Condor Gold PLC (CNR.L) Drilling at, La India ‘High-Grade Starter Pits’

Condor Gold Commences Infill Drilling at permitted, La India ‘High-Grade Starter Pits’

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that is has commenced a 4,000 metre close-spaced infill diamond drilling programme within the permitted open pit at La India Project, Nicaragua. The programme’s objectives are three-fold; firstly, to tighten the drill hole spacing within the planned high-grade starter pits on the principal La India Vein. The results of this drilling will provide the sample density required to finalize pit designs and mine schedules ahead of production. Secondly, the diamond drilling programme is designed to replace all historical reverse circulation (‘RC’) drill holes within the overall La India open-pit Mineral Resource, the results of which will improve the geological model and sample quality. Thirdly, the diamond drilling is targeting near-by Inferred Mineral Resources to potentially upgrade the target to an Indicated Mineral Resource, and its then potential inclusion in the mine plan.

Highlights

· 4,000m infill drilling commences within permitted La India open pit has commenced.

· Drilling focused on shallow (to around 35m depth) high-grade starter pits within the main La India open pit.

· Final drilling to make the starter pits “shovel ready” ahead of production.

· Starter pits are designed pits containing 445Kt at 4.17g/t gold for 59,700 oz gold using a 2.0g/t gold cut-off.

· Aim to convert a small near-by tonnage in the Inferred Mineral Resource category to the higher confidence Indicated Mineral Resource category, and its potential inclusion in the mine plan.

· Replacement of historical reverse circulation (RC) drilling within the main La India open pit with diamond core drilling to enhance sample quality and the database ahead of extraction and assist with mine scheduling.

Mark Child, Chairman and CEO commented:

“As Condor progresses towards production it has been decided to initiate mine production with high grade starter pits within the permitted main La India open pit and the permitted high grade Mestiza open pit. la India open pit hosts a Probable Mineral Reserve of 6.9 million tonnes (“Mt”) at 3.01 g/t gold for 675,000 oz gold with all-in-sustaining-cash costs of US$690 per oz gold. The La India starter pits are designed pits, the estimated mill feed is 445Kt at 4.17g/t gold for 59,700 oz gold using a 2.0g/t gold cut-off. The starter pits have a maximum depth of 35m and have a relatively low strip ratio. The drill program within the La India starter pits will close-up the sample density to 25 metre by 25 metre spacing and is the final drilling ahead of extraction. Drilling on the high grade Mestiza open pit is expected to start in January 2021. Mining the higher grade will bring forward cashflow, shorten the payback period and enhance project economics.”

Background

On 25 January 2019, SRK Consulting (UK) Limited completed an updated Mineral Resource Estimate (the “MRE”; see RNS dated 28 January 2019 for further details of the MRE) on Condor’s 100% owned La India Project in Nicaragua comprising 9.85 million tonnes (“M tonnes” or “Mt”) at 3.6 g/t gold for 1,140,000 oz gold in the Indicated category and 8.48M tonnes at 4.3g/t gold for 1,179,000 oz gold in the Inferred category.

The La India Vein Set hosts an open pit Mineral Resource of 8,377kt at 3.1g/t gold for 837Koz gold in the Indicated category and 887kt at 2.4 g/t gold for 69,000oz gold in the Inferred category. Beneath the La India open pit is an underground Mineral Resource estimate of 678kt at 4.9g/t gold for 107Koz gold in the Indicated category and 1,718kt at 5.6 g/t gold for 309,000 oz gold in the Inferred category.

The 25 January 2019 MRE update did not materially change the La India open pit Mineral Resource estimate and consequently the 2014 Pre-Feasibility Study (“PFS”) remained unchanged. La India open pit has an existing Probable Mineral Reserve of 6.9 million tonnes (“Mt”) at 3.01 g/t gold for 675,000 oz gold.

As announced on 4 March 2020 (see RNS), Condor completed internal studies on readily accessible high-grade material within the permitted La India open pit. The starter pits within La India open pit contain a diluted tonnage of 387Kt at 4.29g/t gold for 53,000 oz gold. Condor has subsequently further advance these studies. Within a designed pit shell, the starter pits have two scenarios. At 0.75g/t gold cut-off grade, 635Kt at 3.32g/t gold for 67,800 oz gold with a 4.5 to 1 strip ratio. Using 2.0g/t cut-off grade, 445Kt at 4.17g/t gold for 59,700 oz gold with a 6.8 to 1 strip ratio. See table 1 below:

Table 1: Starter Pits within the Main Permitted La India Open Pit

Notes:

1) Resources include indicated and inferred material within the 2019 resource model

2) Resource tabulation from internal Condor estimates, which may differ slightly from SRK totals

3) Resources are contained within the sub-pits Tajo 3,4,and 7

4) Cutoff at 2.0 g/t requires that 190kt at 1.33 g/t (8,100oz) be stockpiled for future processing

Details of 4,000m in-fill drilling

The primary purpose of the diamond drilling programme is infill drilling on the near-surface high-grade zones where open-pit mining will start. A drill rig has commenced drilling. The drill holes will infill between existing 50 metre-spaced drill intercepts to close-up the sample density to 25 metre by 25 metre spacing. The results are expected to upgrade the confidence of the current Mineral Resources in this zone from the current Indicated and Inferred categories to potentially Measured Mineral Resources. A Measured Mineral Resource then provides opportunity for more detailed mine planning scheduling and the potential conversion of Probable Mineral Reserves to a Proven Mineral Reserve.

The opportunity will also be taken to re-drill and replace all reverse circulation (RC) drilling with diamond core drilling. The current open-pit Mineral Resource partially relies upon chip samples from RC drilling in the upper 50 m of the planned open pit, including sections of the high-grade starter pits. It is generally recognised that RC drilling provides reliable gold-grade data at regular metre-scale sample intervals suitable for inclusion in an open-pit Mineral Resource estimation, however, greater and more detailed geological information on the structures that contain the gold mineralised veins and breccias is provided by diamond core drilling. This additional data will further enhance the current Mineral Resources and Mineral Reserves ahead of mining.


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