Condor Gold PLC (CNR.L) Condor Significantly De-Risks La India Project

Condor Significantly De-Risks La India Project: Purchases 85% of the Land Within the Permitted Mine Site Infrastructure and Advances Engineering Studies.

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that it has made significant progress meeting the terms of the Company’s Environmental Permit for the development and exploitation of gold from the La India open pit, the associated mine site infrastructure and the construction and operation of a processing plant with capacity of up to 2,800 tonnes per day (“tpd”) for a new gold mine at its La India Project. Condor has 1.12M oz gold open pit Mineral Resources (8,583Kt at 3.3g/t gold for 903,000 oz gold in the Indicated category and 1,901Kt at 3.6g/t gold for 220,000 oz gold in the Inferred category) permitted for extraction inclusive of a Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold.   As further explained below, key elements in advancing the Project, namely acquiring the land and completing engineering studies are now well advanced.  

Highlights:

· Acquired 85% of the land within the permitted La India open pit mine site infrastructure, including the key areas of the location of the processing plant, tailings storage facility, open pit, waste dump area, explosive magazine.

· Tailings Storage Facility and 2 water retention ponds are being fully designed by Tierra Group Inc. 40% of the engineering designs are completed.

· The design of the site wide water balance including a surface water management plan is underway and has been awarded to SRK Consulting (UK) Ltd.

· Preliminary designs for the layout of the mine site infrastructure including, in some detail, the designs for the location of the processing plant have been completed.

· Mine and waste dump schedules for a number of mining scenarios have been completed

· The power studies have been progressed and several meetings held with the Ministry of Energy and Mines

Mark Child, Chairman and CEO commented:

“Condor has made excellent progress advancing the La India Project to a construction decision and has acquired 85% of the land within the permitted La India open pit mine site infrastructure, including the location of the processing plant, tailings storage facility, open pit, waste dump area, explosive magazine, office and accommodation blocks and other key component areas required for the mine. This significantly de-risks the Project. Solid progress has also been made with the engineering studies: 40% of the engineering studies for the tailings storage facility and water retention ponds have been completed. The site wide water balance and surface water management system are underway. Preliminary designs for the layout of the mine site infrastructure including, in some detail, the designs for the location of the processing plant have been completed. Mine and waste dump schedules for a number of mining scenarios have been completed. The power studies have been progressed. It remains our intention to buy the remainder of the land this year and commence site preparation, while significantly advancing the engineering studies and placing a deposit on a processing plant”.

The Company has been focused on de-risking the La India Project by advancing and completing several technical and engineering studies, some of which are a condition of the Environmental Permit and purchasing the land for the associate mine site infrastructure. The following progress has been made:

· Under the terms of the Environment Permit, the Company has to purchase or have legal agreements in place for the land required for the mine site infrastructure. Offers have been made to all land owners. The Company has now purchased 85% of the land in and around the permitted La India open pit mine site area thereby getting close to completing one of the main conditions of the Environmental Permit and significantly de-risking the Project. The Company has purchased 64 plots of land totalling 659 hectares in and around the permitted La India open pit mine site infrastructure, of which 479 hectares has been purchased this year, at the time of writing. In addition, the Company can also demonstrate physical possession for approximately 18 years on the land covering the Mestiza open pit, has purchased the majority of this land and has claimed ownership over 303 hectares in this area. The Company has ownership of 96 hectares of land in the area of the America open pit.

· The Tailings Storage Facility and 2 water retention ponds are being fully designed and engineered with drawings one step short of “issued for construction”. Tierra Group Inc, Denver, Colorado has completed site visits and is conducting the engineering studies.  Good progress has been made, with 40% of the work completed.

· The design of the site wide water balance (SWWB), including a surface water management plan, has been awarded to SRK Consulting (UK) Limited (“SRK”). SRK’s work includes the area of La India, America and Mestiza open pits. The ultimate objective of the exercise is to produce engineering plans for the installation of the physical components of a management system, including the piping, pumping and structural requirements that will satisfy Nicaraguan authorities and at the same time meet the design standards for a feasibility study. The SWWB will include consideration of the pit dewatering contributions i.e. subsurface hydrology. SRK’s remit includes an emphasis on training and capacity building for the local Condor team to ensure full ownership and facilitate implementation and sustainability of the SWWB.

· Preliminary designs for the layout of the mine site infrastructure including, in some detail, the designs for the location of the processing plant have been completed.

· Mine and waste dump schedules for a number of mining scenarios have been completed to a level that can be submitted to MARENA, once the capacity of the processing plant is finalised.

· The processing plant designs will be finalised following the purchase of a second hand or new processing plant.

· The power studies have been progressed as far as possible but final designs are only possible once the processing plant size has been finalised and the power requirement known. Several meetings have been held with the Ministry of Energy and Mines. A new electricity sub-station is being built closer to Mina La India.

· MARENA has written to the Company confirming that the final designs for the domestic wastewater treatment system for the offices and accommodation blocks at Mina La India comply with MARENA’s technical and environmental requirements and the final designs are approved.

About Condor Gold plc:

Condor Gold plc was admitted to AIM in May 2006 and dual-listed on the TSX in January 2018. The Company is a gold exploration and development company with a focus on Nicaragua.

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 Company also has Environmental Permits for 2 high grade feeder pits from which ore will be fed to a centralised processing plant and within the La India open pit 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 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 categoryFollowing the permitting of the La India, America and Mestiza open pits Condor has 1.12M oz gold open pit Mineral Resources (8,583Kt at 3.3g/t gold for 903,000 oz gold in the Indicated category and 1,901Kt at 3.6g/t gold for 220,000 oz gold in the Inferrd category) permitted for extraction inclusive of a Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold. The total permitted mill fully diluted 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.


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

 

Share via
Copy link
Malcare WordPress Security