TIDMCNR
RNS Number : 7325F
Condor Gold PLC
22 May 2017
Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74932794
Fax: +44 020 74938633
22(nd) May 2017
Condor Gold plc
('Condor', 'Condor Gold' or 'the Company')
Drill Results La India Project: 3.3 m at 28.3 g/t gold and 2.65
m at 12.6 g/t gold
http://www.rns-pdf.londonstockexchange.com/rns/7325F_1-2017-5-19.pdf
Condor Gold (AIM: CNR) is pleased to announce drill results from
an initial 2,000 m drill programme on the Mestiza Vein Set
('Mestiza') at La India Project, Nicaragua. The objective is to
test an historic, relatively shallow, Soviet mineral resource
(2,392 kt at 10.2 g/t gold for 785,694 oz gold). Initial results
from the Tatiana Vein, one of the constituent veins, are excellent.
The programme continues.
Highlights:
-- LIDC344 drill width 3.3 m (true width 2.2 m) at 28.3 g/t gold
and 38.9 g/t silver including 0.95m@75.6 g/t Au. From 76.7 m
depth.
-- LIDC348 drill width 2.65 m (true width 1.7 m) at 12.6 g/t
gold and 21.8 g/t silver including 0.6m@27.7 g/t Au. From 91 m
depth.
-- The initial 2,000 m drilling is now expanded to 3,000 m.
-- The Tatiana vein has excellent continuity for 1.5km and is a
4-5 m wide mineralised structure.
-- High recoveries achieved in vein zone, including mineralised
fault breccias that previous drilling failed to recover.
-- Second rig mobilised and has commenced drilling.
Mark Child, Chairman and CEO comments:
'The initial drill results at Mestiza of 3.3 m at 28.3 g/t gold
and 2.65 m at 12.6 g/t gold are highly encouraging. The objective
is to convert an historic Soviet-style mineral resource of 2,392 kt
at 10.2 g/t gold for 785,694 oz gold to Canadian NI 43-101
standard. This will boost the current NI 43-101-compliant Inferred
Mineral Resource at Mestiza of 1,490 kt at 7.47 g/t for 333,000 oz
gold.
Mestiza is excluded from the current mine plans in the PFS and
PEAs. A successful resource conversion has the potential to add
large, high grade, and relatively shallow resources to a future
mine plan, thereby increasing the annual gold production, life of
mine and project economics. The Tatiana vein has excellent
continuity for 1.5km and is a 4-5 m wide mineralised structure. In
the past few days a second rig has commenced drilling on
Mestiza."
Background
La India Project's existing NI 43-101-compliant mineral resource
is 18 Mt at 4.0 g/t Au for 2.31 Moz gold. This comprises 7 separate
resources, all open along strike and at depth. It includes Mestiza,
which hosts a NI 43-101-compliant mineral resource of 1,490 kt at
7.47 g/t for 333,000 oz gold (Table 2). Soviet-backed drilling in
1991 estimated a Soviet-style mineral resource of 2,392 kt at 10.2
g/t gold for 785,694 oz gold at Mestiza (Table 3). The bulk of the
resources are contained within the Tatiana vein, the largest of the
four main veins on Mestiza.
Current Drill Plan
Condor commenced drilling with one drill rig on Mestiza on
23(rd) March 2017, to test the Soviet drill intercepts and convert
the Soviet GKZ mineral resource estimate to Canadian NI-43-101
standard (See RNS dated 31(st) March 2017). It is expected that
further drilling of about 4,000 m (total of 6,000 m drilling) will
be required to convert the majority of the Soviet mineral resource
to a NI 43-101-compliant Inferred Mineral Resource.
Initial Drill results
The initial 7 drill holes have focussed on the Tatiana Vein.
Results to date have been excellent and broadly validated the
Soviet drilling. See Table 1 below. A second drill rig has arrived
on site and the initial programme increased to 3,000 m.
Tatiana is an approximately 4-6 m wide mineralized structure
crosscutting a major unit of welded tuff with conspicuous fiamme.
The structure consists of:
-- A central high grade vein, 0.5-1.0 m wide, with comb and
drusy quartz and minor chalcedony. Textures of the vein vary
between holes, from massive silica, to leaching textures with
skeletons of former calcite, to locally colloform banded pale green
chalcedony with fine streaks of sulphide mineralization.
-- 2.5 m of jigsaw and crackle hydrothermal breccia around the
central vein. Drusy and comb quartz forms the matrix of these
breccias, normally associated with lower gold grades.
-- Late fault breccias along the structure containing clasts of
vein and hydrothermal breccia, which can contain significant high
grade gold mineralisation.
Importantly, the current drilling has, with only one exception,
achieved 100% recovery of the vein zone, including the fault
breccias.
In 2006 Triton Minera SA (now owned by B2Gold Inc) twinned
drilled a number of the Russian drill holes, but failed to recover
the mineralised fault breccias, which resulted in narrower and
lower grade drill intercepts. In 2011, Condor Gold drilled the
southeast extension of the Tatiana vein on the La India concession
and experienced similar poor core recovery (typically less than
70%). Part of the future drilling programme will be used to replace
the poor recovery drill holes.
Table 1 Current Drill Results on Mestiza
Prospect Drill From To Drill *True Au Ag Other
hole Width Width (g/t) (g/t)
ID (m) (m)
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Tatiana LIDC342 48.85 51.2 2.35 1.3 1.72 14.5
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Tatiana LIDC343 90.3 91.8 1.50 0.9 4.50 12.4
------ ------ ------- ------- ------- ------- ----------------------
Including 0.95m@75.6
g/t Au and 0.5m@19.9
Tatiana LIDC344 76.7 80 3.3 2.2 28.34 38.9 g/t Au
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Including 0.2m@22.8
g/t Au and 0.6m@11.8
Tatiana LIDC345 129.6 133 3.4 2.2 6.06 21.4 g/t Au
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Including 0.5m@22.5
Tatiana LIDC346 83.8 86.85 3.05 2.3 6.79 14.1 g/t Au
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Including 0.4m@13.6
Tatiana LIDC347 78.3 81.2 2.9 2.2 5.26 17.1 g/t Au
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Including 0.6m@27.7
g/t Au and 0.8m@14.5
Tatiana LIDC348 91 93.65 2.65 1.7 12.64 21.8 g/t Au
---------- --------- ------ ------ ------- ------- ------- ------- ----------------------
Mestiza in the context of the La India Project
Mestiza is significant for five reasons:
1. It already hosts a NI 43-101-compliant mineral resource
(1,490 kt at 7.47 g/t for 333,000 oz gold; Table 2). However, this
is excluded from the current Pre-Feasibility Study ('PFS') and
Preliminary Economic Assessments ('PEAs') at La India Project
described in points 2 and 3.
2. The December 2014 PEA contains an open pit and underground
mining scenario using a 1.6 Mtpa processing plant recovering 1,203
koz gold over the life of mine, with the first 5 years production
averaging 138,000 oz gold pa.
3. The January 2016 Whittle Enterprise Optimisation to NPV of
the above PEA materially increased the recovered gold and project
economics. Using the same 1.6 Mtpa processing plant, recovered gold
increases to 1,437 koz gold over the life of mine with the first
five years of production averaging 165,000 oz gold pa.
4. All production scenarios to date exclude Mestiza, which is in
close proximity to the La India and America vein sets (See Figure
1). There is a high possibility of bringing additional high grade
gold from Mestiza into a future mine plan, feeding a centralised
processing plant.
5. Importantly, Mestiza hosts a relatively shallow high grade
resource, which is currently viewed as a combined open
pit-underground mining target. The average drill depth is 112 m for
the 6,000 m resource conversion drilling programme. The existing
resource is open along strike in both directions and at depth. The
shallow, high grade nature of the resource suggests it could be
added early on to the mine plan, enhancing the production profile
and economics of the project.
Table 2 Mestiza Vein Set NI 43-101 Mineral Resource Estimate
SRK NI-43-101 resource estimate (30-09-2014)
-------------------------------------------------------
Vein Category Tons Grade Au (oz)
(kt) (g/t)
--------------- ----------- ------ ------- --------
Espinito Inferred 200 7.7 50,000
--------------- ----------- ------ ------- --------
Buenos Aires
Jicaro Inferred 210 8.0 53,000
--------------- ----------- ------ ------- --------
Tatiana Inferred 1,080 6.6 230,000
--------------- ----------- ------ ------- --------
TOTAL 1,490 7.5 333,000
---------------------------- ------ ------- --------
Table 3 Mestiza Vein Set, Soviet GKZ Mineral Resource Estimate
(including the above NI-43-101 resources)
Soviet GKZ mineral
resource estimate (1991)
------------------------------ ---------- ------------ --------
Vein Category Tons (kt) Grade (g/t) Au (oz)
----------------- ----------- ---------- ------------ --------
Espinito C1,C2,P1 353 9.8 112,013
----------------- ----------- ---------- ------------ --------
San Pablo P1 39 12.2 15,338
----------------- ----------- ---------- ------------ --------
Buenos Aires
Jicaro C2, P1 317 16.8 171,489
----------------- ----------- ---------- ------------ --------
C2, P1,
Tatiana P2 1,682 9.0 486,855
----------------- ----------- ---------- ------------ --------
TOTAL 2,392 10.2 785,694
------------------------------ ---------- ------------ --------
Figure 1 Location of 7 resources that comprise the La India
Project
Note: The numbers in Tables 1 to 3 and Figure 1 have been
rounded where appropriate.
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 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
---------------------- ---------------------------------------------------
C1 C1 reserves are broadly equivalent to
JORC indicated resources and have been
estimated by a sparse grid of trenches,
drill holes or underground workings.
The quality and properties of the deposit
are known tentatively by analyses and
by analogy with known deposits of the
same type. The general conditions for
exploitation are partially known
---------------------- ---------------------------------------------------
C2 C2 reserves are broadly equivalent to
JORC inferred resources and have been
extrapolated from limited data, probably
only a single hole
---------------------- ---------------------------------------------------
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.
---------------------- ---------------------------------------------------
Kt Thousand tonnes
---------------------- ---------------------------------------------------
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.
---------------------- ---------------------------------------------------
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.
---------------------- ---------------------------------------------------
NI 43-101 Canadian National Instrument 43-101
a common standard for reporting of identified
mineral resources and ore reserves
---------------------- ---------------------------------------------------
Phreatic breccias Fragmental rocks formed near the Earth's
surface by the interaction of hot rock
and cold water, or vice versa. Commonly
occur at the top of mineralized epithermal
gold systems.
---------------------- ---------------------------------------------------
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
---------------------- ---------------------------------------------------
Soviet Classification The former Soviet system for classification
of reserves and resources, developed
in 1960 and revised in 1981, which divides
mineral concentrations into seven categories
of three major groups, based on the
level of exploration performed: explored
reserves (A, B, C1), evaluated reserves
(C2) and prognostic resources (P1, P2,
P3)
---------------------- ---------------------------------------------------
Soviet GKZ The former Soviet State Commission for
Mineral Reserves.
---------------------- ---------------------------------------------------
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.
---------------------- ---------------------------------------------------
Zeolite veinlets Zeolites are hydrated aluminosilicates
found in gas bubbles within basalts
and in
geothermal districts. They also found
in the upper parts of gold-bearing epithermal
systems.
---------------------- ---------------------------------------------------
- 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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