TIDMCNR
RNS Number : 8024O
Condor Gold PLC
10 November 2016
Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 7493 2784
Fax: +44 020 74938633
10(th) November 2016
Condor Gold plc
('Condor' or 'the Company')
Scout drilling to demonstrate District-scale gold potential at
La India
Please click on the below link to view the full press
release:
http://www.rns-pdf.londonstockexchange.com/rns/8024O_1-2016-11-9.pdf
Condor Gold (AIM: CNR), the AIM-listed gold exploration company,
is pleased to announce scout drilling has commenced on its flagship
La India Project in Nicaragua, which hosts a high grade mineral
resource of 18.08 Mtonnes at 4.0 g/t for 2.31 Moz gold. The Company
has started a 4,000 m scout drilling programme to demonstrate the
upside of the entire District, which contains approximately 104.5
km strike length of veins of which only 54.8 km have been trenched
or mapped in any detail and only 13.2 km have been drill tested.
Many veins have never been drill tested. As at 9(th) November, a
drill rig has completed 87 m at the El Cacao target. The programme
has been designed by Dr Warren Pratt, who joined Condor as a
geological consultant in June 2016. Dr Pratt helped with due
diligence on the La India Project on behalf of Ross Beaty, a
successful mining entrepreneur who subsequently became a 7.1%
shareholder in April 2016.
The first 2,000 m of drilling has three objectives. Firstly, to
expand mineralisation and identify ore-shoots at El Cacao.
Secondly, to expand mineralisation at the Cristalito-Tatescame
target. Thirdly, to test for mineralisation on the Andrea Vein,
which has never been drilled. The location of the remaining 2,000 m
of drilling will depend on initial drilling results and may also be
used to test other targets.
Soil sampling began again in June 2016 and has now covered over
half of the district. It aims to identify new epithermal targets
suitable for drilling.
Highlights:
-- Condor initiates 4,000 m of drilling to demonstrate District-scale gold potential.
-- Drilling to identify a boiling level at El Cacao, current
resource of 590 kt at 3.0 g/t gold for 58 koz gold. Previous
shallow drilling including intercepts of 14.05 m at 6.1 g/t gold
and 2.6 m at 88.7g/t gold.
-- Drilling to test strike extension at Cristalito-Tatescame,
current resource of 200 kt at 5.3 g/t gold for 34 koz gold.
Precious shallow drilling included an intercept of 5.3 m at 9.4 g/t
gold.
-- Drilling to test the Andrea Vein, never drill-tested, but has
been trenched for 2,300 m by Condor, has sheeted veins and vein
breccias of 20 m width in places and rock chips up to 30 g/t
gold
Mark Child, CEO comments:
'Condor's twin strategy remains to: 1) fully permit and
construct a base case 1 Mtpa, 2,800 tpd processing plant with
capacity to produce 100,000 oz gold pa from a single open pit on
the La India Project. 2) demonstrate District-scale gold
mineralisation. The existing resource of 18.08 Mtonnes at 4.0 g/t
for 2.31 Moz gold occurs within seven areas (see Figure 1). Four of
the smaller resources were excluded from the previous PFS and PEAs;
it now makes sense to consolidate and expand them. Over the last 3
years, Condor has steadily conducted fieldwork to demonstrate that
La India Project is a true gold District as evidenced by 104.5 km
strike length of veins of which only 13.2 km have been drill
tested. This work includes aerial geophysics, a detailed structural
model, mapping, rock-chip sampling and trenching. I am delighted
that we have now prioritised several highly promising targets and
are commencing scout drilling at El Cacao and Cristalito-Tatescame.
Although each is currently relatively small, we believe that both
have excellent potential to host much larger gold resources.'
Drilling to test El Cacao
The resource is 590 kt at 3.0 g/t gold for 58 koz gold. It is
open along strike in both directions and at depth. The vein strikes
almost east-west and has a strike length of at least 600 m (Figure
1 and 2). Trenching every 20 m resulted in a total of 1,121 m
tested. Between July 2007 and February 2008, Condor completed 2,170
m drilling on fences spaced at 40 m. These tested the vein to a
maximum depth of 150 m.
Recent re-logging and mapping by Dr Pratt demonstrates that the
vein shows many features of the top of an epithermal system. There
is widespread phreatic breccia, abundant chalcedony, siliceous
spirit levels (geopetal structures) and, in the West, sinter float.
There is widespread kaolinite at surface, probably due to an acid
sulfate ('steam- heated') overprint. All this suggests there is a
good chance that the main boiling level, with higher grades, is
deeper and has not been drilled yet.
The drill results below are from Condor's drilling on El Cacao
concession in 2007 and are detailed in an RNS dated 8(th) November
2007:
-- CCRD002 14.05 m at 6.05g/t gold from 87 m
-- CCRD004 5.55 m at 6.10g/t gold from 123.35 m
-- CCRC006 13.83 m at 2.25g/t from 93.12 m
-- CCRD006 2.60 m at 88.72g/t gold from 132.90 m
Drilling to test Cristalito-Tatescame
The Cristalito-Tatescame mineral resource is 200 kt at 5.3 g/t
gold for 34 koz gold. It is open along strike in both directions
and to depth (Figure 1 and 2). However, the Company feels the best
potential is to the west. The vein was drill tested by Gold-Ore
Resources Ltd in 2004-2005, through a joint venture with Glencairn.
They drilled 10 holes for 1,063 m. Underground sampling of the 570
m level returned a weighted average of 1.6 m at 21.7 g/t gold. The
drilling confirmed mineralisation over a 200 m strike length to a
depth of 150 m. The best intersection was 5.3 m at 9.43 g/t gold
from 94.6 m in drillhole DDT-09.
Recent geological mapping shows that felsic lava flows, a
densely welded ignimbrite, and a microdiorite have potential to
host good grades towards the west. In the drilling, gold grades
improve markedly towards the west, with visible adularia and grey
silver sulphides in drill core. These features are all considered
very positive.
Drilling to test Andrea
The Andrea Vein has never been drill tested and is an excellent
opportunity to contribute to the District gold resource. The vein
zone is about 2.3 km long and has been trenched by Condor and lies
within the 8 km Los Limones-Andrea mineralized corridor (Figure 2).
It is arcuate, with a main north-northwest-striking portion, which
dips west at about 50-60(o) , and east-southeast-striking tails at
each end. The vein zone also anastomoses and splits. The geometry
of these splits suggests there is a dextral strike slip component
on an overall extensional vein (as at the La India Vein). Creek
exposures indicate that the zone of sheeted veins and vein breccias
exceeds 20 m width in places. Good sheeted vein swarms occur in
both foot- and hanging wall. Rock chip samples from the Andrea Vein
zone are very encouraging, with grades up to 30 g/t gold.
Figure 1: La India Project comprises 7 gold mineral
resources
Figure 2 showing an 8 km Andrea-Limones mineralised corridor
Competent Person's Declaration
The information in this announcement that relates to the mineral
potential, geology, exploration results and database is based on
information compiled, and reviewed, by Dr Warren Pratt, Chartered
Geologist (1994), Fellow of the Geological Society of London and
Fellow of the Society of Economic Geologists. Dr Pratt is a
geologist with over twenty years of experience in the exploration
and definition of precious metal mineral resources. Dr Pratt
consults to Condor Gold plc on an ad hoc basis and has considerable
experience in epithermal mineralization, the type of deposit under
consideration, and sufficient experience in the type of activity
that he is undertaking to qualify as a 'Competent Person' as
defined in the June 2009 Edition of the AIM Note for Mining and Oil
& Gas Companies. Dr Pratt 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.
Technical Glossary
'chalcedony' = a cryptocrystalline form of silica composed
partly of quartz. It has a waxy luster and may be transparent or
translucent. It can be a wide variety of colours, but is commonly
white to grey.
'adularia' = a low temperature form of potassic feldspar, common
in low temperature hydrothermal (epithermal) deposits
'epithermal system' = mineral deposits formed from warm water at
shallow depth.
'felsic lava flows' = lava flows containing a high content of
siliceous minerals (quartz + feldspar).
'microdiorite' = a medium grained intrusive igneous rock of
intermediate composition.
'phreatic breccia' = a fragmental rock formed by interaction of
hot water and cold rock and consequent explosive activity.
'siliceous spirit levels' = open cavities within the vein that
are filled by horizontally bedded and banded minerals and sand.
'sinter float' = loose boulders on the surface of finely banded
chalcedony and quartz, formed from an ancient hot spring.
'welded ignimbrite' = a dense, compact volcanic rock formed by
the welding of hot ash and pumice, commonly the result of a violent
explosive eruption.
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, Executive
Chairman and CEO
+44 (0) 20 74932734
Beaumont Cornish Roland Cornish and
Limited James Biddle
+44 (0) 20 7628 3396
Numis Securities
Limited John Prior and James
Black
+44 (0) 20 72601000
Farm Street Media Simon Robinson
+44 (0) 7593 340107
About Condor Gold plc:
Condor Gold plc was admitted to AIM on 31st May 2006. The
Company is a gold exploration and development company with a focus
on Central America.
Condor completed a Pre-Feasibility Study (PFS) and two
Preliminary Economic Assessments (PEA) on La India Project in
Nicaragua in December 2014. The PFS details an open pit gold
mineral reserve of 6.9 Mtonnes at 3.0 g/t gold for 675,000 oz gold,
producing 80,000 oz gold pa for 7 years. The PEA for the open pit
only scenario details 100,000 oz gold production pa for 8 years
whereas the PEA for a combination of open pit and underground
details 140,000 oz gold production pa for 8 years. La India Project
contains a total attributable mineral resource of 18.08 Mtonnes at
4.0 g/t for 2.31 Moz gold and 2.68 Moz silver at 6.2 g/t to the CIM
Code.
In El Salvador, Condor has an attributable 1,004,000 oz gold
equivalent at 2.6 g/t JORC compliant resource. The resource
calculations are compiled by independent geologists, SRK Consulting
(UK) Limited for Nicaragua, and Ravensgate and Geosure for El
Salvador.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLEAPFNESFKFFF
(END) Dow Jones Newswires
November 10, 2016 02:00 ET (07:00 GMT)
Condor Gold (LSE:CNR)
Historical Stock Chart
From Apr 2024 to May 2024
Condor Gold (LSE:CNR)
Historical Stock Chart
From May 2023 to May 2024