Conroy Gld&nres Regulatory News (CGNR)

28 Feb 2005 07:00

Conroy Diamonds & Gold PLC28 February 2005 CONROY DIAMONDS AND GOLD PLC INTERIM REPORT 2004 CHAIRMAN'S STATEMENT Dear Shareholder I have great pleasure in presenting your Company's Interim Report for the sixmonths ended November 2004. Your Company continued to make further progress inthe period covered by this report. Exploration work at your Company's goldprojects in Ireland continues to provide excellent results. In situ bedrock sampling at Glenish in the Armagh-Monaghan Gold Belt returned a1m channel sample grading 9.40 g/t gold and grab samples from the area assayedup to 2.45g/t gold. The style of mineralization seen here is similar to thatseen at other locations in the Armagh-Monaghan Gold Belt. As well as detailed investigation at Glenish, regional soil sampling in theArmagh-Monaghan Gold Belt continued. This focused on sample collection along thestrike of the Orlock-Bridge Fault between Tullybuck-Lisglassan and Glenish andinvolved the collection of approximately 1,000 samples to date. Results fromsoil sampling continue to generate new areas of gold-in-soil anomalism in theBelt. The recent discovery of anomalous bedrock gold at Slieve Glah in Co. Cavan isparticularly encouraging. This area lies 45km south-west of the Armagh-MonaghanGold Belt, at the south-west of your Company's 1.500km2 exploration licencesover the Longford-Down Massif. Two zones of gold mineralisation 400 metres apart have been outlined at SlieveGlah. Deep overburden sampling has to date covered only one fifth of theoriginal soil anomaly, and the results indicate that there is excellentpotential for this to become another gold discovery in the Massif. All of your Company's gold discoveries to date in the Massif are spaciallyrelated to the Orlock Bridge Fault and are seen to be structurally controlled.Your Company previously identified Slieve Glah as a structural target because asignificant strike swing of the Orlock Bridge occurs at that point and may havecreated a dilation zone in the area. Significantly, in its recent report on your Company's gold prospects in theLongford-Down Massif, SRK Consulting identified Slieve Glah as one of threeparticularly prospective areas, the others being Armagh-Monaghan Gold Belt andan area within your Company's licences in Northern Ireland. SRK based inselections on structural interpretation and lineament analysis which indicatethat a major deep-seated lineament intersects the Orlock Bridge Fault in theSlieve Glah area. In this context the consultants comment that major economicgold deposits elsewhere in the world have often been found on such lineaments. The Exploration Status Report by SRK on your Company's gold properties is ofmajor significance. It is extremely positive and gives increasing encouragementto the company's aim of establishing a new gold province in the Longford-DownMassif. SRK concur with your Company's broad based approach to exploration, and say thispolicy should continue, whilst concentrating on the three selected areasoutlined. SRK have established that the geometry of high grade soil geochemistryanomalies reinforce the structural controls of the Orlock bridge Fault andassociated cross cutting structure on mineralization. In a detailed assessment of the Company's drilling and sampling results atTullybuck-Lisglassan (Co. Monaghan), SRK conclude that the area drilled to datehas the potential to host over 100,000 ounces of gold. They point out that this closely drilled area at Tullybuck-Lisglassan representsonly a tiny part of much larger anomalies. These cover an area over 200 timesthe size of that drilled, and are considered to have better potential. The consultants believe that there is potential to find similar or largerdeposits than Tullybuck-Lisglassan in the Longford-Down Massif and that theresults gathered to date are positive and advance the Company towards itsinitial target of discovering over one million ounces of gold in the Massif and,obviously, a potential for very much more. FINANCE In June your Company decided to transfer its diamond interests to a newlyincorporated company, Karelian Diamond Resources plc ("Karelian"). The de-mergerwas effected by means of a Scheme of Arrangement, whereby the diamond interestswere transferred to Karelian in consideration of the issue by Karelian of onefully paid ordinary share to the Company's shareholders for every six sharesheld. Shareholders approved the Scheme of Arrangement on 8 July 2004 and agreed,subject to sanction by the High court, for the share premium account to bereduced €1,025,000, being the book value of the diamond interests transferred.On 26 July 2004 the High Court Sanctioned the Scheme of Arrangement andconfirmed the reduction of the share premium account. Thus the mineral interestsin the balance sheet at 30 November 2004 have been reduced by €1,025,000 and theshare premium account has also been reduced by that amount. hTe debtors figureincludes amounts that had been expended by your Company in relation to thede-merger which it is anticipated will be recovered from Karelian. In January 2005 your Company raised £250,000 (€362,000 approx), which, togetherwith the facilities available to the company, is financing the current phase ofthe Company's activities. The confirmation by SRK of your Company's approach to exploration and thepotential and scale of the Longford-Down Massif project, brings your Company tothe stage where it may either continue solo or consider entering into a jointventure. DIRECTORS AND STAFF I would like to thank my fellow directors, staff and consultants for theirsupport and dedication which has ensured the continued success of the Company. Ilook forward to the future with confidence. Professor Richard ConroyCHAIRMAN28 February 2005 BALANCE SHEETAt 30 November 2004 November 2004 November 2003 May 2004 (Unaudited) (Unaudited) (Audited) • • •Fixed AssetsMineral interests 5,628,260 5,679,256 6,202,068Tangible assets 64,559 51,717 54,482Financial assets 0 0 2 _________ ________ _________ 5,692,819 5,730,973 6,256,552Current AssetsDebtors 161,361 6,192 45,046Cash in hand 43,039 1,354,229 517,862 _________ ________ ________ 204,400 1,360,421 562,908Creditors:Amounts failing due within one year (1,292,241) (1,117,706) (1,028,342) _________ _________ _________Net Current (Liabilities)/Assets (1,087,841) 242,715 (465,434) _________ _________ _________Net Assets 4,604,978 5,973,688 5,791,118 _________ _________ _________ Capital and ReservesCalled up share capital 1,846,320 1,846,320 1,846,320Capital conversion Reserve Fund 30,617 30,617 30,617Share premium account 4,648,065 5,685,976 5,673,065Profit and loss account (1,920,024) (1,589,225) (1,758,884) _________ _________ _________Shareholders' Funds 4,604,978 5,973,688 5,791,118 _________ _________ _________ PROFIT AND LOSS ACCOUNTFor half year ended 30 November 2004 November 2004 November 2003 May 2004 (Unaudited) (Unaudited) (Audited) • • •Operating expenses (162,203) (156,955) (331,321)Other income 1,063 888 5,595 ________ ________ ________ Los for period (161,140) (156,067) (325,726)Profit and loss account at 1 June (1,758,884) (1,433,158) (1,433,158) Profit and Loss account at 30November (1,920,024) (1,589,225) (1,758,884) _________ __________ _________Loss per share (€0.003) (€0.003) (€0.006) CASH FLOW STATEMENTFor half year ended 30 November 2004 November 2004 November 2003 May 2004 (Unaudited) (Unaudited) (Audited) • • •Net Cash Outflow from OperatingActivities (1,446) (157,781) (444,490)Capital Expenditure and FinancialInvestments (452,381) (485,183) (1,026,190) ________ ________ _________Net Cash Outflow before financing (453,827) (642,964) (1,470,680)Financing 0 1,694,358 1,685,707 ________ ________ ________(Decrease)/Increase in Cash (453,827) 1,051,394 215,027 This information is provided by RNS The company news service from the London Stock Exchange