REG - Condor Gold PLC - La India Open Pit Drill Results
23/05/2022 07:00
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RNS Number : 3424M Condor Gold PLC 23 May 2022
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
23 May 2022
Condor Gold Plc
("Condor", "Condor Gold" or the "Company")
34.1 Metres True Width at 2.56 g/t Gold From Near Surface Within La India Open
Pit.
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce significant assay
results from the sampling of geotechnical drill holes on the La India Open
Pit. These intercepts are located within and between the planned high-grade
starter pits and provide additional confidence to the mineral resource in this
key area.
Highlights:
· 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill
depth including 6.0 m at 4.3 g/t gold, 2.0 m at 5.3 g/t gold and 3.65m at
8.75g/t gold (drill hole LIGT536), located within the planned Northern Starter
Pit.
· 28.7 m true width at 2.62 g/t gold in the hanging-wall of historic
mine workings (drill hole LIGT528).
· 5.3 m true width at 3.11 g/t gold from 36.00 m drill depth, and 5.1 m
true width at 2.70 g/t gold from 51.45 m drill depth in drill hole LIGT531;
located in an area that has previously been interpreted as a low-grade zone
between two high-grade shoots that host the planned starter pits.
Mark Child, Chairman and CEO commented:
"A wide zone of 34.1 metres true width of good open pit grade gold
mineralisation of 2.56 g/t gold from only 2.80 metres drill depth is ideal
material as initial mill feed for the permitted processing plant and supports
the attractive project economics and 12 month pay back detailed in the PEA
technical report filed in October 2021. This was a geotechnical drill hole
within La India open pit that was initially surveyed and analysed for
structures and rock strength, which once completed, was assayed for gold and
silver. It adds confidence to the geological model for the forthcoming
Feasibility Study and serves as a timely reminder of the wide zones of
material with good open pit gold grade available near surface within the fully
permitted La India Project".
Background
Condor announced the completion of 21 geotechnical drill holes on the planned
La India Open Pit in an RNS dated 30th November 2021. The drilling was
designed to provide drill core samples through all sides of the pit wall in
order to collect geotechnical information to analyse and to determine the
geotechnical parameters for the final pit design to a Feasibility Study (FS)
level of detail, which is to plus or minus 15% accuracy. In all cases the
drill holes were collared within the open pit shell and angled to pass through
the pit wall at a pre-determined location in order to sample the rock mass
that will eventually form the pit wall. Three of the geotechnical holes were
drilled through the principal La India mineralised zone to test the pit walls
on the footwall side of the pit. The drill core collected through the
mineralised zone effectively provides additional infill drill samples, and
this material was assayed after the geotechnical test work had been completed.
Assay results
The twin geotechnical drill holes LIGT528 and LIGT536 have provided a useful
additional infill in the planned Northern Starter Pit. The drill holes
returned similar intercepts of 41.05 m (28.7 m true width) at 2.62 g/t gold
and 44.85 m (30.2 m true width) at 2.55 g/t gold in the hanging-wall of the
historic mine workings. Of these only LIGT536 successfully drilled into the
historic mine footwall to return an amalgamated hangingwall and footwall
intercept of 50.70 m (34.1 m true width) at 2.56 g/t gold from 2.80 m drill
depth. This intercept includes three high-grade veins in the hanging-wall of
6.0 m true width at 4.30 g/t gold, 2.0 m true width at 5.31 g/t gold and 3.6 m
true width at 8.75 g/t gold, as well as a 3 m wide mine cavity (see table
below). These twin holes have returned the 8(th) and 10(th) best intercepts
to-date on the La India Vein (see Table 1 below).
Geotechnical drill hole LIGT531 was drilled 150 m along strike to the
southwest in the zone between the two planned starter pits. The assay results
confirmed significant mineralisation at depth between the two starter pits in
the segment where the La India Vein splits in two: returning significant
intercepts of 7.60 m (5.3 m true width) at 3.11 g/t gold from 36.00 m drill
depth (the upper La India vein), and 7.35 m (5.1 m true width) at 2.70 g/t
gold from 51.45 m drill depth (the lower La India vein). These assay results
add confidence to the geological model.
Table 1. Top ten gold intercepts from drilling at La India (* latest
geotechnical drill samples).
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 LIDC109 173.15 185.35 12.20 10.8 34.79 27 374.7 India upper vein
2 LIDC121 111.25 117.90 6.65 6.0 32.23 40 194.3 India upper vein
3 LIDC152 193.80 214.88 21.08 16.1 10.24 8 165.4 India vein
4 LIDC239 14.40 19.20 4.80 4.4 37.24 120 162.0 India hangingwall
5 LIDC413 29.35 51.40 22.05 21.6 6.48 16 139.7 India hangingwall
6 LIDC452 4.15 64.75 60.60 54.5 1.98 5 107.7 India ramp structure
7 LIDC193 20.70 27.50 6.80 6.5 13.99 22 91.0 India vein
8 LIGT536* 2.80 57.35 50.70 34.1 2.56 7 87.4 Amalgamated hangingwall-footwall
9 LIDC416 18.35 34.35 16.00 15.7 5.30 14 82.9 India vein
10 LIGT528* 5.50 46.55 41.05 28.7 2.62 4 75.1 Hangingwall only (twin to LIGT536)
True width is an interpretation based on the current interpretation of the
veins and may be revised in the future.
Table 2. Latest and final drill intercepts on La India vein - 2021
geotechnical drill holes.
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
LIGT528 X-sect 11025 574920E 1409743N 397mamsl -70/249 5.50 46.55 41.05 28.7 2.62 4 India stacked veins and breccias (open downhole)
Incl. 8.20 15.65 7.45 5.2 4.20 11 India upper faulted vein
Incl. 32.55 36.80 4.25 3.0 5.31 6 India middle vein
Incl. 39.65 46.55 6.90 4.8 6.28 6 Hangingwall India vein
LIGT531 X-sect 10875 575001E 1409618N 410mamsl -70/250 36.00 43.60 7.60 5.3 3.11 10 India upper-mid vein
Incl. 36.00 38.75 2.75 1.9 2.96 14 India upper vein
Incl. 42.20 43.60 1.40 1.0 10.25 17 India middle vein
51.45 58.80 7.35 5.1 2.70 6 India lower vein and hangingwall stockwork
Incl. 55.80 58.80 3.00 2.1 4.76 8 India lower vein
LIGT536 X-sect 11025 574920E 1409743N 397mamsl -70/258 2.80 57.35 50.70 34.1 2.56 7 Amalgamated hangingwall and footwall India stacked veins and breccias
Incl. 2.80 47.65 44.85 30.2 2.55 6 India hangingwall
Incl. 6.85 15.70 8.85 6.0 4.30 7 India upper faulted vein
Incl. 33.45 36.45 3.00 2.0 5.31 8 India middle vein
Incl. 42.35 47.65 5.30 3.6 8.75 12 Hangingwall India vein
Excl. 47.65 50.65 3.00 - - - Mine cavity
Incl. 50.65 51.45 0.80 0.5 7.59 16 Footwall India vein
Excl. 51.45 52.30 0.85 - - - Possible mine cavity
Incl. 52.30 57.35 5.05 3.4 2.31 14 Footwall India vein
True width is an interpretation based on the current interpretation of the
veins and may be revised in the future.
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used for the drill assay results.
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.
4. All depths presented are from surface.
- 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.
Foot wall Originally a miner's term to refer to the rock below the mineralised zone that
they exploited. Now often used to the rock adjacent to and below an ore or
mineralised body or geological fault. Note that on steeply-dipping tabular ore
or mineralised bodies the foot wall will be inclined nearer to the vertical
than horizontal.
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
Hanging wall Originally a miner's term to refer to the rock above the mineralised zone that
they exploited. Now often used to refer to the rock adjacent to and above an
ore or mineralised body or geological fault. Note that on steeply-dipping
tabular ore or mineralised bodies the hanging wall will be inclined nearer to
the vertical than horizontal.
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.
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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