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Share Name Share Symbol Market Type Share ISIN Share Description
Conroy Gold & Natural Resources Plc LSE:CGNR London Ordinary Share IE00BZ4BTZ13 ORD EUR0.001 (CDI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.25 0.97% 26.00 25.00 27.00 26.50 26.00 26.50 98,014 10:20:53
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 0.2 0.6 46.4 10

Clontibret Gold Project Scoping Update

16/12/2011 7:00am

UK Regulatory (RNS & others)



 
TIDMCGNR 
 
16 December 2011 
 
                    Conroy Gold and Natural Resources plc 
 
                         ("Conroy" or "the Company") 
 
                    Clontibret Gold Project Scoping Update 
 
- Resource increased to over 600,000 ounces gold (Au) 
 
- Indicated category increased to over 250,000 ounces (Au) 
 
- Mine life increased to 11.2 years 
 
- Gold in-situ averaging over 50,000 ounces per annum for first 
  five years of mine life 
 
- NPV(8) increased to US$72.3 Million: IRR increased to 49.4 per cent 
 
Conroy (AIM: CGNR; ESM: CGNR.I) is pleased to announce that it has 
received an Updated Resource and Evaluation prepared by Tetra Tech Wardrop 
Engineering Inc ("Tetra Tech"). on its wholly owned Clontibret gold project in 
Co. Monaghan, Ireland. The new resource and evaluation was developed to Joint 
Ore Reserves Committee ("JORC") standard and is an update on the scoping study 
previously undertaken by Tetra Tech. The update increases the resource to over 
600,000oz Au, the mine life to 11.2 years and further enhances the economics 
of the project. 
 
The evaluation is based on a long-term gold price of US$1,372 per 
oz Au and on a new resource estimate based on infill drilling, assay results 
and updated geological interpretation. The new resource estimate using a 
minimum mining width of 2 metres and a cut-off grade of 0.60g/t Au shows a 25 
per cent increase in tonnage to 11,709,700 tonnes and a 19 per cent increase 
in total ounces of gold to over 600,000 oz at 1.60 g/t Au (Indicated 259,956 
oz Au, Inferred 341,148 oz Au) (See Table A). The mineral resource was 
evaluated for mining potential using Whittle pit optimisation software. 
 
Table A 
 
Summary of Resource Estimate 
 
        Indicated                   Inferred                     Total 
 Tonnes   Au (g/t)   Ozt    Tonnes   Au (g/t)   Ozt     Tonnes   Au (g/t)   Ozt 
4,926,900   1.64   259,956 6,782,800   1.56   341,148 11,709,700   1.60   601,104 
 
      Note: Contained metal estimates remain subject to factors such as 
                 mining dilution and process recovery losses 
 
 
The Whittle evaluation shows a 120 per cent increase in contained 
gold within a conventional 
 
open pit configuration, a 35 per cent reduction in operating costs 
due to economy of scale, a reduction in stripping ratio from 11.8 to 9.4, a 
doubling of production rate from 400,000 to 800,000 tonnes per annum, a 
decrease in gold grade from 2.19 g/t Au to 1.53g/t Au, an assumed overall 
recovery rate of approximately 85 per cent using a bio-oxidation process; 
in-situ gold averaging over 50,000 oz per annum in the first five years of 
mine life and an increase in mine life to 11.2 years. (See Table B) The 
increase in size and throughput will increase capital costs to US$77.8M (from 
US$ 47.9M) but with a reduction in payback period to two years. 
 
Table B 
 
Description           Scoping Study     Update                Comment 
Processed material (kt*)      2,898      8,980          210% increase 
Stripping Ratio                11.8        9.4           20% decrease 
Contained Au (000oz**)        198.7      441.2          120% increase 
Au Grade (g/t***)              2.13       1.53           28% decrease 
Production                      400        800     Doubled economy of 
Rate(000t/a****pa)                                              scale 
Mine Life (years)               7.2       11.2    Increased mine life 
Payback (years)                 4.3        2.0 Payback period reduced 
 
*Kilotonne ** Troy Ounce *** Grams per tonne **** Tonnes per annum 
 
 
The economic evaluation was based on a pre-tax financial model, 
taking a base case commodity price for gold of US$1,372 per ounce, this gave a 
49.4 per cent internal rate of return (IRR) and a net present value (NPV), at 
an 8 per cent discount rate, of US$72.3M. 
 
This press release has been verified by Paul Gribble C.Eng, 
Competent person for Resource Estimation, Richard Hope C.Eng Competent Person 
for Mining and Andrew Carter C.Eng, Competent Person for Mineral Processing. 
The text is based on and fairly and accurately reflects in the form and 
context in which it appears, the information in the supporting documentation 
relating to Mineral Resources and the Scoping Study. All the above named 
persons are employees of Wardrop and are independent of Conroy. 
 
Commenting, Chairman, Professor Richard Conroy said: 
 
"The mine economics are transformed by these results with an over 
100 per cent increase in contained gold, a substantial increase in gold 
production, a reduction in operating costs of over 30 per cent, an increase in 
mine life to over 11 years, and a two year payback period." 
 
Further Information: 
 
Conroy Gold and Natural Resources plc       Tel: +353-1-661-8958 
Professor Richard Conroy, Chairman 
 
Merchant Securities Limited (Nomad)         Tel: +44-20-7628-2200 
Simon Clements/Virginia Bull, 
 
XCAP Securities PLC (Broker)                Tel: +44-20-7101-7070 
John Grant/ Karen Kelly/ David Lawman 
 
IBI Corporate Finance Limited (ESM Adviser) Tel: +353-1-637-7800 
Brian Farrell 
 
Lothbury Financial Services                 Tel: +44-20-7868-2567 
Michael Padley/Michael Spriggs 
 
Hall Communications                         Tel: +353-1-660-9377 
Don Hall 
 
Visit the website at: www.conroygoldandnaturalresources.com 
 
 
 
 
END 
 

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