Keady’s Clay Lake has revealed “wide gold zones”, as a mining company operating in the area has updated shareholders on plans.
Conroy Gold and Natural Resources has provided details of its operations and accounts to the end ended May 31, 2015.
The Irish-based resource company is exploring and developing gold and other projects on both sides of the border. It reports there could be up to 20 million ounces of gold in both jurisdictions.
The construction of a mine at Clontibret remains the main focus of the company.
It began operations around Keady 26 years ago and, during the past year to which the update applies, reports that, at Clay Lake, “wide gold zones have been encountered during trenching and drilling”.
A new gold target has also been discovered at Rockcorry in County Monaghan
Chairman, Professor Richard Conroy commented: “We have made further progress towards the development of the mine at Clontibret, with continuity of gold at depth confirmed by drilling.
“The infill drilling has enhanced the economics of the project, which show excellent returns even at the current gold price, and the presence of potentially commercial amounts of antimony further improve the prospects.
“Our focus is on developing a mine at Clontibret, initially to be open pit.”
The development of the Clontibret pit has been the main focus of the company’s activities during the financial year.
But there has also been more positive news relating to the Keady exploration.
In a statement to shareholders accompanying the accounts, Professor Conroy reports: “There was also further excellent progress with your company’s exploration programme particularly at the Clay Lake gold target in County Armagh and the Slieve Glah gold target in County Cavan, together with the discovery of a new gold target at Rockcorry in County Monaghan.
“In addition exploration licences were granted to your company in the highly prospective gold district of Sodanklya in Finland.”
The Clay Lake gold target has been described as “greater in surface area” than that in Clontibret.
Professor Conroy states: “Geologically the Clay Lake gold target appears to be a black carbonaceous shale hosted deposit.
“Wide gold zones have been encountered during trenching and drilling and the deposit could well contain very high gold content and tonnage.”
Overall for the financial year, the company reported a loss but the level of loss was down on the previous year.
For the 12 months to May 31 this year, Conroy Gold and Natural Resources made a loss of almost £221,000 down from more than £266,000 on the previous year.
But net assets were up by £700,000 to a level of £10.7 million.
Read more news:
Sign up for our weekly newsletter here.