TIDMCNR
RNS Number : 1769L
Condor Gold PLC
09 September 2021
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
9 September 2021
Condor Gold Plc
("Condor", "Condor Gold" or the "Company")
Condor Announces Details of Technical Report on its 100% La
India Gold Project
Post-Tax NPV(5) US$418M, IRR 54%, Average 150,000 oz Gold p.a
for 9 years, Payback 12 Months
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce the key
findings of a technical report on its 100% owned La India Gold
Project (the "Project") prepared by SRK Consulting (UK) Limited
("SRK"). This technical report (the "Technical Report") presents
the results of a strategic mining study to Preliminary Economic
Assessment ("PEA") standards completed on the Project in 2021. 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. The 2021 PEA Technical
Report will be issued within 45 days of the public disclosure to NI
43-101 standards.
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.
-- 1,469,000 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.
Mark Child, Chairman and CEO commented:
"I am delighted to announce robust economics for two mining
scenarios in an updated technical study on Condor's 100% owned La
India Project. The highlight of the technical study is a post-tax,
post upfront capital expenditure NPV of US$418 million, with an IRR
of 54% and 12 month pay-back period, assuming a US$1,700 per oz
gold price, with average annual production of 150,000 oz gold per
annum for the initial 9 years of gold production. The open pit mine
schedules have been optimised from designed pits, bringing higher
grade gold forward resulting in average annual production of
157,000 oz gold in the first 2 years from open pit material and
underground mining funded out of cashflow".
Background
The 2021 PEA reflects the January 2019 Mineral Resource Estimate
(as reported in the RNS dated 28 January 2019), incorporating
advances in understanding and technical study detail relating to a
number of areas of the Project (relative to the Pre-Feasibility
Study ("PFS") and PEA scenarios presented in the "Technical Report
on the La India Gold Project, Nicaragua, December 2014", reported
in the RNS dated 21 December 2014, updates provided in final
prospectus filed with the Ontario Securities Commission as
announced on 27 December 2017), as well as the incorporation of the
Mestiza open pit. The most significant area of advancement relates
to the mining studies conducted for each of the open pits, where
this has focused on producing optimised pit designs considering
maximising access to mineralised material and the opportunity to
maintain the grade profile through stockpiling, without requiring
the relocation of the village. The other technical disciplines,
namely open pit geotechnics, underground mining, hydrogeology,
tailings management and infrastructure remain relatively unchanged
compared to the 2014 PFS/PEA (accounting for the changes in
production), with minor updates relating to mineral processing and
hydrological. The environmental and social studies reflect Condor's
achievement of being granted an Environmental Permit to construct
and operate a processing plant with capacity of up to 2,800 tonnes
per day ("tpd") and develop the associated mine site infrastructure
for a new mine at the Project (the "Main Permit").
Condor has open pit Mineral Resources of 8,583Kt at 3.3g/t gold
for 903,000 oz gold in the Indicated category and 1,901Kt at 3.6g/t
gold for 220,000 oz gold in the Inferred category permitted for
extraction.
The 2021 PEA is the first Technical Report update since the 2014
PFS and PEAs. While the MRE has not changed materially during this
period there have been a number of changes to the infrastructure
designs and layout, which will be reflected in the 2021 PEA. These
include: no resettlement of the village of La Cruz de la India, the
elimination of a southern waste rock dump, the relocation of the
processing plant approximately 1.2Km to the East, no requirement to
relocate the main road, the purchase of the vast majority of the
surface rights and obtaining the Main Permit to construct and
operate a mine. Condor has developed a detailed knowledge of the
hydrology, the site wide water balance and surface water
management, where the water management plans have been aligned with
the updated pit designs, pit development, and incorporation of the
underground workings for the 2021 PEA. Furthermore, a gold price of
US$1,250 oz gold was used in the 2014 PFS and PEAs verses a base
case of US$1,550 oz gold in the 2021 PEA.
Thus the 2021 PEA provides an update on the current status of
the Project, while acknowledging a key part of Condor's strategy is
to prove up a 5M oz Gold District at the Project.
The PEA has been conducted in parallel to the on-going field
investigations being conducted by Condor inclusive of the recently
completed 3,370 m resource drilling programme at the La India open
pit, the resource infill drilling programme currently being
conducted at the Mestiza open pit and resource expansion drilling
being conducted on the Cacao deposit. Feasibility study level open
pit geotechnical drilling and investigations, hydrological studies,
metallurgical testwork, and tailings management and process plant
design are on going relating to the permitted La India open
pit.
It is Condor's intention that the new drilling data will be
incorporated in a further MRE update and that this will support the
development of a Feasibility Study, along with the other on-going
multi-disciplinary studies on the La India deposit.
PEA Inputs
SRK followed industry standard practices to derive the January
2019 MRE update, which remains consistent with SRK's approach for
the MREs previously completed. Table 3 presents the 2019 Mineral
Resource Statement for the Project, inclusive of all veins.
Different levels of geotechnical studies have been competed for the
four potential open pits considered in both Scenario A and B, where
these range from a detailed PFS investigation for La India, to
scoping and benchmark values for Mestiza, America and Central
Breccia. Scenario B considers the inclusion of underground mining
at the La India, America and Mestiza deposits. To support the
underground mining studies, SRK has reviewed and assessed the rock
mass classification, and assessed the requirements for crown pillar
design, sill pillar design and support at a PEA level. This study
is based on the summarised geotechnical information from earlier
studies including those referred to in the SRK 2014, 2017 NI 43-101
Technical Report, with no further drill core or logging data added
subsequently.
Table 1: Summarised Key Technical, Operational and Financial
Parameters for Scenario A and B
The key technical, operational, and financial parameters of the
two scenarios are summarised in Table 1. Both scenarios return
positive NPVs at the Company's base discount rate of 5%, of US$236M
and US$313M for Scenarios A and B, respectively at a gold price of
US$1,550/oz. Undiscounted payback is accomplished during operating
year 1 for both Scenario A and Scenario B.
Parameter Units Scenario A Scenario B
------------- -----------
Production
Ore Mined (kt) 10,634 15,702
Au Grade (g/t) 2.77 3.18
Ag Grade (g/t) 4.39 4.75
Recovered Metal
Au (koz) 862 1,469
Ag (koz) 1,031 1,662
Commodity Prices
Gold (USD/oz) 1,550 1,550
Silver (USD/oz) 20 20
Revenue
Gold (USDM) 1,335.28 2,275.24
Silver (USDM) 20.41 32.91
Gross Revenue (USDM) 1,355.69 2,308.15
Transportation Charges (USDM) (1.46) (2.10)
Smelter Charges (USDM) (1.42) (2.35)
Net Revenue (USDM) 1,352.81 2,303.70
Operating Costs
Mining (USDM) (336.17) (637.91)
Water Management (USDM) (4.25) (17.56)
Processing Plant (USDM) (208.09) (299.94)
Tailings (USDM) (2.13) (3.14)
G&A (USDM) (45.00) (60.00)
EMP (USDM) (8.56) (11.41)
Sub-total (USDM) (604.19) (1,029.96)
Royalty (USDM) (81.17) (138.22)
Total Operating Costs (USDM) (685.36) (1,168.18)
(USD/t RoM) 64.45 74.40
EBITDA and Tax
EBITDA (USDM) 667.45 1,135.52
Corporate Income
Tax (USDM) (144.87) (226.79)
Cashflow from Operations (USDM) 522.57 908.73
Capital Expenditure
Mining (USDM) (40.52) (252.65)
Water Management (USDM) (8.08) (19.16)
Processing Plant (USDM) (66.05) (72.14)
TSF (USDM) (24.85) (31.17)
Infrastructure (USDM) (10.85) (10.85)
Closure (USDM) (13.69) (14.83)
Other (USDM) (7.70) (7.80)
Contingency (USDM) (15.00) (19.68)
Total Capital Expenditure (USDM) (186.75) (428.28)
Results
Net Free Cashflow (USDM) 335.83 480.45
NPV (5%) (USDM) 235.95 312.55
IRR (%) 48.2% 43.2%
Payback year (undiscounted) (Prod year) Year 1 Year 1
All-in Sustaining
Costs (USD/oz) 813 958
All-in Costs (USD/oz) 990 1,067
----------------------------- ------------- ----------- ------------
Table 2: Sensitivity of Economic Outputs to Gold Price at 5%
discount rate
The NPV and IRR results at a 5% discount rate for the project
for both scenarios are presented in Table 2 for gold selling prices
between US$1,200 and US$2,200 per oz gold.
Gold Price Scenario A Scenario B
(US$/oz)
----------- --------------------- ---------------------
NPV (US$M) IRR (%) NPV (US$M) IRR (%)
----------- ----------- -------- ----------- --------
1,200 80.85 21.7% 62.91 14.1%
----------- -------- ----------- --------
1,300 125.31 29.9% 134.68 23.3%
----------- -------- ----------- --------
1,400 169.60 37.5% 206.40 31.6%
----------- -------- ----------- --------
1,500 213.84 44.7% 277.19 39.4%
----------- -------- ----------- --------
1,600 258.05 51.7% 347.63 46.9%
----------- -------- ----------- --------
1,700 301.99 58.4% 417.77 54.1%
----------- -------- ----------- --------
1,800 345.78 65.0% 487.92 61.0%
----------- -------- ----------- --------
1,900 389.57 71.4% 558.06 67.7%
----------- -------- ----------- --------
2,000 433.35 77.6% 628.21 74.2%
----------- -------- ----------- --------
2,100 477.14 83.7% 698.35 80.6%
----------- -------- ----------- --------
2,200 520.92 89.7% 768.50 86.8%
----------- -------- ----------- --------
The NPV results at discount rates between 0 and 15% for the
project for both scenarios are presented in Table 3 based on a gold
selling price of 1550 US$/oz.
Table 3: Sensitivity of NPV at range of Discount Rates at a gold
selling price of 1550 US$/oz
Discount Rate Scenario A Scenario B
NPV (US$M) NPV (US$M)
0% 335.83 480.45
----------- -----------
5% 235.95 312.55
----------- -----------
8% 191.61 243.06
----------- -----------
10% 166.91 205.86
----------- -----------
15% 118.13 135.99
----------- -----------
Table 4: Mineral Resource Estimate, Effective date 25 January
2019
SRK MINERAL RESOURCE STATEMENT as of January 2019 (4),(5),(6)
Category Area Name Vein Name Cut-Off gold silver
----------- -------------- ----------- ----------- ------------------------ --------------
Tonnes Au Au Ag Ag
(kt) Grade (koz) Grade (koz)
(g/t) (g/t) (7)
----------- -------------- ----------- ----------- ------- ------- ------ ------ ------
0.5g/t
Indicated Grand total All veins (OP) (1) 8,583 3.3 902 5.6 1,535
----------- -------------- ------- ------- ------ ------ ------
2.0 g/t
(UG) (2) 1,267 5.8 238 8.5 345
------- ------- ------ ------ ------
Subtotal Indicated 9,850 3.6 1,140 5.9 1,880
------------------------ ------- ------- ------ ------ ------
0.5g/t
Inferred Grand total All veins (OP) (1) 3,014 3.0 290 6.0 341
----------- -------------- ------- ------- ------ ------ ------
2.0 g/t
(UG) (2) 3,714 5.1 609 9.6 860
------- ------- ------ ------ ------
1.5 g/t
(3) 1,751 5.0 280
-------------------------------------------------- ------- ------- ------ ------ ------
Subtotal Inferred 8,479 4.3 1,179 8.2 1,201
------------------------ ------- ------- ------ ------ ------
(1) The La India, America, Central Breccia, Mestiza and
Cacao 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 are between 91-96% for
gold, 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 which range from angle 40 - 48deg, a haul cost of
USD1.25/t was added to the Mestiza ore tonnes to consider
transportation to the processing plant.
-----------------------------------------------------------------------------------------------
(2) Underground Mineral Resources beneath the open pit
are reported at a cut-off grade of 2.0 g/t Au over a minimum
width of 1.0 m. Cut-off grades are based on a price of
USD1,500 per ounce of gold and gold recoveries of 91% for
resources, costs of USD19.36/t for processing, USD4.5/t
G&A and USD50.0/t for mining, without considering revenues
from other metals.
-----------------------------------------------------------------------------------------------
(3) Mineral Resources as previously quoted by SRK (22 December
2011) are reported at a cut-off grade of 1.5 g/t Au and
have not been updated as part of the current study due
to no further detailed exploration.
-----------------------------------------------------------------------------------------------
(4) 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
-----------------------------------------------------------------------------------------------
(5) 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.
-----------------------------------------------------------------------------------------------
(6) 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.
-----------------------------------------------------------------------------------------------
(7) Back calculated Inferred silver grade based on a total
tonnage of 4569 Kt as no silver estimates for Teresa, Central
Breccia, Arizona, Agua Caliente, Guapinol, San Lucas, Cristalito-Tatescame
or El Cacao.
-----------------------------------------------------------------------------------------------
Both Scenario A and Scenario B consider open pit mining from the
four deposits: La India, America, Mestiza, and CBZ, where Scenario
B incorporates a greater milling capacity to accommodate feed from
the envisaged underground ("UG") mining operations at La India,
Mestiza and America.
The PEA open pit studies have incorporated optimised pit
designs, including the 2014 PFS level geotechnical pit angles, haul
roads and ramps (designed pits) that have focused on maximising
access to mineralised material and the opportunity to maintain the
grade profile and stockpiling.
The La India project site is expected to be run as a
conventional drill, blast, load and haul operation. Table 4
presents the open pit mineral inventory that supports both
Scenarios A and B.
Table 5: Open Pit PEA Inventory
Deposit Total Waste Mill Feed* Mill Feed Strip Ratio
Au
(Mt) (Mt) (Mt) (g/t) (t:t)
--------- ------------------------- ------- ---------- --------- -----------
La India 87.96 79.62 8.34 2.56 9.5
Mestiza 13.76 13.26 0.50 5.37 26.6
America 22.17 21.29 0.88 4.20 24.3
CBZ 5.09 4.17 0.92 1.89 4.5
Total 128.98 118.34 10.63 2.77 11.1
--------- ------------------------- ------- ---------- --------- -----------
The main UG mining method selected for all deposits is
mechanized cut and fill ("MCF") with unconsolidated rockfill. Where
the vein is much narrower than the required operating width of the
smallest available load, haul, dump machine ("LHD"), SRK has
considered the application of using MCF with resuing. The scope of
the UG mining assessment for the present study is limited to
scoping level work to exploit the La India, Mestiza and America
deposits, clipped below the open pit designs with appropriate
considerations for the geotechnical design considerations. Table 5
presents the UG mineral inventory that is incorporated into
Scenario B.
Table 6: Underground PEA Inventory
Deposit Mill Feed* Mill Feed Au
(Mt) (g/t)
--------- ------------------------------ ------------
La India 2.76 4.30
Mestiza 1.03 3.88
America 1.28 3.57
Total 5.07 4.03
--------- ------------------------------ ------------
The open pit operating cost estimates have been developed based
on two contractor quotes for the La India mine received from Esinsa
and Explotec in January 2019 and November 2017, respectively.
Additional mine owner costs have been developed by SRK based on
SRK's internal cost database and the Infomine cost database. In
order to match the level of selectivity required for the mining
approach proposed for America and Mestiza an additional grade
control cost element was included. SRK has updated the high-level
benchmarking exercise completed in 2014 to compare the Project with
existing UG operations of similar scale. A separate cost estimate
has been benchmarked for each UG mine.
All open pit mining is to be undertaken by a mining contractor,
and hence no capital expenditure is to be expected. Allowances for
mobilisation and demobilisation have been incorporated. The UG
capital cost estimate for each mine has been developed based on
previous work, SRK's internal cost database and the Infomine cost
database. Most of the capital cost for UG mining is the capital
development consisting of ramps, levels, ventilation raises, and
infrastructure.
The Project area is subject to intense rainfall events and a
river currently flows through the proposed La India pit footprint.
As such, mitigating the effects of the river is a significant
consideration with respect to the viability of the Project. The PEA
has considered the hydrology and surface water management,
groundwater and dewatering requirements, and the site wide water
balance. The water management plans and designs have been aligned
with the updated pit designs, pit development, and incorporation of
the UG workings in the case of Scenario B.
Metallurgical studies were originally conducted on master
composites and variability composites in 2013, formulated from
drill core from the La India and America, Mestiza and Central
Breccia vein sets. During 2019, confirmatory metallurgical studies
were conducted on test composites from La India, America and
Mestiza vein sets. The 2019 metallurgical program included
confirmatory comminution testwork and whole-ore cyanidation
testwork using optimized process conditions.
An 805,000 tpa process plant was designed by Lycopodium as part
of Condor's 2014 PFS for the La India stand-alone project. The
process plant included conventional unit operations that are
standard to the industry which include: primary crushing,
semi-autogenous (SAG) mill grinding, carbon-in-leach (CIL)
cyanidation, carbon elution, electrowinning, refining and final
tailings detoxification. The process plant was designed on the
basis of an ore that is clean, of high hardness, and extremely high
abrasion.
This technical study update has considered two alternative
process development scenarios. The process design criteria and
flowsheets for each scenario are identical to those developed for
the 2014 La India PFS. Scenario A includes the construction of a
1.225 Mtpa process plant and Scenario B includes the construction
of a 1.400 Mtpa process plant.
Process operating costs have been developed according to
industry standards applicable to a gold processing plant producing
doré. The 2014 PFS Opex estimate was used as the Base-case for
developing operating cost estimates for the two process development
scenarios. SRK has estimated the process plant capital expenditure
for Scenario A and Scenario B based on Lycopodium's 2014 capital
estimate by first escalating to 2020 by applying the Mine Cost
Services ("MCS") average mill capital expenditure indices. The
escalated plant capital was then adjusted for the plant capacities
in each scenario using a 0.6 exponent in a capacity versus capital
expenditure relationship.
The proposed site of the Tailings Storage Facility ("TSF")
remains the same as the previous studies 2014 PFS, to the east of
the main highway, and is consistent with the location included in
the latest ESIA documentation for the Project. The TSF includes
dams at the western and eastern ends of the valley to form the
impoundment void. The dams are constructed from waste rock derived
from the mining operation, which are sequentially raised in a
'downstream' manor in-line with tailings production. The
impoundment is proposed to be fully lined with HDPE to minimise
seepage of contact water to the receiving environment. The
scenarios reflect total tailings storage capacity of 7.6 Mm(3) and
11.2 Mm(3) for Scenario A and B, respectively.
Capital expenditure and operating costs have been derived on an
individual discipline basis. Overall accuracy of the cost estimates
is deemed to be +/-40-50%, in line with expectations from a PEA
level of study.
The Technical Report reflects a Preliminary Economic Assessment
("PEA") and partially utilises Inferred Mineral Resources. Inferred
Mineral Resources are considered too speculative, geologically, to
have the economic considerations applied to them that would enable
them to be categorized as Mineral Reserves and there is no
certainty that the PEA will be realized. Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability.
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.
- 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.
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
Ag Silver
--------------------------------------------------------------
Au Gold
--------------------------------------------------------------
Breccia A fragmental rock, composed of rounded to angular
broken rock fragments held together by a mineral cement
or in a fine-grained matrix. They can be formed by
igneous, tectonic, sedimentary or hydrothermal processes.
--------------------------------------------------------------
Down-dip Further down towards the deepest parts of an ore body
or zone of mineralisation.
--------------------------------------------------------------
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
--------------------------------------------------------------
HDPE High Density Polyethylene - a common industrial plastic
used in piping and tailings pond lining material
--------------------------------------------------------------
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
--------------------------------------------------------------
LHD Load-Haul-Dump - a front-end loader designed for underground
operations
--------------------------------------------------------------
MCF Mechanized Cut and Fill - An underground mining method
employing heavy machinery for selective mining of
vein-type deposits. Post-mining voids are backfilled
with waste to improve ground stability.
--------------------------------------------------------------
MCS Mining Cost Service - a publication of current mine
equipment pricing and inflation indices
--------------------------------------------------------------
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).
--------------------------------------------------------------
Payback Period The Payback Period shows how long it takes for a business
to recoup an investment
--------------------------------------------------------------
Resuing A selective mining technique that removes waste surrounding
an ore zone prior to mining the ore to minimize dilution
--------------------------------------------------------------
Strike length The longest horizontal dimension of an ore body or
zone of mineralisation.
--------------------------------------------------------------
Strip Ratio A common metric for open pit mining calculated as
waste tonnes divided by ore tonnes. Higher stripping
ratios indicate that more waste mining is required
per tonne of ore.
--------------------------------------------------------------
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.
--------------------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
MSCEAKNPEAFFEFA
(END) Dow Jones Newswires
September 09, 2021 02:00 ET (06:00 GMT)
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