TIDMCNR
RNS Number : 7651I
Condor Gold PLC
16 December 2020
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
16 December 2020
Condor Gold Plc
("Condor", "Condor Gold" or the "Company")
Driving Towards Production - Condor Gold Commences Initial Site
Preparation at Mina La India
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that it
has commenced initial site preparation at the location of the
processing plant facility at Mina La India, Nicaragua. This
includes the main plant access road from a regional paved highway
to the processing plant, in-plant roads and a bypass road. All key
areas for the plant layout from the stockpile area to the crushing
and grinding machinery to the leach tanks, a laydown area and
warehouse will be cleared. The total area being cleared is 11.26
hectares and is estimated to be completed in 3 to 4 months. It
demonstrates Condor's commitment to developing a clear path to
production.
Highlights:
-- Site preparation commences in area of processing plant facility
-- 11.26 hectares of land being cleared of scrub and trees with
any disturbed topsoil being stockpiled separately for future
reclamation use
-- Main access road to plant facility, internal and bypass roads being prepared
-- ROM Stockpile area, laydown area, warehouse areas to be cleared
-- The Company has purchased 100% of the land to proceed with construction in this area
-- Clearing activities will replace trees on a 10 to 1 basis
supported by Condor's tree nursery, which has approximately 7,000
trees
Mark Child, Chairman and CEO comments:
"The initiation of site preparation at Mina La India marks a
significant landmark in the Company's development as it transitions
from a gold exploration and development company to a gold producer.
Two viewing platforms over the plant area have already been
constructed. 25 geotechnical test pits have been completed to aid
with the design of the plant layout. The focus of the initial site
preparation is clearing 11.26 hectares of scrub and trees which
will host the key areas of the plant from the stockpile area to the
comminution circuit, a laydown area, warehouses, main access road
and internal roads."
Site Preparation at Mina La India:
The site preparation of the processing plant facility is in
compliance with laws and regulations applicable in Nicaragua and in
line with the conditions of the Environmental Permit to construct
and operate a processing plant with a capacity of up to 2,800
tonnes per day and associated mine site infrastructure (see RNSs
dated 6 August 2018 and 28 January 2020). Over 25 geotechnical
tests pits have been completed, which have aided in the arrangement
of the processing plant layout.
The initial site preparation includes ground clearance of trees
and scrubs, clearing 11.26 hectares of land, and 790 meters of
roads are being constructed. The areas being cleared include the
construction of a main plant access road from a regional paved
highway to the processing plant facility, in-plant roads and a
bypass road to minimise traffic through a nearby village. The
initial site preparation includes a laydown area for the processing
plant equipment, the location of the stockpile area, the processing
plant location and warehouses. The site clearance and construction
of two viewing areas over the plant location has been completed.
The initial stage of site preparation will use local Nicaraguan
firms and local labour thereby creating jobs in the local
communities. Clearing activities will replace trees on a 10 to 1
basis supported by Condor's tree nursery, which has approximately
7,000 trees; useable wood will either be repurposed or distributed
as cooking fuel for local families. Any topsoil will be stockpiled
and retained for future use.
A second, more comprehensive stage of site preparation will
follow, which will include geotechnical drilling on the location of
the SAG or Ball Mill and key infrastructure. It will include deep
foundation excavation for the location of the processing plant,
offices, accommodation, warehouses etc and will be extended to the
tailings storage facility, water retention dam, explosive magazine,
offices, accommodation, internal roads and preparation of a berm.
It will also include surface water diversion channels, drainage
piping and placement of structural concrete. The majority of the
designs and detailed engineering in the second stage will be
conducted by reputable international firms to both local and
international standards.
- 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
SP Angel Corporate
Finance LLP Ewan Leggat
+44 (0) 20 3470 0470
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 Pre-Feasibility Study ("PFS")
on the 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. A gold price of $1,500/oz and a cut-off grade of
0.5g/t and 2.0g/t gold were assumed for open pit and underground
resources respectively. A cut-off grade of 1.5g/t gold was
furthermore applied within a part of the Inferred Resource. Mineral
Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that any part of the
Mineral Resources will be converted to Mineral Reserves.
Environmental Permits have also been granted in April and May
2020 in relation to the Mestiza and America open pits respectively,
both located in the vicinity of the La India Project. The Mestiza
open pit hosts 92Kt at a grade of 12.1 g/t gold (36,000 oz
contained gold) in the Indicated Mineral Resource category and
341Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the
Inferred Mineral Resource category . The America open pit hosts 114
Kt at a grade of 8.1 g/t gold (30,000 oz contained gold) in the
Indicated Mineral Resource category and 677Kt at a grade of 3.1 g/t
gold (67,000 oz contained gold) in the Inferred Mineral Resource
category. Following the permitting of the Mestiza and America open
pits, together with the La India open pit Condor has 1.12M oz gold
open pit Mineral Resources permitted for extraction, inclusive of a
Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold.
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 Mineral Resource Estimate has been completed by Ben Parsons,
a Principal Consultant (Resource Geology) with SRK Consulting
(U.S.), Inc, who is a Member of the Australian Institute of Mining
and Metallurgy, MAusIMM(CP). Ben Parsons has some nineteen years'
experience in the exploration, definition and mining of precious
and base metal Mineral Resources. Ben Parsons 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
mineralisation and type of deposit under consideration, and to the
type of activity which he is undertaking to qualify as a "qualified
person" as defined under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") of the Canadian
Securities Administrators and as required by the June 2009 Edition
of the AIM Note for Mining and Oil & Gas Companies. Ben Parsons
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.
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 and is
the Chief Technical Officer of Condor Gold plc.
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 ongoing mining dilution
and pit optimisation studies, and the incorporation of same into
any mining production schedule, future development and production
plans at 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, 2019 dated March 31, 2020 and
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.
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END
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