Conroy Gold Shoots Up 20% in Early Trading

Conroy Gold and Natural Resources Plc (LSE:CGNR) announced on Friday that it has received an updated resource and evaluation report indicating a significant increase in resources. The news prompted a rise in shares of around 20% in early trading, with the share price at 3.125 p at 10:45 GMT.

Resource Evaluation Details

The updated resource and evaluation report was prepared by Tetra Tech Wardrop Engineering Inc on Conroy Gold’s wholly owned Clontibret gold project in Co. Monaghan, Ireland. According to the company’s statement, the evaluation was prepared according to Joint Ore Reserves Committee standards. The report is an update to an earlier report that was also prepared by Tetra Tech.

The updated report indicates that there is an increase in resources to over 600,000 ounces of gold with a mine life of 11.2 years. The report shows an increase in tonnage to 11,709,700 tonnes and a 19% increase in total ounces of gold.

Further Summary Information

The report also indicated that operating costs have been reduced 35% due to economies of scale, and the production rate doubled from 400,000 to 800,000 tonnes per annum.

The findings also decreased the gold grade from 2.19 g/t to 1.53 g/t of gold with a recovery rate of approximately 85% using a bio-oxidation process.

The report’s economic evaluation assumed a long term gold price of US$1,372, giving the company a 49.4% internal rate of return and a net present value at an 8% discount rate of US$72.3 million.

Company Chairman Comments

Professor Richard Conroy commented on the matter:

“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.”

Company Spotlight

Conroy Gold and Natural Resources Plc was formed by Professor Conroy in 1995. It is an AIM traded mining company based out of Dublin, Ireland with an operational focus on Ireland. The company holds licenses which cover approximately 400 square miles.

References
↑ Conroy Gold News Release
↑ Company Overview

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