Conroy Gold and Natural Resources

  • Conroy falls despite revealing drilling progress at Slieve Glah gold target (CGNR)

    Conroy Gold and Natural Resources (LSE:CGNR) dipped 6.6pc to 5.7p on Wednesday after revealing that it has completed a 600m drilling programme on its Slieve Glah gold target in the Longford-Down Massif in Ireland.

    The primary focus of the programme – which saw the firm drill four holes - was to follow up on encouraging gold-in-soil, deep overburden and trenching results in the Slieve Glah area. Detailed logging of the drill core is now underway, with completion expected by July this year.

    According to Conroy, a controlling feature at Slieve Glah called the Orlock Bridge Fault undergoes a significant strike swing. These can often act as focal points for mineralisation. Meanwhile, an extensive gold-in-soil geochemistry exploration programme carried out by Conroy at Slieve Glah has demonstrated the presence of a series of c.3km-long gold-in-soil targets. Follow-up deep overburden and trenching at numerous sites have confirmed the area’s prospectivity for the precious metal.

    Slieve Glah is found at the south-western end of the 65km gold trend discovered by Conroy in the Longford-Down Massif. It is around 40km downtrend from the Glenish-Clontibret-Clay Lake gold target in the northeast of the gold trend. Conroy is targeting high tonnage and high-contained-ounce deposits in the area. Examples of deposits with similarities to the mineralisation at Clay Lake and Clontibret are the orogenic Macraes mine in New Zealand and the intrusion-related Murantau mine in Uzbekistan.

    All-in-all, Conroy has given Glenish-Clontibret-Clay Lake an estimated gold exploration target of 8.8MMoz. This excludes a JORC-compliant resource of 517,000oz of gold at the Clontibret deposit.

    On Wednesday’s update, Conroy’s chairman Richard Conroy said: ‘The company’s emphasis remains on its potential multi-million-ounce gold target in the Glenish -Clontibret- Clay Lake area. However, the nature and extent of the Slieve Glah gold target area in the southwest of the gold trend suggests that it could add significantly to the 8.8 million ounce gold potential seen in the Glenish-Clontibret-Clay Lake gold target area.’

    Author: Daniel Flynn

    The Author does not hold a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    The Author has not been paid to produce this piece by the company or companies mentioned above

    Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • Conroy Gold raises funds to push forward potentially game-changing Irish venture (CGNR)

    Conroy Gold and Natural Resources (LON: CGNR) announced that it had raised £2.25 million to support its ambitious joint venture plans in Ireland on Tuesday.

    It was Demir Export that approached gold explorer and developer Conroy to propose the Irish joint venture (“JV”), and the two have signed a letter of intent (“LOI”). This enticing  JV would cover all of Conroy’s Longford-Down Massif gold projects.

    The Longford-Down Massif region has great potential, stretching as it does from the Republic of Ireland’s County Longford to Northern Ireland’s County Down. It is intersected by a major fault, known as Orlock Bridge. Conroy has said it believes the Massif’s geology and structural setting are “conducive to the formation of major gold mineral deposits”.

    With an enhanced working capital position and balance sheet, Conroy will put its funds to work on supporting activities around the JV.

    Right now, Conroy is focused on the Clontibret gold target, one of four primary gold targets in the Massif. The target has proven gold bedrock and its impressive JORC compliant total resource tops an estimated 1 million ounces over 20% of the gold target area.

    Clontibret’s 2012 JORC estimated resource was 320,000 ounces (“Oz”) of gold indicated and 197,000 Oz inferred, at an overall grade of 2 grams per ton (“g/t”) of gold. Higher grades have been found, such as 24.4 grams g/t of gold over 1.0 metre and 21.6 g/t over 1.2 metres.

    Conroy’s financing includes an approximately £1.87 million placing and subscription, as well as the conversion of around £380,000 of existing debt into new shares.

    There was no discount under the financing, which was arranged at 33p per share – equal to Conroy’s Monday closing price.

    Directors have subscribed for £21,500 worth of shares under the placing, which was arranged by Conroy joint broker First Equity. Each share issued under the financing has a warrant and super warrant attached, exercisable at 50p and £1 each respectively.

    Great JV terms

    Demir is an excellent partner for the project, as it is owned by the Koç family. The family also owns Koç Holding(IST: KCHOL), a Fortune 500 company and Turkey’s biggest industrial conglomerate.

    Terms of the LOI include a €1 million cash payment to Conroy from Demir once a definitive agreement gets approval, which is a great first step. After that, Demir will spend €4.5 million in phase one payment for a 25% interest, followed by another €4.5 million expenditure for an additional 15% stake at phase two.

    At the phase three mark, Demir will spend all additional funds needed to arrive at construction-ready status for Clontibret and/or other mine developments for a further 17.5% interest. This would take Demir’s JV stake to 57.5%.

    Things really get interesting at this point. As chair Richard Conroy noted, Conroy Gold would retain a 42.5% interest in the JV “with various further options”, including a carry loan on capital expenditure to commercial production. This would let the company hold on to an externally funded 25% interest in the project “with minimal further cash outlay”.

    This aspect of the deal, as the chair explained, “was a particularly key element of the JV for the company”.

    The bigger picture

    The Ireland JV won’t be the only thing Conroy uses its new funds for. The money will also be used to meet commitments and costs for its “various licences in Ireland and Finland”, as well as exploration drilling on its Finnish copper/gold licences. The fundraise will also help with the company’s working capital.

    Conroy’s main focus in Finland is on gold exploration in the Lapland gold belt. This belt hosts the biggest mine in Europe, the 4.4 million Oz Kittila gold mine. Conroy believes its exploration licence areas in the belt are “highly prospective for the discovery of a significant iron oxide copper gold deposit”.

    Author: Anna Farley

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • Conroy Gold reveals excellent zinc results in Ireland (CGNR)

    Conroy Gold and Natural Resources (LON: CGNR | FRA: FKV1) on Tuesday revealed high-value zinc results from its sampling programme in Ireland’s Longford–Down Massif just as demand for the metal is set to grow.

    The infill zinc-in-soil sampling programme took place on the northern, Aughnagurgan section of an impressive 20 square kilometre (km2) zinc zone.

    Of the 65 samples taken, 23 returned values of more than 500 parts per million (“ppm”) zinc over an area of around 0.8 km by approximately 0.9 km at Aughnagurgan.

    Not only that, but an impressive 10 such samples were reported at over 1,000 ppm zinc, with an overall range from 74 ppm to an excellent 3,700ppm.

    Results from the sampling also indicated that various associated elements were also present, including lead, nickel, cadmium, and manganese. 

    This impressive zinc zone within the Longford–Down Massif lies south of the previously discovered new district-scale gold trend at Clontibret, where Conroy Gold is planning to develop its first gold mine.

    Historical success

    The Longford-Down Massif has a strong history of mining, including former Antimony mines at Clontribet, where gold was first discovered plus various shallow lead and zinc mines worked in the nineteenth century. This was known at the time as the Armagh – Monaghan mining district.

    The former Tullynawood and Aughnagurgan mines were worked for lead in the area and were located within around 1km of the Aughnagurgan zinc target.

    Records report that the trend of lead veins works from both mines would likely “coalesce in the area of the Aughnagurgan zinc target”, which would support the case for base metal mineralisation.

    Furthermore, Aughnagurgan’s underlying geology includes the calcareous turbidites and black shales associated worldwide with “clastic-dominated lead-zinc ore deposits”, particularly “sedimentary hosted lead-zinc deposits”.

    What next?

    Conroy Gold is planning to conduct follow-up drilling to test the Aughnagurgan zinc target.

    Chair Richard Conroy stressed, however, that the company’s main focus at the is still the Longford-Down Massif’s “district scale gold trend” as well as bringing in a mine for the Clontribet deposit. This deposit already has a 517,000 ounce JORC compliant gold resource.

    The chair also highlighted that Conroy Gold has signed a letter of intent with Demir Exportfor a proposed joint venture on an earn-in basis over 12 of the company’s licenses in the Longford-Down Massif.

    Demir Export is a well-established Turkish mining company and has interests in various resources, including gold, as well as base metals like zinc and copper.

    “Demir Export has the mining expertise and the financial resources not only to bring the Clontibret gold deposit to construction ready status and into operation as a mine, but also to advance the significant gold potential of the other licences along the gold trend to the same status and also the base metal potential of the Massif,” the chair said.

    Promising times for zinc

    The current worldwide surplus of zinc is expected to reduce in 2021 as increasing demand is set to outpace higher production. This is according to Russia’s UGMK, a copper and zinc producer.

    UGMK is forecasting global zinc production in 2021 will increase by 2.9% to 14 million metric tons as plants in China increase their output in response to “solid domestic demand”but demand growth will rise 4.3% to 13.5 million metric tons.

    According to UGMK, China will have to increase its zinc concentrate imports amid declining domestic extraction. Zinc production rise 0.9% in 2020 to 13.6 million metric tons thanks mostly to China.

    UGMK is also expecting product prices to rise in 2025 to 2030 due to a possible zinc production deficit. This would come as existing mines fall from their 2024 peak while new projects have suffered weaker prices in their earlier stages.

    Author: Anna Farley

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

     

  • MiningMaven Podcast 108 - with Professor Richard Conroy of Conroy Gold & Natural Resources (CGNR)

    In today's podcast we speak with Professor Richard Conroy, chairman of Conroy Gold and Natural Resources (LSE:CGNR). Conroy gold is exploring licenses across Ireland with its main focus being a 40-mile-long proven gold trend within the highly prospective Longford - Down Massif. Last week the firm announced the completion of drilling at Slieve Glah on the Orlock Bridge fault. Professor Conroy elaborates on the company’s exploration work, and discusses historical mining in the area.

    This interview was recorded on 30th May 2019.

    All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate. MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG) #gold #mining #investing

    Author: Stuart Langelaan

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    The Author has not been paid to produce this piece by the company or companies mentioned above.

    Catalyst Information Systems Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    Catalyst Information Systems Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and Catalyst Information Systems Ltd are not responsible for its content or accuracy. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.