Conroy Gld&nres Share News (CGNR)

LONDON (Alliance News) - Conroy Gold and Natural Resources PLC said Friday that a two-phase definitive mining plan is in the course of development at its Clontibret gold project in Ireland.

Phase One comprises of a starter pit that will concentrate within a high grade, densely drilled portion of the resource and should payback the total capital invested within year two of the operation, alongside a positive cash flow, said Conroy Gold.

In-house preliminary estimates of capital costs for Phase 1 are USD41.5 million, including working capital of USD3.6 million and sustaining capital of USD2.4 million, the latter of which is anticipated to be paid for by cash flow over years two to five of the mine production, it added.

Phase Two will comprise of either underground mining or further surface pits, or potentially both. For the underground mining option there are grades including 12.25 metres at 2.6 grammes per tonne of gold including 6 metres at 2.95 grammes per tonne of gold, and can be mined at high volume, it said.

"The definitive mining plan using a starter pit underwrites and de-risks the

project... and conceptual studies by the company suggest the potential for 15-20 million plus ounces of gold within the 30 mile gold trend and also possibly zinc and other mineral potential," said Chairman Richard Conroy.

Conroy Gold shares were trading 1.4% higher at 1.2670 pence per share Friday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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