Conroy Gold & Natural Resources Plc Completion of joint venture due diligence drilling

 
TIDMCGNR 
 
6 July 2021 
 
                     Conroy Gold and Natural Resources plc 
 
                       ("Conroy Gold" or "the Company") 
 
 Completion of joint venture due diligence drilling at Clontibret gold deposit 
 
                      Update on other drilling programmes 
 
  * Due diligence drilling at Clontibret gold deposit completed 
 
  * Proposed joint venture with Demir Export A.S. ("Demir Export") progressing 
    to final documentation 
 
  * Drill hole on Clay Lake gold target at Cargalisgorran completed 
 
  * Drilling programme on other licences underway 
 
Conroy Gold and Natural Resources plc (AIM: CGNR), the gold exploration and 
development company focused on Ireland and Finland, is pleased to announce the 
completion of due diligence drilling on its Clontibret gold deposit, the 
completion of a drill hole on the Cargalisgorran section of the Clay Lake gold 
target and the commencement of drilling on other targets in the new district 
scale gold trend which the Company has discovered in the Longford-Down Massif 
in Ireland. The Company also confirms it continues to make positive progress 
towards finalising the documentation and other matters in connection with the 
proposed joint venture with Demir Export. 
 
The Clontibret gold target is one of a series of potentially multi million 
ounce gold targets located along the 65km (40 mile) new district scale gold 
trend which the company has discovered in the Longford-Down Massif in Ireland. 
A (JORC 2012) gold resource of 517,000 ounces Au (320,000 oz Au indicated and 
197,000 oz Au inferred) has been estimated on part of the Clontibret gold 
target. 
 
Conroy Gold has signed a Letter of Intent ("LOI") with Demir Export A.S. for a 
planned Joint Venture ("JV") on an earn-in basis over the twelve licences held 
by Conroy Gold in the Longford-Down Massif (announced 25 February 2021). 
 
The primary focus of the joint venture project (Project Inis) is the 
development of the gold deposit at Clontibret to construction ready status and 
then bringing it into operation as a gold mine. The parties further aim is to 
have the other licences that are subject to the JV given the same status one 
after the other, hence providing a foundation for a long-term relationship 
between the parties. 
 
The due diligence drilling of two drill holes at Clontibret, which has now been 
completed, is part of the overall process leading to the finalisation of 
definitive documentation, including the final JV agreement. 
 
Key terms of the JV 
 
The announcement released by the Company on 25 February 2021 provides details 
on the proposed JV and the LOI that was entered into by Conroy and Demir Export 
on 25 February 2021 sets out the key commercial terms and conditions that 
Conroy Gold and Demir Export have negotiated and agreed on in relation to the 
planned JV. 
 
The key terms and proposed structure of the earn-in together with the 
respective operational responsibilities are set out below and remain unchanged 
from the LOI: 
 
  * Demir Export will make a cash payment of ?1 million to the Company upon 
    final approval of the definitive agreement in recognition of prior work 
    carried out in relation to the project. 
 
The Earn-in Period is divided into three phases: 
 
  * Phase 1: expenditure by Demir Export in work commitments (except Demir 
    Export in-house costs, Operator fees and Minimum Regulatory Work 
    Commitments) of ?4.5 million to earn a 25% interest in the project. 
  * Phase 2: expenditure by Demir Export in work commitments (except Demir 
    Export in-house costs, Operator fees and Minimum Regulatory Work 
    Commitments) of ?4.5 million to earn an additional 15%. 
  * Phase 3: expenditure by Demir Export of the additional funds required to 
    reach declaration of construction-ready status (i.e. a bankable feasibility 
    study or equivalent) - for Clontibret and/or other mine developments will 
    earn an additional 17.5% interest thus increasing Demir Export's holding to 
    a total of 57.5% in the development(s).  At which point Conroy Gold would 
    hold 42.5% of the construction-ready mine. 
 
Further details on the JV are set out in the announcement released by the 
Company on 25 February 2021. 
 
Drilling at Clay Lake gold target 
 
A drill hole in the Cargalisgorran section of the Clay Lake gold target, 
designed to intersect a gold zone between two previous intersections of 6.6m @ 
6.2 g/t Au and 5.3m @ 0.7 g/t Au, and to provide additional information on the 
width and grade of the gold mineralisation and other geological 
characterisation in this section of the Clay Lake gold target, has also been 
completed. 
 
The extensive Clay Lake gold target stretches from Cargalisgorran in the 
South-west to Derryhennet in the North-east, encompassing over 200 ha in area. 
The Clay Lake target lies at the north-eastern end of the gold trend and is 
named after the Clay Lake Nugget; a 30.05g nugget with a gold content of 28g, 
which is now on display in the Ulster Museum in Belfast. 
 
The wide zones of gold mineralisation, up to 100 metres, and the results of 
structural studies indicate the potential for both high tonnage and high 
overall gold content in the Clay Lake target. 
 
Other drilling underway 
 
The drilling programme on the Company's licences in the Longford-Down Massif is 
continuing.  Also underway are soil and deep overburden sampling programmes at 
the Company's Glenish, Rockcorry, Tullyvin and other gold and base metal 
targets. 
 
Sampling of core from the completed drilling is underway and assay results will 
be released in due course. 
 
Professor Richard Conroy, Chairman, commented: 
 
"I am delighted that due diligence drilling for the Company's proposed joint 
venture with Demir Export has been completed and we look forward to completing 
the final parts of the JV documentation and signing the definitive agreement." 
 
For further information please contact: 
 
Conroy Gold and Natural Resources plc                Tel: [phone] 
 
Professor Richard Conroy, Chairman 
 
 
Allenby Capital Limited (Nomad)                      Tel: [phone] 
 
Nick Athanas/Nick Harriss 
 
 
First Equity Limited (Broker)                        Tel: [phone] 
Jason Robertson 
 
Lothbury Financial Services                          Tel: [phone] 
 
Michael Padley 
 
Hall Communications                                  Tel: [phone] 
 
Don Hall 
 
Visit the website at: www.conroygold.com 
 
 
 
END 
 
 

(END) Dow Jones Newswires

July 06, 2021 02:00 ET (06:00 GMT)