Conroy Gold and Natural Resources to seek ‘major’ partner to develop gold assets

Dublin-based prospector Conroy Gold and Natural Resources will seek one of the mining sector’s major players as a development partner on its gold assets in the border counties.

While the company could conceivably begin work relatively quickly on a small open pit mine around its headline prospect at Clontibret, in Co Monaghan, Conroy is expected to embark on a single big commercial mining programme linking its three large gold prospects at Clontibret, nearby Glenish and Clay Lake in Co Armagh.

The company has been undertaking a successful drilling campaign across all three areas since June.

This has already resulted in four new gold zones being found at Glenish and one at Clay Lake-Clontibret.

An extension to existing gold zones, at the latter prospect, was announced yesterday. A recent independent study put combined estimated resources for Clay Lake and Clontibret at five million ounces of gold, around five times previous estimates.

While a joint venture partner has long been mooted for Conroy, chairman Professor Richard Conroy said yesterday the positive drilling results of the summer will necessitate the sourcing of a major industry player as development partner.

Meanwhile, Conroy’s sister company, the Finland-focused Karelian Diamonds is moving closer to its goal of establishing a first commercial diamond mine in the country.

Earlier this year, Karelian said it was eyeing the prospect of developing a mine in Finland after acquiring a mining permit in the centre of the country (Karelian’s existing Finnish licences are located close to the Russian border) for €150,000 from local player A&G Mining.

The company yesterday said the receipt of an extensive database of information on the permit greatly enhances the chance of a moderate sized mine being developed in the next few years.

Karelian may embark on an extended drilling programme in the area over the next 12 months ahead of that and could also introduce a joint-venture partner to further develop the project.

Both companies’ shares dropped sharply yesterday; Conroy by over 6% and Karelian by 15%.