TIDMCNR
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 Intercept Intercept Interval True Au Ag (g/t) True grade- Vein
hole ID From To (m) (m) width (g/t) width
(m) (m) (gm/t)
-------- --------- --------- -------- ------ ------ -------- ----------- --------------------------------
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
-------- --------- --------- -------- ------ ------ -------- ----------- --------------------------------
Hangingwall only (twin
10 LIGT528* 5.50 46.55 41.05 28.7 2.62 4 75.1 to LIGT536)
-------- --------- --------- -------- ------ ------ -------- ----------- --------------------------------
True width is an interpretation based on the current
interpretation of the veins and may be revised in the future.
Tab l e 2. Latest and final dr ill i n te r c e p ts on La India
vein - 2021 geotechnical dr i ll holes.
Drill Collar Drill From To Drill True Au Ag Comment
hole UTM WGS84-16N incl/azi Width Width (g/t) (g/t)
ID (m) (m)
---------------- ---------- ------ ------ ------- ------- ------- -------
LIGT528 574920E India stacked
X-sect 1409743N veins and breccias
11025 397mamsl -70/249 5.50 46.55 41.05 28.7 2.62 4 (open downhole)
------ ------ ------- ------- ------- ------- ------------------------
India upper faulted
Incl. 8.20 15.65 7.45 5.2 4.20 11 vein
------ ------ ------- ------- ------- ------- ------------------------
India middle
Incl. 32.55 36.80 4.25 3.0 5.31 6 vein
------ ------ ------- ------- ------- ------- ------------------------
Hangingwall India
Incl. 39.65 46.55 6.90 4.8 6.28 6 vein
------ ------ ------- ------- ------- ------- ------------------------
LIGT531 575001E
X-sect 1409618N India upper-mid
10875 410mamsl -70/250 36.00 43.60 7.60 5.3 3.11 10 vein
------ ------ ------- ------- ------- ------- ------------------------
India upper
Incl. 36.00 38.75 2.75 1.9 2.96 14 vein
------ ------ ------- ------- ------- ------- ------------------------
India middle
Incl. 42.20 43.60 1.40 1.0 10.25 17 vein
------ ------ ------- ------- ------- ------- ------------------------
India lower vein
and hangingwall
51.45 58.80 7.35 5.1 2.70 6 stockwork
------ ------ ------- ------- ------- ------- ------------------------
India lower
Incl. 55.80 58.80 3.00 2.1 4.76 8 vein
--------------------------- ---------- ------ ------ ------- ------- ------- ------- ------------------------
Amalgamated hangingwall
LIGT536 574920E and footwall
X-sect 1409743N India stacked
11025 397mamsl -70/258 2.80 57.35 50.70 34.1 2.56 7 veins and breccias
------ ------ ------- ------- ------- ------- ------------------------
Incl. 2.80 47.65 44.85 30.2 2.55 6 India hangingwall
------ ------ ------- ------- ------- ------- ------------------------
India upper faulted
Incl. 6.85 15.70 8.85 6.0 4.30 7 vein
India middle
Incl. 33.45 36.45 3.00 2.0 5.31 8 vein
Hangingwall India
Incl. 42.35 47.65 5.30 3.6 8.75 12 vein
------ ------ ------- ------- ------- ------- ------------------------
Excl. 47.65 50.65 3.00 - - - Mine cavity
------ ------ ------- ------- ------- ------- ------------------------
Footwall India
Incl. 50.65 51.45 0.80 0.5 7.59 16 vein
------ ------ ------- ------- ------- ------- ------------------------
Possible mine
Excl. 51.45 52.30 0.85 - - - cavity
------ ------ ------- ------- ------- ------- ------------------------
Footwall India
Incl. 52.30 57.35 5.05 3.4 2.31 14 vein
--------------------------- ---------- ------ ------ ------- ------- ------- ------- ------------------------
True width is an interpretation based on the current
interpretation of the veins and may be revised in the future.
* N ote: B u reau Veri t as Mi neral La bor a tor ies, C a n a d
a. www . b u r e a u v e r it a s . co m/ um w a s u sed for the d
r ill a ss ay res u l t s.
Note s:
1 . T h e s a m p le c h ain of c u s tody is m a n aged by the
Condor 's Geo logy Team on s i t e. Repor ted res u l ts a re f r
om d ia mond d r illed core s a m p les. Intervals of core to be a
n a l ysed a re s p lit i nto h alf u s i ng a mec h a n i zed core
c utter, w i th one h alf sent to the La bor a tory for geo c hem i
c al a n al ys is a nd the rem ai n i ng h alf kept in s tor age
for futu re referen ce a nd u s e s. D ia mond d r illed core h as
been a HQ s i ze a nd recoveries a re con s i s tent ly 100% a c
ross all d r ill h o les i ntercept repor ted.
2 . S a m p li n g a nd a n al y t i c al p rocedu res a re s ub
ject to a com p rehen s ive qu ali ty a ss u r a n ce a nd qu ali
ty cont rol p rogr a m. T he QAQC p rogr am i n volves i n sert ion
of d u p li c a te s a m p les, b la n ks a nd cer t i f ied
referen ce m a terials in the s a m p le s t rea m. Gold a n al
yses a re perfor med by s t a nd a rd f i re a ss a y i ng p
rotocols u s i ng a 5 0 -gr am c h a rge w i th a tom ic a b sor pt
ion ( AA S) f i n i sh a nd a gr a vi met r ic f i n i sh perfor
med for a ss a ys grea ter th an 10 gr a ms per t o nne.
3 . S a m p l e p rep a r a t ion a nd a n a l ys is a re perfor
med by the i ndepen dent B u reau Veri t as La bor a tor ies, Ca n
a d a. S a m p les a re c r u s hed a nd p rep a red in Ma n a g ua
a nd pu lp s a m p les for f i re a ss ay a re d i s p a t c hed to
V a n cou ver, Ca n a d a. T he L a bor a tory meets the requ i
remen ts of IS O /IEC 17025 & ISO 9001, a nd em p loys a La bor
a tory Infor m a t ion Ma n agement S y s t em for s a m p le t r a
ck i ng, qu ali ty con t rol a nd repor t i ng.
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 Ewan Leggat
LLP +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 . 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 .
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 That part of a Mineral Resource for which tonnage,
Resource 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 That part of a Mineral Resource for which tonnage,
Resource 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 A concentration or occurrence of material of economic
Estimate 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 (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 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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