TIDMCNR
RNS Number : 7452J
Condor Gold PLC
07 December 2018
Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74081067 Fax: +44 020 74938633
7(th) December 2018
Condor Gold plc
("Condor" or "the Company")
Grant of Las Cruces Concession
Condor expands the La India Project land package by 45% to 455.6
km(2) with the grant of a significant concession that is
potentially the heat engine and metal source that caused gold
mineralisation across the entire La India Gold District.
Condor (AIM:CNR; TSX: COG; OTCQX: CNDGF), is pleased to announce
that the Ministry of Energy and Mines of Nicaragua ("MEM") has
granted the Las Cruces concession, a 25 year exploration and
exploitation concession covering an area of 142.6 km(2) , to the
Company's wholly-owned Nicaraguan subsidiary Condor S.A. The
concession is adjacent to, and south-east of, the La India Project
(Figure 1). The La India Project now comprises 11 adjacent and
contiguous exploration and exploitation concessions, acquired by
Condor over 12 years. The addition of Las Cruces expands the La
India Project package by 45% to 455.6 km(2) .
Mark Child Chairman and CEO comments:
"I am delighted that the Government of Nicaragua has granted
Condor a major exploration and exploitation concession adjacent to
the La India Project. This confirms that the country is pro-mining
and open for business. The 142.6 km(2) Las Cruces concession
expands the La India Project area by 45%. Las Cruces was available
for grant by the government under a 25 year exploration and
exploitation concession. We remain convinced that the La India
Project is a major Gold District with the potential to host over 5
million ounces ("Moz") of gold.
Condor's geologists have identified a major
north-northeast-striking basement feeder zone through the Project
(the "La India Corridor") which hosts 90% of Condor's 2.4 Moz gold
resource. The feeder zone can be projected south-east into Las
Cruces. Mapping and early prospecting/sampling show that Las Cruces
lies inside a volcanic caldera and has extensive clay alteration
and rare vuggy silica. This alteration appears to be a 'lithocap',
which raises the possibility of underlying porphyry-style
mineralisation (copper and/or gold). This porphyry is potentially
the 'heat engine' and metal source that caused gold mineralisation
across the entire La India Gold District. We are particularly keen
to follow up on anomalous samples of up to 0.1% copper."
Background
The Las Cruces concession is to the south-east of the La India
Project, next to Condor's La Mojarra concession (Figure 1).
Link to Figure 1 Location of the Las Cruces concession within
the La India Project area.
http://www.rns-pdf.londonstockexchange.com/rns/7452J_1-2018-12-6.pdf
The area was visited several times by Condor's geologists after
a major colour anomaly was identified in satellite imagery within a
major Tertiary volcanic caldera (Güisisil caldera) (Figure 2). This
circular caldera is about 9 km wide. There were also rumours of
artisanal gold mining.
Link to Figure 2 Location of the Güisisil caldera and alteration
zones within the Las Cruces concession.
http://www.rns-pdf.londonstockexchange.com/rns/7452J_1-2018-12-6.pdf
The caldera lies directly along strike from the La India
Corridor, a proposed basement fracture that controls high grade
epithermal veins (Figure 3).
Rock sampling of altered rock and reconnaissance mapping were
carried out. The area has extensive argillic (clay) alteration and
oxides, with discrete patches of vuggy silica and steam-heated
alteration on hilltops. At lower elevations, along creeks, strongly
altered and sulphide-rich (marcasite + pyrite) lapilli tuffs and
andesites are found.
Trace element concentrations, including anomalous samples of up
to 0.1% copper, seem to favour the following possibilities: 1) an
extensive fossil water table alteration related to low sulfidation
epithermal veins (similar to La India); 2) a distal part of a high
sulfidation gold/copper deposit, hosted by advanced argillic
alteration (vuggy silica), or 3) a lithocap above a porphyry (gold,
or copper/gold).
Link to Figure 3 The location of Las Cruces in respect to the La
India Corridor (on a background of antimony anomalies - warm
colours indicate anomalous values).
http://www.rns-pdf.londonstockexchange.com/rns/7452J_1-2018-12-6.pdf
Following the grant of the concession, we will apply for
environmental authorization to carry out low impact activities such
as geological mapping, prospecting and limited trenching and
drilling.
Meetings with stakeholders are planned to explain our activities
and to obtain permission from landowners prior to exploration.
Initial exploration will include detailed geological mapping,
prospecting, and soil geochemistry surveys to better understand the
extent of the alteration zones. Following the identification of
mineral prospects of interest, further work such as trenching,
geophysical surveys and exploratory drilling may be carried
out.
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, reviewed and approved 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 23 years of experience in the exploration
of precious metal mineral resources. Dr Pratt consults to Condor
Gold plc on an ad hoc basis and has considerable experience in
epithermal mineralization, the type of deposit under consideration,
and enough 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. Dr Pratt is also a Qualified Person
under Canadian National Instrument 43-101.
Technical Glossary
Argillic alteration Argillic and Advanced Argillic alteration are shallow
types of alteration encountered in a variety of
different types of hydrothermal systems. Argillic
alteration forms at lower temperatures and primarily
consists of kaolinite + montmorillonite clay minerals.
Caldera A ring-shaped depression caused by the collapse
of an area of land at the centre of a volcanic complex
caused by the emptying of the underlying magma chamber.
--------------------------------------------------------------
Epithermal Hydrothermal deposits formed at shallow depths below
a boiling hot spring system are commonly referred
to as epithermal, a term retained from an old system
of classifying hydrothermal deposits based on the
presumed temperature and depth of deposition.
--------------------------------------------------------------
Geophysics survey Systematic collection of geophysical data to determine
characteristics of underlying rocks and structures.
--------------------------------------------------------------
High sulphidation Hydrothermal deposits formed at shallow depths below
a boiling hot spring system which are dominated
oxidized, acidic fluids.
--------------------------------------------------------------
Hydrothermal Formation of minerals by hot solutions rising from
a cooling magma
--------------------------------------------------------------
Lapilli tuffs A pyroclastic rock where between 25% and 75% of
the pyroclastic fragments are lapilli (2-64mm in
size)
--------------------------------------------------------------
Lithocap Lithocaps are subsurface, broadly stratabound alteration
domains that are laterally and vertically extensive.
They form when acidic magmatic-hydrothermal fluids
react with wallrocks during ascent towards the paleosurface.
--------------------------------------------------------------
Low sulfidation Hydrothermal deposits formed at shallow depths below
a boiling hot spring system which are dominated
by reduced, neutral-pH conditions.
--------------------------------------------------------------
Porphyry Porphyry deposits are orebodies that are formed
from hydrothermal fluids that originate from a voluminous
magma chamber several kilometers below the deposit
itself. Predating or associated with those fluids
are vertical dikes of porphyritic intrusive rocks
from which this deposit type derives its name.
--------------------------------------------------------------
Pyroclastic Fragmental volcanic rocks composed solely or primarily
of volcanic materials of different sizes.
--------------------------------------------------------------
Soil geochemistry The process of collecting and analysing unconsolidated
soil sediments to locate geochemical anomalies in
the underlying rock and to use these to find ore
bodies.
--------------------------------------------------------------
Vuggy silica Acid fluid that leaches wall rock, creates a core
of residual, commonly vuggy silica that recrystallizes
to quartz.
--------------------------------------------------------------
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.
--------------------------------------------------------------
- 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 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 and dual
listed on the TSX in 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 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 in Nicaragua ("La India
Project"). The EP is considered to be the master permit for mining
operations in Nicaragua. Condor published a Pre-Feasibility Study
("PFS") on 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 million tonnes
("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 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 such term is
defined in 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: results of exploration
activities, the mineral resources, mineral reserves and future
production rates and plans at the 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, 2017 dated March 29, 2018, 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
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