fb

Condor Gold PLC (CNR.TSX.L) Second Drill Rig at La India & Update on Drilling

Condor Gold Mobilizes a Second Drill Rig for a 4,000m Infill Drilling Programme at the Permitted, La India ‘High-Grade Starter Pits’ and Provides an Update on Drilling

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that a second drill rig has been mobilised and started drilling on a 4,000 metre close-spaced infill diamond drilling programme within the permitted open pit at La India Project, Nicaragua. The 4,000m infill drilling programme started in early December 2020 (see RNS dated 7 December 2020). 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 approximately 90% of the 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, furthermore the infill drilling may upgrade the Indicated Mineral Resource to the Measured Mineral Resource category.

Highlights

· Second drill rig mobilized on 4,000m infill drilling programme within permitted La India open pit.

· 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.

· Six drill holes completed to date. Assay results are pending.

· Second drill rig to accelerate the drill programme.

· 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.

· Aim to convert some of the Indicated Mineral Resource to the higher confidence Measured Mineral Resource category.

· 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:

“In early December 2020, Condor initiated a 4,000m infill drilling programme within the La India starter pits, which are within the main, permitted La India open pit. Six drill holes have been completed to date, assay results are pending. The arrival of a second drill rig will accelerate the infill drilling programme.

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 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. 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

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 commenced drilling on 7 December 2020 (see RNS dated 7 December 2020), a seconded drill rig has arrived on site and will commence drilling shortly. Six drill holes have been completed to date. Condor notes that the drilling company stopped drilling over the Christmas and New Year period. 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 drilling aims to confirm geology and grade continuity in order to increase the confidence in the classification to the Measured category. A Measured Mineral Resource allows more detailed mine planning and 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 approximately 90% of the reverse circulation (RC) drilling within the open pit mineral resources 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.

Drilling on Mestiza open pit

It is likely that following the infill drilling programme on La India starter pits that the two drill rigs will relocate to the permitted high grade Mestiza open pit to conduct an infill drilling programme. A separate announcement will be made when this decision is made. The Mineral Resource Estimate on the Mestiza open pit is 92Kt at a grade of 12.1 g/t gold for 36,000 oz contained gold in the Indicated category and 341Kt at a grade of 7.7 g/t gold for 85,000 oz contained gold in the Inferred category. Mining dilution studies have been completed y SRK Consutling limited (See RNS dated 4 March 2020). The diluted and modified mining model reported a total diluted tonnage of 600Kt at 5.76 g/t gold for 111,100 oz gold within the 1500 USD/toz optimized pit shell used in the 2019 Mineral Resource Update.


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
Do NOT follow this link or you will be banned from the site!
Share via
Copy link
Malcare WordPress Security