15th Sep 2015 09:25
LONDON (Alliance News) - Connemara Mining Co PLC Tuesday said it is progressing its wholly-owned project in Ireland but said its joint venture projects are moving slowly due to the current downturn in the market.
The miner based in Ireland, which does not currently generate any revenue, reported a EUR88,000 pretax loss in the first six months of 2015, narrowing from the EUR144,000 loss reported a year earlier as its administrative expenses fell in the period.
Connemara is currently exploring for gold in Ireland, primarily on its "low key, low cost programme" on its licence block in the Inishowen peninsula in Donegal. During the first half, the company conducted two soil sampling programmes and studied previous exploration data from the block to refine its target area.
The company is now conducting a trenching programme over the targeted area to sample the bedrock where it expects to find "one or more" gold bearing veins. If successful, the company will "look at" conducting a small drilling campaign, which it can already afford to fund, it said.
At its other project in the Wicklow/Wexford area on the East Coast of Ireland, Connemara said its joint venture partner is currently struggling to meet its joint venture commitments in light of the poor industry environment.
Connemara has partnered with Canadian-based Hendricks, which must spend EUR1.0 million to earn a 75% stake in the project. Hendricks already owns adjacent ground to the project and has conducted exploration work on both Connemara's and its own licence areas, but has so far not spent enough to earn its 75% stake, said Connemara.
"The abysmal Toronto market for junior explorers has frustrated fund raising by Hendricks so no work is being done at present," said the miner. "We are talking to Hendricks about the joint venture."
Connemara also has a joint venture for a zinc project in Ireland with Teck Ireland Ltd, a subsidiary of Teck Resources Ltd. Teck is the operator and did not propose a work programme in 2015, meaning the joint venture project was put on care and maintenance.
"The company is funded for all its current activities and expenditure for the next year or so. As explorers we remain hopeful that one or more of our activities will yield positive results. As business people we hope that the world economic outlook will at least stabilise and that fear recedes in the stock market," said Connemara.
Connemara shares were down 7.7% to 1.50 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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