LONDON (ShareCast) - (Sharecast News) - Conroy Gold announced results from the two holes drilled at the Clontibret gold deposit by Demir Export on Monday, as part of its due diligence and validation programme prior to entering into a joint venture with Conroy.
The AIM-traded firm said the hole locations and targets were designed by Demir Export, with all technical work undertaken by a "professionally accredited, independent" geological consultant.

It said hole TW001 was designed as validation of a Conroy Gold drillhole, and corroborated both the known lode mineralisation, and targeted the deeper stockwork zone mineralisation that had not yet been tested at depth in the area.

TW001 confirmed the zone of lode mineralisation previously drilled by Conroy, and intersected six lodes that were included in the existing resource model.

Two of the lodes were assayed six metres at 4.4 grams of gold per tonne, and 2.7 metres at 4.5 grams per tonne, respectively.

Additionally, Conroy said that as TW001 was deepened towards the stockwork zone, three further lodes were encountered, being 1.55 metres grading four grams of gold per tonne, 2.55 metres grading 1.9 grams per tonne, and 0.95 metres grading 3.5 grams per tonne.

The company's board said it believed the new discovery of stockwork mineralisation in TW001 was of "great significance", as it represented the widest gold intersection drilled to date at Clontibret.

It said the 94.5 metre-wide intercept in the stockwork zone graded one grams of gold per tonne, with a higher-grade intercept of 45 metres grading 1.5 grams per tonne in the centre of the wider zone.

Gold grade was continuous, and "relatively uniform", throughout the intercepts.

Drillhole TW005, meanwhile, tested the stockwork in an undrilled area, and intercepted 19.7 metres grading 0.3 grams of gold per tonne.

Conroy said that confirmed the potential to expand the existing resource towards the southwest of the deposit.

"The due diligence and validation drill holes completed by Demir Export have confirmed and added to the understanding of the Clontibret gold deposit built up by Conroy Gold," said chairman Richard Conroy.

"The board believes that the confirmation of the gold grades encountered in the lode zone and the discovery of the widest gold intercept yet at Clontibret in the stockwork zone indicates there is the potential to increase the overall gold content of the deposit.

"Demir Export has the mining expertise and the financial resources not only to bring the Clontibret gold deposit to construction ready status and into operation as a mine, but also to advance the significant gold potential of the other licences along the gold trend to the same status."

At 1151 GMT, shares in Conroy Gold and Natural Resources were up 7.66% at 25.3p.

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