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(Sharecast News) - Conroy Gold announced the discovery of a mineralised outcrop near its Corcaskea gold target in Ireland on Wednesday, suggesting a different structural orientation to previously identified gold lodes in the region.
The AIM-traded firm said the outcrop, named McCully's Outcrop, lies outside the Clontibret gold deposit footprint and returned a surface rock chip sample grading 1.5 grams of gold per tonne over about 25 centimetres.
It said the discovery indicated an east-west striking, north-dipping lode, contrasting with the north-northeast to south-southwest orientation of lodes within the Clontibret resource area.
Conroy said the structural difference could have significant implications for future exploration and drilling strategies at Corcaskea, where previous trench results included 16.5 metres at 6.5 grams per tonne and 12 metres at 4.9 grams per tonne.
"The discovery significantly enhances the geological understanding and better establishes controls to guide us in growing the resource into the Corcaskea target area," said chairman John Sherman.
McCully's Outcrop is located about 300 metres north of the closest Clontibret drill hole and 200 metres south of the Corcaskea target, with the company believing it could represent a potential extension of the Clontibret gold resource.
The find forms part of the company's broader 'Discs of Gold' project, which spans two parallel gold trends extending roughly 90 kilometres across the licence area.
Conroy holds a JORC-compliant gold resource of 517,000 ounces at Clontibret, comprising 320,000 ounces in the indicated category and 197,000 ounces inferred, based on a 2017 estimate.
The company said the ongoing relogging of drill core, combined with the latest discovery, provided a strong case for reorienting future drilling to unlock additional resource growth at Corcaskea.
At 0902 BST, shares in Conroy Gold and Natural Resources were up 9.71% at 3.84p.
Reporting by Josh White for Sharecast.com.
