LONDON, ENGLAND — (Marketwired) — 04/15/13 — (AIM: CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned La India Project in Nicaragua, which hosts a CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t, is pleased to announce the results of a further 36 drill holes for 3,692m of the current phase of resource infill drilling at the La India Vein Set and the initial drill testing of wallrock gold mineralisation on the America Vein Set.
Highlights
Mark Child, Chairman and CEO commented:
„Condor has completed 7,089m of an 8,000m drilling programme on La India open pit resource. The aim of the drilling programme is to increase the geological confidence of the resource by defining 800,000 oz gold in the Indicated Category, a resource category with a high degree of confidence that can be used in a bankable feasibility study. The drill results from this in-fill drilling programme demonstrate continuity of gold mineralisation and grade. Three drill holes, each from a depth of less than 20m from surface provide great confidence that La India open pit resource will continue to demonstrate robust economics: LIDC329 intercepted 4.80m at 37.24g/t gold, LIRC240 intercepted 21m at 3.33g/t gold and LIDC239 intercepted 11.40m at 3.60g/t gold.
Condor has completed 3,567m of a 4,000m drilling programme on the America Vein Set. The aim of the drilling programme is to prove a second open pit resource and increase the size of the resource. The most interesting new drill result, demonstrating open pit potential, is from drill hole LIRC215, which from a depth of only 13m intercepted 19m at 1.98g/t gold separated by 6m of waste rock from a further 10m at 1.70g/t gold.“
La India Vein Set
Fifty drill holes for 7,089m, including 3 reverse circulation (RC) drill holes for 143.5m have been completed on La India Vein Set aimed at upgrading the mineral resource that falls within the bounds of the current Whittle open-pit from Inferred to Indicated level of confidence. The current in-pit resource is 8.21 million tonnes at 3.6g/t for 954,000 oz gold, of which 534,000 oz gold at 3.9g/t is in the Indicated Category and 420,000 oz gold at 3.3g/t in the Inferred Category (Figure 1 below). The drilling programme is designed to increase the indicated resource to 800,000 oz gold within the open pit. The original 7,000m drilling programme has been extended to approximately 8,000m to follow-up on better than expected high-grade intercepts in the northern zone which are expected to extend the open pit to the north and further increase the overall open-pit resource at Indicated level of confidence.
Assay results have been received for a further 17 drill holes for 2,128m (Table 4 below) since the last announcement (see RNS announcement dated 4th March 2013) such that a total of 48 drill holes for 6,819m of the current drilling programme on the India-California vein trend have been received to date (Figure 2 below). The latest results are generally consistent with expectations and appear to validate the geological model used in the current resource by confirming the continuity and average grade of the gold mineralisation.
Drilling in the Central zone has continued to demonstrate wide moderate to high-grade gold mineralisation along a 300m strike length between the 600 and 900 cross-sections. Of particular note:
Further 50m spaced drilling on the recently defined North zone returned a best new intercepts of 3.20m (3.1m true width) at 6.63g/t gold from 67.60m drill depth in drill hole LIDC223 on the 1500 cross-section and 4.90m (3.5m true width) at 3.95g/t gold from 136.2m drill depth in drillhole LIDC217 on the 1450 cross-section. These results demonstrate a minimum 150m strike length to this zone which is expected to positively affect the open-pit plan and add further open pit resource ounces; the North Zone had not been discovered when the current mineral resource was calculated.
America Vein Set
Thirty-nine drill holes for 3,567m, including 26 reverse circulation (RC) drill holes for 1,896m, out of a 4,000m drilling programme on the America Vein Set have been completed. The drilling programme is designed to test for remnant wallrock gold mineralisation on the historic America Mine workings. Assay results have been received for a further 17 drill holes for 1,565m (Table 5 below) since the last announcement (see RNS announcement dated 4th March 2013) such that assay results for a total of 38 drill holes for 3,407m of the current drilling programme have been received to date (Figure 3 below).
The America Vein Set currently contains a mineral resource of 2.11Mt at 6.0g/t for 405,000 oz gold, of which 288,000 oz gold is on the interconnected America-Constancia-Escondido veins, including 480kt at 7.8g/t for 120,000 oz gold in the Indicated category (Figure 1 below). The Indicated Resource is contained within, and as extensions of the historic mine workings and is based largely on historic underground channel sampling which was restricted to the high-grade core of the veins that was historically targeted for mining. At the time of the last resource estimation an absence of drilling and trench sampling in the wallrock of the historic mine workings meant that no remnant wallrock gold was included in the current resource estimation.
Previously reported surface mapping and trench sampling has demonstrated that the moderate (50 degrees -60 degrees ) dipping America and Escondido veins formed along two edges of an upthrown block. The steeper dipping Constancia Vein formed along a related structure bounding an adjacent block. (see RNS dated 4th March 2013; Figure 3 below). The current exploration programme has identified a wide moderate-grade breccia zone on the flexure between the America and Escondido veins where the structure bends by 60 degrees between the 120 degrees striking America Vein and the North-South striking Escondido Vein. At surface this breccia zone has a strike length of between 100m and 150m as defined by trench intercepts from South to North along a 100m strike length of:
The latest drilling results have now traced the zone at a 55 degrees dip for a down-dip distance of almost 300m and a vertical difference of approximately 235m with the following significant drilling intercepts:
The Company considers this zone to have open-pit potential. Further drilling is required at depth to fully define the strike length following intercepts such as 1.8m at 13.31g/t gold in drillhole LIDC216 on the edge of the flexure on the northwest-striking America Vein limb. If combined with the wider, lower grade breccia zone this potentially extends the strike length to at least 200m at the 370m elevation level.
Further along strike to the northwest the latest drilling results have demonstrated that wide zones of moderate grade gold mineralisation do occur in zones that were not historically mined with an intercept of 8.0m (7.5m true width) at 1.82g/t gold from 29m drill depth in drill hole LIRC235.
Current Drill Programme on La India and America Vein Sets
Less than 1,000m remains to complete the extended infill drilling programme within the current La India Whittle open pit shell to complete the 50m grid spacing needed for conversion from Inferred to Indicated resource category with a target of 800,000 oz gold in the Indicated Category. The drilling includes further additional drilling in the northern zone where infill drilling has defined a new high-grade zone. It is expected that the high grade zone will positively affect the open pit design in this zone.
A further 700m of drilling is planned on the America Vein Set to test the open pit potential of mining remnant wallrock material on the America Vein and allow calculation of an updated resource at a mixed Inferred and Indicated level. The updated resource will include remnant wallrock gold mineralisation in addition to the undeveloped historic narrow mine workings that constitutes the current mineral resource in the historically mined part of the America Vein Set.
To view Figure 1. Location of the Drilling on the La India and America Vein Sets within the La India Project area, please visit the following link: .
To view Figure 2. Plan showing location of drill holes and cross-sections on La India Vein Set, please visit the following link: .
To view Figure 3. Plan showing location of drill holes and cross-sections on the America Vein Set, 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 2.6g/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 +505 8854 0753
Beaumont Cornish Limited Roland Cornish +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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