TIDMCNR
RNS Number : 4479U
Condor Gold PLC
25 November 2019
Condor Gold plc
22a St James's Square
London
SW1Y 4JH
Tel: +44 (0) 207 493 2784
25 November 2019
Condor Gold plc
("Condor", "Condor Gold" or the "Company")
Condor Gold plc announces additional Metallurgical Test results
on La India and Satellite Deposits
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that it
has received the final results of metallurgical tests on La India,
Mestiza and America deposits from SGS Laboratories, Lakefield,
Ontario.
Highlights
Condor Gold has been actively pursuing the addition of the
open-pit portions of the America and Mestiza deposits (the
Satellite Pits) to the existing planned and permitted production
from the La India Pit and has submitted Environmental and Social
Impact Assessments applying for the Environmental Permit to develop
and extract gold from the Satellite Pits (See RNS dated 22 November
2019).
During August of 2019, Condor assembled six new master
composites from La India, America and Mestiza deposits for
grindability and leaching tests. Additionally, four variability
composites from La India were selected to refine the understanding
of the power consumption and abrasion characteristics of the La
India ores. This work was conducted by SGS Mineral Services (SGS)
in Lakefield, Ontario.
In summary, the results were:
-- The new SGS results corroborate the initial findings on the
abrasion, ball mill and SAG mill work indices as presented in the
2014 prefeasibility study (PFS) that was conducted by Inspectorate
(subsequently acquired by Bureau Veritas). The SGS results, while
slightly different than the 2014 PFS values, are within the same
statistical range.
-- Gold extraction from the La India samples confirm the results
of the PFS study, demonstrating that the estimated average gold
recovery of 91% from the PFS remain valid for the La India
deposit.
-- Gold extraction from the America and Mestiza samples are similarly comparable to the original metallurgical results, and clearly show that the satellite pits will be amenable to treatment through the proposed CIL or CIP flowsheet.
-- The Abrasion / SAG mill / Bond ball mill work indices suggest
that the open pit ores from America and Mestiza, while still hard,
are not as hard or as abrasive as the La India ores.
Mark Child, Chairman and Chief Executive of Condor Gold,
commented:
"The additional metallurgical tests include grinding and
abrasion studies for the America and Mestiza satellite pits that
were not included in the metallurgical tests which formed part of
the PFS on La India open pit. The studies are essential as we
finalise the size of the processing plant ahead of a construction
decision. Both satellite pit ores are less abrasive than the La
India ore, which could be reflected in lower costs for wear
materials when processing these ores.
The most recent iteration of metallurgical studies represents
the latest of Condor's efforts to expand the district-wide
potential of our concession package, while further de-risking the
Project. The consistent amenability of the district ores to the
planned CIP processing plant lends further evidence that the
Project can achieve higher throughput for a longer period of time
than has been considered in our previous studies."
Discussion - Grinding Studies
The 2019 studies were conducted both as verification of the 2014
La India studies and to expand the understanding of the grinding
characteristics of the satellite deposits at America and Mestiza.
Table 1 provides a summary of the grinding and abrasion studies,
along with a comparison to the 2014 PFS results:
Table 1: Summary of Grindability and Abrasion test results
http://www.rns-pdf.londonstockexchange.com/rns/4479U_1-2019-11-24.pdf
Note that the original study was conducted by Inspectorate
Laboratories in Vancouver, which has been acquired by Bureau
Veritas.
Examination of the La India composites between 2014 and 2019
reveal results that are remarkably similar when considering a
difference of five years and the use of two different laboratories.
In both cases, the ore is shown to be very hard, with a Bond ball
mill work index (BWi) of 20 to 25 kWhr per tonne, and abrasion
indices of 1.04 to 1.13. These values are considered to be very
high relative to most projects. The abrasion index is an indication
of wear material consumption, which is expected to be high for the
La India project. It is noted that the process operating costs
presented in the 2014 PFS considered these high abrasion values and
corresponding high consumption of process wear materials.
The La India deposit SAG mill indices (A x b) range from 33.8 to
51.2 for the La India deposit (higher numbers indicate more
favourable characteristics in this index). These test results serve
to validate the underlying milling assumptions for the La India
deposit that were presented in the 2014 PFS.
Grinding and abrasion studies were not conducted on the America
and Mestiza satellite deposits in 2014, however, the currently
reported results indicate that both the America and Mestiza ores
are less abrasive than the La India ore, which could be reflected
in lower costs for wear materials when processing these ores.
Discussion - Leaching Studies
Gold leaching tests were conducted on each of the 2019 test
composites using the optimal process conditions that were
established during the 2014 PFS metallurgical program. Table 2
provides a summary of the leach test results that were obtained
during the 2019 and 2014 test programs.
Table 2: Summary of Leach Test Results for 2019 and 2014 Test
Programs
http://www.rns-pdf.londonstockexchange.com/rns/4479U_1-2019-11-24.pdf
As with the grinding and abrasion studies, the 2019 leaching
test results are not materially different than those presented in
the 2014 PFS. Both indicate that 90% or better gold recovery is
supportable for the La India deposit. Silver remains a relatively
minor contributor to the value of the project, at approximately 1%
of the dollar value of total sales.
- 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 in May 2006 and dual listed
on the TSX in January 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 in Nicaragua 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 ("La India Project").
The EP is considered to be the master permit for mining operations
in Nicaragua. Condor Gold published a 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 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 of 9,850Kt at 3.6 g/t gold for
1,140Koz gold in the Indicated category and 8,479Kt at 4.3g/t gold
for 1,179Koz gold in the Inferred category. 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.
Qualified Persons
The technical review of the SGS metallurgical results has been
conducted by Eric Olin, a principal consultant with SRK Consulting
(U.S. Inc., who is a registered member of SME and a "qualified
person" as defined by NI 43-101. Mr. Olin has over 40 years'
experience in extractive metallurgy including extensive experience
with CIP and CIL gold extraction plants. Eric Olin is a full time
employee of SRK Consulting (U.S.) Inc., an independent consultancy,
and has sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration. Eric Olin
consents to the inclusion in the announcement of the matters based
on their information in the form and context in which is appears
and confirms that this information is accurate and not false or
misleading.
The technical and scientific information in this press release
has been reviewed, verified and approved by Gerald D. Crawford,
P.E. who is a "qualified person" as defined by NI 43-101.
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 defined by 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: 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, 2018 dated March 22, 2019, 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.
Technical Glossary
Abrasion Index
The Bond Abrasion Test determines the Abrasion Index, which is
used to determine steel media and liner wear in crushers, rod
mills, and ball mills. Bond developed correlations based on the
wear rate in pounds of metal wear/kWh of energy used in the
comminution process. Higher values indicate more abrasive rock.
Ball Mill Work Index - BMWi
The Bond Ball Mill Work Index is a measure of the resistance of
the material to grinding in a ball mill. It can be used to
determine the grinding power required for a given throughput of
material under ball mill grinding conditions. It is a 'locked
cycle' test conducted in closed circuit with a laboratory screen.
Its units are expressed as kWhr/tonne.
Carbon-in-Pulp (CIP) or Carbon in Leach (CIL)
A metallurgical process for extracting gold by leaching gold
from the pulverized host rock with a cyanide solution. Gold is
subsequently adsorbed onto activated charcoal for later
recovery.
Mineral Resource
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories. An Inferred Mineral Resource has a lower level of
confidence than that applied to an Indicated Mineral Resource. An
Indicated Mineral Resource has a higher level of confidence than an
Inferred Mineral Resource but has a lower level of confidence than
a Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other
geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling.
Material of economic interest refers to diamonds, natural solid
inorganic material, or natural solid fossilized organic material
including base and precious metals, coal, and industrial
minerals.
The term Mineral Resource covers mineralization and natural
material of intrinsic economic interest which has been identified
and estimated through exploration and sampling and within which
Mineral Reserves may subsequently be defined by the consideration
and application of Modifying Factors. The phrase 'reasonable
prospects for eventual economic extraction' implies a judgment by
the Qualified Person in respect of the technical and economic
factors likely to influence the prospect of economic extraction.
The Qualified Person should consider and clearly state the basis
for determining that the material has reasonable prospects for
eventual economic extraction. Assumptions should include estimates
of cutoff grade and geological continuity at the selected cut-off,
metallurgical recovery, smelter payments, commodity price or
product value, mining and processing method and mining, processing
and general and administrative costs. The Qualified Person should
state if the assessment is based on any direct evidence and
testing.
Interpretation of the word 'eventual' in this context may vary
depending on the commodity or mineral involved. For example, for
some coal, iron, potash deposits and other bulk minerals or
commodities, it may be reasonable to envisage 'eventual economic
extraction' as covering time periods in excess of 50 years.
However, for many gold deposits, application of the concept would
normally be restricted to perhaps 10 to 15 years, and frequently to
much shorter periods of time.
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource
for which quantity and grade or quality are estimated on the basis
of limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
An Inferred Mineral Resource has a lower level of confidence
than that applying to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and
sampling gathered through appropriate sampling techniques from
locations such as outcrops, trenches, pits, workings and drill
holes. Inferred Mineral Resources must not be included in the
economic analysis, production schedules, or estimated mine life in
publicly disclosed Pre- Feasibility or Feasibility Studies, or in
the Life of Mine plans and cash flow models of developed mines.
Inferred Mineral Resources can only be used in economic studies as
provided under NI 43-101.
There may be circumstances, where appropriate sampling, testing,
and other measurements are sufficient to demonstrate data
integrity, geological and grade/quality continuity of a Measured or
Indicated Mineral Resource, however, quality assurance and quality
control, or other information may not meet all industry norms for
the disclosure of an Indicated or Measured Mineral Resource. Under
these circumstances, it may be reasonable for the Qualified Person
to report an Inferred Mineral Resource if the Qualified Person has
taken steps to verify the information meets the requirements of an
Inferred Mineral Resource.
Indicated Mineral Resource
An Indicated Mineral Resource is that part of a Mineral Resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit.
Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing and is sufficient to
assume geological and grade or quality continuity between points of
observation.
An Indicated Mineral Resource has a lower level of confidence
than that applying to a Measured Mineral Resource and may only be
converted to a Probable Mineral Reserve.
Mineralization may be classified as an Indicated Mineral
Resource by the Qualified Person when the nature, quality, quantity
and distribution of data are such as to allow confident
interpretation of the geological framework and to reasonably assume
the continuity of mineralization. The Qualified Person must
recognize the importance of the Indicated Mineral Resource category
to the advancement of the feasibility of the project. An Indicated
Mineral Resource estimate is of sufficient quality to support a
Pre-Feasibility Study which can serve as the basis for major
development decisions.
Mineral Reserve
Mineral Reserves are sub-divided in order of increasing
confidence into Probable Mineral Reserves and Proven Mineral
Reserves. A Probable Mineral Reserve has a lower level of
confidence than a Proven Mineral Reserve.
A Mineral Reserve is 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 or extracted and is defined by studies at
Pre-Feasibility or Feasibility level as appropriate that include
application of Modifying Factors. Such studies demonstrate that, at
the time of reporting, extraction could reasonably be
justified.
The reference point at which Mineral Reserves are defined,
usually the point where the ore is delivered to the processing
plant, must be stated. It is important that, in all situations
where the reference point is different, such as for a saleable
product, a clarifying statement is included to ensure that the
reader is fully informed as to what is being reported.
The public disclosure of a Mineral Reserve must be demonstrated
by a Pre-Feasibility Study or Feasibility Study.
Mineral Reserves are those parts of Mineral Resources which,
after the application of all mining factors, result in an estimated
tonnage and grade which, in the opinion of the Qualified Person(s)
making the estimates, is the basis of an economically viable
project after taking account of all relevant Modifying Factors.
Mineral Reserves are inclusive of diluting material that will be
mined in conjunction with the Mineral Reserves and delivered to the
treatment plant or equivalent facility. The term 'Mineral Reserve'
need not necessarily signify that extraction facilities are in
place or operative or that all governmental approvals have been
received. It does signify that there are reasonable expectations of
such approvals.
'Reference point' refers to the mining or process point at which
the Qualified Person prepares a Mineral Reserve. For example, most
metal deposits disclose mineral reserves with a "mill feed"
reference point. In these cases, reserves are reported as mined ore
delivered to the plant and do not include reductions attributed to
anticipated plant losses. In contrast, coal reserves have
traditionally been reported as tonnes of "clean coal". In this coal
example, reserves are reported as a "saleable product" reference
point and include reductions for plant yield (recovery). The
Qualified Person must clearly state the 'reference point' used in
the Mineral Reserve estimate.
Master Composite
A testing sample comprised of multiple sub-samples taken from
multiple locations within an area of a deposit. This is a common
practice when individual samples are of insufficient size for a
minimum sample requirement for metallurgical tests. Source
sub-samples are selected to represent specific mineralization types
or specific areas within a deposit.
Probable Mineral Reserve
A Probable Mineral Reserve is the economically mineable part of
an Indicated, and in some circumstances, a Measured Mineral
Resource. The confidence in the Modifying Factors applying to a
Probable Mineral Reserve is lower than that applying to a Proven
Mineral Reserve.
The Qualified Person(s) may elect, to convert Measured Mineral
Resources to Probable Mineral Reserves if the confidence in the
Modifying Factors is lower than that applied to a Proven Mineral
Reserve. Probable Mineral Reserve estimates must be demonstrated to
be economic, at the time of reporting, by at least a
Pre-Feasibility Study.
Pre-Feasibility Study (Preliminary Feasibility Study)
The CIM Definition Standards requires the completion of a
Pre-Feasibility Study as the minimum prerequisite for the
conversion of Mineral Resources to Mineral Reserves.
A Pre-Feasibility Study is a comprehensive study of a range of
options for the technical and economic viability of a mineral
project that has advanced to a stage where a preferred mining
method, in the case of underground mining, or the pit
configuration, in the case of an open pit, is established and an
effective method of mineral processing is determined. It includes a
financial analysis based on reasonable assumptions on the Modifying
Factors and the evaluation of any other relevant factors which are
sufficient for a Qualified Person, acting reasonably, to determine
if all or part of the Mineral Resource may be converted to a
Mineral Reserve at the time of reporting. A Pre-Feasibility Study
is at a lower confidence level than a Feasibility Study.
Relative Density / Specific Gravity
The weight of a given volume of material expressed as a ratio of
the density of water. A specific gravity of 2.50 would indicate
that a cubic meter of the material would weigh 2.5 metric
tonnes.
SAG Mill Work Index - Short for Semi-Autogenous Grinding - (A x
b) - The SAG Mill Work Index is a measure of the resistance of
material to grinding in a SAG mill. It can be used to determine the
grinding power required for a given throughput of material under
SAG mill grinding conditions.. The index has no units. Higher
values indicate better performance through a SAG mill.
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
MSCUSVRRKWAAUUA
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