Conroy Gold and Natural Resources adjusts partnership with Demir Export to set new direction for gold exploration
Conroy Gold and Natural Resources PLC (AIM: CGNR) has announced a strategic shift in its joint venture (JV) partnership with Demir Export A.Ş. The agreement, revised on the terms of a Net Smelter Royalty (NSR), marks Demir Export’s exit from the JV but maintains their investment involvement through a royalty arrangement. This move refocuses Conroy Gold’s operations from exploration to the potential development of gold mines along two significant gold trends in Ireland.
Under the new terms, Demir Export will receive a 2% NSR from the sales of minerals produced, capped at their total investment amount of €5,657,671 in the project. This decision follows a period of intensive exploration and development under the JV, initiated in March 2022, which significantly advanced Conroy Gold’s exploration capabilities.
The JV has covered significant ground, enabling Conroy Gold to delineate two major gold trends—the established Orlock Bridge and the newly discovered Skullmartin—which together span over ninety kilometers. These areas have shown promising mineralization, ranging from lower grade refractory (averaging 2.0 g/t Au) to very high grade vein-hosted visible gold (up to 123 g/t Au).
The exploration efforts have yielded substantial results, including notable gold intersections at the Clontibret target and confirmed mineral continuity between the Clontibret and Corcaskea targets. Additionally, the extensive Clay Lake target has shown potential for significant gold tonnage across its 6 km by 2 km area. The Creenkill discovery within the Skullmartin trend has been particularly significant, with assay results revealing gold grades up to 123 g/t Au.
With Demir Export’s transition to a royalty-holder, Conroy Gold retains full control over the 15 licenses previously under the JV. These licenses are held across Conroy’s wholly owned subsidiaries: Conroy Gold (Clontibret) Limited, Conroy Gold (Armagh) Ltd, and Conroy Gold (Longford Down) Limited. The company now seeks new partnerships to further the development of potential mining operations along these lucrative gold trends.
The Clontibret deposit alone has a defined gold resource of 517,000 ounces (JORC 2012), with mineralization styles akin to the high-grade Fosterville gold mine in Australia. Conroy Gold aims to replicate such successful models in its own territories.
As of the end of November 2023, Conroy Gold reported total assets of €28,479,728 and net assets of €24,527,955, despite a reported loss before taxation of €362,829 for the year ending May 2023. These figures reflect the ongoing investment into its exploration and potential development activities.
Professor Richard Conroy, Chairman of Conroy Gold, expressed gratitude towards Demir Export for their significant contribution to the company’s exploration success. He emphasized the strategic potential of the newly streamlined operations to uncover and develop high-tonnage gold deposits along the identified trends.