Final Results
Conroy Diamonds & Gold PLC
12 October 2000
Conroy Diamonds and Gold plc
Final Results for the year ended 31 May 2000
Chairman's Statement
Dear Shareholder
I have great pleasure in presenting your Company's Final Results for the year
ended 31 May 2000, a period during which the Company's status has been much
enhanced as a result of its admission to the Alternative Investment Market
(AIM) of the London Stock Exchange.
Ongoing fieldwork and conceptual studies have significantly improved your
Company's understanding of the structure and geological setting of its
Tullybuck/Lisglassan gold deposit in County Monaghan, and recent drilling
there has yielded further excellent results.
The deposit is now believed to be one of a number of similar mineralised
fault-blocks which together make up the much larger Armagh-Monaghan gold belt,
shown to extend for a distance of some 18 kilometres. Significant base-metal
mineralisation has also been discovered in these fault-blocks.
Exploration Success
Success achieved in our ongoing delineation drilling on the Company's gold
deposit at Tullybuck/Lisglassan provides additional support for your Company's
belief that the discovery has the potential to become a gold mine. Nearly 800
metres of diamond drilling has been completed by your Company on the deposit.
Vertical continuity of mineralisation within a single gold bearing lode has
been further tested by two recent drill holes. The first intersected the gold
bearing lode at a depth of 25 metres where it graded 10.04 grammes of gold per
tonne over a width of 1.59 metres. The second, our best drilling result so
far, intersected the same gold bearing lode at a depth of 46 metres where it
graded 14.40 grammes of gold over a width of 2.84 metres. This intersection
contains a continuous interval grading 22.03 grammes of gold per tonne over a
width of 1.77 metres.
These excellent intersections represent substantial gold mineralisation which
continues and increases at depth.
Exploration within the Armagh-Monaghan gold belt to the northeast and
southwest of Tullybuck/Lisglassan has also yielded excellent results. The gold
belt is made up of a series of fault blocks, one of which contains the
Tullybuck/Lisglassan gold deposit. Geochemical surveys undertaken over other
blocks have identified significant gold and base-metal anomalies. One such
anomalous area, in Co. Armagh, has been further tested by trenching and
channel sampling. This revealed highly elevated bedrock gold and base-metal
values of potential economic significance.
Any one or several of these fault blocks could host gold and/or base-metal
deposits.
Elsewhere in your Company's licence areas along the Orlock Bridge Fault,
geological and geochemical exploration has resulted in the discovery of
further gold and base-metal anomalies.
In view of these excellent results on your Company's licences in the
Longford-Down Massif, application has been made for a further eleven licences
straddling the Orlock Bridge Fault.
AIM
Your Company's shares have now been admitted to trading on the Alternative
Investment Market of the London Stock Exchange ('AIM'). Admission to AIM is an
important milestone in your Company's corporate development both in relation
to the marketability of your Company's shares and its ability to raise
capital.
Ellis and Partners Limited acted as your Company's Nominated Broker in
connection with the admission of your Company's shares to trading on AIM.
Seymour Pierce Limited is the Company's Nominated Adviser for the purposes of
the AIM rules.
Finance
The Company raised IR£1,368,223 net of expenses through the issue of 4,500,000
new ordinary shares, the details of which are set out in Note 9 to the
accounts. These funds have enabled the Company to finance its ongoing
operations.
Directors, Consultants and Staff
I would like to express my appreciation of the support and dedication of the
directors, consultants, in particular our Senior Geological and Mining
Consultants, Dr Michael Smith and Mr. Terry Beal, and staff which has made
possible the progress and success that your Company has achieved.
Future Outlook
The planned activity programme makes the coming year the most exciting one yet
for your Company. Within the area under your Company's control we believe that
we have several deposits that could very well be economic.
Preliminary studies have been commissioned towards development of a mine at
Tullybuck/Lisglassan which include identification of the characteristics of
the ore and trial extraction metallurgy, as well as engineering studies for
mine design.
Drilling and trenching programmes of gold have pinpointed sites for the next
round of diamond drilling. In addition, subject to workload priorities, we
will make progress on our plan to open and inspect the old underground mining
shafts at Tullybuck/Lisglassan.
Our work programme in the Armagh-Monaghan gold belt - stretching over some 18
kilometres - continues to raise our expectations. Recent identification of
gold and base-metal mineralisation in bedrock is indicative of significant
gold and base-metal mineralisation over a large area.
To the west of the Armagh-Monaghan gold belt, geological and geochemical
exploration near Slieve Glah indicates the presence of another large anomalous
gold and base-metals area. This is the subject of an ongoing evaluation
programme.
Your Company's strategy is to identify and develop significant geological and
prospecting opportunities which have major economic potential. This strategy
has already achieved success through the identification of the mineral
potential of the Longford-Down Massif.
The success of the strategy being pursued by your Company is also one that has
brought us to the attention of the international mining world.
Your Company looks to the future with confidence. We have a strong land
position, good geological knowledge based on our exploration, and a team with
the expertise and track record to bring your Company forward in a positive
direction.
Looking ahead, we will continue to seek other opportunities with major
potential in gold, base-metals, diamonds and other mineral resources, both in
Ireland and abroad.
Yours sincerely
Professor Richard Conroy.
Chairman.
Conroy Diamonds and Gold Plc
Profit and Loss Account for the Year Ended 31 May, 2000
2000 1999
IR£ IR£
Operating Expenses (104,014) (86,526)
Other Income 221 4,232
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Loss on Ordinary Activities before Taxation (103,793) (82,294)
Tax on loss on ordinary activities - -
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Loss for the Year (103,793) (82,294)
Profit and Loss Account, at 31 May, 1999 (241,495) (159,201)
------------ -----------
Profit and Loss Account, at 31 May, 2000 (345,288) (241,495)
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There are no recognised gains or losses other than the loss for the year.
Conroy Diamonds and Gold Plc
Balance Sheet - 31 May, 2000
2000 1999
IR£ IR£
Fixed Assets
Mineral interests 1,504,609 1,083,197
Tangible assets 9,419 10,878
--------- ----------
1,514,028 1,094,075
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Current Assets
Debtors 14,282 51,001
Cash at bank and in hand 1,137,056 730
---------- ---------
1,151,338 51,731
Creditors: Amounts falling due within one year (614,616) (353,486)
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Net Current Assets/(Liabilities) 536,722 (301,755)
---------- ----------
Total Assets less Current Liabilities 2,050,750 792,320
Creditors: Amounts falling due after
more than one year - (6,000)
---------- ----------
2,050,750 786,320
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Capital and Reserves
Called up share capital 354,627 242,127
Share premium account 2,041,411 785,688
Profit and loss account (345,288) (241,495)
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Shareholders' Funds - all equity 2,050,750 786,320
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