Conroy Gld&nres Regulatory News (CGNR)

28 Feb 2006 07:00

To be released at 7.00 a.m. on 28 February 2006 Conroy Diamonds & Gold plc ("the Company") Unaudited Interim Results for the six months ended 30 November 2005 CHAIRMAN'S STATEMENTI have great pleasure in presenting your Company's Interim Report for the sixmonths ended November 2005.During the half-year, your Company continued to make excellent progress withits gold exploration programme in the Longford-Down Massif, in the north ofIreland. Further positive results have been recorded from your Company'songoing programme of closely-spaced deep overburden sampling on the tenadditional gold targets announced last April in a 20km‚² section of the ArmaghMonaghan Gold Belt which also includes your Company's Tullybuck-Lisglassan andGlenish gold discoveries. Six of the ten targets, originally defined by shallowsoil geochemistry, have now been sampled in this way, and five have returnedpositive results.These include the discovery of an extensive new gold bearing structure to theeast of Tullybuck-Lisglassan in Co Monaghan. This extends 250 metres alongstrike, is open in both directions and is located immediately north of theOrlock Bridge Fault. The northwest-northeast orientation of the mineralisationis similar to that seen in the Tullybuck-Lisglassan deposit itself and at otherlocations within the Armagh Monaghan Gold Belt.In addition, two new structures have been identified on Targets 3 and 4,respectively 2km southwest and 1.5kms southeast of Tullybuck-Lisglassan, whilstdeep overburden testing on Targets 5 and 6 indicates that the two targetsconstitute a single anomaly which measures approximately 1 kilometre by 500metres.The programme of overburden sampling, mostly to bedrock, has encounteredanomalous gold values over wide areas, with Target 3 returning particularlyhigh values of up to 10,105 parts per billion (ppb) gold (10.1gt) and Targets4,5 and 6 returning peak values of 395ppb, 172ppb and 334ppb respectively.These are very high when viewed against a background of less than 4 ppb andwhere 10 ppb gold is considered anomalous. A peak value of 10,105ppb (10.1g/t)is exceptional in the context of overburden sampling and gives an indication ofthe wider potential of the area around Tullybuck-Lisglassan.All of the targets sampled to date have a spatial relationship with the OrlockBridge Fault, which is believed to be a controlling factor on goldmineralisation with the Company's licencesThe targets also lie within one of three areas identified by SRK in its reviewof your Company's gold properties as being "highly prospective" because theyrelate to the intersection of major deep-seated lineaments and the OrlockBridge Fault. Such lineaments are particularly important because economic golddeposits elsewhere in the world frequently occur on or close to suchstructures. To-date the Armagh - Monaghan Gold Belt has been outlined over anarea of about 60km‚². This represents less than 5 per cent. of your Company'slicence area in the Longford - Down Massif.Since the end of the reporting period, as announced on 16 January, 2006,Gartmore Investment Management Plc has increased its holding in your Company to14.26 per cent. of the issued share capital. I welcome their continued support.FINANCEIn preparing these results the directors have considered the build-up ofcurrent liabilities on the balance sheet. These liabilities arose mainly fromthe accrual of unpaid directors' fees and remuneration over a number of years.By foregoing payment of their fees and remuneration, the directors effectivelyallowed the Company's exploration work on the ground to continue, even duringtimes when capital raisings via the Stock Exchange were extremely difficult.The directors have waived their entitlement to all amounts accrued up to 31August 2005. The amount of such accruals at 31 August 2005 was ¢â€š¬1,422,782. Thewrite-off of this liability resulted in an exceptional credit to the profit andloss account of ¢â€š¬607,197 and the balance of ¢â€š¬815,585, which related to themanagement and supervision of the exploration programme, was credited tomineral interests in the balance sheet.The credit to the profit and loss account of ¢â€š¬607,197 together with the loss onordinary activities for the period of ¢â€š¬122,374 resulted in a net increase inshareholders funds of ¢â€š¬484,823.After careful consideration, and discussions with the Company's advisers, theBoard decided to issue a total of 49,064,190 warrants to the individualdirectors for nil consideration exercisable over 10 years at a subscriptionprice of ¢â€š¬0.037 (Stg2.5p) per share. This was ratified by shareholders at theAnnual General Meeting.Your directors are considering the various options for financing its furtherexploration and development programmes. These may include bringing in a jointventure partner or the raising of further capital.DIRECTORS AND STAFFI regret to report with deep sadness the death of Dr Pamela Conroy. Dr PamelaConroy was a founding director of the Company. Her dedication, experience,advice and support, contributed to a major degree to the on-going success ofyour Company.I would like to thank my fellow directors, staff and contractors for theirsupport and dedication, which has enabled the continued success of the Company.I look forward to the future with confidence.Professor Richard ConroyChairman28 February 2006UNAUDITED PROFIT AND LOSS ACCOUNTFor the six months ended 30 November 2005 Six months Six months Year ended ended ended 30 November 30 November 31 May 2005 2004 2005 (Unaudited) (Unaudited) (Audited) ¢â€š¬ ¢â€š¬ ¢â€š¬ Operating expenses (122,485) (162,203) (515,205) Other income 111 1,063 1,958 Loss for period (122,374) (161,140) (513,247) Exceptional item 607,197 - - Profit/(Loss) after exceptional item 484,823 (161,140) (513,247) Profit and loss account at beginning of (2,272,131) (1,758,884) (1,758,884)period Profit and Loss account at end of (1,787,308) (1,920,024) (2,272,131)period Loss per share (¢â€š¬0.002) (¢â€š¬0.003) (¢â€š¬0.008)UNAUDITED BALANCE SHEETAt 30 November 2005 At 30 At 30 At 31 November November May 2005 2004 2005 (Unaudited) (Unaudited) (Audited) ¢â€š¬ ¢â€š¬ ¢â€š¬ Fixed Assets Mineral interests 5,507,278 5,628,260 6,043,726 Tangible assets 54,271 64,559 53,015 5,561,549 5,692,819 6,096,741 Current Assets Debtors 43,521 161,361 39,020 Cash in hand 5,100 43,039 62,689 48,621 204,400 101,709 Creditors: amounts failing due within one (512,934) (1,292,241) (1,586,037)year Net Current Liabilities (464,313) (1,087,841) (1,484,328) Net Assets 5,097,236 4,604,978 4,612,413 Capital and Reserves Called up share capital 2,146,320 1,846,320 2,146,320 Capital conversion reserve fund 30,617 30,617 30,617 Share premium account 4,707,607 4,648,065 4,707,607 Profit and loss account (1,787,308) (1,920,024) (2,272,131) Shareholders' Funds 5,097,236 4,604,978 4,612,413UNAUDITED CASH FLOW STATEMENTFor the six months ended 30 November 2005 Six months Six months Year ended ended ended 30 November 30 November 31 May 2005 2004 2005 (Unaudited) (Unaudited) (Audited) ¢â€š¬ ¢â€š¬ ¢â€š¬ Net Cash Inflow/(Outflow) from 224,703 (1,446) (73,638)Operating Activities Capital Expenditure and Financial (282,292) (452,381) (888,353)Investments Net Cash Outflow before financing (57,589) (453,827) (814,715) Financing - - 359,542 Decrease in Cash (57,589) (453,827) (455,173)Notes to the Financial Statements1. Publication of non-statutory accountsThe financial information set out in this document does not comprise thestatutory accounts of the Company.2. Loss per shareThe calculation of the loss per ordinary share of ¢â€š¬0.002 (2005 - ¢â€š¬0.003) isbased on the loss for the half year of ¢â€š¬122,374 (2004 - ¢â€š¬161,140) and theweighted average number of ordinary shares on a basic and fully diluted basisduring the year of 71,544,011 (2004 - 61,544,011). Share options and warrantsare not included in the calculation of fully diluted shares since the Companyincurred a loss in 2005 and 2004 which results in these potential shares beinganti-dilutive.3. DividendsNo dividends were paid or are proposed in respect of the period ended 30November, 2005.4. A copy of the Interim Report will be sent to all shareholders shortly andwill be available from the Company's registered office, 10 Upper PembrokeStreet, Dublin 2.ENDCONROY DIAMONDS & GOLD PLC