Shares in miner double after Donegal gold strike
Published 08/04/2016 | 02:30
Shares in Ireland-based, London listed, Connemara Mining more than doubled yesterday after the company announced the results of a gold prospecting project in Donegal.
The drill programme is focused on gold-bearing mineral veins on the picturesque Inishowen Peninsula originally discovered in 2015, Connemara Mining said.
The initial results confirmed the presence of significant grades of gold at the site on Inishowen, the company said.
It said the results suggest the site is similar to a prospect at Curraghinalt, Co Tyrone, where a multi-million ounce gold deposit has been reported. Canada-listed Dalriadan Resources holds the licence for the Tyrone site.
"There is now without doubt a gold-bearing vein system in the Inishowen area of Donegal," Connemara Mining founder and chairman John Teeling said.
"The drill results reported today though early stage are promising. Multiple gold bearing veins have been intersected with one stretching over three metres at a gold grade of 5.8 grams per tonne," he said yesterday.
"Serial entrepreneur" John Teeling has established a raft of listed and private companies in fields ranging from oil and gas, to gold and is best-known to many as the founder of Cooley Distillery which he started in 1987 and sold to drinks giant Jim Beam in 2011 for €70m.
In Donegal the plan is now to drive ahead with additional drilling to determine how many gold-bearing veins are present and in order gain a better picture of the quality of gold in the ground.
The Inishowen block contains five prospecting licences covering 187 sq km in an area surrounding Quigley's Point. The main rock types in the area are schists, quartzites and granites with some sandstones.
Connemara Mining only announced last September that it was planning to start drilling in Donegal.
The explorer had previously faced delays on two of its other exploration licences. A project involving gold licences in the Wicklow/Wexford area with operating partner Hendricks struggled to secure funding.
Connemara also has a joint venture for a zinc project near Limerick with Teck Ireland.
Connemara made the zinc find back in 2007 with Teck signed on as operator, but it did not propose a work programme in 2015, meaning the joint venture project was put on care and maintenance.
After a massive rally on the markets yesterday shares in London AIM-listed Connemara closed at 2.90 pence each, up 116.98pc from the previous close.