LONDON, ENGLAND — (Marketwire) — 02/05/13 — (AIM: CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce the acquisition of 100% of the 86.4 sq km -HEMCO-SRP-NS- Concession (the „HEMCO Concession“) from HEMCO Nicaragua SA („HEMCO“) for a consideration of US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc at GBP 2.00 per share. The acquisition of the HEMCO Concession increases the Company-s La India Project area to 280 sq km from 194 sq km.
Highlights
Mark Child, Chairman and CEO commented:
„The purchase of the 86sq km HEMCO-SRP-NS concession (the „HEMCO Concession“) on the eastern edge of La India Project is part of Condor-s strategy of consolidating the sub surface mineral rights around the 2.4m oz gold resource on La India Project. The dominant trend of the quartz veins that comprise La India Project is from the North-West to the South-East. Preliminary field work by Condor-s geologists indicates that the veins within the America Vein Set which hosts a resource of 405,000 oz gold at 6.0g/t and the Mestiza Vein Set which hosts a resource of 334,000 oz gold at 7.0g/t are open to the North West and trend into the HEMCO Concession. Four target areas have been identified for further exploration within the HEMCO Concession. See Figures 1 and 2 below.
„HEMCO Nicaragua S.A. (HEMCO) owns and operates the Bonanza gold mine in Nicaragua, which produced circa 50,000 oz gold in 2012. I am pleased with HEMCO-s vote of confidence by agreeing to accept the US$275,000 purchase consideration in shares of Condor Gold plc, at a premium to the market price.“
The 8,639.28 hectare Concession is located adjacent and to the north and west of Condor-s wholly owned El Rodeo and La India Concessions (see Figure 1 below), along strike to the northwest of the main America and Mestiza Vein Set trends, covering a potential additional 13km strike length. Gold mineralisation has been recorded in rockchip samples within 600m of the southern boundary of the Concession, however there is very little known historic exploration activity on the concession area itself.
Four areas of quartz veining were identified during reconnaissance exploration carried out by Condor geologists as part of due diligence prior to signing the agreement and these areas will form the initial exploration targets (see Figure 2 below). The existence of extensive quartz veining along strike of the La India epithermal gold District suggests that there is potential for the discovery of economic gold mineralisation. Condor plans to extend geological mapping over the Concession and plans to undertake first pass regional exploration appropriate to the geological terrain, which may include satellite image interpretation, geophysics, stream and surface geochemical sampling.
The principal terms of the purchase of the Concession are:
To view figure 1, „Location of the HEMCO-SRP-NS concession within the La India Project area,“ please visit the following link: .
To view figure 2, „The HEMCO-SRP-NS concession within the La India Project area showing four identified areas of interest with epithermal quartz veining,“ 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 Resources 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 CIM/JORC Resources in Nicaragua and El Salvador. Condor has seven 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 4.6 g/t in Nicaragua and an attributable 1,004,000 oz gold equivalent at 2.6 g/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 +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
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