TIDMCNR
RNS Number : 5981Y
Condor Gold PLC
14 May 2021
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
14 May 2021
Condor Gold Plc
("Condor" or the "Company")
Condor Gold Plc announces its unaudited results for the three
months ended 31 March 2021
Condor Gold (AIM: CNR; TSX: COG) announces that it has today
published its unaudited financial results for the three months
ending 31 March 2021 and the Management's Discussion and Analysis
for the same period.
Both of the above have been posted on the Company's website
www.condorgold.com and are also available on SEDAR at www.sedar.com
.
Highlights for the first quarter of 2021
-- Strong cash balance: GBP6.3M as of end-March
-- Mobilisation in January of a second diamond drill rig for the
on-going 3,300 m infill drilling campaign at La India Starter Pits
was announced by the Company. The drilling is on 25m by 25m drill
spacing.
-- Completion of ground investigation drilling of 23
geotechnical drill holes for the final designs of the Tailings
Storage Facility and Water Retention Resevoir and 58 geotechnical
test pits on these areas and at the location of the processing
plant.
-- Completion in February of a private placement of 9,523,810
new ordinary shares in the Company at a price of 42p per share,
including a Directors & CFO subscription of 4,871,414 shares to
raise in aggregate gross proceeds of GBP4,000,000 before expenses.
The Placing was arranged directly by the Company with institutional
and other investors.
-- In February, the Company commenced drilling of a 5,000m
exploration program on the Cacao prospect with the objective of
demonstrating the depth of the main gold mineralisation level and
extending it along strike for up to 3,000m. Cacao, located only 4km
from the planned and permitted processing plant at La India,
already hosts an Inferred Mineral Resource of 662 Kt at 2.8 g/t
gold for 60,000 oz gold defined by Condor from 2,890 m drilling in
2019 is a highly prospective target, sitting on a major dilational
opening between two major feeder zones (La India and Andrea
Corridors). The Cacao vein is one of the thickest in the district,
comparable to the main La India Vein. Mineral textures are
identical to La India.
-- The results for the first 26 diamond drill holes for a
combined 1,296 m on the La India Starter Pit infill drilling
programme were announced in March. The primary objective of the
drilling programme is to provide 25 m spaced drill sampling within
the two shallow (up to 35 m deep), high-grade Starter Pits within
the main La India Open Pit Mineral Reserve. Results included
LIDC404, which drilled 9.6m true width at 3.98 g/t gold from
surface (announcement of 9 March, 2021 refers).
-- On 15 March the Company agreed to purchase a complete new
Semiautogenenuous Mill ("SAG Mill") package from First Majestic
Silver Corp ("First Majestic") (TSX:FR). The purchase consideration
is approximately US$6.5 million, including US$3.0 million payable
in shares of the Company at 50p per ordinary share (the
"Consideration Shares"). The SAG Mill package represents a key item
of the plant required to bring the Company's La India Project into
production. The SAG Mill is estimated by Metso Outotec's technical
support group to have a throughput of up to 2,300 tonnes per day
("tpd") or 0.8 million tonnes per annum ("tpa") on a sustained
basis, based on the metallurgical characteristics of the ore and
mineralised material at Condor's La India Project. Based on
internal technical studies and mining dilution studies conducted by
SRK Consulting (UK) Limited, initial production is expected to be
80,000 - 100,000 oz gold per annum.
-- On 30 March further drill results from the on-going diamond
drill programme at La India Starter Pits. LIDC406 of 17.90 m (17.4
m true width) at 3.27 g/t gold from 24.55 m drill depth, including
2.1 m @ 15.1 g/t gold is highly encouraging and adds considerable
confidence to the geological model, the mineral resource and
reserve calculation and mine plan. Announcement of 30 March
refers.
Post Period Highlights
-- On 29 April Condor announced 44 drill holes for a combined
2,290 m of infill and RC replacement drilling completed within La
India Starter Pits. A drill intersect in LIDC413 of 22.05 m (21.6 m
true width) at 6.48 g/t gold including 15 m true width at 8.68 g/t
gold from 24.75 m drill depth in a starter pit is exceptional in
terms of width and grade near surface. The drill intercept in
LIDC416 of 16.00 m (15.7m true width) at 5.30 g/t gold from 18.35 m
drill depth including 5.8 m true width at 12.35g/t is also very
impressive. See announcement of 29 April for futher details.
Mark Child, Chairman and CEO commented:
"Condor has made significant progress during the first quarter
of 2021, advancing and de-risking the La India Project to a "shovel
ready" status ahead of construction. There are several areas worth
highlighting and explaining - when combined they progress Condor's
strategy of constructing and operating and mine producing circa
100,000 oz gold p.a. and demonstrating a 5M oz Gold District:
The 3,500m infill drilling program at La India Starter pits has
nearly been completed. The objective is to confirm the geological
model by drilling on 25m by 25m drill spacing with PQ, triple tube
diamond core drilling and replace reverse circulation drill holes.
The drill results have been excellent, a highlight is drill
intersect in LIDC413 of 22.05 m (21.6 m true width) at 6.48 g/t
gold including 15 m true width at 8.68 g/t gold from 24.75 m drill
depth. The La India Starter pits represent circa 10% of the main La
India open pit mineral reserve, are shallow, within 35 m of the
surface and contain 455Kt at 4.17g/t gold for 59,674 oz gold using
a 2.00g/t cut off grade and have a low strip ratio. At US$1,700/oz
gold price, the operating cash flow is estimated to be
approximately US$60M. The intention is to mine them early to
quicken the payback period and enhance the Project's economics.
The Feasibility Level Studies on the tailings storage facility
and water retention dam are 75%-completed. The Site Wide Water
Balance study is significantly advanced and due to be completed
this summer. Site clearance and preparation of 11 hectares in the
area of the processing plant is advanced with the main culverts and
access road completed
The purchase of a complete new SAG Mill package from First
Majestic Silver for US$6.5M marks a step change for the project as
the mill has been sized at 2,300tpd (0.8Mtpa) with initial
production estimated to range from 80,000 to 100,000 oz gold per
annum from the 3 fully permitted open pits. This marks stage 1 of
production; the design and lay out of the processing plant will
include the ability to double the production capacity. The new Mill
is 100% ready to be shipped and has been manufactured and supplied
with warrantees by Metso Outotec. The acceptance of US$3M worth of
Condor's shares at 50p by First Majestic Silver, as part of the
purchase consideration, is a vote of confidence in the Project.
The 5,000m drilling program on the Cacao vein is aimed at
demonstrating a 500,000 oz gold potential at Cacao, which currently
hosts a small Inferred Mineral Resource of 662 Kt at 2.8 g/t gold
for 60,000 oz gold over a 500m strike length Cacao, but is open at
depth and along strike in both directions. The drill programme is
designed to test to depth and along a 3,000m strike length and
approximately half the drilling has been completed. The vein width
is comparable to the best intersections at La India and the hanging
wall of the vein is increasingly stockworked, as at La India."
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS TO 31 MARCH 2021
Three months Three months
to 31 March to 31 March
2021 unaudited 2020 unaudited
GBP GBP
Revenue - -
Administrative expenses (512,518) (386,314)
Gain on disposal of
project - 477,616
Note
Operating gain/(loss) 3 (512,518) 91,302
Finance income - 1,175
Loss before income tax (512,518) 92,477
Income tax expense Note - -
4
Gain/(loss) for the
period (512,518) 92,477
================ ================
Other comprehensive
income/(loss):
Write off of Minority -
Interest
Currency translation
differences (422,392) 1,436,656
---------------- ----------------
Other comprehensive
income/(loss) for the
period (422,392) 1,436,656
================ ================
Total comprehensive
income/(loss) for the
period (934,910) 1,529,133
================ ================
Gain/(loss) per share
expressed in pence per
share:
Basic and diluted (in Note
pence) 7 (0.41) 0.10
================ ================
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
As at 31 As at 31 As at 31
March 2021 December March 2020
unaudited 2020 unaudited
GBP audited GBP
GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 4,081,961 3,067,397 957,275
Intangible assets 22,623,998 22,089,314 22,851,336
26,705,959 25,156,711 23,808,611
------------- ------------- -------------
CURRENT ASSETS
Trade and other receivables 282,202 114,409 217,295
Cash and cash equivalents 6,278,947 4,159,391 1,736,695
------------- ------------- -------------
6,561,149 4,273,800 1,953,990
------------- ------------- -------------
TOTAL ASSETS 33,267,108 29,430,511 25,762,601
============= ============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 192,525 266,412 256,546
------------- ------------- -------------
TOTAL LIABILITIES 192,525 266,412 256,546
============= ============= =============
NET CURRENT ASSETS 6,368,624 4,007,388 1,697,444
------------- ------------- -------------
NET ASSETS 33,074,583 29,164,099 25,506,055
============= ============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital Note
8 26,964,836 23,732,526 19,032,704
Share premium 38,700,439 37,175,626 34,008,693
Legal reserves - - -
Exchange difference reserve (2,784,493) (2,362,101) 689,723
Retained earnings (29,806,199) (29,381,952) (28,225,065)
TOTAL EQUITY 33,074,583 29,164,099 25,506,055
============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31 MARCH 2021
Share Share Exchange Retained Total Total equity
capital premium difference earnings
reserve
GBP GBP GBP GBP GBP GBP
At 1 January
2020 18,932,704 33,953,693 (746,933) (28,354,144) 23,785,320 23,785,320
Comprehensive
income:
Gain for the
period - - - 92,477 92,477 92,477
Other comprehensive
income:
Currency translation
differences - - 1,436,656 - 1,436,656 1,436,656
Total comprehensive
income - - 1,436,656 92,477 1,529,133 1,529,133
New shares
issued 100,000 55,000 - - 155,000 155,000
Issue costs - - - - - -
Share based
payment - - - 36,602 36,602 36,602
At 31 March
2020 19,032,704 34,008,693 689,723 (28,225,065) 25,506,055 25,506,055
----------- ----------- ------------ ------------- ----------- ---------------
At 1 January
2021 23,732,526 37,175,626 (2,362,101) (29,381,952) 29,164,099 29,164,099
----------- ----------- ------------ ------------- ----------- ---------------
Comprehensive
income:
Loss for the
period - - - (512,518) (512,518) (512,518)
Other comprehensive
income:
Currency translation
differences - - (422,392) - (422,392) (422,392)
Total comprehensive
income - - (422,392) (512,518) (934,910) (934,910)
New shares
issued 3,232,310 1,524,813 - - 4,757,123 4,757,123
Issue costs - - - - - -
Share based
payment - - - 88,271 88,271 88,271
At 31 March
2021 26,964,836 38,700,439 (2,784,493) (29,806,199) 33,074,583 33,074,583
----------- ----------- ------------ ------------- ----------- ---------------
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 31 MARCH 2021
Three months Three months
to 31.03.21 to 31.03.20
unaudited unaudited
GBP GBP
Cash flows from operating activities
Gain/(loss) before tax (512,518) 92,477
Share based payment 88,271 36,602
Depreciation charges - 9
Exchange differences 23,259 31,572
Finance income - (1,175)
------------- -------------
(400,988) 159,485
(Increase) in trade and other
receivables (167,793) (74,016)
Increase/(decrease) in trade
and other payables (73,887) (500,556)
Net cash absorbed in operating
activities (642,668) (415,087)
------------- -------------
Cash flows from investing activities
Purchase of intangible fixed
assets (1,061,879) (570,170)
Purchase of tangible fixed assets (933,020) (337,779)
Interest received - 1,175
Net cash absorbed in investing
activities (1,994,899) (906,774)
------------- -------------
Cash flows from financing activities
Net proceeds from share issue 4,757,123 155,000
Net cash generated in financing
activities 4,757,123 155,000
------------- -------------
Increase / (decrease) in cash
and cash equivalents 2,119,556 (1,166,861)
Cash and cash equivalents at
beginning of period 4,159,391 2,903,556
Exchange losses on cash and -
bank
------------- -------------
Cash and cash equivalents at
end of period 6,278,947 1,736,695
- 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 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 mining dilution studies reported for the Mestiza and America
deposits have been performed under the supervision of Dr Tim Lucks,
Principal Consultant (Geology & Project Management), of SRK
Consulting (UK) Limited, who is a Member of the Australian
Institute of Mining and Metallurgy, MAusIMM(CP). Tim Lucks is an
independent "qualified person" as such term is defined in NI
43-101. Tim Lucks consents to the inclusion in the announcement
that material that relates to the America and Mestiza dilution
studies, 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 Andrew Cheatle P.Geo.,
who is a "qualified person" as defined by NI 43-101 and is a
non-executive director 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, 2020 dated March 31, 2021 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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