LONDON, ENGLAND — (Marketwire) — 10/11/12 — Condor Gold plc („Condor“ or „the Company“) (AIM: CNR) –
Condor Gold acquires La Mojarra Concession adjacent to its La India Project, Nicaragua.
Highlights
Mark Child, Chairman and CEO commented:
“ has purchased the strategically important La Mojarra Concession that lies only 400m to the south of La India Vein Set resource of 1,481,000 oz gold at 4.0g/t; the location of a high grade open pit resource of 954,000 oz gold at 3.61g/t. The open pit resource is open to the south. One of the southern most drill intercepts recorded was 21.08m at 10.24g/t. There is a possibility that La India resource extends onto La Mojarra Concession and additional gold mineralised resources can be defined elsewhere on the 27sq km La Mojarra Concession to complement La India Project-s existing CIM Code resource of 2,375,000 oz gold at 4.6g/t. Condor-s initial assessment of La Mojarra Concession summises that the surface geological features suggest the potential for the discovery of significant buried gold mineralisation. Condor will initiate a geophysics programme on La Mojarra and other concessions in La India Project within the next 6 months“.
Condor (AIM: CNR), a gold exploration company focused on delineating a large commercial resource on its 100%-owned La India Project in Nicaragua is pleased to announce that it has acquired La Mojarra Concession (the „Concession“) which lies adjacent to the main La India Concession of La India Project and immediately to the south of La India Vein Set which host a CIM Code resource of 11.2 million tonnes at 4.0g/t containing 1,484,000 oz gold including an open pit resource 8.21 million tonnes at 3.61g/t containing 954,000 oz gold. The addition of La Mojarra Concession will increase the Company-s La India Project by 27km2 to 194km2 contained within seven contiguous wholly owned concessions. See location of Concession in Figure 1 below.
The Agreement
Condor and the Seller, together (the „Parties“) executed an Agreement on 9th October 2012 to transfer 100% of the Concession to Condor-s wholly owned Nicaraguan subsidiary La India Gold S.A. A total consideration of US$1,010,815 (the „Purchase Consideration“) will be paid as followed:
In summary, Condor has reached an Agreement to purchase the Concession for US$1,010,815. The Purchase Consideration is payment US$660,815 in cash and US$350,000 by way of issuing shares in Condor. Condor has, at its sole discretion, the right to substitute the share payments with cash payments. Again, Condor has, at its sole discretion, the right to terminate the Agreement at any point with 30 days written notice. Condor has worked in Nicaragua for 7 years, given our experience we expect the Purchase Consideration to be spread over approximately 9 months.
Geology
La Mojarra Concession lies along strike to the South of the India-California Vein trend. Gold mineralisation at the southern end of the India-California veins does not reach surface, however significant gold intercepts have been defined at depths from 50m below surface with intercepts such as 21.08m (16.1m true width) at 10.24g/t gold from 193.80m drill depth in drillhole LIDC152 (see RNS dated 29th August 2012) located 500m from the La Mojarra Concession boundary. Gold mineralisation on the India Vein remains open to depth and along strike below surface, and it is highly conceivable that the mineralisation continues into La Mojarra Concession. In addition to the potential strike extension of the La India Structure, the Company is encouraged by surface geological features that suggest that there is the potential for the discovery of significant buried gold mineralisation:
The field evidence of abundant near surface hydrothermal activity combined with a location close to the interpreted central caldera of the volcanic complex that hosts the La India epithermal gold mineralisation, makes La Mojarra Concession highly prospective for the discovery of a large buried epithermal gold deposit. The Company plans to undertake a regional rock chip, soil sampling, geophysics and geological mapping programme in order to target deep exploratory drilling for potential buried gold deposits.
To view Figure 1. Location of La Mojarra Concession, please visit the following link: .
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 by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with seventeen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which 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. Luc English 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.
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About Condor Gold plc:
Condor Gold plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up JORC Resources in Nicaragua and El Salvador. Condor has six 100% owned concessions in La India Mining District („La India Project“); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.
Condor-s concession holdings in Nicaragua currently contain an attributable CIM/JORC compliant resource base of 2,497,000 ounces of gold equivalent at 4.6g/t in Nicaragua and an attributable 973,000 oz gold equivalent at 2.6g/t JORC compliant resource base in El Salvador. The Resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua, and Ravensgate and Geosure for El Salvador.
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 Glossary
Contacts: Condor Gold plc Mark Child Executive Chairman and CEO +44 (0) 20 7408 1067
Condor Gold plc Luc English Country Manager Nicaragua & El Salvador +505 8854 0753
Beaumont Cornish Limited Roland Cornish. James Biddle +44 (0) 20 7628 3396
Ocean Equities Limited Will Slack +44 (0) 20 7786 4385
Farm Street Media Simon Robinson +44 (0) 7593 340107
