ENNEX International has announced that its share quotation will be transferred from the USM to the Exploration Securities Market (ESM) at the end of 1996. The company added it was on schedule to start a feasibility study on its gold property at Curraghinalt, in the Sperrin mountains, in Northern Ireland.
The transfer has been made as the USM is expected to be closed at the end of the year. Chairman Mr Michael McCarthy noted that the rules of the ESM are "no less rigorous than those of the USM".
A progress report notes that the two year, 100,000 metre diamond drill programme at Curraghinalt is nearing completion.
Ennex estimates that around 150,000 ounces of gold can be categorised as a "measured resource", a technical term used prior to a feasibility study. If the study agrees with the estimates, the "measured resource" can be classed as proven and probable, which are bankable resources.
The estimates, according to Ennex, represent 270,000 tonnes of ore, at an average grade of 17.33 grams per tonne, which is a very rich grade. Ennex reckons that the Curraghinalt gold property can sustain a production rate of more than 25,000 ounces of gold a year. That implies gross revenues of more than $10 million (£6 million) a year, according to the company.
Ennex has not given any details of the estimated costs. However, cash flow could amount to some $4 million a year and net profit would be half of that.
Based on present estimates, a mine could have a life of some 10 years.
If everything goes the right way for Ennex, it would go for planning permission towards the end of next year. Mining would then start in 1998 or 1999.
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