TIDMCNR
RNS Number : 6343M
Condor Gold PLC
01 August 2017
Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74932794
Fax: +44 020 74938633
1(st) August 2017
Condor Gold plc
("Condor" or "the Company")
La India Project Soil Geochemistry Survey Completed Indicating
Major Gold District
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view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/6343M_1-2017-7-31.pdf
Condor (AIM:CNR), is pleased to announce the completion of a
detailed soil geochemistry survey (soil survey) over the entire 313
km(2) La India Project, Nicaragua. Samples were collected along 100
m, 200 m or 400 m spaced, north-south oriented, lines and at
intervals varying from 50 m to 400 m along each line over a 3 year
period (see Figure 1 below). The soil survey is a key component of
a multi-disciplined approach, including geological mapping and
airborne geophysics, to prove a major gold district at the Project,
which currently hosts a high grade mineral resource of 18.08 M
tonnes at 4.0 g/t for 2.31 M oz gold.
Highlights
-- Soil survey completed over entire 313 km(2) La India Project
-- Soil results map major geological features, including two
major feeder zones that run across the tenement in a northwesterly
direction, the La India and Andrea Corridors, an east-west linking
structure, and a major eroded caldera.
-- Complex structural geological setting is indicative of a major gold district
-- Soil results also identify preferentially mineralized targets within these features
-- 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.
Mark Child CEO comments:
"The completion of a soil geochemistry survey over the entire
313 km(2) La India Project is a major milestone in proving La India
Project hosts a major Gold District. It forms part of a
multi-disciplined approach of generating new targets utilising the
knowledge from over 70,000 m drilling and 28,000 m trenching to
date in the core areas, while importantly building on the airborne
geophysics survey of 2014, the detailed structure geological model
of 2015, and on-going traditional geological mapping and drilling
programme.
Major gold districts tend to be discovered in complex structural
settings. The soil geochemistry survey has identified two major,
mineralised basement feeder zones running NW to SE through the
Project, cut by the Highway Fault, which down-throws the
southeastern part of the District, which is in turn cut by an
east-west link structure, to produce such a complex structural
setting. Condor's multi-disciplined approach and a
boots-on-the-ground philosophy, is generating several new drill
targets and will eventually contribute to the global gold
resource."
Background
A total of 13,194 samples were analysed during 2015, 2016 and
2017. They were collected along north-south lines at 100 to 400 m
spacing and at intervals of 50 to 400 m. The survey covers both
'virgin' territory, with no mapped epithermal veins, at the broader
spacing; and areas of known mineralization, such as the La India,
America and Mestiza Vein Sets at the tighter spacing. 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. The intention was to provide baseline
data that can be used to generate new targets. A detailed report,
describing methods, laboratory techniques and results, is available
on request. Email: information@condorgold.com.
Unlike most low sulphidation epithermal gold veins, those at La
India Project tend to have very narrow, and weak, hydrothermal
alteration haloes. This is confirmed by recent SpecTerra (Short
Wave Infrared) work on drill core, which showed limited
hydrothermal clay development. The veins are also very low in
sulphides (e.g., pyrite and arsenopyrite) and have correspondingly
low levels of associated metals.
Interpretation
The above weak alteration and low sulphide content of the
epithermal system is reflected in narrow and subtle soil
geochemical anomalies, even around high-grade gold veins, such as
La India vein. Like the veins, the soils have very low contents of
base metals (e.g., copper, zinc, lead) and associated pathfinder
elements (e.g., mercury, arsenic). Consequently, the best
pathfinder for gold is gold, although low level anomalism in the
traditional pathfinder elements (e.g., silver, arsenic, antimony,
tellurium and thallium) does define important targets.
An analysis of the entire dataset shows two main corridors of
anomalous geochemistry, referred to as La India Corridor and Andrea
Corridor (Figure 1). These extend for over twenty kilometres and
coincide with major basement structures seen in the airborne
magnetics dataset. They probably represent fundamental basement
structures, each acting as a feeder for ascending hydrothermal
fluids.
The known veins occur along these corridors, but are clearly
shown to have better continuity than is apparent from geological
mapping. For example, the Andrea vein has much greater continuity
than previously thought, extending for at least 4 km.
The corridors converge in the far northwest in an area with
significant soil anomalies of gold, thallium and silver. This
coincides with a "hinge zone" seen in the airborne magnetics data.
It is near Los Limones, where rock sampling has reported veins with
including two samples, 30m apart of 53.9 g/t gold and 142.4 g/t
gold (Figure 3). This area is earmarked for early ground checking,
as intersection zones are generally prospective target areas.
The Highway Fault, a northeast striking post-mineral fault
(Figures 1 and 2), drops down the entire epithermal system to the
southeast. This is reflected in weaker anomalies and a dominance of
high level pathfinder elements. It is believed that areas southeast
of the Highway Fault contain concealed targets and that the
down-thrown block preserves the top of the system at Cacao, which
includes sinter and phreatic breccias, indicating the paleosurface.
There is also the possibility that the strike extension to La India
vein continues to the south, but is similarly down-thrown.
High level pathfinder elements also map a linking structure,
coinciding with Cacao and Santa Barbara, both targeted for
additional drilling (Figure 1).
Figure 1: Demonstrates Two Major Basement Feeder Zones.
Note: Figure 1 above: Gridded plot of antimony in soils, with
gridlines at 10 km intervals
The data also support the interpretation of an eroded caldera to
the west near the town of Santa Rosa De Penon. This is mapped by
arcuate anomalies of arsenic, antimony, mercury and bismuth. There
are two main anomalies of interest that will require follow up. The
first is a broad, 3 x 5 km wide, zone of elevated arsenic,
antimony, thallium, tungsten, lead and molybdenum on the western
margin of the caldera where La India Corridor intersects the
caldera margin. The second is a more focussed, 1.5 x 3 km wide,
zone of elevated arsenic, thallium, molybdenum, antimony with a
bismuth halo within the caldera in an area covered by young,
intra-caldera ignimbrite. Both anomalies merit further mapping.
One of the most useful tools for exploration of epithermal vein
systems is commonly the gold:silver ratio. High gold relative to
silver suggests hydrothermal upflow zones, generally with better
gold grades. To test this concept, soil samples below 5 ppb gold
were removed and the remaining 3,547 samples gridded. Figure 2
clearly shows elevated values at La India, the central part of
America/Guapinol, and 'Big Bend' at Mestiza (currently being
drilled). There are also encouraging values at Santa Barbara and
West of Los Limones.
Figure 2 Symbol plot of gold:silver ratio, with gridlines at 10
km intervals.
Condor geologists are continuing to work with the soil data and
analyse it in more detail with the other available datasets,
including airborne magnetics and radiometrics, and geological
mapping, to generate more targets. Follow up mapping is focussing
on the initial inventory of targets that reflect the high grade,
narrow vein mineralisation that comprises the current resource
base. This includes anomalies west of Los Limones, Santa Barbara
and southeast of La India.
142.4 g/t Gold and 53.9 g/t Gold Rock Chip Samples 12 km from
Open Pit Reserve
Los Limones prospect, including two rock chip samples 30 m apart
of 53.9 g/t gold and 142.4 g/t gold was identified during the soil
survey. The rock chips are located in a remote area in the far
north of the concession package, approximately 12 km from the
nearest mineral resource at Cristalitio-Tatescame and the Highway
Fault. Condor is applying for a drilling permit and plans detailed
geological mapping of Los Limones prospect in 2017 (See Figure 3
below)
Figure 3
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 Mr Peter Flindell, Member of
the Australian Institute of Geoscientists, Member of the
Australasian Institute of Mining and Metallurgy and Member of the
Society of Economic Geologists. Mr Flindell is a geologist with
over thirty years of experience in the exploration of precious
metal mineral resources. Mr Flindell is a non-executive director on
the Board of Condor Gold plc who also provides technical leadership
to the technical team in Nicaragua 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. Mr Flindell consents to the inclusion in this
regulatory announcement of technical disclosure, which he has read
and approved, 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
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