LONDON, ENGLAND — (Marketwired) — 10/16/13 — (AIM: CNR) („Condor“ or „the Company“), 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 2.4 Million oz gold at 4.6g/t, is pleased to announce the completion of a geotechnical study to the Pre-Feasibility Study („PFS“) level of confidence on the proposed La India Open Pit. The study has demonstrated that the La India Open Pit will support pit wall angles varying between 40 and 48 degrees, an improvement in the 40 to 42 degree angles assumed in the Preliminary Economic Assessment („PEA“).
Mark Child, Chairman and CEO commented:
„The results of the geotechnical report to the Pre-Feasibility Level of confidence are encouraging. The pit angles range from 40 to 48 degrees and are an improvement on the 40:42 degree pit angles used in the Preliminary Economic Assessment released in March 2013. Steeper pit angles may allow the open pit to be pushed deeper and reduce the strip ratio of waste rock to mineralised ore, thus improving economics. This is particularly significant to La India Project as 432,000 oz gold at 4.9g/t sits beneath the current open pit resource of 954,000 oz gold of 3.6g/t. It is also noted that the PEA used a smaller pit containing 800,000 oz gold. An improvement in pit angles could drive the pit deeper, so that circa 1 Million oz gold open pit resource could be used in the next mining study. Furthermore, it is likely that the pit angles with be improved/optimised further once hydrogeology studies are completed, which include hydrogeological drilling to determine the dewatering characteristics of the open pit.“
Summary of Geotechnical Study Findings for La India Vein Set Resource
La India Vein Set hosts a mineral resource of 12 Million tonnes at 4.0g/t for 1.5 Million oz gold, as announced in September 2012. Over 60% of the resource is contained within an optimised open pit shell derived using Whittle pit modelling software for an open pit resource of 8.21 Million tonnes at 3.6g/t for 954,000 oz gold. There is a further 2.77 Million tonnes at 4.9g/t for 432,000 oz gold underground resource beneath the La India Open Pit resource. A PEA based on the September 2012 resource data suggested that an 800,000 oz gold open pit was potentially feasible using a conservative assumption of 40-42 degrees pit slope angles as no geotechnical or hydrogeology work had been undertaken (see announcement dated 5th March 2013). The geotechnical study was undertaken to provide a more accurate model of the slope angles that can be supported by an open pit, to a level of confidence that can be used in a future PFS.
Geotechnical Study Data
The geotechnical study was planned and overseen by SRK Consulting (UK) Limited („SRK“) and completed to PFS level of confidence incorporating data from:
The analysis and interpretation of geotechnical data has been completed. La India Open Pit area has been divided into eight geotechnical domains, four in the hanging wall and four in the footwall zones, each of which will support different pit wall angles reflecting variations in properties such as the rock strength and the frequency, pattern and form of natural joints, fractures and faults in the rock. Pit slope angles vary between 40 degrees at the northern end of the open pit where the gold mineralised Arizona Vein cross-cuts the La India Resource, and 48 degrees between the 600-1200 cross sections where the bulk of the gold mineralisation is contained and the pit will be deepest.
Resource Update
Further to the completion of 23,600m drilling on La India Project since the September 2012 resource announcement, a resource update is currently underway and due by the end of October 2013. 13,956m of this drilling campaign was in La India Open Pit area focused on converting the gold resource from inferred to indicated category within the entire 954,000 oz open pit resource and part of the 432,000 oz gold beneath the open pit resource. The steeper pit walls will reduce the amount of waste rock that needs to be moved, improving economics and opening the possibility of mining deeper than previously envisaged using open pit methods
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 eighteen 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.
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 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 77864385
Farm Street Media Simon Robinson +44 (0) 7593 340107
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