LONDON, Oct. 3rd, 2017 /PRNewswire/ -- Condor Gold (AIM:
CNR) is pleased to announce new rock chip results from the La India
Project, Nicaragua, and results of
detailed geological mapping, which expand three areas of known gold
mineralisation. In line with the Company's strategy of proving a
major gold district at the La India Project, 200 new samples have
been taken from the Mestiza, Cacao and Andrea areas (see Figure 1)
since December 2016 (see RNS dated
15th December 2016). All
three areas have been drilled since December
2016 and these samples were collected to help extend
laterally the known vein mineralisation and plan step-out drilling.
Mapping was carried out at the same time.
Highlights
- Surface rock
chip sampling has produced results of up to 37 grams per tonne
('g/t') gold from Mestiza, up to 24 g/t gold on Andrea and up to 16
g/t gold on Cacao.
- Geological
mapping has demonstrated potential extensions to known vein
mineralisation at all three targets.
- The three main
veins on the Mestiza vein set: Tatiana, Jícaro and Buenos Aires, appear to coalesce into a single
northwest-striking vein.
- Trenching and
mapping are now underway on Mestiza, aimed at identifying drill
targets, which may contain additional high-grade oreshoots similar
to Big Bend, a potential high-grade oreshoot within the Tatiana
vein.
- The Cacao vein
appears to have a concealed extension to the east and is
potentially at least twice as long as previously thought.
Mark Child, Chairman and CEO,
comments:
'Condor continues its strategy of proving a major gold district
at the La India Project. Mapping and rock sampling by our
experienced senior geologists has produced high grade gold results
of 37 g/t, 24 g/t and 16 g/t gold in three new areas, along strike
from known mineralisation at Mestiza, Andrea and Cacao, which
provides excellent upside potential.
Furthermore, recent drilling by Condor at Mestiza increasingly
demonstrates the importance of high-grade 'oreshoots' within long,
relatively continuous veins. These offer the best chance of adding
high-grade economic ounces to the global resource at La India
Project.
Surface rock chip sampling and trenching are the best tools at
our disposal to follow up on targets identified by geophysics,
geochemistry and a structural model, before making a drill
decision. The northwest extension of Mestiza, where veins coalesce
and intersect, is now a high priority, as is the eastern,
concealed, extension of Cacao.'
Background
La India Project's existing NI 43-101-compliant mineral resource
is 18 million tonnes ('Mt') at 4.0 g/t gold for 2.31 million ounces
('Moz') of gold. It comprises seven separate resources, most open
along strike and at depth (Figure 1). It includes Mestiza, which
hosts a NI 43-101-compliant Inferred resource of 1,490 thousand
tonnes ('kt') at 7.47 g/t (333,000 ounces ('oz') gold). Here,
Soviet-backed drilling in 1991 resulted in an historic,
Soviet-style mineral resource of 2,392 kt at 10.2 g/t gold for
785,694 oz gold (see RNS dated 22nd May 2017). The bulk of the resource is in the
Tatiana vein, the largest of the four main veins at Mestiza. Cacao
has a small resource of 58,000 oz of gold, estimated in 2011.
Condor completed 719 m of drilling at Cacao in December 2016 and proved a much wider vein at
depth (See RNS dated 27th January
2017). Andrea was scout-drilled in the first quarter of 2017
and showed potentially economic mineralisation in the final hole
(see RNS dated 31st March
2017). This was sufficient motive to explore farther
east.
Figure 1 Location of 7 resources that comprise La
India.
https://www.juniorminingnetwork.com/images/news/October_2017/Condor_Gold_10-3-2017_1.jpg
Note: the Andrea area lies approximately 5 km North of
Mestiza
Discussion of rock chip results
Mestiza
Recent drilling at Mestiza (5922 m total; see RNS dated
30th August 2017)
concentrated on Big Bend, a potential high-grade oreshoot within
the Tatiana vein. The new mapping and rock chip sampling focused on
the northwest extension of the Mestiza veins, beyond Big Bend. The
aim was to identify new bends, vein intersections, and other
potential structurally-controlled oreshoots. Figure 2, below, shows
the main veins, all former rock samples, and the new rock chip
results. The samples are a mix of vein outcrop and subcrop (semi
in situ vein material within the soil).
Mapping has traced epithermal quartz veins over a strike length
of at least 3.5 km in the Mestiza area. The topography becomes
steeper and forested towards the northwest and mapping more
difficult. But the Tatiana, Jícaro and Buenos Aires veins appear to coalesce into a
single northwest-striking vein (Figure 2).
The new samples (Figure 2) confirm historic sampling of the
northwest extension of all these veins, and include samples with
37.1, 13.9 and 27 g/t gold. These come from close to a previously
reported sample of 47.7 g/t gold, about 450 m along strike from the
westernmost Tatiana vein exposures.
The Espinito Vein has now been confirmed over a strike length of
at least 2.6 km, and shows a jog in the Chaparro area, which seems
to have higher grades (Figure 2). It hosts numerous artisanal
workings and previously reported sampling gave up to 41.5 g/t gold.
A series of east-northeast linking structures, with a strike length
of over 300 m, occur between the southernmost part of the Espinito
and Tatiana veins. These probably represent more dilational
structures, exploited by mineralising fluids. Historic sampling
includes 17.3 g/t gold.
Trenching of key areas is now underway at Mestiza, to help
define new drill targets. New lines are being cut through thick
vegetation to locate the northwest extensions of the Tatiana,
Buenos Aires and Jicaro veins.
They have located veins with true widths up to 3 m. Sampling is
underway.
Figure 2 Map of Mestiza with location of new samples (top,
yellow triangles) and results.
https://www.juniorminingnetwork.com/images/news/October_2017/Condor_Gold_10-3-2017_2.jpg
Cacao and Santa Barbara
The Cacao vein, drilled recently (see RNS dated 27th
January 2017), is an east-striking
quartz/carbonate vein, which flares upwards into chalcedony-rich
hydrothermal breccias and a possible sinter (hot spring
deposit).
New mapping demonstrates that the Cacao vein is covered in the
east by a sheet of alluvial gravel, up to 20 m thick. This gravel
contains blocks of chalcedonic sinter up to two metres in diameter.
These blocks occur at the precise projected location of the Cacao
vein, about 500 m east of the last known outcrops (Figure 3). This
implies that the strike length is approximately double that known
currently. Furthermore, new samples from river exposures, about 1.6
km east of the Cacao vein, again directly along strike, give values
of 11.6 g/t gold (Figure 2). These also line up with new samples
from Santa Barbara (Figure 3), with up to 15.8 g/t gold.
Increasingly, the Cacao-Santa Barbara vein looks like a continuous
corridor. Float boulders at Santa Barbara include typical
high-level epithermal features, including chalcedony and bladed
calcite replaced by quartz. Santa Barbara has never been
drilled.
Figure 3 Map of Cacao and Santa Barbara with location of new
samples and results.
https://www.juniorminingnetwork.com/images/news/October_2017/Condor_Gold_10-3-2017_3.jpg
Andrea
The recent six drill holes (total 945 m) on the Andrea vein,
which lies about 5 km North of Mestiza (outside Figure 1), were
designed to test the structure. The final hole, in the southeast
(LIDC 341) gave an intersection of 5.1 m at 1.9 g/t gold (see RNS
dated 31st March 2017),
suggesting improving gold grades to the southeast. Mapping and
sampling were therefore extended to the southeast, an area which
has never been drilled. The most promising samples, with grades up
to 23.7 g/t gold, are shown in Figure 4. The sampling implies
excellent potential for mineralised veins and will be followed up
by trenching.
Figure 4 Map of Andrea with location of new samples and
results.
https://www.juniorminingnetwork.com/images/news/October_2017/Condor_Gold_10-3-2017_4.jpg
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 Dr Warren Pratt, Chartered Geologist (1994), Fellow
of the Geological Society of London and Fellow of the Society of Economic
Geologists. Dr Pratt is a geologist with over 20 years of
experience in the exploration and definition of precious metal
mineral resources. Dr Pratt consults to Condor Gold plc for 100
days per year and has considerable experience in epithermal
mineralisation, 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. Dr Pratt 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
|
Ag
|
Silver
|
Au
|
Gold
|
breccias
|
A fragmental rock,
composed of rounded to angular broken rock fragments held together
by a mineral cement or in a fine-grained matrix. They can be formed
by igneous, tectonic, sedimentary or hydrothermal
processes.
|
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
|
Chalcedony
|
A variety of quartz
formed by microscopic or submicroscopic crystals. In an epithermal
environment, chalcedony is formed in low temperature and pressure
conditions high in the system.
|
Colloform
banded
|
A texture found in
fine grained quartz (chalcedony) veins where crystals have grown in
a radiating and concentric manner form a vein centreline to give a
finely banded appearance
|
Comb
quartz
|
A quartz vein texture
describing masses of parallel long, thin crystals growing inwards
from the vein margins produce a texture like that of a
comb.
|
Drusy
quartz
|
A coating of fine
quartz crystals on a rock fracture surface, which may be an open
space in the vein.
|
Fiamme
|
Fragments of volcanic
ejecta, often pumice, that have been flattened by compaction to
form flame-like shapes
|
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.
|
Welded
tuff
|
A fragmental volcanic
rock formed by sufficiently hot volcanic ejecta that the fragments
weld together
|
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.
|
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 its wholly owned 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 per annum. for seven years. The
PEA for the open pit only scenario details 100,000 oz gold
production per annum for eight years whereas the PEA for a
combination of open pit and underground details 140,000 oz gold
production per annum. for eight years. La India Project contains a
total attributable mineral resource of 18.08 Mt at 4.0 g/t for 2.31
million oz gold and 2.68 million oz silver at 6.2 g/t to the CIM
Code.
The resource calculations are compiled by independent geologists
SRK Consulting (UK) Limited.
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.
For further information please visit www.condorgold.com or
contact:
Condor Gold
plc
|
Mark
Child, Executive Chairman and CEO +44 (0) 20 7493
2784
|
Beaumont Cornish
Limited
|
Roland Cornish
and James Biddle +44 (0) 20 7628
3396
|
Numis Securities
Limited
|
John Prior and
James Black +44 (0) 20 7260
1000
|
Blytheweigh
Communications
|
Tim Blythe and
Camilla Horsfall +44 (0) 20 71383204
|