ENNEX international is to continue drilling at its gold prospect at Curraghinalt, in the Sperrin mountains, Cos Derry and Tyrone. The programme will cost £400,000 this year, director Mr David Coyle said. This was a "very real programme and Ennex would be concentrating its efforts on trying to prove the reserves".
Drilling has already indicated a "resource" estimated at 500,000 tonnes of ore, grading 15 grams per tonne, Ennex said. This points to 250,000 "contained ounces of gold". Most of the "contained" ore reserve is proven or probable, Mr Coyle said. Ennex has estimated that this represents a gross value of $100 million (£62.5 million) over the eight to 10 year life of the mine.
However, Ennex would have to drill a further 60 holes in the second half of this year, after which a feasibility study would be carried out. That study, to be completed in 1997, would indicate the profitability of the project. Also, if the project goes ahead, operating costs and depreciation would reduce the gross revenue by more than half.
Mr Coyle stressed the graded of the ore was "significant" and the Sperrin mountains project had now reached a "serious stage". The annual report, released yesterday, said there was "very good potential for significant tonnage".
In the Republic, the group has reached a joint venture agreement for its Moate based metal licence block. Some $3 million would be spent by the involved parties if they elected to gain a 55 per cent interest in the property.
There has been little activity for many years in the US, where it holds some precious metal interests including the South Mercur property in Utah. However, Ennex, with its recent more pro-active policy, has signed a joint venture agreement with Barrick Resources. Under this option, Barrick can acquire the interest held by Ennex for $500,000.
The annual report shows three Ennex directors received $293,000 in performance related commission between them in 1995. This special payment was made for work carried out by the directors in connection with the sale of Fynegold Exploration to Caledonia, a Canadian company with a listing on the Toronto Stock Exchange, for $7.3 million.
There was a loss of $215,000 on the disposal off this company. The commission was made to two non executive directors who received no salary, and to one executive director.
The payment, said Mr Coyle, who was one of the recipients, was in Caledonia shares which were frozen for one year. Also, the payment for nine months work was "very small" in relation to the deal.
