Conroy Gold up on back of discovery

CONROY Diamonds & Gold, a mining company exploring for gold in Ulster, gained the most in more than five years in London trading after saying it found a new gold-in-soil anomaly.

Conroy increased 1.13 pence, or 56%, to 3.13 pence at the close, the biggest gain since September 10, 2003. The stock has risen 53% this year, giving the company a market value of £3.3 million (€3.72m).

Conroy chairman, Prof Richard Conroy, said: “We have long held the view that the Clay Lake nugget is clear evidence of the area’s gold potential, and we have actively been seeking the source of this nugget for a number of years. These latest results, with the highest gold-in-soil values encountered anywhere in our licence area, may well indicate that the source of the nugget lies within the new anomaly. It could well be the jewel in the crown for the company.”

The new discovery lies within the 50km-long gold bearing trend delineated by the company on its 1,200km2 licence area which straddles the border between Northern Ireland and the Republic. The licences extend from Co Armagh, through Co Monaghan and into Co Cavan, following the surface expression of the Orlock Bridge Fault, a major geological structure believed to have influenced mineralisation in the area.

The company said the new find is located 7km north-east of the company’s Clontibret discovery in Co Monaghan where a resource of over one million ounces of gold has been identified on only 20% of the target area.

More than 80 soil samples were collected at Clay Lake, according to the company, returning average gold-in-soil values of over 50ppb, with six greater than 100ppb and a highest value of 1,531ppb. Relative to known anomalous gold values in this terrain, these are very high.

The anomaly is named after the Clay Lake nugget containing 28g of gold, found in a stream bed in the 1980s. The source of this nugget has not yet been found.