studies show that this is economically
viable and has the potential to be expanded. We have also discovered a
potentially larger gold deposit at Clay Lake and an extensive zinc anomaly
south of this which are both very exciting.
"Post period we have raised EUR560,000 and this will allow us to develop these
potentially very exciting opportunities. The potential is clear, the
possibilities exciting. I look forward to the future with confidence."
Further enquiries:
Conroy Diamonds and Gold Plc Tel: 00 353 1 661 8958
Professor Richard Conroy
Merchant John East Securities 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
Chairman's Statement
I have pleasure in presenting your Company's Annual Report and Financial
Statements for the 12 months ended 31 May 2009, a year of considerable progress
for your Company. Highlights included the definition of a gold resource of over
one million ounces on an area representing 20 per cent of your Company's
Clontibret target area in Co. Monaghan and the discovery at Clay Lake in Co.
Armagh of a gold-in-soil anomaly larger than Clontibret. Since the financial
year-end, we have also discovered an extensive zinc-in-soil anomaly south of
Clay Lake and completed a EUR564,000 fundraising.
Clontibret
The gold resource currently delineated at the Clontibret target now stands at
over one million ounces. Your Directors believe this is the first time that a
gold resource of this magnitude has been documented in Ireland or the UK. The
resource estimates have been prepared in accordance with the standards of the
JORC Code.
The resource of over one million ounces, at a cut off grade of 0.75 gramme/
tonne, has been established on less than 20 per cent. of the overall Clontibret
target area. Initial testing of the remaining 80 per cent. suggests potential
for a much larger deposit.
Gold mineralisation at Clontibret occurs in two styles, one being a high-grade
lode-style mineralisation and the disseminated gold associated with sulphites
in a stockwork zone. Four more lode zones have been discovered in the past year
bringing the total to 38 high-grade lode zones as well as the extensive
stockwork zone.
Preliminary in-house technical and economic studies suggest that the Clontibret
resource has the potential to be an economically viable mining project. These
in-house studies are, however, at a very early stage and must be treated with
caution as they are based on a resource as estimated to date over half of which
is in the inferred category at this stage.
Before proceeding to mine development scoping, pre-feasibility and feasibility
studies must be completed, together with obtaining planning and mining
applications and permissions.
Clay Lake
The new gold find at Clay Lake in Co. Armagh is located approximately 7km
north-east of the Company's Clontibret discovery. The anomaly is named after
the Clay Lake nugget containing 28g of gold, which was found in a local stream
bed in the 1980s. We have long held the view that the Clay Lake nugget is
evidence of the area's gold potential and we have been actively 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 (up to
1.53grammes per tonne), may well indicate that the source of the nugget lies
within the new anomaly. The Clay Lake gold discovery could become the Jewel in
the Crown for the Company.
30 Mile Gold Trend
The new discovery lies within the 30 mile (50km) long gold bearing trend
delineated by the Company on its 1,200km2 licence area, which straddles the
border between Northern Ireland and the Republic of Ireland. The licences
extend from Co. Armagh, through Co. Monaghan and into Co. Cavan, following the
surface expression of the Orlock Bridge Fault, a major geological structure
believed to have influenced mineralisation in the area. Though obviously
conceptual in nature at this stage, the overall gold potential in the area is
estimated to be 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.
Zinc Discovery
An extensive zinc anomaly extending over several square kilometres has been
discovered south of the large gold anomaly at Clay Lake. The Longford-Down
Massif, in which the Company's gold trend is located, also has a history of
base metals mining. Antimony was mined at Clontibret where the first gold
discovery in the Massif was made, and shallow lead and zinc mines near Keady,
South Armagh, were worked in the nineteenth century. Historic mines in the
immediate area included the Annaglogh (lead, zinc, copper) mine, just west of
the newly discovered zinc anomalies, and the College and Clay mines which are
4.5 km and 2.5 km to the north west of those anomalies, respectively.
The new zinc discovery lies to the south of the Orlock Bridge Fault, and the
anomalies overlie fine to coarse-grained massive greywacke sandstones and
micro-conglomerates. This sequence is comparable to parts of the Caledonian
geology in Scandinavia, which hosts major stratabound base-metal sulphide
deposits.
These base metal occurrences provide further support for the presence of a
significant metalliferous system in the Clay Lake and Clontibret areas of the
Longford-Down Massif, part of a zoned system ranging from gold occurrences to
base metals. The size of this system enhances the significance of the Clay Lake
gold target. Your Company, therefore, plans a follow-up base metals exploration
programme, in addition to its ongoing gold programme which continues to be the
Company's priority.
Finance
The loss after taxation for the year ended 31 May 2009 was EUR298,119 (2008: EUR
374,874) and the net assets as at 31 May 2009 were EUR6,159,903 (2008: EUR
6,308,996). Cash at bank as at 31 May 2009 was EUR61,744 (2008: EUR109,432)
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
588,029 and the balance of the loans due to me at the period end was EUR
1,928,473. The loans have been made on normal commercial terms.
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.
Following the year-end, a fundraising of EUR564,000 was completed and I converted
EUR325,000 of the loans outstanding to me into shares
As we move from the exploration phase towards delineation and development, the
Directors are considering how best to fund your Company's activities. Options
being studied include joint venture and farm-out, as well as other such
arrangements which may be appropriate for advancing the interests of your
Company.
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.
Future Outlook
The potential is clear, the possibilities exciting. I look forward to the
future with confidence.
Professor Richard Conroy
Chairman
4 November 2009
INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2009
2009 2008
EUR EUR
Operating Expenses (298,155) (374,890)
Other Income 36 16
Loss BEFORE TAX (298,119) (374,874)
Taxation - -
Loss retained for the Year (298,119) (374,874)
Loss per ordinary share - basic and fully diluted (EUR0.0025) (EUR0.0032)
BALANCE SHEET
AS AT 31 MAY 2009
2009 2008
EUR EUR
ASSETS
Non-current Assets
Intangible assets 8,736,915 7,830,219
Financial assets 2 2
Property, plant and equipment 24,791 29,934
8,761,708 7,860,155
Current Assets
Trade and other receivables 24,982 36,229
Cash and cash equivalents 61,744 109,432
86,726 145,661
Total Assets 8,848,434 8,005,816
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 3,170,649 3,170,649
Share premium 5,491,037 5,491,037
Capital conversion reserve fund 30,617 30,617
Share based payments reserve 433,630 284,604
Retained losses (2,966,030) (2,667,911)
Total Equity 6,159,903 6,308,996
Non-current Liabilities
Trade and other payables: Amounts falling due after 1,928,473 1,340,444
more than one year
Total non-current liabilities 1,928,473 1,340,444
Current Liabilities
Trade and other payables: Amounts falling due within 760,058 356,376
one year
Total Current Liabilities 760,058 356,376
Total Liabilities 2,688,531 1,696,820
Total Equity and Liabilities 8,848,434 8,005,816
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2009
2009 2008
EUR EUR
Cash generated by/(used in) operations 155,856 (159,261)
Tax paid - -
Net cash generated by/(used in) operating 155,856 (159,261)
activities
Cash flows from investing activities
Investment in exploration and evaluation (786,164) (561,640)
Payments to acquire property, plant and (5,409) (10,401)
equipment
Net cash used in investing activities (791,573) (572,041)
Cash flows from financing activities
Shareholder loans 588,029 734,780
Net cash generated from financing activities 588,029 734,780
Notes to the Financial Statements
1. Publication of non-statutory accounts
The financial information set out in this preliminary announcement is
abbreviated accounts as defined in Section 19 of the Companies (Amendment) Act
1986.
The financial information for the period ended 31 May 2009 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 EUR0.0028 (2008 - EUR0.0035) is
based on the loss for the financial year of EUR298,119 (2008 - EUR374,874) and the
weighted average number of ordinary shares in issue during the year of
105,688,297 (2008 - 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 is adjusted retrospectively for this. The revised
loss per share is EUR0.0025 (2008 (Adjusted): EUR0.0032).
Since the Company incurred a loss the effect of share options and warrants
would be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period ended 31 May
2009.
4. Copy of Accounts
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. It will also
be forwarded to shareholders who requested a hard copy.
END
Conroy Diamonds & Gold (LSE:CDG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Conroy Diamonds & Gold (LSE:CDG)
Historical Stock Chart
From Jul 2023 to Jul 2024
