REG-Conroy Gold & Natural Resources Plc: Final Results <Origin Href="QuoteRef">CDG.I</Origin> <Origin Href="QuoteRef">CGNR.L</Origin>
23/11/2015 07:00
23 November 2015
Conroy Gold and Natural Resources plc
("Conroy" or "the Company")
Final Results for the Year Ended 31 May 2015
Significant Progress Made Towards Development of First Mine
Conroy (AIM: CGNR; ESM: CGNRI), 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 2015. The construction of a mine at
Clontibret remains the main focus of the Company.
Highlights:
* Clontibret: recent drilling results have provided further evidence of
continuity of gold mineralisation at depth
* Existing gold body model confirmed and the gold mineralisation zone
extended
* Accelerated total project capital payback within year 2 of the operation
and a positive cash flow
* Metallurgical test work shows potentially economic quantities of antimony
present in gold concentrate
* Infill drilling shows grades of 20.05g/t gold over 1 metre and 14.10g/t
gold over 0.25 metres
* Gold intercepted at 340.5 metres in the Stockwork zone - the deepest
intersection of gold to date at Clontibret
* Clay Lake: wide gold zones have been encountered during trenching and
drilling
* Slieve Glah: an independent structural survey has highlighted the potential
for a concentration of gold mineralised faults and of gold target zones
within the gold-in-soil anomalies 3km (1.8miles) in length
* New gold target discovered at Rockcorry in County Monaghan
Chairman, Professor Richard Conroy commented:
"We have made further progress towards the development of the mine at
Clontibret, with continuity of gold at depth confirmed by drilling. The infill
drilling has enhanced the economics of the project, which show excellent
returns even at the current gold price, and the presence of potentially
commercial amounts of antimony further improve the prospects. Our focus is on
developing a mine at Clontibret, initially to be open pit."
Further Information:
Tel:
Conroy Gold and Natural Resources plc +353-1-661-8958
Professor Richard Conroy, Chairman
Sanlam Securities UK Limited (Nomad) Tel:
+44-20-7628-2200
Virginia Bull/ Simon Clements
Hybridan LLP (Broker) Tel:
+44-20-3713-4580
Claire Louise Noyce / Niall Pearson/William Lynne
IBI Corporate Finance Limited (ESM Adviser) Tel:
+353-766-234-800
Ger Heffernan/Jan Fitzell
Lothbury Financial Services Limited Tel:
+44-20-3290-0707
Michael Padley
Hall Communications Tel:
+353-1-660-9377
Don Hall
www.conroygold.com
CHAIRMAN'S STATEMENT
I have pleasure in presenting your Company's Annual Report and Consolidated
Financial Statements for the financial year ending 31 May 2015. Moving forward
with your Company's proposed development of a goldmine at Clontibret, in County
Monaghan, has been the main focus of your Company's activities during the
financial year.
There was also further excellent progress with your Company's exploration
programme particularly at the Clay Lake gold target in Co. Armagh and the
Slieve Glah gold target in County Cavan together with the discovery of a new
gold target at Rockcorry in County Monaghan. In addition exploration licences
were granted to your Company in the highly prospective gold district of
Sodanklya in Finland.
Clontibret
Proposed Gold Mine
The Clontibret gold target, on which your Company proposes to bring in its
first gold mine includes high grade Lodes and a Stockwork. In addition antimony
is present.
The mining plan envisages a conventional surface open pit mine, with a Phase 1
starter pit followed by a Phase 2 extension with a combined period for Phases 1
and 2 of approximately 10 years, to be followed by underground mining and/or
further surface pits.
The Phase 1 starter pit at your Company's proposed gold development at
Clontibret will concentrate on a high grade, densely drilled portion of the
resource and should result in accelerated total project capital payback within
year 2 of the operation and a positive cash flow. Current metallurgical
testwork is indicating very favourable flotation and downstream processing
characteristics which together with favourable infrastructure and logistical
support will be important in reducing the project's capital and operating
costs.
An infill drilling programme at Clontibret has shown grades of 20.05g/t gold
over 1 metre and 14.10g/t gold over 0.25 metres. Gold has also been intercepted
at 340.5 metres in the Stockwork zone - the deepest intersection of gold to
date at Clontibret. Stockwork intersections included a 12.5 metre intersection
at 2.6g/t Au which included 7.5 metres at 3g/t Au.
These recent drilling results have provided further evidence of continuity of
gold at depth at Clontibret and have enabled the existing goldbody model to be
confirmed and the gold mineralisation zone to be extended.
For the underground mining option there are favourable grades and widths at
depth that have been identified by drilling. This ore could be accessed by a
spiral ramp at the base of the Phase 1 pit and mined by a high volume method
such as sublevel block caving.
Elevated antimony contents are present in gold flotation concentrate from
Clontibret. Metallurgical testwork has indicated that these are potentially
economic quantities of antimony. It is therefore planned that antimony will be
mined at Clontibret in addition to gold.
Antimony is specified by the European Commission as a critical raw material and
a large supply deficit is also forecast by the European Commission. The product
is used primarily in the production of flame retardants.
Work has been conducted to identify flowsheet options to allow for the
extraction of the antimony from the gold bearing concentrate. Several process
options have been identified and future metallurgical testwork will include
testing these options and optimising extraction to provide a saleable antimony
product.
The potentially economic quantities of the strategically important mineral
antimony, in addition to gold which is intended to be mined at Clontibret, is a
very welcome further development as your Company moves forward with its mining
plans for Clontibret.
Exploration
Your Company's Clay Lake gold target in County Armagh is greater in surface
area than the Clontibret gold target. Geologically the Clay Lake gold target
appears to be a black carbonaceous shale hosted deposit. Wide gold zones have
been encountered during trenching and drilling and the deposit could well
contain very high gold content and tonnage.
At Slieve Glah in County Cavan an independent Structural Study by Dr. Francis
Murphy and Dr. David Coller has been carried out which has highlighted the
potential for a concentration of gold mineralised faults and of gold target
zones within the gold-in-soil anomalies defined by your Company. These
gold-in-soil anomalies are approximately 3km (1.8miles) in length. A major
geological structure, the Orlock Bridge Fault, undergoes a significant strike
swing, or bend, at Slieve Glah. This has led to the development of a dilation
zone which could hold significant mineral potential. At Rockcorry, in County
Monaghan, an extensive (700 metres by 300 metres) gold-in-soil anomaly has been
discovered. The anomaly lies about 14 km to the south west of Clontibret and
adds further evidence as to the gold potential of the area lying between the
Glenish and Clontibret gold targets and the Slieve Glah gold target to the
south.
Further targets along the thirty mile gold trend in the Longford-Down Massif
have been identified using High Resolution Satellite Imagery (Rapid Eye
Imagery) in conjunction with geological and airborne geophysical data sets.
A number of significant gold discoveries have been made in Finland in recent
years. The Sodanklya region in which your Company has been granted exploration
licences appears highly prospective.
Finance
The loss after taxation for the financial year ended 31 May 2015 was €315,314
(2014: €380,305) and the net assets as at 31 May 2015 were €15,321,650 (2014: €
14,290,931).
During the financial year, on 8 October 2014, the Company raised £750,000
(prior to expenses) by issuing 75,000,000 new ordinary shares by way of a
placing and, on 21 November 2014, I converted £273,500 of convertible debt into
ordinary shares at 2.65p per share. Details of the share issues are in Note 15
to the accounts.
As in previous years, I have supported the working capital requirements of the
Company. The balance of the loans due to me at the period end was €191,022. 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, which the terms of the loans are fair and reasonable in so far as the
Company's shareholders are concerned.
Auditors
I would like to take this opportunity to thank the partners and staff of
Deloitte for their services to your Company during the course of the financial
year.
Directors
I would like to express my deep appreciation of the support and dedication of
all of the directors, consultants and staff, which has made possible the
continued progress and success, which your Company has achieved.
Future Outlook
Your Company made further excellent progress in the financial year to 31 May
2015 and this has continued into the current financial year. We continue to
progress from the purely exploration phase into the development phase with our
primary focus on bringing a gold and antimony mine at Clontibret into
production.
Professor Richard Conroy
Chairman
20 November 2015
CONSOLIDATED INCOME STATEMENT
FOR YEAR ENDED 31 MAY 2015
2015 2014
€ €
OPERATING EXPENSES (315,314) (374,323)
-
Finance income - bank interest -
receivable
Finance costs - interest on shareholder (5,982)
loan
LOSS BEFORE TAXATION (315,314) (380,305)
Taxation - -
LOSS FOR THE YEAR (315,314) (380,305)
Loss per ordinary share - basic and (€0.0008) (€0.0012)
diluted
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2015
2015 2014
ASSETS € €
Non-current Assets
Intangible assets 17,561,838 16,033,308
Property, plant and equipment 17,983 7,854
17,579,821 16,041,164
Current Assets
Trade and other receivables 63,586 59,358
Cash and cash equivalents 23,480 78,372
87,066 137,730
Total Assets 17,666,887 16,178,894
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 4,373,208 3,520,000
Called up deferred share capital 6,135,597 6,135,597
Share premium 8,855,525 8,447,949
Capital conversion reserve fund 30,617 30,617
Share based payments reserve 1,120,009 1,034,760
Retained losses (5,193,306) (4,877,992)
Total Equity 15,321,650 14,290,931
Non-current Liabilities
Convertible loan - 324,952
Financial Liabilities 191,022 191,022
Total Non-current Liabilities 191,022 515,974
Current Liabilities
Trade and other payables 2,154,215 1,371,989
Total Current Liabilities 2,154,215 1,371,989
Total Liabilities 2,345,237 1,887,963
Total Equity and Liabilities 17,666,887 16,178,894
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2014
2015 2014
€ €
Cash flows from operating activities
Cash generated by/(used in) operations 147,396 152,953
Net cash generated by/(used in) operating 147,396 152,953
activities
Cash flows from investing activities
Investment in exploration and evaluation (1,459,440) (1,064,003)
Payments to acquire property, plant and (15,673) (4,780)
equipment
Net cash used in investing activities (1,475,113) (1,068,743)
Cash flows from financing activities
Issue of share capital 935,832 812,621
Advances from shareholders - 205,000
Amounts repaid to shareholders - (114,600)
Advances from Related Parties 336,993 -
Interest paid on shareholder loan - (14,450)
Net cash generated from financing 1,272,825 888,571
activities
Increase/(Decrease) cash and cash (54,892) 6,508
equivalents
Cash and cash equivalents at beginning of 78,372 71,864
year
Cash and cash equivalents at end of year 23,480 78,372
Notes to the Financial Statements
1. Publication of non-statutory accounts
The financial information set out in this preliminary announcement are
abbreviated accounts as defined in Section 1119 of the Companies Act 2014.
The financial information for the period ended 31 May 2015 has been extracted
from the Company's financial statements to that date which have received an
unqualified auditor's 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 €0.0008 (2014 - €0.0012) is
based on the loss for the financial year of €315,314 (2014 - €380,305) and the
weighted average number of ordinary shares in issue during the year of
405,603,539 (2014 - 309,922,413).
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,
2015.
4. Copies of Accounts
A copy of the Annual Report and Financial Statements will be available on the
Company's website www.conroygold.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. Notice of the Annual
General Meeting to be held on 14 December 2015 and a Proxy Form were sent to
shareholders on 20 November 2015 and are also available on the website.
END
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