Condor Gold PLC (CNR.TSX.L) Infill Drilling Programme Update

Initial Drill Result: 9.6 m True Width at 3.98 g/t gold From Surface and Discovery of an Additional Vein of 2.27 m True Width at 3.0 g/t gold from 24.15 m drill depth in the footwall

To view the press release with all images, please use the link: http://www.rns-pdf.londonstockexchange.com/rns/5561R_1-2021-3-8.pdf

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that the first 26 drill holes for a combined 1,296 m of diamond drill core have been completed on the La India Starter Pit infill drilling programme (see RNS announcements dated the 7 December 2020 and 19 January 2021).

The primary objective of the drilling programme is to provide 25 m spaced drill sampling within the two shallow (up to 35 m deep), high-grade Starter Pits within the main La India Open Pit Mineral Reserve. Drilling on the Northern Starter Pit has been completed with 25 drill holes for 1,273 m, four of which have twinned existing RC drill holes. Drilling has now commenced on the Southern Starter Pit with two rigs drilling, the first three holes have already been completed (Figure 1). Initial drill results have now been received for the first two drill holes located at the northern end of the Northern Starter Pit.

Highlights

· LIDC404 drilled 9.6m true width at 3.98 g/t gold from surface

· Discovery of an additional vein of 2.9 m true width at 2.27 g/t gold from 24.15 m drill depth in the footwall in the same drill hole, LIDC404 is an exciting development and will be rapidly evaluated as potentially mineralised material available for inclusion in the mine schedule.

· LIDC404 has an amalgamated drill intercept from 1.20 m to 27.15 m drill depth of 24.15m (23.6 m true width) at 2.05 g/t gold, which includes a 1.8 m mine cavity

· 25 drill holes for a combined 1,273 m of infill and RC replacement drilling completed in the Northern Starter Pit

· Assay results from first two drill holes confirm the geological model for the Main Vein.

· Infill and RC replacement drilling in the Southern Starter Pit underway and expected to be completed by early April.

Mark Child, Chairman and CEO commented:

“I am delighted with the initial drill assay result of 9.6 m true width at 3.98 g/t gold from surface in drill hole LIDC404 as it confirms the geological model of a wide zone of high grade ore in the La India Starter pit, which is within the fully permitted main La India open pit mineral reserve. The discovery of an additional vein of 2.9 m true width at 2.27 g/t gold from 24.15 m drill depth in the same drill hole is an added bonus and is likely to add mineralised material to the mine plan. LIDC404 has an amalgamated drill intercept from 1.20 m to 27.15 m drill depth of 24.15m (23.6 m true width) at 2.05 g/t gold, which includes a 1.8 m mine cavity. Mining this area is likely to focus on putting the high grade material through the future processing plant and stock piling or blending the lower grade material with higher grade material from elsewhere. Only 2 drill assay results have been received from 25 drill holes on the Northern Starter Pit for a combined 1,273 m of infill and RC replacement drilling completed so far in the La India Starter Pits. Approximately 2,200 m drilling remains to be completed of the current drill programme.”

Figure 1. Image showing the La India Starter Pit infill drilling completed (yellow) and pending (red), as well as proposed RC drill holes to twin drill (green) (Image taken from Google earth).

Initial Assay Results

Results have been received for the first two drill holes which were located at the northern end of the Northern Starter Pit. Both drill holes were collared (started) within the surface expression of the main mineralised zone where it is covered by a few metres of alluvium, and drilled to test the footwall part of the main zone and explore the underlying host rock. The assay results confirmed the geological model and grade of the Main Zone, and discovered an additional vein in the footwall rock approximately 12 m below the Main Zone (Table 1; Figure 2). The footwall vein appears to be an extension of a vein previously drilled some 50 m along strike to the southwest and was classified as inferred mineral resource in the 2019 Mineral Resource Estimate. Assay results pending from other infill drill holes will enable a more confident and accurate geological model of this vein and will be rapidly evaluated as potentially additional mineral resource and mineral reserve available for inclusion in the mine schedule.

Table 1: Assay results from La India infill drilling, Northern Starter Pit

Figure 2. Cross-section showing the gold assay intercepts from drill hole LIDC404 and pre-existing drill holes. Thick yellow line = Northern Starter Pit Shell; Coloured blocks=current mineral resource block model; Gold intercepts: black=uninterrupted diamond core intercept, red=amalgamated weighted average diamond core intercept from hanging wall and footwall of mine cavity, blue=RC intercept (twinned).

Drilling Programme – Looking Ahead

The drilling programme is constantly being assessed and adapted based on geological observations from core logging. Quartz veins and breccias have been identified within the footwall host rock, in some cases, 10 to 20 m below the Main Vein in both the Northern and Southern Starter Pits. Consequently, selected neighbouring infill drill holes are being extended beyond the originally planned depth to target the footwall quartz vein and brecias. The goal is to rapidly upgrade and potentially extend existing inferred mineral resources to the indicated mineral resource category, and their potential inclusion in the mine schedule.

To-date approximately 1,300 m of diamond core drilling has been complted. It is anticipated that another 800 m of drilling will be required to complete the 25 m-spaced infill and RC-drill replacement drilling within the two Starter Pits (for a total of approximately 2100 m drilling, including 6 RC-twin holes for approximately 413 m). Note that some drill holes have been removed from the programme which had originally been pencilled in to test zones marginal grade mineralisation, saving approximately 500 m from the programme.

Following completion of the drilling in the Southern Starter Pit, the next stage in the infill drilling programme is to twin drill an additional 17 RC drill holes (1392 m of drilling) that are located near to the starter pits. A decision to proceed with this stage will be made after analysing the variability in assay results between the RC and twin diamond core drill holes, and a review of the confidence in the geological model in these zones to decide if the twin drilling is required.

About the Drilling Techniques

Drilling is being undertaken using heavy duty track-mounted drilling rigs. All of the drilling is being undertaken using diamond core drilling techniques employing large diameter PQ core barrels and triple tube in the mineralised zones to ensure good sample recovery. Drilling close to surface and in proximity to historical and artisanal mine workings can present challenges to the driller, however, the drilling programme is benefitting from employment of local geologists, field support staff and experienced drill contractors, all with a decade of experience of drilling at la India. Consequently, all target depths have been met and good sample recovery is being achieved.

About the Assaying

Drill core is cut, and half core samples collected and bagged by Condor staff on-site. Samples are transported to Bureau Veritas accredited sample preparation laboratory in Managua every week in batches of two or three drill holes, generally being submitted to the lab within 5-10 days of completing the drill hole. Sub-samples of the pulverised rock samples are forwarded for assay to Bureau Veritas accredited analytical laboratory in Vancouver, Canada. As with many other operators delays in the return of assay results are being experienced due to industry demand and COVID-19 pandemic restrictions.

About the Starter Pits

On 25 January 2019, SRK Consulting (UK) Limited completed an updated Mineral Resource Estimate (the “MRE”; see RNS dated 28 January 2019) 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 advanced 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 a 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 2: 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

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.


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