Condor Gold PLC (CNR.L) Condor Receives Permit for America Open Pit

Condor Receives Permit for High-Grade America Open Pit, Increasing Total Permitted Open Pit Mineral Resources To 1.12M Million Oz Gold

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that it has been granted an Environmental Permit for the development and exploitation of gold from the high grade America open pit (“the Permit”). The America open pit hosts 114 thousand tonnes (“Kt”) at a grade of 8.1 g/t gold (30,000 oz contained gold) in the Indicated Mineral Resource category and 677Kt at a grade of 3.1 g/t gold (67,000 oz contained gold) in the Inferred Mineral Resource category.

The America open pit compliments the already permitted La India open pit and the recently permitted high grade Mestiza open pit. The La India open pit hosts 8,377Kt at a grade of 3.1 g/t gold (837,000 oz contained gold) in the Indicated Mineral Resource category and 883Kt at grade of 2.4 g/t gold (68,000 oz contained gold) in the Inferred Mineral Resource category.

La India open pit has a robust, economically viable Pre-Feasibility Study (“PFS”) with Mineral Reserves of 6.9 million tonnes (“Mt”) at 3.0 g/t for 675,000 oz gold. The Mestiza open pit hosts 92Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the Inferred Mineral Resource category. Following the permitting of the America open pit Condor has 1.12M oz gold open pit Mineral Resources permitted for extraction inclusive of a Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold.

Highlights:

· 1.12 million oz gold open pit Mineral Resources, including Mineral Reserves permitted for extraction and production from 3 open pits

· The permitted La India open pit which hosts 8,377Kt at a grade of 3.1 g/t gold (837,000 oz contained gold) in the Indicated Mineral Resource category and 883Kt at grade of 2.4 g/t gold (68,000 oz contained gold) in the Inferred Mineral Resource category

· The America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz contained gold) in the Indicated Mineral Resource category and 677Kt at a grade of 3.1 g/t gold (67,000 oz contained gold) in the Inferred Mineral Resource category

· The permitted Mestiza open pit hosts 92Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the Inferred Mineral Resource category

· America open pit permitted to deliver robust diluted tonnage of 649Kt at 3.83g/t gold for 80,000 oz gold, complimenting the recently permitted Mestiza open pit permitted to deliver mill feed of 600Kt at 5.76 g/t gold for 111,100 oz gold (See RNS 4 March 2020)

· The addition of a third permitted high grade open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mine

Mark Child, Chairman and CEO commented:

“Condor has been granted the key Environmental Permit to develop and exploit gold from a third high grade open pit. When added to the high grade La India open pit and Mestiza open pit, Condor has 1.12 million oz gold open pit Mineral Resources, including Mineral Reserves permitted for extraction. Condor also has the permit to construct and develop a processing plant with capacity of up to 2,800tpd at La India Project. The permitted high grade America open pit and recently permitted Mestiza open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mine.”

Background

La India Project, Nicaragua, contains a Mineral Resource of 9,850Kt at 3.6 g/t gold for 1,140Koz gold in the Indicated category and 8,479Kt at 4.3g/t gold for 1,179Koz gold in the Inferred category (See RNS dated 28 January, 2019). Condor’s focus has been on developing the open pit Mineral Resources within 3 open pits, which are inclusive of a Mineral Reserve of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold, into production.

Condor has been granted an Environmental Permit to construct and operate a processing plant with capacity of up to 2,800 tonnes per day (“tpd”) and develop the associated mine site infrastructure for a new mine at its La India Project (the “Main Permit”). The Main Permit is for development and extraction of ore from La India open pit, subject to certain conditions. Production from La India open pit is estimated to be between 80,000 to 100,000 oz gold per annum. On 22 January 2020, Condor received a letter from the Ministry of Environment and Natural Resources (“MARENA”) detailing an extension, as provided for under the terms of the Permit, to complete the conditions of the Main Permit by 27 July 2021 (See RNS dated 28 January 2020).

On 21 November 2019, Condor submitted Environmental and Social Impact Assessments (“ESIAs”) to MARENA for the Environmental Permits for the development and extraction of contained gold from the America and Mestiza open pits. Each ESIA is over 600 pages in length, including the appendices and summarises 18 mining, environmental and social technical studies. (See RNS 22 November 2019). Public Consultations were held on 28 February 2020 for both feeder pits.

Significance of Permitting the America Open Pit

The America open pit has a higher gold grade than the La India open pit and adds a third permitted open pit, following the permitting of the Mestiza open pit announced last week ( See RNS 29 April 2020). The America and Mestiza open pits are likely to be mined earlier to reduce the payback period on the plant and equipment and improve the internal rate of return. La India open pit has lower quartile industry all-in-sustaining-cash cost of US$690 per oz gold in the PFS which used a gold price of $1,250/oz. (See RNS 14 November, 2014). A third permitted open pit adds flexibility to the mine schedule.

The diluted and modified mining model for the America open pit, undertaken by SRK Consulting (UK) Limited (“SRK”), reported a total diluted tonnage of 649Kt at 3.83 g/t gold for 80,000 oz gold within the 1,500 USD/oz optimized pit shell used in the 2019 Mineral Resource Estimate update. A cut-off grade of 1.5g/t gold was used. (See RNS 4 March 2020).

The America open pit is located within easy trucking distance and less than 2 km from the location of the permitted processing plant.

The Permit granted by MARENA for the Mestiza open pit is for an initial 8 year period from the date notification is received by MARENA that production is due to commence and can be renewed for further periods. There are a number of conditions associated with the Permit, ranging from the appointment of an Environmental Manager to adherence to environmental management programs as detailed in the ESIA. For example, priority is to be given to hiring local employees and a reforestation programme will be instigated that plants 10 new trees for every tree cut down. Exploitation is required to commence within 18 months of the grant of the Permit although this can be extended for a further two 18 month periods.

The diluted and modified mining model for the permitted La India open pit, undertaken internally by Condor, reports a total diluted tonnage of 7,284Kt at 2.80g/t gold for 656,000 oz gold, excluding low grade material. The total permitted mill feed combining La India, Mestiza and America open pits is 8,829Kt at 3.09g/t gold for 847,000 oz gold. Assuming a 92% metallurgical recovery, gold production is estimated to be 779,000 oz gold.

It should be noted that the Company is running a number of mining studies ahead of a construction decision, which are part of ongoing work being done by Condor to optimize the Project; such studies are yet to be finalized and so do not replace the 2019 MRE or the technical report entitled “Technical Report on the La India Gold Project, Nicaragua, December 2014” dated 13 November 2017 with an effective date of 21 December 2014 (the “Technical Report”), both of which remain current.

Looking forward, Condor intends to complete the ongoing mining dilution studies and pit optimisation studies, which are underway, and incorporate the results of those studies in a mine production schedule. Ahead of production, Condor will complete infill drilling on the Mestiza and America open pits to convert the majority of mineralised material to the Indicated Mineral Resource category. The underground Mineral Resources of 1.27Mt at a grade of 5.8 g/t gold, for 238,000 oz gold in the Indicated category and 5.47Mt at a grade of 5.1 g/t gold, for 889,000 oz gold in the Inferred category, will be permitted and added to the mine plan once in production.


Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.

Terms of Website Use

All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

CNR - Condor Gold PLC (CNR.L) Condor Receives Permit for America Open PitCNR - Condor Gold PLC (CNR.L) Condor Receives Permit for America Open Pit
Share via
Copy link
Malcare WordPress Security