Final Results
13 November 2013
Conroy Gold and Natural Resources plc
("Conroy" or "the Company")
Final Results for the Year Ended 31 May 2013
Gold Mine's Technical and Financial Viability Confirmed
Conroy (AIM: CGNR; ESM: CGNRI), the Irish based resource company exploring and
developing gold and other projects in Ireland, is pleased to announce its
results for the year ended 31 May 2013. Conroy has under licence the entire 30
mile gold trend which it has discovered in the Longford-Down Massif in Ireland
and is working towards opening a gold mine at Clontibret. In-house studies show
gold potential of 15-20 million ounces along the trend.
Highlights:
* Clontibret gold mine - technical and financial viability confirmed
* Clontibret resource evaluation - over 600,000 oz indicated and inferred
* Economic evaluation based on 20 per cent. of Clontibret target area -
payback period of two years
* Proposed process - BIOX®; amenability and technical viability confirmed
* IRR 49.4% NPV(8) $72.3m USD
* Test work undertaken by Goldfields shows 8% sulphur content - Scoping Study
showed 12%
* Geophysical programme carried out at Clay Lake target
* New gold targets identified along the 30 mile trend
* Additional base metal potential identified
* During the year £573,183 of new equity was raised and subsequent to the
year end a further £1,000,000 was raised
* Mr Séamus FitzPatrick, previously a Non-Executive director of the Company,
assumed the position of Deputy Chairman in February 2013
Chairman, Professor Richard Conroy commented:
"We are steadily working towards bringing Clontibret into production whilst
still discovering additional targets in particular at Clay Lake, where
indications are for high tonnage and overall gold content."
"We have also now identified two significant base metal targets on the licence
area, one showing zinc results of up to 30%. The very high zinc levels detected
in County Cavan add to the overall metalliferous potential of the licence area
for base metals as well as its established potential for gold."
"We look forward to the future with confidence as we move from the exploration
phase into the development phase."
For further information please contact:
Conroy Gold and Natural Resources plc Tel: +353-1-661-8958
Professor Richard Conroy, Chairman
Sanlam Securities UK Limited (Nomad) Tel: +44-20-7628-2200
Virginia Bull/Simon Clements
Hybridan LLP (Broker) Tel: +44-20-7947-4350/4361
Claire Louise Noyce/William Lynne
IBI Corporate Finance Limited (ESM Adviser) Tel: +353-766-234-800
Ger Heffernan
Lothbury Financial Services Tel: +44-20-3440-7620
Michael Padley/Michael Spriggs
Hall Communications Tel: +353-1-660-9377
Don Hall
Visit the website at: www.conroygold.com
CHAIRMAN'S STATEMENT
I have pleasure in presenting your Company's Annual Report and Financial
Statements for the 12 months ended 31 May 2013, a year of continued progress.
During the year mineralogical and metallurgical testwork on ore grade material
from Clontibret confirmed the technical and financial viability of the proposed
BIOX technology for processing the ore which is a key step in bringing the gold
mine at Clontibret into operation and at Clay Lake in Co. Armagh, geophysical
and drilling results support the view that this target could host a very large
gold deposit. Also high zinc values of up to 30 per cent have been found in an
evaluation of old lead workings within your Company's licence area confirming
that in addition to the gold potential there may be potential for base metals.
Clontibret Gold Mine
The final results of the mineralogical and metallurgical testwork by Goldfields
/Biomin on ore grade material confirmed the amenability and technical viability
of using the BIOX® technique to process the ore at Clontibret.
The mineralogical and metallurgical testwork was supervised and managed by
independent consultants Tetra Tech. It was carried out on 350kg of drill core
representative of both lode and stockwork ore grade material with a 10 per cent
dilution factor with a grade similar to that expected for run of mine.
The testwork results indicated fast oxidation kinetics, achieving over 90 per
cent oxidation for both lode and stockwork concentrate samples. Maximum gold
extractions achieved were 90.4 per cent and 87.1 per cent respectively with
overall recoveries confirmed by Tetra Tech to be in line with their independent
Scoping Study.
BIOX® is a well established bacterial oxidation technique which was recommended
by Tetra Tech as an appropriate technology for treating the gold sulphide
concentrate at Clontibret. BIOX® is an environmentally friendly proven
technology with a number of plants in operation worldwide including South
Africa, Ghana, Brazil, China and Australia. The BIOX® process gives improved
rates of gold recovery at significantly lower capital and operating costs.
Test work undertaken by Goldfields Limited ("Goldfields")/Biomin included
grinding, crushing and other factors in relation to mill design. The results
suggest that a combination of either Semi-Autonomous Grind ("SAG")/Ball Mill or
"HPGR"/Ball Mill or a larger Ball Mill for the process plant be considered.
Preliminary indications are that a "SAG"/Ball Mill combination may be the
preferred choice.
The results indicate an 8 per cent sulphur grade in concentrate whereas in the
Scoping Study a grade of 12 per cent had been assumed. The lower sulphur grade
in the concentrate is highly advantageous as it will reduce capital and process
operating costs.
Confirmation of the technical and financial viability of the proposed BIOX®
technology for processing the ore is a key step in bringing the gold mine at
Clontibret into production.
Clay Lake Gold Target
The Clay Lake gold target, which is greater in surface area than the Clontibret
gold target and has gold-in-soil values twice those of Clontibret, appears to
be a black carbonaceous shale hosted deposit. Such deposits can be very large.
Drill intersections of 63 metres at 0.62g/t gold and 1g/t silver and 50.75
metres at 0.61g/t gold have been intersected suggesting potential for high
tonnage and overall gold content.
A ground geophysical programme on the target has been carried out by Golder
Associates on behalf of your Company. The programme comprised Induced
Polarisation (IP) and Resistivity totalling 960 line metres in four survey
lines over the Northern area of the target.
Interpretation of the results depicted an anticlinal folding sequence of the
gold bearing black carbonaceous stockwork zone. The geophysical results support
the view that the Clay Lake gold target could host a large gold deposit.
Further Gold Targets Identified
Further new gold targets along the thirty mile trend discovered by your Company
have been identified by an independent review of airborne geophysics by BRG
(Geotechnics) Limited.
High Zinc and Other Metallic Values Recorded
Evaluation of old lead workings within your Company's licence area has yielded
highly positive zinc results of up to 30 per cent. These samples also had
elevated copper, silver, antimony, mercury, gallium and cadmium.
Also the original gold discovery at Clontibret where the Company is proposing
to develop its first gold mine was historically an old antimony mine. Antimony
is known also to be associated with silver, lead and copper deposits. These
findings add to your Company's previously announced discovery of an extensive
zinc-in-soil anomaly on its prospecting licences in Counties Monaghan and
Armagh. The very high zinc levels detected in County Cavan add to the overall
metalliferous potential of the licence area for base metals as well as its
established potential for gold. Elsewhere, exploration for gold continues in
Finland.
Finance
The loss after taxation for the year ended 31 May 2013 was €423,979 (2012: €
533,262) and the net assets as at 31 May 2013 were €13,073,929 (2012: €
12,678,448). During the year £573,183 (prior to expenses) was raised by the
issue of 20,843,000 new ordinary shares for cash and I personally subscribed
for 5,454,545 of those. Details of the share issues are in Note 13 to the
accounts.
In addition, on 1 October 2013, the Company announced that it had raised a
further £1,000,000 (prior to expenses) by issuing 6,660,377 new ordinary shares
by way of a subscription for a total of £176,500 and issuing unsecured
convertible debt to directors of the Company amounting to a total of £823,500
of which I personally provided £683,500.
As in previous years, I have supported the working capital requirements of the
Company. The balance of the loans due to me at the period end was €1,045,775.
The loans have been made on normal commercial terms. The other directors
consider, having consulted with the Company's Nominated Adviser and the
Company's ESM Adviser, that the terms of the loans are fair and reasonable in
so far as the Company's shareholders are concerned.
Auditors
I would like to take this opportunity to thank the partners and staff of
Deloitte & Touche for their services to your Company during the course of the
year.
Directors
I am very pleased to welcome Mr Séamus FitzPatrick as Deputy Chairman, a
position he was appointed to in February 2013. Mr FitzPatrick has been a
Non-Executive Director for the past five years and with his business ability
and wide ranging experience in corporate and financial matters, has already
played a major role in the ongoing success and development of the Company. I am
delighted that he has agreed to become Deputy Chairman. I look forward to his
advice and support over the coming years as the Company moves from exploration
to production.
I would also like to express my deep appreciation of the support and dedication
of all of the directors, consultants and staff, which has made possible the
continued progress and success, which your Company has achieved.
Future Outlook
Your Company has made further excellent progress in the financial year to 31
May 2013. I look forward to the future with confidence as we move from the
exploration phase into the development phase.
Professor Richard Conroy
Chairman
12 November 2013
INCOME STATEMENT
FOR YEAR ENDED 31 MAY 2013
2013 2012
€ €
OPERATING EXPENSES (411,020) (524,888)
Finance income - bank interest 12 779
receivable
Finance costs - interest on (12,971) (9,153)
shareholder loan
LOSS BEFORE TAXATION (423,979) (533,262)
Taxation - -
LOSS FOR THE YEAR (423,979) (533,262)
Loss per ordinary share - basic and (€0.0015) (€0.0022)
diluted
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2013
2013 2012
ASSETS € €
Non-current Assets
Intangible assets 14,824,846 13,603,186
Investment in Subsidiary 2 2
Property, plant and equipment 7,138 10,688
14,831,986 13,613,876
Current Assets
Trade and other receivables 163,139 73,940
Cash and cash equivalents 71,864 238,647
235,003 312,587
Total Assets 15,066,989 13,926,463
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 8,737,547 8,112,257
Share premium 7,917,717 7,872,573
Capital conversion reserve fund 30,617 30,617
Share based payments reserve 969,735 880,709
Retained losses (4,581,687) (4,217,708)
Total Equity 13,073,929 12,678,448
Non-current Liabilities
Financial Liabilities 1,045,775 665,318
Total Non-current Liabilities 1,045,775 665,318
Current Liabilities
Trade and other payables 947,285 582,697
Total Current Liabilities 947,285 582,697
Total Liabilities 1,993,060 1,248,015
Total Equity and Liabilities 15,066,989 13,926,463
CASh Flow Statement
For the Year Ended 31 May 2013
2013 2012
€ €
Cash flows from operating activities
Cash used in operations (103,587) (211,386)
Tax paid - -
Net cash used in operating activities (103,587) (211,386)
Cash flows from investing activities
Investment in exploration and evaluation (1,049,245) (1,687,013)
Payments to acquire property, plant and - (938)
equipment
Net cash used in investing activities (1,049,245) (1,687,951)
Cash flows from financing activities
Issue of share capital 495,037 1,414,867
Advances/(Repayment) of shareholder loan 491,000 -
Bank interest received 12 779
Interest paid on shareholder loan - (27,121)
Net cash generated from financing 986,049 1,388,525
activities
Decrease cash and cash equivalents (166,783) (510,812)
Cash and cash equivalents at beginning of 238,647 749,459
year
Cash and cash equivalents at end of year 71,864 238,647
Notes to the Financial Statements
1. Publication of non-statutory accounts
The financial information set out in this preliminary announcement are
abbreviated accounts as defined in Section 19 of the Companies (Amendment) Act
1986.
The financial information for the period ended 31 May 2013 has been extracted
from the Company's financial statements to that date which have received an
unqualified auditor's report but have not yet been delivered to the Registrar
of Companies.
2. Earnings per share
The calculation of the loss per ordinary share of €0.0015 (2012 - €0.0022) is
based on the loss for the financial year of €423,979 (2012 - €533,262) and the
weighted average number of ordinary shares in issue during the year of
274,234,517 (2012 - 245,158,271).
Since the Company incurred a loss the effect of share options and warrants
would be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period ended 31 May,
2013.
4. Copies of Accounts
A copy of the Annual Report and Financial Statements will be available on the
Company's website www.conroygold.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. Notice of the Annual
General Meeting to be held on 9 December 2013 and Proxy Form will be sent to
shareholders on 13 November 2013 and are also available on the website.
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