REG-Conroy Gold & Natural Resources Plc: Update on Joint Venture

Conroy Gold and Natural ResourcesAnnouncement

29/04/2024 16:00

                                                                                                                                               
29 April 2024


 

Conroy Gold and Natural Resources plc

("Conroy Gold" or "the Company")

 

 

UPDATE ON JOINT VENTURE

 
* Demir Export and Conroy Gold enter into binding agreement to exit joint
venture agreement with Net Smelter Royalty
 
* €5.65 million expenditure completed by Demir Export
 
* Major progress achieved during Joint Venture included the discovery of a
Second District Scale Gold Trend
 
* New partner to be sought for ongoing exploration and development  
 

Conroy Gold and Natural Resources PLC (AIM: CGNR) has today entered into a
binding agreement with Demir Export A.Ş ("Demir Export"), the Company's joint
venture partner, that will result in Demir Export exiting the Joint Venture
("JV") Framework Agreement with a Net Smelter Royalty ("NSR"). Demir Export
have expended a total of €5,657,671 across the licences covered by the joint
venture agreement since the JV became unconditional on 31 March 2022. The NSR
is at a net smelter return rate of 2% and is capped at the total investment by
Demir Export in the project.

 

The Company is pleased with the progress that has been achieved during the JV
and now holds licences over two district scale gold trends, the already
established Orlock Bridge gold trend together with the newly discovered
Skullmartin gold trend. The JV has enabled the Company to accelerate its
exploration and drilling activities and has moved the Company from primarily
being mineral exploration to having mine development as its main focus.

 

The district scale gold trends are located along the extension of the
geological structural corridor from the Newfoundland province in Canada where
a number of significant gold deposits have recently been discovered in similar
geology.

 

The two gold trends total between them over ninety kilometres, with multiple
mineralisation styles ranging from lower grade refractory mineralisation
(averaging 2.0g/t Au) through to very high grade vein hosted visible gold
mineralisation (grading up to 123 g/t Au in rock chip sampling).

 

Drilling and exploration success over these trends during the past 30 months
has included:

 
* excellent gold intersections from drilling of the stockwork zone of the
Clontibret gold target in the Orlock Bridge trend;
 
* continuity between the Clontibret gold deposit and the Corcaskea gold
target;
 

 
* confirmation, through step-out drilling, of the potential of the extensive
Clay Lake gold target (6Km in length by 2Km in width in some places) for high
tonnage and overall gold content; and
 
* the discovery at Creenkill, along the Skullmartin gold trend, of visible
gold and gold assay results of up to 123 g/t Au (4oz gold per tonne) is
particularly significant
 

Under the terms of the NSR agreement, with effect from commercial production,
a net smelter return, at a rate of 2%, will be paid to Demir Export calculated
on the sales of minerals.  The maximum aggregate amount payable to the
Royaltyholder (being Demir Export) shall be capped at the amount of the total
investment by Demir Export.

 

The 15 licences that were subject to the JV with Demir Export will continue to
be held within wholly owned subsidiaries of Conroy being: (i) Conroy Gold
(Clontibret) Limited- which holds the Clontibret licence; (ii) Conroy Gold
(Armagh) Ltd- which holds the licences and Mines Royal options in Northern
Ireland; and (iii) Conroy Gold (Longford Down) Limited- which holds the
remaining prospecting licences in the Republic of Ireland previously subject
to the JV. As a result of the exit of the JV and the granting of the NSR to
Demir Export, Demir Export will no longer retain any rights to earn-in to the
wholly owned subsidiaries that were originally set up as part of the JV
agreement.

 

The Clontibret gold deposit to date has a defined gold resource of 517,000oz
(JORC 2012).  The deposit shows at shallow depths a similar style of
mineralisation to the shallow section of the Fosterville gold deposit in
Australia, and the targeting concept at depth is similar to the very high
grade Swan Zone discovered at depth at Fosterville.   

 

A new partner will now be sought by Conroy Gold to build on the success
achieved to date and on the potential for the development of one, or more,
gold mines along the district scale gold trends which the Company has
discovered.

 

Professor Richard Conroy, Chairman, commented: 

 

"I would like to express my appreciation for the contribution which Demir
Export has made in conjunction with Conroy Gold to the continued success of
the Company's exploration programme and its potential for gold deposits with
high tonnage and overall gold content.

 

"Conroy Gold now holds licences over two district scale gold trends, which
includes the Clontibret gold deposit with its similarities to the very major
Fosterville gold mine in Australia, the extensive Clay Lake (Derryhennet) gold
target, and the exciting Creenkill discovery with visible gold and grades up
to 4 Oz Au/tonne."

 

In the year to 31 May 2023, Conroy Gold had total assets of €27,379,873 (30
November 2023 - €28,479,728), net assets of €23,514,536 (30 November 2023
- €24,527,955) and generated a loss before taxation of €362,829 (2022 -
loss before taxation of €256,484). 

 

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                                                                                                                      
 Peterhouse Capital Limited (Broker) Lucy Williams / Duncan Vasey  Lothbury Financial Services  Tel: +44-20-7469-0930    Tel: +44-20-3290-0707  
 Michael Padley                                                                                                                                 
 Hall Communications                                                                            Tel: +353-1-660-9377                            
 Don Hall                                                                                                                                       

 

Visit the website at: www.conroygold.com

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