Conroy Gld&nres Regulatory News (CGNR)

23 Feb 2006 10:21

23 FEBRUARY, 2006 Conroy Diamonds and Gold plc IN-HOUSE STUDY OF SHUTTLE/LANDSAT DATA ENABLES CONROY TO IDENTIFY LARGE NEW AREA OF INTEREST ON ITS IRISH LICENCES * Central Structural Zone Has Potential For World-Class Gold Deposit, Chairman * Company Adopts Innovative Approach Using Lineament Analysis * Over 30 Targets Identified With Similar Structural Features To Known Deposits Conroy Diamonds and Gold plc is pleased to announce that recently completedin-house studies of the geological lineaments on its Longford-Down Massifexploration licences in the north of Ireland have identified more than 30 newstructural targets, none of which have been covered by its previous soilgeochemistry sampling programmes.The Company was able to pick out the new targets because the lineament analysisalso highlighted its previous gold discoveries on its 1,500km2 licence area inthe Massif. This gave the Company an important "control" enabling it toidentify many new areas which show similar structural features - specificallythe intersection of cross-cutting features with the Orlock Bridge Fault. Thismajor fault is believed to be a controlling factor on gold mineralisationwithin the Longford-Down Massif.Many of the newly identified targets are located in a major new zone, theCentral Structural Zone, which lies approximately mid-way between the Company'sArmagh-Monaghan Gold Belt and its Slieve Glah prospect some 45km to thesouth-west.The lineament studies were based on Enhanced Thematic Mapping (ETM), derivedfrom Landsat data, and Digital Terrane Modelling (DTM), which is based on radardata collected by NASA's Space Shuttle programme. The in-house analysis wasundertaken as a follow-up to the broader lineament study made by SRK Consultingin its 2004 review of Conroy's exploration licences.This latest work shows that this central zone, which extends over an area of atleast 50km2, hosts a series of major cross-cutting features which intersect theOrlock Bridge Fault. Similar such features have been shown to be the focus ofgold mineralisation in other localities already drilled by the Company, such asTullybuck-Lisglassan, Co Monaghan, and Cargalisgorran, Co Armagh.Commenting today, Professor Richard Conroy, chairman, said: "In adopting thisnew approach, we have been able to identify a third significant area ofinterest within our exploration licences. Although we have not previouslyundertaken any field work there, the lineament analysis shows that the area hasthe structural potential to host a world-class gold deposit".Further Info: Professor Richard Conroy, Chairman Conroy Diamonds and Gold Plc. Tel: 00-353-1-661-8958Charles Dampney, City Capital Securities Ltd. Tel: 020-7822-7107Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: 020-7628-5518Visit website at: www.conroydiamondsandgold.comENDCONROY DIAMONDS & GOLD PLC