TIDMCNR
RNS Number : 8934R
Condor Gold PLC
15 December 2016
Condor Gold plc
7(th) Floor
39 St. James's Street London
SW1A 1JD
Telephone +44 020 74932794
Fax: +44 020 74938633
15(th) December 2016
Condor Gold plc
("Condor" or "the Company")
Please click on the below link to view the full press
release
http://www.rns-pdf.londonstockexchange.com/rns/8934R_1-2016-12-14.pdf
La India exploration update: 142.4 g/t gold rock chip sample
identified, 1,123 m of 4,000 m Scout Drilling and 168 km(2) of Soil
Survey Completed
Condor (AIM:CNR), is pleased to provide an update on scout
drilling and regional exploration at the La India Project,
Nicaragua, which hosts a high grade mineral resource of 18.08 M
tonnes at 4.0 g/t for 2.31 M oz gold.
Highlights
-- 142.4 g/t gold rock chip sample identified approximately 30 m
along strike from a 53.9 g/t gold rock chip on the Los Limones
prospect at the northern end of a 12.5 km mineralised corridor, 9
km north of the main La India open pit reserve.
-- 168 km(2) of 313 km(2) soil survey completed. The aim is to
identify feeder zones and new gold targets.
-- Initial interpretation of soil results shows two major feeder
zones, the La India and Andrea Corridors, and supports the concept
of a major gold District.
-- 1,123 m of 4,000 m scout drilling has been completed, assay results due in 2017.
Mark Child CEO comments:
"Condor's strategy of proving that La India Project is part of a
major gold District is yielding positive results. A 142.4 g/t gold
rock sample, 30 m along strike from a 53.9 g/t gold rock chip, at
the northern end of the 12.5 km-long Andrea mineralised corridor,
and 6 km away from the nearest gold resource, is highly
encouraging. A regional soil survey is about 50% completed. The
purpose is to generate new gold targets and better understand the
district-scale mineralisation. For example, to determine upflow
zones of the fossil geothermal (epithermal) system and identify new
gold targets.
The initial interpretation of the soil survey, combined with
helicopter borne geophysics, structural and regional mapping, is
that there are two major feeder zones. The La India Corridor is
better understood and hosts 90% of the Project's high grade mineral
resource of 18.08 M tonnes at 4.0 g/t (2.31 M oz gold). The Andrea
Corridor is less well understood and is the focus of the current
4,000 m scout drilling programme".
Background
A regional soil geochemistry survey is underway over the 313
km(2) La India Project. During 2015 and 2016 a total of 12,208
samples were collected covering 168 km(2), assays have been
received for most. Samples are collected along lines at 200 m or
400 m apart and at intervals varying from 50 m to 400 m (see Figure
1 below). The survey covers both 'virgin' territory, with no mapped
epithermal veins, and areas of known mineralization, such as La
India, America and Mestiza. The La India Project has approximately
105 km strike length of veins, of which about 55 km have been
trenched or mapped in any detail; only 13.2 km have been drill
tested. Many veins have never been sampled.
Samples collected to date are shown in Figure 2. The blue dots
remain to be collected. Assays are awaited for the black dots.
Initial Soil Survey Interpretation
The soil survey is ongoing, so this is an initial
interpretation. Several elements, in particular Gold (Au),
Tellurium (Te), Thallium (Tl), Arsenic (As), Silver (Ag) and
Antimony (Sb), define two significant trends. These are interpreted
as two major basement feeder zones: La India and Andrea Corridors
(see Figure 3 below). The La India Corridor cuts obliquely across
some of the better known veins, such as La India, America, Mestiza
and seems to localize higher gold grades at these intersections.
This understanding will help future drill targeting. There is also
a suggestion that some rich veins (Tatascame, Los Limones) are en
echelon structures, at high angle to the Andrea Corridor. They may
have provided localized dilations for fluids to rise. Drilling to
test this model at Tatascame is due to commence shortly.
Antimony, along with Selenium (Se) and Te, also seem to define a
sinuous, almost East-West, linking structure between the two
corridors ('The Link' above). This has lower gold values, for
example in the East part of the Guapinol and Constancia Veins. It
may not have been as important an upflow zone as La India and
Andrea corridors.
Several elements show a distinct drop off on the East side of
the Highway Fault (see Figure 4), implying that the district-scale
epithermal system was dropped down by a post-mineral offset. This
down-throw preserves the top of the system at Cacao, which includes
sinter and phreatic breccias, indicating paleosurface.
142.4 g/t Gold and 53.9 g/t Gold Rock Chip Samples
During January-November 2016 a total of 169 rock chip samples
were collected during soil sampling and mapping. Of these, 5 came
back with gold values greater than 5 g/t, 4 from the Los Limones
prospect, including 53.9 g/t and 142.4 g/t samples (See Figure 4)
and 1 sample slightly north of Tatascame. In addition, 19 samples
from the Dos Hermanos, Mestiza, Tatascame-El Derrumbado and Los
Limones prospects have returned with values of 1-5 g/t.
Scout Drilling Update
Condor initiated 4,000 m of scout drilling on several prospects
on 7(th) November 2016, starting with Cacao (See RNS dated 10(th)
November 2016). Four drill holes for a combined drilling of 719.6 m
have now been completed at Cacao. The assay results will be
announced in 2017, when they are all received. The drill rig has
moved to the Real de La Cruz concession, which has not previously
been drilled by Condor. Circa 400 m has been drilled at the time of
writing. See Figure 4.
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
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
------------------------ ---------------------------------------------------
En echelon In structural geology, en echelon veins
are structures within rock caused by
tension fractures that are parallel
to the major stress orientation. They
appear as sets of short, parallel, planar,
mineral-filled lenses within a body
of rock.
------------------------ ---------------------------------------------------
Geochemistry The study of the elements and their
interaction as minerals to makeup rocks
and soils
------------------------ ---------------------------------------------------
Geophysics The measurement and interpretation of
the earth's physical parameters using
non-invasive methods such as measuring
the gravity, magnetic susceptibility,
electrical conductivity, seismic response
and natural radioactive emissions.
------------------------ ---------------------------------------------------
Hydrothermal Hot water circulation often caused by
heating of groundwater by near surface
magmas and often occurring in association
with volcanic activity. Hydrothermal
waters can contain significant concentrations
of dissolved minerals.
------------------------ ---------------------------------------------------
Magnetic (aeromagnetic) The measurement of the magnetic properties
survey of the earth surface as controlled by
the concentration and distribution of
magnetic minerals, particularly magnetite,
in the rock. Rocks containing higher
levels of iron, such as mafic igneous
rocks or some sedimentary rocks will
have a higher magnetic susceptibility
than felsic igneous rocks, siliciclastic
and carbonate sediments and their metamorphic
derivatives..
------------------------ ---------------------------------------------------
Mineral Resource 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 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.
------------------------ ---------------------------------------------------
Radiometric Also known as gamma ray spectrometry,
is the measure of natural radiation
on the top 30-45cm of the earth's surface.
The abundance of the three naturally
occurring radioactive elements, potassium
(K), thorium (Th) and uranium (U), is
proportional to the abundance of minerals
containing those elements. This information
can be used in mapping the surface geology
including the definition of areas of
potassium enrichment related to hydrothermal
alteration.
------------------------ ---------------------------------------------------
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.
------------------------ ---------------------------------------------------
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.
------------------------ ---------------------------------------------------
- Ends -
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, Executive
Chairman and CEO
+44 (0) 20 7493 2734
Beaumont Cornish Roland Cornish and
Limited James Biddle
+44 (0) 20 7628 3396
Numis Securities
Limited John Prior and James
Black
+44 (0) 20 7260
1000
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 Mt at 3.0 g/t gold for 675,000 oz gold
producing 80,000 oz gold p.a. for 7 years. The PEA for the open pit
only scenario details 100,000 oz gold production p.a. for 8 years
whereas the PEA for a combination of open pit and underground
details 140,000 oz gold production p.a. for 8 years. La India
Project contains a total attributable mineral resource of 18.08 Mt
at 4.0 g/t for 2.31 M oz gold and 2.68 M oz 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
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