Half-yearly Report

 
TIDMCDG 
 
25 February 2010 
 
                        Conroy Diamonds and Gold P.l.c. 
 
                                ("the Company") 
 
         Half-yearly results for the six months ended 30 November 2009 
 
                        GOOD PROGRESS ON SEVERAL FRONTS 
 
Conroy Diamonds and Gold Plc (AIM: CDG), the gold exploration and development 
company primarily focused on Ireland, announces its results for the six months 
ended November 30, 2009. 
 
Highlights: 
 
  * Clay Lake sampling returns highest gold-in-soil values recorded by Company 
    on its Irish exploration licences 
 
  * Follow-up chip sampling in stream bed identifies 18m wide zone of gold 
    mineralisation 
 
  * Large, coherent zinc-in-soil anomaly outlined to south-east of Clontibret 
 
  * Company raised EUR830,071 by share placings 
 
  * Retained loss for the year EUR183,126 (2008: loss EUR202,464) 
 
Post Period 
 
  * Wardrop Engineering appointed to undertake Clontibret scoping study 
 
  * First drilling at Clay Lake returns good results, including 63m grading 
    0.62g/t gold 
 
  * Company lists on Irish Enterprise Exchange (IEX) 
 
Professor Richard Conroy, Chairman, commented: 
 
"We are now moving beyond the exploration phase at Clontibret and Wardrop 
Engineering has commenced a scoping study to determine if the current 
JORC-compliant resource of just over one million ounces of gold can support a 
profitable mining operation. We are also making excellent progress at Clay 
Lake, with impressive first drilling results, whilst the discovery of a very 
large zinc-in-soil anomaly south-east of Clontibret brings a new dimension to 
our activities in this area. 
 
However, our prime focus remains the delineation and development of our gold 
projects with the 30 mile long gold trend we have identified." 
 
Chairman's Statement 
 
I am pleased to report on the activities of your Company for the six months 
ended 30 November 2009, a period during which the gold price improved steadily, 
before reaching a new peak of over US$1,200/oz at the beginning of December 
2009. Base metal prices also showed a welcome recovery in the period under 
review. 
 
In terms of the wider stock market, the FTSE Index of AIM shares improved by 
over 50 per cent. from the lows reached in the first quarter of the year. Your 
Company's shares participated in this price recovery and we were able in the 
period to add to our cash resources through share subscriptions and placings. 
 
Clontibret 
 
Work programmes on our Irish exploration licences have continued to return very 
good results and, in the case of Clontibret, we have now moved beyond the 
exploration stage with the recent appointment of Wardrop Engineering to carry 
out a scoping study. This will determine if the current JORC-compliant resource 
of just over 1 million ounces of gold can support a profitable mining 
operation. 
 
Whilst this study will primarily be related to Clontibret, it will also 
consider the possible implications presented by our other nearby gold 
discoveries at Clay Lake and Glenish. 
 
Wardrop is a multi-disciplined engineering and consultancy firm that has been 
working in the global mining industry since the early 1960s and is at the 
forefront of gold mining expertise. 
 
Clay Lake 
 
During the period we have determined that the Clay Lake gold-in-soil anomaly, 
which we first announced in February 2009, is much larger and more coherent 
that the Clontibret target, 7km to the south-west. It has returned the highest 
gold-in-soil sample values (up to 1.53 gramme/tonne) recorded by the Company on 
its Irish licences, averaging twice those reported at Clontibret. 
 
Chip sampling of rock exposed in stream beds in the northern corner of the soil 
anomaly returned positive results, and identified an 18m wide mineralised zone 
averaging 0.47 gramme/tonne gold, with individual samples assaying up to 1.69 
gramme/tonne. Furthermore, the extent of this mineralised zone was not fully 
established as further chip sampling along trend was precluded by soil cover. 
 
After analysis and interpretation of all the sampling data, we brought in a rig 
at the end of 2009 and completed two inclined diamond drill holes located 
approximately 450m away from the stream bed sampling. Given that exploration at 
Clay Lake is still at a very early stage, the recently announced drilling 
results are, in the Board's opinion, outstanding. They confirm the presence of 
a broad zone of gold mineralisation, with one hole returning an impressive 63m 
intersection grading 0.62 gramme/tonne gold from rocks similar to those exposed 
in the stream bed. 
 
The drilling also showed that the mineralisation continues to a vertical depth 
of at least 110m and extends for several hundred metres along trend from the 
stream bed mineralisation. We are confident that much more will be revealed as 
exploration progresses on this exciting find. 
 
Zinc Discovery 
 
Our discovery of a very large zinc-in-soil anomaly to the south-east of 
Clontibret has added a new dimension to our activities in this area which 
features a number of historic, near-surface lead and zinc orebodies that 
supported small-scale production in the 19th century. 
 
Infill sampling at this discovery to the south-east of Clontibret has resulted 
in three previously identified separate zinc-in-soil anomalies merging into one 
large, coherent anomaly covering an area of over 8km2. The samples returned an 
average zinc value of 466 parts per million ("ppm"), with a peak value of 
4,047ppm, many times the area's typical background zinc-in-soil values of less 
than 200ppm. We believe that this anomaly is further evidence of the presence 
of a large, zoned metalliferous system in the area. 
 
Outlook 
 
Your Company is now moving into an exciting new phase of its development as the 
Clontibret scoping study gets underway. At the same time, we believe that our 
work at Clay Lake, though still at an early stage, indicates that this 
discovery could be of equal or even greater magnitude than Clontibret. The new 
zinc discovery to the south-east of Clontibret adds a new dimension to the 
area. 
 
Although your Company cannot ignore the possibility that it has made a 
significant zinc discovery, our prime focus remains on the delineation and 
development of our gold projects within the 50km long trend we have identified 
on our Irish licences. We remain confident of achieving further success over 
the coming months. 
 
Corporate 
 
In December 2009, the shares of your Company were listed on the Irish 
Enterprise Exchange (IEX). We believe that this move will facilitate dealings 
for investors in Ireland and elsewhere who normally trade shares in Euro. 
 
Finance 
 
The results for the six months ended 30 November 2009 are set out below. The 
loss for the period was EUR183,126 (2008: loss EUR202,464). 
 
During the period under review your Company raised EUR830,071, net of expenses, 
from investors by way of share placings, and I converted EUR325,000 of my loans 
to the Company into shares. 
 
Your Board is considering various options to finance the next phase of the 
Company's activities. 
 
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 
 
Further enquiries: 
 
Conroy Diamonds and Gold Plc                             Tel: [phone] 
 
Professor Richard Conroy 
 
Merchant John East Securities Limited (Nomad)                Tel: [phone] 
 
Simon Clements / Virginia Bull 
 
IBI Corporate Finance Limited (IEX Adviser)              Tel: [phone] 
 
John Tuite 
 
City Capital Corporation Limited                             Tel: [phone] 
 
Charles Dampney 
 
Lothbury Financial Limited                                   Tel: [phone] 
 
Ron Marshman / Michael Padley 
 
Hall Communications                                      Tel: [phone] 
 
Don Hall 
 
UNAUDITED INCOME STATEMENT 
 
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2009 
 
                                         Six months     Six months         Year 
                                              ended          ended        ended 
                                        30 November    30 November       31 May 
                                               2009           2008         2009 
                                        (Unaudited)    (Unaudited)    (Audited) 
 
                                                  EUR              EUR            EUR 
 
OPERATING EXPENSES                        (183,142)      (202,478)    (298,155) 
 
Other Income                                     16             14           36 
 
LOSS BEFORE TAXATION                      (183,126)      (202,464)    (298,119) 
 
Taxation                                          -              -            - 
 
LOSS RETAINED FOR THE PERIOD              (183,126)      (202,464)    (298,119) 
 
Loss per ordinary share - Basic and        (0.0015)       (0.0019)     (0.0028) 
diluted 
 
UNAUDITED BALANCE SHEET 
 
AS AT 30 NOVEMBER 2009 
 
                                       30 November    30 November        31 May 
                                              2009           2008          2009 
                                       (Unaudited)    (Unaudited)     (Audited) 
 
                                                 EUR              EUR             EUR 
 
Non-current Assets 
 
Intangible assets                        9,166,965      8,297,538     8,736,915 
 
Financial assets                                 2              2             2 
 
Property, plant and equipment               19,515         26,921        24,791 
 
                                         9,186,482      8,324,461     8,761,708 
 
Current Assets 
 
Trade and other receivables                 32,933         44,110        24,982 
 
Cash and cash equivalents                  413,419         90,676        61,744 
 
                                           446,352        134,786        86,726 
 
Total Assets                             9,632,834      8,459,247     8,848,434 
 
EQUITY AND LIABILITIES 
 
Capital and Reserves 
 
Called up share capital                  4,285,935      3,170,649     3,170,649 
 
Share premium                            5,530,823      5,491,037     5,491,037 
 
Capital conversion reserve fund             30,617         30,617        30,617 
 
Share based payments reserve               508,143        359,117       433,630 
 
Retained losses                        (3,149,156)    (2,870,375)   (2,966,030) 
 
Total Equity                             7,206,362      6,181,045     6,159,903 
 
Non-current Liabilities 
 
Trade and other payables: Amounts        1,567,701      1,831,111     1,928,473 
falling 
 
due after more than one year 
 
Total non-current liabilities            1,567,701      1,831,111     1,928,473 
 
Current Liabilities 
 
Trade and other payables: Amounts          858,771        447,091       760,058 
falling 
 
due within one year 
 
Total Current Liabilities                  858,771        447,091       760,058 
 
Total Liabilities                        2,426,472      2,278,202     2,688,531 
 
Total Equity and Liabilities             9,632,834      8,459,247     8,848,434 
 
 
UNAUDITED CASH FLOW STATEMENT 
 
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2009 
 
                                            30 November  30 November     31 May 
                                                   2009         2008       2009 
                                            (Unaudited)  (Unaudited)  (Audited) 
 
                                                      EUR            EUR          EUR 
 
Cash (used by)/generated by operations         (12,574)     (18,768)    155,856 
 
Tax paid                                              -            -          - 
 
Net cash (used in)/generated by operating      (12,574)     (18,768)    155,856 
activities 
 
Cash flows from investing activities 
 
Investment in mineral interest                (430,050)    (407,053)  (786,164) 
 
Payments to acquire property, plant and               -      (2,098)    (5,409) 
equipment 
 
Net cash used in investing activities         (430,050)    (409,151)  (791,573) 
 
Cash flows from financing activities 
 
Issue of share capital, net                     830,071            -          - 
 
Shareholders loan (repayments)/advances        (35,772)      409,163    588,029 
 
Net cash from financing activities              794,299      409,163    588,029 
 
Increase/(Decrease) in cash and cash            351,675     (18,756)   (47,688) 
equivalents 
 
Cash and cash equivalents at beginning of        61,744      109,432    109,432 
period 
 
Cash and cash equivalents at end of             413,419       90,676     61,744 
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 EUR0.0015 (2008: loss EUR0.0019) 
is based on the loss for the half year of EUR183,126 (2008: loss EUR202,464) and 
the weighted average number of ordinary shares on a basic and fully diluted 
basis during the period of 121,254,414 (2008: 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 2009. 
 
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