Further re Metallurgical Test Results

CONROY GOLD & NATURAL RESOURCES PLC - Further re Metallurgical Test Results

PR Newswire

London, January 17

Conroy Gold and Natural Resources plc (AIM:CGNR; ESM:CGNR.I), the goldexploration and development company developing a gold mine at Clontibret in Co.Monaghan, Ireland, is pleased to announce further excellent results of theMetallurgical test work by Goldfields Ltd. These relate to the Flotation testwork and the results, which include gold flotation recovery of 90 per cent, arehighly positive.

The gold flotation recovery, at 90 per cent, is higher than assumed in theScoping Study. This is most encouraging both technically and financially.

The results also indicate an 8 per cent sulphur grade in concentrate whereas inthe Scoping Study a grade of 12 per cent had been assumed. The lower sulphurgrade in the concentrate is highly advantageous as it will reduce processoperating costs.

The Company estimates that the effect of these results would increase the IRRfrom 49.4 per cent (in the Scoping Study) to over 55 per cent and wouldincrease the NPV8 from $72.3 million to over $90 million using the base casegold price of $1,372 per ounce as used by Tetra Tech in their Scoping Study andthus substantially increase the overall financial attractiveness of theproject.

The concentrate mass recovery at 5 per cent was the same as predicted in theScoping Study which is also very satisfactory.

The laboratory flotation full locked cycle tests were completed and the resultsare positive. The importance of these tests is that they simulate what might beachieved when the processing plant of the mine is in continuous operation.Steady state conditions were achieved as soon as the fifth and sixth cycles.This is a very satisfactory outcome as the results suggest an efficient andsmooth running flotation process.

Commenting today, Chairman, Professor Richard Conroy said:

"I am extremely pleased with all of these flotation results. Both the 90 percent goldflotationrecovery and the sulphur grade results are excellent, bothtechnically and financially. Combined with the positive results of the previousmetallurgical studies, they are highly encouraging. Further metallurgical testwork is ongoing.The results to date are very positive and fit in with theCompany's plan to bring a mine into production in three years' time."

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Visit the website at: www.conroygoldandnaturalresources.com