TIDMCNR
RNS Number : 7349P
Condor Gold PLC
21 October 2021
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
21 October 2021
Condor Gold Plc
("Condor", "Condor Gold" or the "Company")
8,004 m Infill Drilling Completed at the Fully Permitted La
Mestiza Open Pit.
For full release, including figures, please use the following
link:
http://www.rns-pdf.londonstockexchange.com/rns/7349P_1-2021-10-20.pdf
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce
completion of an 8,004 m infill drilling programme on the fully
permitted high-grade La Mestiza Open Pit Mineral Resource at La
India Project, Nicaragua. The drilling programme has tightened
drill spacing to 25 m along strike and 50 m down-dip in the zones
that have the potential to support open pit mine development. The
drilling is expected to upgrade the existing open pit gold mineral
resource to the indicated category for the potential inclusion in
future pre-feasibility or feasibility studies of the Company's
fully permitted La India Gold Mine Development Project.
Highlights:
-- Ninety-six diamond core drill holes for 8,004 m infill
drilling was completed on the high-grade La Mestiza Open Pit.
-- La India Open Pit has an open pit mineral resource of 92 kt
at 12.1 g/t gold for 36,000 oz gold in the Indicated category and
341 kt at 7.7 g/t gold for 85,000 oz gold in the in the Inferred
category
-- La M estiza Open Pit contains an estimated fully dilu ted
mill feed of 499Kt at 5.37 g/t g old f or 8 6,0 00 oz g old in the
September 2 0 21 P EA and is tar geted f or early ext raction.
-- The tighter drill spacing is aimed to upgrade the open pit
gold mineral resource to the indicated category for the potential
inclusion in future pre-feasibility or feasibility studies.
-- The Mestiza vein set remains open down dip and along strike
in both directions, has parallel veins identified by rock chip
sampling and trenching and has the potential for further
significant discovery.
Mark Child, Chairman and CEO commented:
"The completion of 8,004 m of infill drilling on the fully
permitted La Mestiza Open Pit is another milestone achieved in
de-risking the La India Project ahead of production. Condor already
has monthly mine schedules for this open pit as it is targeted for
early extraction. The focus of the infill drilling is to convert
the Inferred material to the higher category Indicated Mineral
Resource. Drill results so far have been consis tent with previo us
drilling g rades and w idths, demons t rating g ood c ontinui ty in
g old mineral i zation be t ween ad jacent drill holes in the hi gh
g rade z ones, for example, 4.1 m true width at 15.23 g/t gold from
47.80 m (drill hole LIDC514) approximately 40 m below surface. 3.6
m true width at 29.1 g/t gold from 105.70 m (drill hole LIDC471)
approximately 85 m below surface. The September 2021 PEA estimated
the Mestiza Open Pit can currently deliver a fully diluted mill
feed of 499Kt at 5.37g/t gold for 86,000 oz gold Assuming a 91%
metallurgical recovery and a gold price of US$1700 per oz, gold
production would be 78,260 oz gold and revenues US$133M".
Background
The Mestiza vein set is located only 3 km from the permitted
processing plant on Condor's La India Gold Mine Development Project
(see Figure 1). Prior to the latest infill drilling campaign,
between 2010 and 2017 Condor drilled 53 drill holes for 7,688 m and
estimated a mineral resource comprising:
-- an open pit mineral resource of 92 kt at 12.1 g/t gold for
36,000 oz gold in the Indicated category and 341 kt at 7.7 g/t gold
for 85,000 oz gold in the in the Inferred category, and
-- an underground mineral resource of 118 kt at 5.5g /t gold in
the Indicated category and 984 kt at 5.3 g/t gold for 169,000 oz
gold in the Inferred category (Table 1 below).
Open pit mining scenarios based on the combined inferred and
indicated open pit mineral resource at La Mestiza envisage a fully
diluted mill feed of 499Kt at 5.37g/t gold for 86,000 oz gold.
Assuming a 91% metallurgical recovery and a gold price of US$1700
per oz, gold production would be 78,260 oz gold and revenues
US$133M. The studies were undertaken by SRK Consulting (UK) Limited
as part of the project-wide Preliminary Economic Assessment ("PEA")
announced in an RNS dated the 9(th) September 2021. The 2021 PEA
Technical Report will be issued within 45 days of the public
disclosure in compliance with NI 43-101 standards.
Latest infill drilling
Between May and October this year, Condor drilled 96 diamond
core drill holes for 8,004 m. The infill drill programme has
tightened (drill) spacing from 50 m to 100 m spacing to a regular
25 m along strike and 50 m down-dip in the areas that that are
considered to have the highest potential to support open pit
mining. Infill drilling focussed on the 85,000 oz gold that is
currently categorised as Inferred Mineral Resource. If successful,
the Company is aiming to convert the Inferred category mineral
resources to the higher confidence Indicated category, and their
potential inclusion in future pre-feasibility or feasibility mining
studies. Assay results received to date have been c onsis tent with
previo us drilling g rades and w idths, demons t rating g ood c
ontinui ty in g old mineral i zation be t ween ad jacent drill
holes in the hi gh g rade z ones and adding c onfidence to the
geolo gical model (see RNS dated 24(th) September 2021). Drilling
highlights were 4.1 m true width at 15.23 g/t gold from 47.80 m
(drill hole LIDC514) approximately 40 m below surface. 3.6 m true
width at 29.1 g/t gold from 105.70 m (drill hole LIDC471)
approximately 85 m below surface
When all assay results have been received the infill drilling
data will be incorporated in an updated geological model and
mineral resource estimation.
Table 1 Mineral Resource Estimate - Mestiza Vein Set (January
2019)
SRK MESTIZA MINERAL RESOURCE STATEMENT SPLIT PER VEIN
as of January 2019 (3),(4),(5)
Category Area Vein Name Cut-Off gold silver
Name
----------- ---------- ------------- ----------------------------- --------------------
Tonnes Au Grade Au (Koz) Ag Grade Ag (Koz)
(kt) (g/t) (g/t)
----------- ---------- ------------- ------- --------- --------- --------- ---------
0.5
Mestiza g/t
Indicated veinset Tatiana (OP) 92 12.1 36 19.5 57
----------
2.0
g/t
Tatiana (UG) 118 5.5 21 11.3 43
------------- -------------------------------- ------- --------- --------- --------- ---------
0.5
Mestiza g/t
Inferred veinset Tatiana(1) (OP) 220 6.6 47 13.6 97
----------- ----------
2.0
g/t
Tatiana(2) (UG) 615 3.9 77 8.8 174
------- --------- --------- --------- ---------
0.5
Buenos g/t
Aires(1) (OP) 120 9.8 38
2.0
Buenos g/t
Aires(2) (UG) 188 7.1 43
------- --------- --------- --------- ---------
2.0
g/t
Espenito(2) (UG) 181 8.4 49
------- --------- --------- --------- ---------
(1) The Mestiza pits are amenable to open pit mining and
the Mineral Resource Estimates are constrained within
Whittle optimised pits, which SRK based on the following
parameters: A Gold price of USD1,500 per ounce of gold
with no adjustments. Prices are based on experience gained
from other SRK Projects. Metallurgical recovery assumptions
of 96% for gold are based on testwork conducted to date.
Marginal costs of USD19.36/t for processing, USD5.69/t
G&A and USD2.35/t for mining, slope angles defined by
the Company Geotechnical study of 45deg, haul cost of
USD1.25/t was added to the Mestiza ore tonnes to consider
transportation to the plant.
(2) Underground mineral resources beneath the open pit
are reported at a cut-off grade of 2.0 g/t over a minimum
width of 1.0m. Cut-off grades are based on a price of
USD1,500 per ounce of gold and gold recoveries of 91 percent
for resources, costs of USD19.36/t for processing, USD4.55/t
G&A and USD50.0/t for mining, without considering revenues
from other metals.
(3) Mineral Resources are not Ore Reserves and do not
have demonstrated economic viability. All figures are
rounded to reflect the relative accuracy of the estimate
and have been used to derive sub-totals, totals and weighted
averages. Such calculations inherently involve a degree
of rounding and consequently introduce a margin of error.
Where these occur, SRK does not consider them to be material.
All composites have been capped where appropriate. The
Concession is wholly owned by and exploration is operated
by Condor Gold plc
(4) The reporting standard adopted for the reporting of
the 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.
(5) SRK Completed a site inspection to the deposit by
Mr Benjamin Parsons, MSc (MAusIMM(CP), Membership Number
222568, an appropriate "independent qualified person"
as this term is defined in National Instrument 43-101.
------------------------------------------------------------------------------------------------------
Figure 1. Image showing the location of the Mestiza satellite
open pits in relation to the planned La India Gold Mine
infrastructure. Open pit mineral resources shown in blue.
- Ends -
For further information please visit 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.
The 2021 PEA Technical Report will be issued within 45 days of
the public disclosure in accordance with the public disclosure to
NI 43-101 standards.
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
--------------------------------------------------------------
Diamond core drilling A drilling method in which penetration is achieved
through abrasive cutting by rotation of a diamond
encrusted drill bit. This drilling method enables
collection of tubes of intact rock (core) and when
successful gives the best possible quality samples
for description, sampling and analysis of an ore body
or mineralised structure.
--------------------------------------------------------------
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.
--------------------------------------------------------------
Mineral Reserve An 'Ore Reserve' is the economically mineable part
of a Measured and/or Indicated Mineral Resource. It
includes diluting materials and allowances for losses,
which may occur when the material is mined. Appropriate
assessments and studies have been carried out, and
include consideration of and modification by realistically
assumed mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors.
These assessments demonstrate at the time of reporting
that extraction could reasonably be justified. Ore
Reserves are sub-divided in order of increasing confidence
into Probable Ore Reserves and Proved Ore Reserves.
--------------------------------------------------------------
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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