TIDMCNR
RNS Number : 0188Q
Condor Gold PLC
25 October 2021
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
25 October 2021
Condor Gold Plc
("Condor", "Condor Gold" or the "Company")
Condor Files PEA Technical Report on SEDAR
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce the
filing of a Preliminary Economic Assessment Technical Report
("PEA") for its La India Project, Nicaragua on SEDAR
https://www.sedar.com as per the terminology, definitions and
guidelines given in the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") Standards on Mineral Resources and Mineral
Reserves (May 2014) as required by NI 43-101 ("The CIM Code"). The
CIM Code is an internationally recognised reporting code as defined
by the Committee for Mineral Reserves International Reporting
Standards. The filing follows the RNS dated 9 September 2021
summarising the PEA including sensitivity analyses. The PEA is
available on Condor's website.
The strategic study covers two scenarios: Scenario A, in which
the mining is undertaken from four open pits, termed La India,
America, Mestiza and Central Breccia Zone ("CBZ"), which targets a
plant feed rate of 1.225 million tonnes per annum ("Mtpa"); and
Scenario B, where the mining is extended to include three
underground operations at La India, America and Mestiza, in which
the processing rate is increased to 1.4 Mtpa.
Highlights: 1.4Mtpa PEA Open Pit + Underground Operations
-- Internal Rate of Return ("IRR") of 54% and a post-tax Net
Present Value ("NPV") of US$418 million, after deducting upfront
capex, at a discount rate of 5% and gold price of US$1,700/oz.
-- Average annual production of 150,000 oz of gold over the initial 9 years of production.
-- 1,470,000 oz of gold produced over 12-year Life of Mine ("LOM").
-- Initial capital requirement of US$160 million (including
contingency), where the underground development is funded through
cash flow.
-- Pay back period 12 months.
-- All-in Sustaining Costs of US$958 per oz gold over LOM.
-- Robust Base Case presents an IRR of 43% and a post-tax NPV of
US$312 million at a discount rate of 5% and gold price of
US$1,550/oz.
Highlights 1.225 Mtpa PEA La India Open Pit + Feeder Pits:
-- IRR of 58% and a post-tax NPV of US$302 million, at a
discount rate of 5% and gold price of US$1,700/oz.
-- Average annual production of 120,000 oz of gold over the initial 6 years of production.
-- 862,000 oz of gold produced over 9 year Life of Mine ("LOM").
-- Initial capital requirement of US$153 million (including contingency).
-- Pay back period 12 months.
-- All-in Sustaining Costs of US$813 per oz gold.
-- Robust Base Case presents an IRR of 48% and a post-tax NPV of
US$236 million at a discount rate of 5% and gold price of
US$1,550/oz.
- Ends -
For further information please visit http://www.condorgold.com
or contact:
Condor Gold plc Mark Child, Chairman and CEO
+44 (0) 20 7493 2784
Beaumont Cornish Limited Roland Cornish and James Biddle
+44 (0) 20 7628 3396
SP Angel Corporate Finance Ewan Leggat
LLP +44 (0) 20 3470 0470
H&P Advisory Limited Andrew Chubb and Nilesh Patel
+44 207 907 8500
Blytheweigh Tim Blythe and Megan Ray
+44 (0) 20 7138 3204
About Condor Gold plc:
Condor Gold plc was admitted to AIM in May 2006 and dual listed
on the TSX in January 2018. The Company is a gold exploration and
development company with a focus on Nicaragua.
In August 2018, the Company announced that the Ministry of the
Environment in Nicaragua had granted the Environmental Permit
("EP") for the development, construction and operation of a
processing plant with capacity to process up to 2,800 tonnes per
day at its wholly-owned La India gold Project ("La India Project").
The EP is considered the master permit for mining operations in
Nicaragua.
La India Project contains a Mineral Resource of 9,850 Kt at 3.6
g/t gold for 1.14 M oz gold in the Indicated category and 8,479 Kt
at 4.3 g/t gold for 1.18 M oz gold in the Inferred category. A gold
price of $1,500/oz and a cut-off grade of 0.5 g/t and 2.0 g/t gold
were assumed for open pit and underground resources, respectively.
A cut-off grade of 1.5 g/t gold was furthermore applied within a
part of the Inferred Resource. Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability. There is
no certainty that any part of the Mineral Resources will be
converted to Mineral Reserves.
Environmental Permits were granted in April and May 2020 for the
Mestiza and America open pits respectively, both located close to
La India. The Mestiza open pit hosts 92 Kt at a grade of 12.1 g/t
gold (36,000 oz contained gold) in the Indicated Mineral Resource
category and 341 Kt at a grade of 7.7 g/t gold (85,000 oz contained
gold) in the Inferred Mineral Resource category . The America open
pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the
Indicated Mineral Resource category and 677 Kt at a grade of 3.1
g/t gold (67,000 oz) in the Inferred Mineral Resource category.
Following the permitting of the Mestiza and America open pits,
together with the La India Open Pit Condor has 1.12 M oz gold open
pit Mineral Resources permitted for extraction.
Reporting Standards
The reporting standard adopted for the reporting of the Mineral
Resource Estimate ("MRE") uses the terminology, definitions and
guidelines given in the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") Standards on Mineral Resources and Mineral
Reserves (May 2014) as required by NI 43-101 ("The CIM Code"). The
CIM Code is an internationally recognised reporting code as defined
by the Combined Reserves International Reporting Standards
Committee.
Disclaimer
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
Qualified Persons
The Mineral Resource Estimate has been completed by Ben Parsons,
a Principal Consultant (Resource Geology) with SRK Consulting
(U.S.) Inc, who is a Member of the Australian Institute of Mining
and Metallurgy, MAusIMM(CP). He has some nineteen years' experience
in the exploration, definition and mining of precious and base
metals. Ben Parsons is a full-time employee of SRK Consulting
(U.S.), Inc, an independent consultancy, and has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration, and to the type of activity
which he is undertaking to qualify as a "qualified person" as
defined under National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101") of the Canadian Securities
Administrators and as required by the June 2009 Edition of the AIM
Note for Mining and Oil & Gas Companies. Ben Parsons consents
to the inclusion in the announcement of the matters based on their
information in the form and context in which it appears and
confirms that this information is accurate and not false or
misleading.
The Qualified Persons responsible for the Technical Report are
Dr Tim Lucks of SRK Consulting (UK) Limited, and Mr Fernando
Rodrigues, Mr Stephen Taylor and Mr Ben Parsons of SRK Consulting
(U.S.) Inc. Mr Parsons assumes responsibility for the MRE, Mr
Rodrigues the open pit mining aspects, Mr Taylor the underground
mining aspects and Dr Lucks for the oversight of the remaining
technical disciplines and compilation of the report.
The technical and scientific information in this press release
has been reviewed, verified and approved by Gerald D. Crawford,
P.E., who is a "qualified person" as defined by NI 43-101 and is
the Chief Technical Officer of Condor Gold plc.
The technical and scientific information in this press release
has been reviewed, verified and approved by Andrew Cheatle, P.Geo.,
who is a "qualified person" as defined by NI 43-101.
Forward Looking Statements
All statements in this press release, other than statements of
historical fact, are 'forward-looking information' with respect to
the Company within the meaning of applicable securities laws,
including statements with respect to: the ongoing mining dilution
and pit optimisation studies, and the incorporation of same into
any mining production schedule, future development and production
plans at La India Project. Forward-looking information is often,
but not always, identified by the use of words such as: "seek",
"anticipate", "plan", "continue", "strategies", "estimate",
"expect", "Project", "predict", "potential", "targeting",
"intends", "believe", "potential", "could", "might", "will" and
similar expressions. Forward-looking information is not a guarantee
of future performance and is based upon a number of estimates and
assumptions of management at the date the statements are made
including, among others, assumptions regarding: future commodity
prices and royalty regimes; availability of skilled labour; timing
and amount of capital expenditures; future currency exchange and
interest rates; the impact of increasing competition; general
conditions in economic and financial markets; availability of
drilling and related equipment; effects of regulation by
governmental agencies; the receipt of required permits; royalty
rates; future tax rates; future operating costs; availability of
future sources of funding; ability to obtain financing and
assumptions underlying estimates related to adjusted funds from
operations. Many assumptions are based on factors and events that
are not within the control of the Company and there is no assurance
they will prove to be correct.
Such forward-looking information involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to: mineral
exploration, development and operating risks; estimation of
mineralisation and resources; environmental, health and safety
regulations of the resource industry; competitive conditions;
operational risks; liquidity and financing risks; funding risk;
exploration costs; uninsurable risks; conflicts of interest; risks
of operating in Nicaragua; government policy changes; ownership
risks; permitting and licencing risks; artisanal miners and
community relations; difficulty in enforcement of judgments; market
conditions; stress in the global economy; current global financial
condition; exchange rate and currency risks; commodity prices;
reliance on key personnel; dilution risk; payment of dividends; as
well as those factors discussed under the heading "Risk Factors" in
the Company's annual information form for the fiscal year ended
December 31, 2020 dated March 31, 2021 and available under the
Company's SEDAR profile at www.sedar.com .
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. The Company disclaims any intention
or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
Technical Glossary
Assay The laboratory test conducted to determine the proportion
of a mineral within a rock or other material. Usually
reported as parts per million which is equivalent
to grams of the mineral (i.e., gold) per tonne of
rock
ARDML Acid rock drainage and metal leaching
--------------------------------------------------------------
Au Gold
--------------------------------------------------------------
Grade The proportion of a mineral within a rock or other
material. For gold mineralisation this is usually
reported as grams of gold per tonne of rock (g/t)
--------------------------------------------------------------
g/t grams per tonne
--------------------------------------------------------------
Indicated Mineral That part of a Mineral Resource for which tonnage,
Resource densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration, sampling
and testing information gathered through appropriate
techniques from locations such as outcrops, trenches,
pits, workings and drill holes. The locations are
too widely or inappropriately spaced to confirm geological
and/or grade continuity but are spaced closely enough
for continuity to be assumed.
--------------------------------------------------------------
Inferred Mineral That part of a Mineral Resource for which tonnage,
Resource grade and mineral content can be estimated with a
low level of confidence. It is inferred from geological
evidence and assumed but not verified geological and/or
grade continuity. It is based on information gathered
through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill holes
that may be limited, or of uncertain quality and reliability,
--------------------------------------------------------------
IRR The Internal Rate of Return (IRR) is the discount
rate that makes the net present value (NPV) of a project
zero. In other words, it is the expected compound
annual rate of return that will be earned on a project
or investment
--------------------------------------------------------------
Kt Thousand tonnes
--------------------------------------------------------------
Mineral Resource A concentration or occurrence of material of economic
Estimate interest in or on the Earth's crust in such a form,
quality, and quantity that there are reasonable and
realistic prospects for eventual economic extraction.
The location, quantity, grade, continuity and other
geological characteristics of a Mineral Resource are
known, estimated from specific geological knowledge,
or interpreted from a well constrained and portrayed
geological model.
--------------------------------------------------------------
NI 43-101 Canadian National Instrument 43-101 a common standard
for reporting of identified mineral resources and
ore reserves
--------------------------------------------------------------
NPV Net Present Value (NPV) is the value of all future
cash flows (positive and negative) over the entire
life of an investment discounted to the present. NPV
analysis is a form of intrinsic valuation and is used
extensively across finance and accounting for determining
the value of a business, investment security, capital
project, new venture, cost reduction program, and
anything that involves cash flow. It is after deducting
the upfront capital cost
--------------------------------------------------------------
Open pit mining A method of extracting minerals from the earth by
excavating downwards from the surface such that the
ore is extracted in the open air (as opposed to underground
mining).
--------------------------------------------------------------
Vein A sheet-like body of crystallised minerals within
a rock, generally forming in a discontinuity or crack
between two rock masses. Economic concentrations of
gold are often contained within vein minerals.
--------------------------------------------------------------
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END
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