Confirmation of Preliminary Economic Assessment
15/01/2014 07:00
15 January 2014
Conroy Gold and Natural Resources plc
Confirmation of Preliminary Economic Assessment
* Metallurgical Review Confirms Preliminary Economic Assessment
* Sulphur Head Grade Lower
* Capital and Process Operating Costs Reduction
Conroy Gold and Natural Resources plc ("Conroy") (AIM: CGNR, ESM: CGNR.I), the
gold mining company which is planning to develop its first operational gold
mine at Clontibret in Co. Monaghan, Ireland, is pleased to announce that a
review by independent consultants Tetra Tech Inc. ("Tetra Tech") of the results
of the final mineralogical and metallurgical testwork programme on the ore
grade material sent to Gold Fields/Biomin in South Africa, has validated the
Preliminary Economic Assessment ("PEA") (Scoping Study) process design criteria
and operating costs.
The final mineralogical and metallurgical testwork results were analysed and
evaluated by Tetra Tech in advance of an anticipated prefeasibility study (PFS)
enabling Tetra Tech to confirm the preliminary estimates for the processing
plant.
The review of the metallurgical testwork results confirmed the key process
design parameters, including the amenability of the ore to bio-oxidative
pre-treatment, and the suitability of the proposed BIOX oxidation process.
Other than a lower sulphur grade in concentrate, results were as anticipated in
the PEA. The decreased sulphur grade implies savings in both capital and
operating costs.
In relation to these savings the capital cost for the proposed processing plant
is now estimated by Tetra Tech at US$ 18.5 million compared with the US$ 20.16
million in the PEA and the process operating costs are estimated to fall from
US$ 13.64/t to US$ 12.26/t.
This release has been approved by Eur.Ing. Andrew J. Carter C.Eng, MIMMM,
MSAIMM, SME, Competent Person for Mineral Processing, an employee of Tetra Tech
which is independent of Conroy.
Professor Richard Conroy, Chairman commented:
"I am delighted by Tetra Tech's independent confirmation thatthe testwork
results on the ore grade material sent to GoldFields/Biominvalidate the process
design criteria. I am especiallypleased at the significantreduction in capital
and operating costs forboth the development and operation of the mine."
For further information please contact:
Conroy Gold and Natural Resources plc. Tel: +353-1-661-8958
Professor Richard Conroy, Chairman
Sanlam Securities UK Limited (Nomad) Tel: +44-20-7628-2200
Virginia Bull/Simon Clements
Hybridan LLP (Broker) Tel: +44-20-7947-4350/
4361
Claire Louise Noyce/William Lynne
IBI Corporate Finance Limited (ESM Adviser) Tel: +353-766-234-800
Ger Heffernan
Lothbury Financial Services Tel: +44-20-3440-7620
Michael Padley/Michael Spriggs
Hall Communications Tel: +353-1-660-9377
Don Hall
Visit the website at: www.conroygold.com
END