LONDON, ENGLAND — (Marketwire) — 12/14/12 — (AIM: CNR) („Condor“ or „the Company“), a gold exploration company focused on delineating a large commercial resource on its wholly owned 2.4m oz gold La India Project in Nicaragua is pleased to announce that, pursuant to the agreement announcement on 11th October 2012, the Minister of Energy and Mines has approved the transfer of the 27sq km La Mojarra Concession (the „Concession“) to Condor-s wholly owned, Nicaraguan subsidiary La India Gold S.A. Under the terms of the Agreement the said approval triggers a US$300,000 payment. US$200,000 is payable in cash and US$100,000 is payable by way of issuing new ordinary shares in Condor at the 20 day average traded price prior to the said approval. The ministerial approval completes the legal ownership of the Concession by La India Gold S.A. The addition of La Mojarra Concession increases the Company-s La India Project by 27km2 to 194km2 contained within seven contiguous wholly owned concessions.
Accordingly, the Company will issue and allott 34,384 new Ordinary Shares of 20p per Ordinary Share (the „Ordinary Shares“) (the „Consideration Shares“). Application will be made for the Consideration Shares to be admitted to trading on AIM and it is expected that Admission will occur, and dealings commence, on 21 December 2012. Following this, the enlarged issued share capital of the Company, will comprise 33,204,130 Ordinary Shares in the capital of the Company. The Consideration Shares will, when issued, rank pari passu in all respects with the existing issued Ordinary Shares of Condor.
La Mojarra Concession lies along strike and to the South of the India-California Vein trend which hosts a CIM Code resource of 11.2 million tonnes at 4.0g/t containing 1,484,000 oz gold including an open pit resource of 8.2 million tonnes at 3.6g/t containing 954,000 oz gold. 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. However, 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 at depth and along strike below surface, and it is highly conceivable that the mineralisation continues into La Mojarra Concession.
Condor has received assay results from reconnaissance exploration undertaken as part of the due diligence prior to purchase of La Mojarra Concession which confirm unsubstantiated reports of gold mineralisation on the line of strike of the India-California trend at two locations.
In addition to the evidence of high-grade epithermal gold mineralisation at surface the Company is encouraged by the recognition of areas of intense argillic alteration over several hundred metres diameter within the concession area. This evidence of intense near surface hydrothermal activity in a location close to the interpreted central caldera of the volcanic complex that hosts the La India epithermal gold mineralisation, where the geology has been downthrown relative to the main La India District mineralisation by a major north-east trending fault, makes the 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 on the La Mojarra Concession in order to prioritise trenching and drilling for both near surface and potential buried gold deposits.
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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 77864385
Farm Street Media Simon Robinson +44 (0) 7593 340107
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