Central America-focussed gold explorer Condor Gold plc (LSE:CNR) said its La India mining project in Nicaragua has the potential to support an open pit mining, sending the shares of the AIM-listed company to the top of the trading board in London today.
Further results of the ongoing 7,000-metre drill programme showed “bonanza” gold grades referred by Condor Gold’s Chairman and Chief Executive Officer Mark Child as “excellent drill results”.
Proving the potential for open pit mining was one of the company’s objectives in conducting the drill programme, with the other goal of increasing Condor Gold’s measured and indicated resource by October 2012.
About La India Project
The La India Project is a 167-square kilometre acreage, comprising of six concessions that covers the historically producing La India Gold Mine, which produced more than half a million ounces of gold from 1938 until it was closed in 1956 because of flooding and damage to the plant.
On 13th April 2012, Condor Gold stated the La India Project has a mineral resource of about 1.62 million ounces of gold at 5.6 g/T, including 264,000 oz. of gold at 7.1 g/T, based on 11,905 metres of drill length done from January to November 2011.
Condor Gold is currently focussed on “delineating a large commercial resource” from the 100%-owned La India Project in Nicaragua, as a moratorium on mining and exploration activity is in effect in El Salvador, where the company’ other two projects comprised of five concessions encompassing 175 square kilometres of acreage are located.
Possibility of Increased Resource
The latest results were taken from the La India Veil set, currently containing a JORC-compliant resource of 730,000 oz. of gold at an average grade of 5.3 g/T.
About 2,613 metres of drilling yielded 25.1 metres, 15.5 metres, and 10.8 metres of ores containing 7.73 g/T, 7.37 g/T, and 34.79 g/T, respectively, providing for a possibility of increasing the project’s total mineral resource to 1.75 million oz. of gold.
Drilling a total of 4,665 metres out of the 7,000 metres targeted to be drilled, Condor said the remainder of the programme will focus on drilling deeper into the previously identified high-grade target zones “to convert areas of the Inferred Resource to Indicated category with a view to moving towards mining studies”.
Company Spotlight
Condor Gold plc is a UK-based gold exploration company with assets in El Salvador and Nicaragua. However, because of the moratorium on mining and exploration activity in El Salvador, the company is now focussed on its asset in Nicaragua, the La India Project.
Trading on the Alternative Investment Market, Condor Gold was the biggest gainer by percentage, jumping 35.96% equivalent to 20.50 pence to 77.50 pence a share, at 3:00 PM GMT.