Arkle Res Regulatory News (ARK)

19 Sep 2007 07:01

Connemara Mining Company plc19 September 2007 Connemara Mining Company PLC Interim Results for the Six Month Period to 30 June 2007 Connemara Mining Company PLC ("Connemara" or "the Company"), the AIM listed basemetals exploration company with 29 exploration licences in Ireland is pleased toannounce its maiden interim results. Highlights: - Focused on zinc in Ireland - Listed on AIM July 2007, raising £1m - Drilling has started on the Connemara/Teck Cominco joint venture at Monaster in Limerick, Ireland - Plans underway to explore and drill the Lough Sheelin block, Ireland - Building a strategic ground holding in Ireland John Teeling, Chairman of Connemara Mining commented; "The fundamentals to Connemara are highly positive; it's a great time to be inzinc exploration with limited supply and high demand driving prices northwards.We have some highly prospective licences adjacent to recent discoveries and wehave a joint venture with the world's leading zinc producer, Teck Cominco. Thefirst results from our drilling programme will be available later this year." Enquiries: Connemara MiningJohn Teeling, Chairman +353 1 833 2833Jim Finn, Financial Director Blue Oar Securities PlcJohn Wakefield +44 (0) 117 933 0020Simon Moynagh College HillPaddy Blewer +44 (0) 207 457 2020Nick Elwes www.connemaramining.com Chairman's Statement This is a good time to be in exploration, particularly base metal exploration.Historically high zinc and lead prices, strong demand from the emergingeconomies of China and India accompanied by sluggish supply combine to make thisa very good environment. It is important to remember that our business is verycyclical. The current high metal prices will come back, there will be hiccoughsin demand in the fast growing emerging economies and new supply, currently inthe pipeline, will come on stream. But fundamentals will win out. Indians need housing and the Chinese will buycars. Zinc is used mainly in galvanising, automotive applications and in brass. All these uses have strong demand profiles for the medium term. An old mining adage states, "the best place to find a mine is where there is orwas a mine". Ireland is one of the world's leading zinc provinces supplying 40percent of Europe's zinc from three very large zinc mines, the Anglo-Americanmine at Lisheen, the Lundin mine at Galmoy and the giant Boliden/Tara mine atNavan. The Navan zinc mine after 30 years of production remains the fifthlargest zinc mine in the world. Following two decades of decline, zinc exploration in Ireland recovered sharplyafter 2002 with the Xstrata/Minco discovery at Pallas Green. Exploration workcontinues on this project with growing indications of commerciality. The numberof exploration licences in Ireland has doubled in recent years, reflecting zincprices, the Limerick discovery and the prospectivity of the country. The principals behind Connemara have long experience in Irish zinc. We puttogether a portfolio of zinc exploration licences based on "closeology" and "trendology" as well as detailed geological evaluation. Connemara obtained 16licences adjacent to the recent Xstrata/Minco discovery and 5 licences,northwest of the Navan mine, in an area with known base metal mineralization. Monaster/Newcastle West Block, Limerick The current focus of activity is on this block of 16 licences adjacent to, andsouthwest of, Pallas Green in Limerick. Teck Cominco, the world's leading zincproducer, has joint ventured 15 of these licences with Connemara. Teck isspending C$3m to earn a 75 percent interest. An initial drilling programme isunderway. Of three holes completed, two have intersected the same geologicalstructures identified at Pallas Green, less than 2km away. The discovery ofextensive iron sulphide mineralization in the Connemara holes is particularlyencouraging. Lough Sheelin The Lough Sheelin block of 5 licences has three highly attractivecharacteristics: - it lies at the crossroad of two regional trends, a leading indicator for zinc in Ireland, - it has the same geological structures as the giant Navan mine 20kms to the southeast, - it has known zinc mineralization, including an inferred resource of 1.7 million tonnes at 4.5% zinc. A prospecting and sampling programme has been completed. A second stageprogramme is underway to delineate drill sites. It is anticipated that drillingwill commence in Q4 2007, initially concentrating on the area where the earlierdiscovery was made. The target may be deeper. Other Irish Ground We have a licence in Kerry where earlier exploration found zinc traces and agold licence in Kildare. Six additional blocks have been awarded to Connemara.These licences are in the southeast of the country. We are applying for otherground we deem to be prospective. Opportunities Elsewhere Connemara sees a flow of potential projects. This is because the principalshareholders and management have extensive international mining experience andcontacts. Two areas in particular are of interest, the Middle East and Africa.Evaluation is at an early stage. Future The immediate focus remains on Monaster in Limerick where drilling is ongoing.Results to date are interesting. Further drilling is likely. Drilling willalso begin in Lough Sheelin late this year. Connemara is well funded with good ground and quality partners working in aprospective area. John J TeelingChairman 19th September 2007 Connemara Mining Company plc Financial Information (Unaudited) Six Months Ended 30 June 07 30 June 06 £'000 £'000Group Profit and LossOperating Loss (36) (2)Investment Income 7 0 -------- --------Loss before Taxation (29) (2)Taxation 0 0 -------- --------Loss for the period (29) (2) ======== ========Loss per share (.23p) (.06p) ======== ======== 30 June 07 30 June 06 £'000 £'000Group Balance SheetFixed Assets 333 38 -------- --------Current Assets 328 651Current Liabilities (16) (20) -------- --------Current Assets less Current Liabilities 312 631 -------- -------- 645 669 ======== ========Share Capital and Reserves 645 669 ======== ======== 30 June 07 30 June 06 £'000 £'000Group Cash FlowNet Cash Outflow from Operating Activities (26) (5) Returns on Investments and Servicing of Finance 7 0Capital Expenditure (76) (38)Financing - Issue of Ordinary Share Capital 0 671 -------- --------(Decrease) / Increase in Cash (95) 628 ======== ======== Notes: 1. The figures for the six months to 30 June 2007 and 30 June 2006 areunaudited. The financial information set out above does not constitute fullstatutory accounts within the meaning of section 240 of the Companies Act 1985. 2. Copies of this announcement will be sent to shareholders and will beavailable for inspection at the Company's registered office at 162 ClontarfRoad, Dublin 3, Ireland. This information is provided by RNS The company news service from the London Stock Exchange