Connemara Mining, which is currently exploring the prospect of gold reserves in Co Donegal, has posted an operating loss of €96,000 for the first half of 2016, up from €89,000 for the same period last year.

In an interim statement it said “the ravages inflicted by the commodity collapse of recent years has decimated exploration budgets”.

The company has several ongoing interests and holds 34 licences in Ireland focused on gold and zinc.

Its principal activity regards a block of five licences on the Inishowen peninsula in Donegal, where drilling has found interesting gold results.

Awaiting results

It has recently cleared and sampled a former silver and lead mine on the licence and says while geology looks attractive, it is awaiting results.

As well as its own activities, Connemara currently has three joint ventures, two with Teck of Canada on 11 zinc licences – six in Co Limerick and five in Co Meath – and one with Hendrick of Canada on five licences in counties Wexford and Wicklow which are prospective for gold.

“Our work on Inishowen in Donegal is very exciting. Sampling and two small drilling programmes have identified gold veins extending over distance and at depth,” its statement reported.

“More drilling is needed. At the same time sampling around an old mine on the licence produced good grades of base metals and silver.

“A team have worked to clear the old adits and shafts and make access safe. They then sampled the area. Visual observation suggests veins up to two-metres wide but laboratory results are awaited on contained grades.”