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Condor Gold plc (LSE:CNR) has concluded its drilling programme at its 100% owned La India Project in Nicaragua and said it is ready to present an updated resources estimate by September 2012.
Eleven holes were drilled during the final phase of the programme for a combined depth of 1,890 metres and encountered mineralisations of over 250 metres vertical extent and open to depth, the company said in a statement today.
Bonanza grade at 51.57 grams per tonne (g/t) were encountered at the depth of 230 metres as well as 21.08 metres at an average grade of 10.24 g/t, among other intercepts encountered in the drilling.
The holes drilled were in fact the ones drilled earlier to further identify high grade target zones by drilling deeper – the objective of the last phase of the programme that began in April 2012.
Condor also stated that the old mine workings still indicate mineralisation with one hole exhibiting 5.3 metres at an average grade of 14.57 g/t.
Gold had been mined in the 167-square kilometre concession comprising 98% of the historical La India Mining District and has produced nearly 600,000 ounces of gold from 1938 to 1956 by a Canadian mining company.
As was stated in the past, Condor’s objective is to increase its resource estimate from the said project to 2 million ounces from the 1.62 million ounces as of 30th December 2011 and to set up and open-pit and underground mining operations.
“The high grade gold mineralisation, wide mineralised zones where veins coalesce, significant gold mineralisation left in the old mine workings, and the gold grade increasing 3 to 4 fold at depth in some of the high grade ore shoots… enhance my belief that La India Project is on track to host a large, highly economic gold mine,” stated Mark Child, Condor’s Chairman and Chief Executive.
Not much action was seen Condor’s shares trading on the Alternative Investment Market. Only over 141,000 shares were swapped as of 1:45 PM GMT, since the news was released at 7:00 AM. Share price was up 6.2% to £1.20, nonetheless.
Company Spotlight
Condor Gold plc is a gold and silver exploration company focussing on Central America with assets in Nicaragua and El Salvador. A moratorium on exploration and mining activities in El Salvador put operations in the country to a halt and the company is now focussing its assets in Nicaragua.
The La India Project consists of six 100% owned concessions which form the historical La India Mining District. Three other projects in Nicaragua are being operated by Condor for a 100% stake and the company has a 20% interest in the La Libertad-Santo Domingo District.
