Condor Completes Ground Investigation Drilling

RNS Number : 6761M

Condor Gold PLC

25 January 2021

 

Condor Gold plc 7/8 Innovation Place Douglas Drive Godalming Surrey GU7 1JX Tel: [phone]

25 January 2021

Condor Gold Plc

("Condor" or the "Company")

Condor Gold Completes Ground Investigation Drilling and Test Pits in Preparation for Mine Construction at La India Project, Nicaragua

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce it has completed a ground investigation program of 23 geotechnical drill holes and 58 test pits on the Tailings Storage Facility (TSF), Water Retention/Attenuation Reservoir and Processing Plant site at La India Project, Nicaragua.  Condor is accelerating La India Project from a Pre-Feasibility level of design to Final Engineering Designs on key infrastructure in preparation for construction on the fully-permitted La India gold mine project.

Highlights

· 16 Geotechnical drill holes and 29 test pits for the final design for the tailing storage facility (TSF) have been completed.

· Final TSF design will be fully compliant with internal and external legislation.

· 7 Geotechnical drill holes and 17 test pits on La Simona dam and water retention/attenuation reservoir have been completed - data to be used to design a retention/attenuation dam and diversion water facility.

· 14 piezometers have been installed to monitor sub-surface water levels.

· 12 test pits at the processing plant site have been completed - providing the ground condition information required for an advanced layout design.

Mark Child, Chairman and CEO commented:

"The completion of ground investigations via a geotechnical drilling program of 23 drill holes and 58 test pits on the Tailings Storage Facility (TSF), water retention/attenuation reservoir and processing plant site demonstrates Condor's commitment to de-risk and advance La India Project to construction. Condor has previously completed a Pre-Feasibility level design on the TSF and water retention reservoir. The decision has been taken to accelerate the Project; a Feasibility Level design on the TSF and water retention/attenuation reservoir is 64% completed and is due to be finalised in June 2021. Condor's objective is to fast track the La India Project to operational status".

Background and Operational Update

Tierra Group International, Ltd. (Tierra Group) has been engaged to develop the Final Designs for the TSF and water retention/attenuation reservoir for a new mine at La India Project. The Final TSF design will be fully compliant with internal and external legislation. Tierra Group has completed an initial ground investigation of the processing plant site that will be used to constrain and optimise the final layout design. Condor owns 100% of the land required for the TSF, La Simona dam and water retention reservoir, and the processing plant location.

The geotechnical drilling and some of the test pits c haracterize subsurface geology and foundation conditions below the proposed TSF and water retention/attenuation dams' footprints. The remaining test pits were designed to investigate the surficial geology along the TSF's proposed diversion channel alignments, the water retention properties of the soil and subsurface geology within the TSF and water retention reservoir, and the foundation conditions within the processing plant site. Tierra Group has performed in-situ permeability testing in the drill holes and has measured the geomechanical properties of the soil and rock from the drill holes and test pits both on-site and through laboratory testwork.

The 23 geotechnical drill holes totalled 599m. Piezometers were installed in 14 of the drill holes; 11 at the TSF and 3 at the water retention dam, to monitor sub-surface water levels.

Condor's objective, subject to funding, is to fast track the La India Project to operational status. With this in mind, the geotechnical engineering analysis results and recommendations will support a TSF and water retention/attenuation dam Final Design, and contribute towards an advanced processing plant layout design. Tierra Group is completing the necessary civil engineering activities and is responsible for producing the final engineering design drawings for the TSF and water retention/attenuation dam. A Feasibility Level design on the TSF and water retention/attenuation reservoir is 64% completed and is due to be finalised in June 2021. The Ministry of Environment and Natural Resources ("MARENA") requested Final Designs as a condition of granting the key environmental permit to develop, construct and operate a new mine at La India.

- Ends -

For further information please visit www.condorgold.com or contact:

Condor Gold plc	Mark Child, Chairman and CEO [phone]
Beaumont Cornish Limited	Roland Cornish and James Biddle [phone]
SP Angel Corporate Finance LLP	Ewan Leggat [phone]
Blytheweigh	Tim Blythe, Camilla Horsfall and Megan Ray [phone]

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.

In August 2018, the Company announced that the Ministry of the Environment in Nicaragua had granted the Company 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 to be the master permit for mining operations in Nicaragua. Condor Gold published a Pre-Feasibility Study ("PFS") on the La India Project in December 2014, as summarised in the Technical Report, as defined below. The PFS details an open pit gold Mineral Reserve in the Probable category of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold, producing 80,000 oz gold per annum for seven years. La India Project contains a Mineral Resource of 9,850Kt at 3.6 g/t gold for 1,140Koz gold in the Indicated category and 8,479Kt at 4.3g/t gold for 1,179Koz gold in the Inferred category. The Indicated Mineral Resource is inclusive of the Mineral Reserve. A gold price of $1,500/oz and a cut-off grade of 0.5g/t and 2.0g/t gold were assumed for open pit and underground resources respectively. A cut-off grade of 1.5g/t gold was furthermore applied within a part of the Inferred Resource. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources will be converted to Mineral Reserves.

Environmental Permits have also been granted in April and May 2020 in relation to the Mestiza and America open pits respectively, both located in the vicinity of the La India Project. The Mestiza open pit hosts 92Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341Kt 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 contained gold) in the Indicated Mineral Resource category and 677Kt at a grade of 3.1 g/t gold (67,000 oz contained gold) 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 1.12M oz gold open pit Mineral Resources permitted for extraction, inclusive of a Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold.

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 Mineral Resource Estimate has been completed by Ben Parsons, a Principal Consultant (Resource Geology) with SRK Consulting (U.S.), Inc, who is a Member of the Australian Institute of Mining and Metallurgy, MAusIMM(CP). Ben Parsons has some nineteen years' experience in the exploration, definition and mining of precious and base metal Mineral Resources. Ben Parsons is a full-time employee of SRK Consulting (U.S.), Inc, an independent consultancy, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a "qualified person" as defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators and as required by the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Ben Parsons 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.

The mining dilution studies reported for the Mestiza and America deposits have been performed under the supervision of Dr Tim Lucks, Principal Consultant (Geology & Project Management), of SRK Consulting (UK) Limited, who is a Member of the Australian Institute of Mining and Metallurgy, MAusIMM(CP). Tim Lucks is an independent "qualified person" as such term is defined in NI 43-101. Tim Lucks consents to the inclusion in the announcement that material that relates to the America and Mestiza dilution studies, in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The technical and scientific information in this press release has been reviewed, verified and approved by 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, December 2014", dated November 13, 2017 with an effective date of December 21, 2014 (the "Technical Report"), prepared in accordance with NI 43-101. The Technical Report was prepared by or under the supervision of Tim Lucks, Principal Consultant (Geology & Project Management), Gabor Bacsfalusi, Principal Consultant (Mining), Benjamin Parsons, Principal Consultant (Resource Geology), each of SRK Consulting (UK) Limited, and Neil Lincoln of Lycopodium Minerals Canada Ltd., each of whom is an independent "qualified person" as defined by NI 43-101 .

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, resources and reserves; 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, 2019 dated March 31, 2020 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.

 

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