GODALMING, UK / ACCESSWIRE
Condor Gold (AIM:CNR)(TSX:COG) announces that following a robust and economically attractive Bankable Feasibility Study also known as a Feasibility Study on the La India open pit it has appointed Hannam and Partners to seek a buyer for the assets of the Company. On 26 October 2022, a Feasibility Study Technical Report was filed on SEDAR titled Condor Gold Technical Report on the La India Gold Project, Nicaragua, 2022 dated October 25, 2022 (2022 FS) and is also available on the Company’s website www.condorgold.com
Mark Child, Chief Executive of Condor Gold, commented:
«Condor Gold has de-risked the La India Gold Project to a near construction-ready status with an 18 month construction period from receipt of project financing. The Board has reviewed the Company’s options including going through a financing and construction phase as a single asset, single jurisdiction company with no existing gold production and has concluded it is in the best interests of the Company and all stakeholders to sell the assets of the Company to a gold producer with mine building expertise, thus ensuring a new mine at La India, a significant investment in the local area and a regeneration of the local communities.
The Company’s strategy has been successfully executed, de-risking the assets so that a mine can be developed in 2 stages using the new SAG Mill that has already been purchased. The Company owns approximately 1,000 hectares of land over the area of the mine site infrastructure and has the key permits to construct and operate the mine. The delivery of a robust and economically attractive Feasibility Study on the single La India open pit demonstrates an average of 81,524 oz gold per annum for the initial 6 years for a relatively low total upfront capital cost of US$106 Million. Two additional permitted high grade feeder pits can be added during the early years of production thus increasing early production to over 100,000 oz gold p.a.with a stage 2 expansion to 150,000 oz gold p.a. as detailed in the October 2021 PEA.»
Background
The Company’s principal asset is La India Project, Nicaragua, which comprises of a large, highly prospective land package of 588 sq km comprising of 12 contigious and adjacent concessions. La India Project hosts a high grade Mineral Resource Estimate («MRE») of 9,672 kt at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource category and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred mineral resource category. The open pit MRE is 8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category. Total underground MRE is 979 kt at 6.2 g/t gold for 194,000 oz gold in the indicated mineral resource category and 5,615 kt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource category.
Other assets include approximately 1,000 hectares of land purchased for the mine site infrastructure for circa US$4.2M and a new SAG Mill package purchased for US$6.5M.
The 2022 FS was completed on La India vein set open pit only, which has a MRE of 8,487 kt at 3.0g/t gold in for 827,000 oz gold in the indicated mineral resource category and 893 Kt at 2.4 g/t gold for 69,000 oz gold in the inferred mineral resource category.
The 2022 FS produced a Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold. Production averages 81,545 oz gold per annum for the first 6 years of an 8.4 year mine life. Low initial capital requirement of US$105.5 million (including contingency and EPCM contract) and low average Life of Mine All-in Sustaining Cash costs (AISC) at US$1,039 per oz gold
On 25 October 2021, the Company announced the results of a Preliminary Economic Assessment (PEA) and filed on SEDAR a technical report entitled «Condor Gold Technical Report on the La India Gold Project, Nicaragua, 2021» detailing average annual production of 150,000 oz of gold over the initial 9 years of production from open pit and underground Mineral Resources and provides an indication of a production target. Outside the main La India open pit Mineral Reserve, there are additional open pit Mineral Resources on four deposits (America, Mestiza, Central Breccia and Cacao) which represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in the indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for 223,000 oz gold in the inferred Mineral Resource category. In addition, there is an aggregate underground Mineral Resource (La India, America, Mestiza, Central Breccia San Lucas, Cristalito-Tatescame, and Cacao) of 979Kt at 6.2 g/t for 194,000 oz gold in the indicated Mineral Resource category and 5.6Mt at 5.0 g/t gold for 898,000 oz gold in the inferred Mineral Resource category.
