TIDMCNR
RNS Number : 7922T
Condor Gold PLC
06 July 2018
Condor Gold plc
7th Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74932784
Fax: +44 020 74938633
6(th) July 2018
Condor Gold plc
("Condor", "Condor Gold" or the "Company")
PERMITTING UPDATE MINA LA INDIA
Condor Gold (AIM: CNR; OTCQX: CNFGF; TSX: COG) is pleased to
announce that it has formally submitted 450 pages of additional
technical studies to the Ministry of Environment and Natural
Resources in Nicaragua ("MARENA") in reply to formal questions from
MARENA following a site visit inspection to the re-designed mine
site infrastructure on 13 March 2018. As announced on 26 February
2018 with further information disclosed on 15 May 2018 in the
unaudited results for the three months ended 31 March 2018, Condor
submitted an amendment to the Environmental and Social Impact
Assessment ("ESIA") to MARENA, which is part of an application for
an Environmental Permit, to construct and operate a processing
plant with capacity to process up to 2,800 tonnes per day ("tpd")
or one million tonnes per annum ("tpa"), without the need to
resettle approximately 330 houses or 1,000 people.
Mark Child, Chairman and Chief Executive Officer of Condor,
commented:
"Last week I was in Nicaragua and held a very constructive
meeting with the Minister of Energy and Mines. The re-designed mine
site infrastructure has been well received and a potential obstacle
to permitting has been removed. A final inspection of the
re-designed mine site infrastructure by three Ministries and
related parties took place in March. The site visit inspection
prompted several technical questions, which have been formally
answered. I remain confident that Condor is close to receiving
permitting approval for Mina La India, which is expected to produce
approximately 80,000 oz gold per annum from a single open pit."
Background
An amendment to the ESIA to progress the La India Project
without the need for resettlement of the village of La Cruz de La
India (the "Village") has been submitted to MARENA (See RNS 28(th)
February 2018). The main changes are a redesigned open pit, the
relocation of the processing plant 1,200 meters from the Village,
the possible elimination of the southern waste dump, the
elimination of the road diversion in year three of production and
the relocation of the explosives magazine. A five metre high berm
is planned between the re-designed open pit and the Village to
further reduce noise and dust pollution and provide a physical
barrier. The mine site infrastructure requirements will be reduced
by over 30% to approximately 500 hectares.
The La India open pit disclosed in the Pre-Feasibility Study
("PFS") has an existing probable mineral reserve of 6.9 million
tonnes ("Mt") at 3.01 grams per tonne ("g/t") gold for 675,000 oz
gold, as set forth in the Technical Report (as defined below) that
was prepared in accordance with Canadian National Instrument 43-101
- Standards of Disclosure for Mineral Projects ("NI 43-101").
Revised mine scheduling studies have been significantly advanced in
recent months. Gold production is expected to be approximately
80,000 oz gold per annum. The Company does not expect that the
changes to the La India Project as detailed in the amended ESIA
will materially change the mineral reserves, mineral resources and
the production rate disclosed in the Technical Report.
The amended ESIA describes a processing plant that will have a
capacity of up to 2,800tpd (1.0mtpa). The amended ESIA continues to
include processing of an additional 10,000 oz of gold p.a. sourced
from artisanal miners through the main processing plant.
The Current Situation in Nicaragua
As a British company, Condor Gold believes in, and promotes,
constructive dialogue for a peaceful resolution of the current
political upheaval in Nicaragua. The Company's focus is to support
its 70 direct and indirect employees, and their families, who have
confirmed their desire to continue to work and maintain stability
within their communities as much as possible. Condor has been
operating in Nicaragua since 2006 and, as a responsible gold
exploration and development company, continues to add value to the
local communities and environment by generating sustainable
socio-economic and environmental benefits. Despite the current
political upheaval and civil disobedience in Nicaragua, Condor has
held very constructive meetings in recent months with the key
Ministries who are progressing Condor's application for an
Environmental Permit for a new mine at Mina La India.
The new mine would create approximately 1,000 jobs during the
construction period with priority given to the local community. The
upfront capital cost of approximately US$120M would have a
significant positive impact on the economy. The Government and
local communities would benefit significantly from future royalties
and taxes.
- 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
Numis Securities Limited John Prior and James Black
+44 (0) 20 7260 1000
Blytheweigh Tim Blythe, Camilla Horsfall and Megan
Ray
+44 (0) 20 7138 3204
About Condor Gold plc:
Condor Gold plc was admitted to AIM on 31 May 2006. The Company
is a gold exploration and development company with a focus on
Central America.
Condor published a Pre-Feasibility Study ("PFS") on its wholly
owned La India Project in Nicaragua in December 2014, as summarized
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 in
the Indicated category of 9.6 Mt at 3.5 g/t for 1.08 million oz
gold and a total mineral resource in the Inferred category of 8.5
Mt at 4.5 g/t for 1.23 million oz gold. The Indicated mineral
resource is inclusive of the mineral reserve.
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.
Technical Information
Certain disclosure contained in this news release of a
scientific or technical nature has been summarized 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 such term is
defined in NI 43-101.
David Crawford, Chief Technical Officer of the Company and a
Qualified Person as defined by NI 43-101, has approved the written
disclosure in this press release.
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 technical viability and
economic attractiveness of the redesigned open pit, the impact of
the redesigned open pit on the Company's mineral reserve, mineral
resources, production rate and total ounces of gold recoverable by
the Company, the Company's intention to provide further details on
mine scheduling, and estimates of mineral resources and mineral
reserves. 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 long-form prospectus dated December
21, 2017, 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDUGUQWMUPRPGA
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