4 March 2011
Conroy Gold and Natural Resources plc
("Conroy" or "the Company")
Infill Drilling Commences at Clontibret
* Drilling follows Positive Results from Scoping Studies
* 3,500 metres of Infill Drilling Planned Initially
* Potential for Increased Resource within Mine Area
Conroy (AIM: CGNR; ESM: CGNR.I), the Irish based resource company exploring and
developing gold and other natural resource projects in Ireland, is pleased to
announce that it has commenced infill drilling at its Clontibret gold target.
This decision follows the Scoping Study completed by Wardrop Engineering
("Wardrop") which yielded positive results on both technical and financial
grounds and its recommendation that infill drilling should proceed.
Over 3,500 metres of infill drilling is planned initially. This drilling will
further define gold zones within the proposed mine area, potentially increasing
the resource. The infill drilling will also provide geotechnical information
for mine design purposes together with ore material for metallurgical test
work.
A conventional open pit operation was designed by Wardrop as part of the
Scoping Study. A pit optimisation commodity baseline of US$970/oz gold price
was applied for the purposes of the study with a potential gold recovery of
174,840 oz gold, a head grade of 2.13g/t oz gold, a process rate of 400,000
tonnes per annum, an assumed overall gold recovery of approximately 88 per
cent. and a mine life of 7.2 years - giving an average annual production rate
of over 24,000 oz of gold.
The economic evaluation was based on a pre-tax financial model, taking a base
case commodity price for gold of US$1,144/oz. This gave a 17.7 per cent.
Internal Rate of Return (IRR) and a Net Present Value (NPV), at 8 per cent
discount rate, of US$14.4M. Reflecting recent current gold prices, a rate of 20
per cent over the base case - US $1,373, gives an IRR of 58.3 per cent. and an
NPV of US$77.9M.
The area of the Scoping Study comprises only 20 per cent of the Clontibret
target. The remaining 80 per cent of the Clontibret target remains open and two
other larger targets (Clay Lake and Glenish) lie in close (7km / 4.5miles)
proximity.
Commenting, Chairman, Professor Richard Conroy said:
"Following the positive technical and financial results of the Scoping Study by
Wardrop on 20 per cent of the target we have now commenced infill drilling to
further define the resource. This is the next stage as we move towards
developing a mine at Clontibret.."
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
John Tuite/ 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
This release has been approved by Kevin McNulty PGeo, who is a member of the
Company's technical staff, who holds a BSc/MSc in Geology and Remote Sensing,
in accordance with the guidance note for Mining, Oil & Gas Companies issued by
the London Stock Exchange in respect of AIM Companies, which outlines standards
of disclosure for mineral projects.