Conroy on the hunt for partner

Mineral propsector Conroy Gold and Natural Resources is hopeful of attracting a development partner, as part of an equal share joint-venture, to fully develop its planned gold mine at Clontibret in Co Monaghan.

Speaking at the company’s AGM in Dublin yesterday, chairman Professor Richard Conroy said that management has run an “extremely successful” operation to date by identifying a 30-mile gold trend along the border counties and spending only around £16m (€20m) in the process.

But, he added, that the board is not prepared to dilute shareholder interests, via a rights issue, in order to raise the €25m-€30m in development costs needed to bring Clontibret to production and would view a joint-venture as a preferred option.

He added, however, that the company has not had any discussions with potential partners as yet.

Conroy will also need to raise funds for further technical work needed in Monaghan and for planning purposes, but intends to lodge for planning approval for a mine “as soon as possible”.

It is likely that identifying a development partner will pre-date that.

The company is hopeful that Clontibret – which will be Ireland’s first commercial gold mine – will be up and running in 2017.

While Clontibret is Conroy’s most advanced asset, the company also hopes to build a mine at its Clay Lake prospect in Co Armagh; while independent tests at its Slieve Glah gold target, in Co Cavan, earlier this month, returned positive results.

Meanwhile, Conroy also announced yesterday that it intends to explore for antimony – which is used as an alloying and strengthening material for lead and tin products – at Clontibret, as well as gold, after recent tests discovered “potentially economic quantities” at the site. The European Commission has identified antimony as a critical raw material with a large supply deficit.

Prof Conroy called this update “a very welcome further development as the company moves forward with its mining plans for Clontibret”.

Future metallurgical testwork will include testing options and optimising extraction to provide a saleable antimony product, the company said.

Conroy didn’t update on plans for Finland, where it also has interests.

However, all resolutions were passed at the AGM of sister company, Karelian Diamond Resources, which sees that country as its main market.

The company’s management said that it remains encouraged by recent test results outlining strong diamondiferous aspects at its main prospects there.