Conroy Diamonds and Gold, the publicly listed Irish exploration company, posted pre-tax losses of €348,000 for the year to the end of May but said it remained hopeful that a recently discovered gold deposit in Armagh would yield substantial returns.

Chairman Prof Richard Conroy said the losses had been anticipated and did not dent his optimism that the gold area mineralisation at Tivnacree, in the Armagh-Monaghan gold belt, was a "significant" find.

Future profitability depended on the strength of deposits contained in the belt along with fluctuations in the international gold market, which had displayed increased buoyancy over recent months, he said.

Conroy , which is listed on London's Alternative Investment Market and has 1,300 shareholders, posted €305,000 losses in 2001 and does not anticipate moving into profit for a further five years.

The company employs eight full-time administrative staff and a number of specialist contract workers. Established in 1995, its operations are concentrated in Armagh and Monaghan.

The company will hold its annual general meeting in the Conrad Hotel in Dublin on December 12th.