REG - Condor Gold PLC - All Assay Results Received for La Mestiza Open Pit
10/03/2022 07:01
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RNS Number : 2640E Condor Gold PLC 10 March 2022
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
10 March 2021
Condor Gold Plc
("Condor", "Condor Gold" or the "Company")
All Assay Results Received for 8,004 m Infill Drilling Completed at the Fully
Permitted La Mestiza Open Pit.
Please view the following link for full release including figures:
http://www.rns-pdf.londonstockexchange.com/rns/2640E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2640E_1-2022-3-9.pdf)
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that all assay
results have now been received for 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 results of the infill drilling programme
are consistent with previous drilling grades and widths,
demonstrating good continuity in gold mineralization
between adjacent drill holes in the high-grade zones and therefore
adding confidence to the geological model. 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 was
designed to upgrade the existing open pit gold mineral resource to the
indicated category for the potential inclusion in a future Feasibility Study
of the Company's fully permitted La India Gold Mine Development Project.
Highlights:
· Ninety-six diamond core drill holes for 8,004 m of infill drilling
was completed on the high-grade La Mestiza Open Pit. Assay results include:
o 6.3 m true width at 6.84 g/t gold from 31.45 m (drill hole LIDC568),
approximately 50 m below surface outcrop (which occurs on a rise).
o
4.1 m true width at 15.23 g/t gold from 47.80 m (drill hole LIDC514) approximately 40 m below
surface.
o
3.6 m true width at 29.1 g/t gold from 105.70 m (drill hole LIDC471) approximately 85 m below
surface.
· Drill results demonstrate
excellent continuity in gold mineralization demonstrated
between adjacent drill holes in the high grade
zones adding confidence to the geological model.
· La Mestiza open pit has a 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 Mestiza open pit contains an estimated fully
diluted mill feed of 499Kt at 5.37g/t gold for 86,000 oz gold in
the October 2021 PEA and is targeted for early extraction.
· The tighter drill spacing was designed to upgrade a significant part
of the Mineral Resource to the Indicated Category, and for their potential
inclusion in future feasibility studies.
· La Mestiza Vein Set remains open down dip and along strike in both
directions, has parallel veins identified by rock chip sampling and trenching
- potential for further significant resource expansion and discovery.
· Drilling in 1991 estimated a Soviet-style mineral inventory
classification of 2,392 kt at 10.2 g/t gold for 785,694 oz gold at Mestiza
indicating exploration potential beyond the current mineral resource.
Mark Child, Chairman and CEO commented:
"The assay results from 8,004 m of infill drilling within the high grade
Mestiza open pit demonstrate good continuity of gold mineralisation in the
high-grade zones and is designed to convert the Inferred Mineral Resource to a
higher degree of confidence Indicated Mineral Resource for eventual inclusion
in the mine plan. Drill result 6.3 m true width at 6.84 g/t gold from only
31.45 m drill depth will be targeted for early mill feed. It has long been
recognised that the Mineral Resource on the Mestiza Vein Set has the potential
to double with additional drilling beyond the current mineral resource; in
1991 the Mestiza Vein Set was assigned a Soviet-style mineral inventory
classification of 2,392 kt at 10.2 g/t gold for 785,694 oz gold."
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 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 for 36,000 oz gold
in the Indicated category, and 341 kt at 7.7 g/t for 85,000 oz gold in the in
the Inferred category, and
· an underground Mineral Resource of 118 kt at 5.5g /t for 21,000 oz
gold in the Indicated category, and 984 kt at 5.3 g/t 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$1,700 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") Technical
Report announced in an RNS dated the 9 September 2021 and made available for
public disclosure in compliance with NI 43-101 standards in October 2021. The
latest infill drilling was designed to define all the open pittable Mineral
Resource at the more confident indicated category for potential inclusion in a
future feasibility study. In 1991 the La Mestiza Vein Set was assigned a
mineral resource of 2,392 kt at 10.2 g/t gold for 785,694 oz gold
(Soviet-style C and P category mineral inventory classification), emphasising
the possibility to expand the mineral resource.
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.
Geology and gold mineralisation
The Mestiza Vein Set comprises several gold-bearing epithermal quartz veins
within an 800 m wide corridor and striking along a distance of 1,500 m to
2,000 m in north-northwest to south-southeast direction along the top of a
broad ridge (see Figure 2). The gold mineralised veins are contained within
steep-dipping faults and to a lesser extent as breccia and stockwork veinlets
within fracture zones on the walls of the faults. The highest-grades and
thickest intercepts occur on and near to a bend or jog in the fault which
would have formed a point of dilation and low pressure for gold-bearing fluids
to infill and precipitate minerals during fault movement. In these zones,
early quartz veins and quartz breccias have been ground to fault breccia,
quartz sands or even fault clays by movement along the fault planes. The
highest gold grades often occur where later stage, post-fault quartz
mineralisation has overprinted and cemented the fault breccias and quartz
sands. The gold mineralisation is interpreted to be associated with both
phases of quartz development.
The La Mestiza Vein Set is open along strike and down dip and has parallel
veins identified by rock chip sampling, which are outside the area of Mestiza
Vein Set's Mineral Resource. The Mineral Resource is open down dip and along
strike in both directions and there are numerous parallel veins.
Figure 2. Showing selected high gold grade - true width drilling intercepts
from the 2021 infill drilling at La Mestiza. Gold-bearing rock chip samples
from multiple parallel and extension veins show that there is potential for
additional discoveries close to as well as at depth below the current mineral
resource.
Latest drilling results
Condor completed an infill drilling programme of ninety-six diamond core drill
holes for 8,004 m in October 2021. The drilling programme tightened drill
sample spacing from 50 m to 100 m spacing to a 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. The infill drilling focussed on the 85,000 oz gold
that is currently categorised as an Inferred Mineral Resource, with the
objective to convert the inferred category resource to the higher confidence
indicated category (which would potentially be availablefor inclusion in
future pre-feasibility or feasibility mining studies. All assay results have
now been returned and the Company's geologists are working with independent
geological consultants SRK (UK) Consulting Limited to update the Mineral
Resource Estimate for La Mestiza.
The results of the infill drilling are consistent with previous drilling grades and widths,
demonstrating good continuity in gold mineralization
between adjacent drill holes in the high grade zones. Table 1 below
shows the top twelve drill intercepts to-date, seven of which are from the
latest infill drilling. Assay results returned since the last announcement
(see RNS dated 21(st) October 2021) include an intercept of 6.90 m (6.3 m true
width) at 6.84 g/t gold from 31.45 m drill depth in drill hole LIDC568; only
50 m below surface outcrop (which occurs on a rise), and also several metres
outside of the edge of the current pit shell. This supports and expands on
adjacent drill intercepts of 4.5m (4.1 m true width) at 15.23g/t gold from
47.8m drill depth in drill hole LIDC514 and 3.90 m (3.6 m true width) at 29.1
g/t gold from 105.70 m in drill hole LIDC471 and that were returned earlier in
the drilling programme and announced on the 21 October 2021.
Table 1. Top ten gold intercepts from drilling at La Mestiza (* infill
drilling completed in 2021).
Drill hole ID Intercept From (m) Intercept To (m) Interval (m) True width (m) Au (g/t) Ag (g/t) True grade- width (gm/t) Vein
1 LIDC471* 105.70 109.60 3.90 3.6 29.09 51 104.4 Tatiana faulted vein
2 LIDC344 76.70 80.00 3.30 2.4 28.34 39 68.4 Tatiana fault brecciated vein
3 LIDC514* 47.80 52.30 4.50 4.1 15.23 23 62.6 Tatiana footwall (partially depleted)
4 LIDC358 160.50 164.05 3.55 2.6 23.34 67 60.6 Tatiana fault brecciated vein
5 P076 60.30 62.00 1.70 1.0 46.04 19 48.2 Buenos Aires vein
6 LIDC365 142.60 146.20 3.60 3.3 13.72 14 45.5 Tatiana fault brecciated vein
7 LIDC523* 21.20 22.35 1.15 1.0 43.40 34 45.2 Tatiana fault brecciated vein
8 LIDC568* 31.45 38.35 6.90 6.3 6.84 24 42.8 Tatiana fault-cataclasite vein
9 LIDC360 40.30 43.40 3.10 2.6 14.44 29 38.0 Tatiana fault brecciated vein
10 LIDC500* 206.05 208.92 2.87 2.7 13.91 15 37.7 Tatiana faulted vein and footwall breccia
True width is an interpretation based on the current interpretation of the
veins and may be revised in the future.
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 Name Vein Name Cut-Off gold silver
Tonnes (kt) Au Grade (g/t) Au (Koz) Ag Grade (g/t) Ag (Koz)
Indicated Mestiza veinset Tatiana 0.5 g/t (OP) 92 12.1 36 19.5 57
Tatiana 2.0 g/t (UG) 118 5.5 21 11.3 43
Inferred Mestiza veinset Tatiana((1)) 0.5 g/t (OP) 220 6.6 47 13.6 97
Tatiana((2)) 2.0 g/t (UG) 615 3.9 77 8.8 174
Buenos Aires((1)) 0.5 g/t (OP) 120 9.8 38
Buenos Aires((2)) 2.0 g/t (UG) 188 7.1 43
Espenito((2)) 2.0 g/t (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 45°, 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.
Table 3. Latest and final drill intercepts on the La
Mestiza 2021 infill drilling campaign.
Drill hole ID Collar UTM WGS84-16N Drill incl/azi From To Drill Width (m) True Width (m) Au (g/t) Ag (g/t) Comment
LIDC524 X-sect 2450 573903E 1413784N 503mamsl -50/30 15.25 15.85 0.60 0.5 6.93 7 Buenos Aires 1 hanging-wall fault brecciated vein (mine depleted)
LIDC525 X-sect 2450 573903E 1413784N 503mamsl -60/30 17.90 19.65 1.75 1.4 2.93 40 Buenos Aires 1 fault brecciated vein
LIDC526 X-sect 2425 573935E 1413779N 521mamsl -50/30 14.30 14.51 0.21 0.2 1.74 3 Buenos Aires 1
LIDC527 X-sect 2325 574032E 1413740N 583mamsl -50/30 32.40 33.20 0.80 0.7 3.87 9 Buenos Aires 1
LIDC529 X-sect 2425 573908E 1413733N 521mamsl -48/30 28.97 30.30 1.33 1.2 16.40 48 Buenos Aires 1
69.00 69.72 0.72 0.7 0.14 3 Buenos Aires 2
LIDC530 X-sect 2325 574020E 1413718N 593mamsl -48/30 56.75 57.35 0.60 0.6 2.83 11 Buenos Aires 1
LIDC532 X-sect 2375 573953E 1413741N 563mamsl -50/30 9.10 9.25 0.15 0.1 2.76 2.0 Jicaro
19.15 19.25 0.10 0.1 4.90 3.0 Buenos Aires 1
50.75 51.04 0.29 0.3 1.19 15.0 Buenos Aires 2 HW
53.60 53.70 0.10 0.1 3.24 2.0 Buenos Aires 2
LIDC533 X-sect 2275 574069E 1413715N 595mamsl -51/29 30.00 30.15 0.15 0.1 0.27 2.0 Buenos Aires 1
LIDC534 X-sect 1775 574477E 1413432N 586mamsl -62/32 139.40 140.30 0.90 0.7 0.71 -2.0 Buenos Aires 1
LIDC535 X-sect 2225 574096E 1413671N 493mamsl -50/32 44.00 44.80 0.80 0.7 0.09 -2.0 Buenos Aires 1
LIDC537 X-sect 1725 574554E 1413472N 556mamsl -56/28 35.25 35.85 0.60 0.5 3.09 -2.0 Buenos Aires 1 hangingwall fault brecciated vein (mine depleted)
LIDC538 X-sect 1800 574431E 1413412N 585mamsl -44/33 145.35 149.45 4.10 3.9 0.33 3.6 Buenos Aires 1 FW quartz breccia
LIDC539 X-sect 1700 574579E 1413456N 552mamsl -55/29 31.15 32.25 1.10 1.0 0.44 -2.0 Buenos Aires 1 stockwork veining
LIDC540 X-sect 1775 574509E 1413518N 551mamsl -47/30 11.85 13.60 1.75 1.6 0.28 0.3 Buenos Aires 1 footwall fault breccia (mine depletion)
33.60 34.10 0.50 0.5 0.24 -2.0 Buenos Aires 2
LIDC541 X-sect 1825 574445E 1413471N 572mamsl -45/31 47.75 48.05 0.30 0.3 1.21 3.0 Buenos Aires 1
LIDC542 X-sect 1775 574506E 1413516N 545mamsl -65/29 16.20 18.50 2.30 1.8 0.56 3 Artisanal mine backfill
LIDC543 X-sect 1825 574466E 1413519N 552mamsl -51/31 32.00 34.15 2.15 1.9 2.62 10 Buenos Aires 1 hangingwall faulted vein and footwall stockwork
34.15 34.70 0.55 0.5 - - Artisanal mine cavity in footwall
LIDC544 X-sect 1825 574445E 1413470N 572mamsl -59/32 74.70 75.15 0.45 0.4 0.55 -2 Jicaro
97.10 97.70 0.60 0.5 0.89 3 Buenos Aires 2
108.75 108.95 0.20 0.2 2.07 -2 Buenos Aires 1
LIDC546 X-sect 1900 574403E 1413544N 560mamsl -51/30 21.70 22.05 0.35 0.3 0.27 -2.0 Buenos Aires 1 hangingwall fracture zone
49.20 50.00 0.80 0.7 0.67 3.0 Buenos Aires 2
LIDC547 X-sect 2175 574125E 1413597N 578mamsl -51/32 67.10 68.60 1.50 1.3 0.11 3.0 Jicaro
92.92 93.37 0.45 0.4 0.21 -2.0 Buenos Aires 1 fracture zone
LIDC548 X-sect 2175 574145E 1413647N 583mamsl -51/32 43.87 45.75 1.88 1.7 2.25 2.5 Buenos Aires 1 fault gouge clay
LIDC549 X-sect 2125 574188E 1413615N 582mamsl -49/30 43.00 43.50 0.50 0.5 1.54 4.0 Buenos Aires 1 brecciated quartz vein
LIDC550 X-sect 2075 574238E 1413605N 576mamsl -49/31 - - - - - - No significant results
LIDC551 X-sect 2125 574207E 1413643N 579mamsl -61/31 17.30 18.30 1.00 0.8 0.47 3.0 Buenos Aires 1
LIDC552 X-sect 2025 574287E 1413575N 566mamsl -50/31 12.20 17.40 5.20 4.7 0.02 -2.0 Buenos Aires 1 quartz breccia
19.82 21.35 1.53 1.4 0.03 -2.0 Buenos Aires 2 fractures fault zone
LIDC553 X-sect 1875 574386E 1413472N 568mamsl -63/30 139.75 140.00 0.25 0.2 12.10 6.0 Buenos Aires 1 vein
161.50 161.60 0.10 0.1 0.06 -2.0 Buenos Aires 2 vein
LIDC554 X-sect 1950 574332E 1413543N 565mamsl -51/30 27.30 28.35 1.05 0.9 0.90 6.0 Buenos Aires 1 fault cataclasite
LIDC555 X-sect 2025 574159E 1413381N 557mamsl -51/30 67.10 68.62 1.52 1.4 0.39 1.5 HW quartz breccia
103.60 104.50 0.90 0.8 7.60 19.7 Tatiana fault brecciated vein
108.27 109.80 1.53 1.4 1.64 3.0 Tatiana footwall stockwork
LIDC556 X-sect 2025 574203E 1413435N 557mamsl -50/31 25.00 27.45 2.45 2.2 4.32 14.2 Tatiana fault brecciated vein
Incl. 25.00 26.30 1.30 1.2 7.52 20.7
LIDC557 X-sect 1875 574402E 1413497N 573mamsl -45/32 39.60 40.25 0.65 0.6 1.27 6.0 Jicaro fault gouge clay
82.75 84.95 2.20 2.1 - - Artisanal mine cavity in Buenos Aires hangingwall
84.95 86.50 1.50 1.5 0.82 1.5 Buenos Aires footwall quartz stockwork
LIDC558 X-sect 2200 574049E 1413526N 553mamsl -55/32 63.00 68.70 5.70 4.9 0.68 6 Tatiana vein and footwall breccia
Incl. 63.00 63.90 0.90 0.8 2.05 25 Tatiana vein
LIDC559 X-sect 2250 574015E 1413576N 556mamsl -49/30 48.25 51.25 3.00 2.7 1.10 8 Tatiana fault brecciated vein
LIDC560 X-sect 2050 574166E 1413438N 556mamsl -51/30 9.10 9.70 0.60 0.5 0.86 2 Fault brecciated vein
51.00 52.90 1.90 1.7 21.81 26 Tatiana fault brecciated vein
52.90 58.80 5.90 5.3 0.31 33 Tatiana footwall stockwork
LIDC562 X-sect 2150 574078E 1413472N 553mamsl -48/34 73.20 84.45 11.25 10.4 0.07 -2 No significant results, fault gouge with stockwork wallrock
LIDC563 X-sect 2150 574090E 1413508N 555mamsl -50/31 47.95 53.75 5.80 5.3 0.77 8 Tatiana amalgamated hangingwall footwall
Incl. 46.45 50.15 3.70 3.4 0.49 3 Tatiana hangingwall stockwork
Incl. 50.15 51.85 1.70 1.5 1.16 17 Tatiana hangingwall fault brecciated vein
Incl. 44.80 46.30 - - - - Artisanal mine cavity
Incl. 47.95 53.75 0.40 0.4 1.72 17 Tatiana footwall
LIDC564 X-sect 2075 574160E 1413465N 557mamsl -51/30 33.55 34.05 0.50 0.4 6.89 20 Tatiana fault brecciated vein
LIDC565 X-sect 2075 574127E 1413419N 556mamsl -49/31 58.00 59.20 1.20 1.1 3.16 2 Tatiana hangingwall stockwork
69.70 71.15 1.45 1.3 1.08 -2 Tatiana hangingwall stockwork
92.80 93.35 0.55 0.5 62.50 102 Tatiana fault brecciated vein
LIDC566 X-sect 2225 573993E 1413484N 552mamsl -55/32 116.26 119.30 2.92 2.5 3.91 18 Tatiana quartz-flooded fault gouge
Incl. 116.26 117.29 1.03 0.9 41.16 80 Tatiana quartz-flooded fault gouge
LIDC567 X-sect 1975 574225E 1413388N 559mamsl -51/30 56.00 56.25 0.25 0.2 3.01 19 Tatiana hangingwall stockwork vein
57.25 59.25 2.00 1.8 6.38 23 Tatiana fault brecciated vein
LIDC568 X-sect 1900 574270E 1413334N 546mamsl -50/60 31.45 38.35 6.90 6.3 6.84 24 Tatiana fault-cataclasite vein
Incl. 33.75 38.35 4.60 4.2 9.86 28
LIDC569 X-sect 2050 574121E 1413359N 556mamsl -60/34 102.17 103.70 1.53 1.3 0.05 -2 Tatiana HW vein
154.02 155.55 1.53 1.3 15.68 27 Tatiana fault brecciate vein
LIDC570 X-sect 1875 574279E 1413279N 543mamsl -50/58 36.05 42.65 6.60 6.0 1.06 5 Tatiana fault brecciated vein and footwall quartz stockwork
Incl. 36.05 39.50 3.45 3.1 1.46 7 Tatiana fault brecciated vein
LIDC572 X-sect 1825 574312E 1413238N 542mamsl -50/59 14.70 15.30 0.60 0.5 0.76 -2 Footwall contact of Tatiana fault gouge
LIDC573 X-sect 1800 574307E 1413168N 542mamsl -56/60 64.80 65.90 1.10 0.9 1.67 4 Tatiana fault brecciated vein
LIDC574 X-sect 1975 574177E 1413302N 561mamsl -46/32 145.60 150.70 5.10 4.8 1.16 <2 Tatiana fault brecciated vein and hangingwall stockwork
Incl. 150.14 150.70 0.56 0.5 8.94 8 Tatiana fault brecciated vein
LIDC575 X-sect 1875 574257E 1413209N 546mamsl -49/60 64.85 65.45 0.60 0.5 0.50 14 Tatiana HW quartz stockwork
71.05 71.25 0.20 0.2 0.11 -2 Tatiana quartz vein?
77.20 78.25 1.05 1.0 0.37 3 Tatiana FW fault
LIDC576 X-sect 1950 574209E 1413294N 561mamsl -54/061 119.70 120.47 0.77 0.7 7.76 11 Tatiana fault brecciated vein
LIDC577 X-sect 1950 574229E 1413360N 554mamsl -49/061 70.20 71.30 1.10 1.0 9.19 14 Tatiana fractured quartz vein
LIDC579 X-sect 1925 574268E 1413356N 555mamsl -50/061 33.55 35.95 2.40 2.2 3.90 13 Tatiana fault brecciated vein and hangingwall stockwork
Incl. 34.65 35.95 1.30 1.2 6.88 15 Tatiana fault brecciated vein
True width is an interpretation based on the current interpretation of the
veins and may be revised in the future.
*Note: Bureau Veritas Mineral Laboratories, Canada. www
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Notes:
1. The sample chain of custody is managed by
the Condor's Geology Team on site. Reported results
are from diamond drilled core samples. Intervals of core to be
analysed are split into half
using a mechanized core cutter, with one half sent to the
Laboratory for geochemical analysis and the remaining half kept in
storage for future reference and uses. Diamond drilled core has
been a HQ size and recoveries are consistently 100% across
all drill holes intercept reported.
2.
Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The
QAQC program involves insertion of duplicate samples, blanks and certified reference materials in the sample stream. Gold
analyses are performed by standard fire assaying protocols using a 50-gram charge with atomic absorption (AAS) finish and
a gravimetric finish performed for assays greater than
10 grams per tonne.
3.
Sample preparation and analysis are performed by the independent Bureau Veritas Laboratories, Canada. Samples are
crushed and prepared
in Managua and pulp samples for fire assay are dispatched to Vancouver,
Canada. The Laboratory meets the requirements
of ISO/IEC 17025 & ISO 9001, and employs a Laboratory Information Management System for
sample tracking, quality control and reporting.
- 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 LLP Ewan Leggat
+44 (0) 20 3470 0470
H&P Advisory Limited Andrew Chubb and Nilesh Patel
+44 207 907 8500
BlytheRay 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.
On 25 October 2021 Condor announced the filing of a Preliminary Economic
Assessment Technical Report ("PEA") for its La India Project, Nicaragua on
SEDAR https://www.sedar.com (https://www.sedar.com) . 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.
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. Condor has purchased a new SAG Mill, which has mainly arrived in
Nicaragua. Site clearance and preparation is at an advanced stage.
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 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 and 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.
Technical Information
Certain disclosure contained in this news release of a scientific or technical
nature has been summarised or extracted from the technical report entitled
"Technical Report on the La India Gold Project, Nicaragua, October 2021",
dated October 22, 2021 with an effective date of September 9, 2021 (the
"Technical Report"), prepared in accordance with NI 43-101. 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.
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 (http://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
Au Gold
Breccia A rock made up of angular rock fragments cemented together by a finer grained
matrix
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.
Fault The plane along which two rock masses have moved or slide against each other
in opposing directions
Fault breccia A rock made up of angular rock fragments cemented together by a finer grained
matrix formed by the mechanical grinding of rock along the fault plane during
movement of the fault
Fault gouge Clay filling a fault that was formed by the mechanical grinding of rock along
the fault plane during movement of the fault
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 Resource That part of a Mineral Resource for which tonnage, 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 Resource That part of a Mineral Resource for which tonnage, 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,
Intercept Refers to a sample or sequence of samples taken across the entire width or an
ore body or mineralized zone. The intercept is described by the entire
thickness and the average grade of mineralisation
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 Estimate A concentration or occurrence of material of economic 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
(https://corporatefinanceinstitute.com/resources/knowledge/accounting/statement-of-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
(https://corporatefinanceinstitute.com/resources/knowledge/finance/corporate-finance-industry/)
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).
Quartz A common rock mineral composed of the elements silicon and oxygen.
Rock chip A sample of rock collected for analysis, from one or several close spaced
sample points at a location. Unless otherwise stated, this type of sample is
not representative of the variation in grade across the width of an ore or
mineralised body and the assay results cannot be used in a Mineral Resource
Estimation
Stockwork Multiple connected veins with more than one orientation, typically consisting
of millimetre to centimetre thick fracture-fill veins and veinlets.
Strike length The longest horizontal dimension of an ore body or zone of mineralisation.
True width The shortest axis of a body, usually perpendicular to the longest plane. This
often has to be calculated for channel or drill samples where the sampling was
not exactly perpendicular to the long axis. The true width will always be less
than the apparent width of an obliquely intersect sample.
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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