Condor Gold PLC

AIM : CNR


Condor Gold PLC

January 11, 2013 02:00 ET

Condor Gold Drilling and Trenching Update on La India and America Areas, La India Project, Nicaragua

LONDON, ENGLAND--(Marketwire - Jan. 11, 2013) - Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce the results of the initial 2790.6m of the current phase of resource infill drilling at the La India Vein Set and an update on trenching and drilling activity on the America Vein Set.

Highlights

  • 23 drillholes for 3,462m completed on La India open pit resource area to convert the existing resource from Inferred to Indicated category.
  • Assay results from an initial 19 of these 23 drillholes for 2,790.6m of infill drilling have confirmed gold mineralisation and outlined an additional high-grade shoot in the North of the India-California trend.
  • Best amalgamated drill intercepts through stopes of the historic La India Mine show: 11.95m at 5.72g/t gold, 17.15m at 4.16g/t gold and 18.00m at 4.18g/t gold.
  • Trench intercept of 10m at 5.41g/t gold has extended wide zones of gold mineralisation on the America Vein to at least 600m strike length.
  • Further trench testing of Escondido Vein on the America Vein Set is underway to test an additional 200m strike length.
  • 2,000m drill programme underway at historic America Mine to test for wallrock mineralisation on the America Vein Set with one hole completed.
Table 1. Best new drill intercepts on La India Vein Set.
Rank Hole_ID From
(m)
To
(m)
Drill
Width (m)
True
Width (m)
Gold
(g/t)
Silver
(g/t)
Vein
1 LIDC165 103.35 124.60 11.95 11.1 5.72 7.4 amalgamated India remnant wallrock
2 LIDC161 138.20 148.20 17.15 14.6 4.16 4.7 amalgamated India remnant wallrock
3 LIDC170 98.10 123.90 18.00 16.4 4.18 5.12 amalgamated India remnant wallrock
4 LIDC171 104.90 107.78 2.88 2.8 12.16 15.0 India
5 LIDC172 100.50 117.65 17.15 15.5 2.21 8.0 India lower
6 LIDC176 7.80 24.70 16.90 9.7 3.49 18.3 California
7 LIDC168 101.40 109.80 8.40 7.6 2.92 12.8 amalgamated India remnant wallrock
True width is based on the current interpretation of the veins and may be revised in the future. All intercepts over 20gm/t (grade multiplied by true width) shown.

Mark Child, Chairman and CEO commented:

"Condor has made good progress with the completion of 3,462m drilling of a 7,000m drill programme designed with the objective of defining a total of 800,000 oz gold within the Indicated Category by targeting the conversion of the majority of the Inferred resource to Indicated within the open pit shell (currently 534,000oz is within the Indicated Category). The drill results through the historic India Mine are particularly satisfying and demonstrate that Noranda Mining left behind significant amounts of gold mineralized wallrock with drill intercepts: 11.95m at 5.72g/t gold (LIDC165), 17.25m at 4.16g/t gold (LIDC 161), 18.00m at 4.18g/t gold (LIDC170). An additional high grade ore shoot in the North of La India valley, within the open pit resource, defined by 4 drill holes on two cross-sections 50m apart bodes well for a resource increase. Figures 3 to 6 of this announcement show four cross sections of the drill results to date demonstrating the coalescence of La India and California veins with wide zones of moderate to high grade gold mineralization, which demonstrate the open pit resource in the area of the old mine workings.

The latest trench result of 10m at 5.41g/t on the historic America Mine extends the strike length to a minimum of 600m, see RNS of 30th November 2012 for further trench results. A 2,000m drill programme has commenced with a second rig on site and due to start in the next few days. The objective of the drill programme on America historic mine is to repeat the success of a 954,000 oz at 3.6g/t open pit resource on La India historic mine, which is just over 1km to the south."

Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce that 23 drillholes for 3,462m have been completed since the current phase of drilling started at the beginning of November and assay results have been received for the first 19 drillholes for 2,790.6m at La India. This is split between 22 drillholes on the La India Vein Set and 1 drillhole on the America Vein Set. Operations resumed on the 2nd January after a twelve day break over the festive season and the drilling is currently taking place on two fronts with two diamond core drilling rigs operating on the La India Vein Set and one rig on the America Vein Set, a second rig has arrived on site and is due to commence drilling on the America Vein Set in the next few days.

La India Vein Set

Twenty-two drillholes for 3,305.8m out of a 7,000m drilling programme on the La India Vein Set have been completed with the primary aim of converting zones of Inferred Category mineral resource that fall within the bounds of the current Whittle open-pit to the Indicated level of confidence. The current in-pit resource is 8.21 million tonnes at 3.6g/t for 954,000 oz gold of which 534,000 oz gold at 3.9 g/t is in the Indicated Category and 420,000 oz gold at 3.3g/t in the Inferred Category. Most of the Inferred Category is targeted for conversion. A second aim of the drilling programme is to extend the open pit to the north. A third aim of the drilling programme is to test for a parallel vein within the footwall of La India Vein. The fourth aim is to increase the resource within the existing whittle pit shell by targeting areas that have been sparsely drilled and have the potential to add in-situ ounces once drilled to the Indicated level of confidence.

Assay results have been received for 19 drillholes for 2,790.6m of drilling in the Central and North zones of the India-California vein trend. The results received are generally consistent with expectations and appear to validate the geological model used in the current resource. The infill drilling is improving definition of the transition between high-grade shoots and lower grade zones, and definition of the gold distribution within the high-grade shoots where it is currently assigned Inferred resource category (ie. Section 1200 shown on Figure 4 below).

Two areas have already been identified where the width and grade of gold mineralisation has exceeded expectations:

In the Central Zone amalgamated remnant wallrock intercepts of 11.95m (11.1m true width) at 5.72g/t gold from 103.35m drill depth (LIDC165) and 17.15m (14.6m true width) at 4.16g/t gold from 138.20m drill depth (LIDC161) show an increase in grade at width of gold mineralisation at depth and blurred the boundary at depth between what was previously considered two separate high-grade shoots (Figure 6 below).

In the Northern Zone where previously sparse drilling meant that very little wallrock gold mineralisation had been defined for inclusion in the current resource estimation a moderate to high-grade shoot has been intercepted in four drillholes on two sections located 50m apart along strike; the 1400 and 1450 sections shown on Figure 2 below. On the 1450 Section intercepts of 8.40m (7.6m true width) at 2.92g/t Au from 101.40m drill depth (LIDC168) and 2.88m (2.8m true width) at 12.16g/t gold from 104.90m drill depth (LIDC171) demonstrate continuity in gold mineralisation to more than 100m below surface (Figure 5 below)). Fifty metres along strike on the 1400 Section an intercept of 3.40m (3.2m true width) at 8.06g/t Au from 17m depth (LIDC164) represents an up-dip extension to a previous explorer's drill intercept of 5m (3.8m true width) at 4.89g/t gold from 233m drill depth (DH-LI-10A), approximately 200m below surface (Figure 4 below). This discovery is expected to have a positive influence on the next resource update.

America Vein Set

Diamond core drilling through the historic America Mine workings to test for remnant wallrock gold mineralisation has started with one drillhole for 156.6m completed to date (assay results pending). An RC drilling rig has arrived on site and will start drilling at America within the next few days. The RC rig is capable of drilling to a depth of 100 to 120m and will initially be employed to drill test shallow holes at 50m intervals along strike through the America and Escondido branches of the America Vein Set. The rig is capable of completing a drillhole every one to two days and will provide a rapid assessment of the underground potential of the Vein Set for diamond core follow-up at depth.

The America Vein Set currently contains a mineral resource of 2.11Mt at 6.0g/t for 405,000 oz gold, of which 288,000 oz gold is on the interconnected America-Constancia-Escondido veins, including 480kt at 7.8g/t for 120,000 oz gold in the Indicated category (Figure 1 below). The Indicated Resource is contained within and as extensions of the historic mine workings and is based largely on underground channel sampling. An absence of drilling, and until recently trench sampling in the wallrock of the historic mine workings means that no remnant gold mineralisation that may be present in the wallrock has been included in the current resource estimation. Recent trench sampling has demonstrated that there are significant zones of moderate to high-grade gold mineralisation remaining in the wallrock (see RNS announcement dated 30th November 2012) along the entire 500m strike length of the America Vein. Additional trenching on the America Vein has extended this strike length to at least 600m with intercepts of:

  • 10.00m at 5.41g/t gold in trench LITR152 in a trench excavated along strike to the northwest of the previously defined zone, and
  • an infill trench intercept of 4.00m at 2.12g/t gold in trench LITR151 along strike to the southeast of the previously defined zone near the intersection between the America-Constancia veins and the perpendicular Escondido Vein.

The aim of the current drill and trench programme on America is to prove a second open pit resource on La India project. The drilling will better establish the grade, true thickness and orientation of the gold mineralisation and provide enough 3-Dimensional data to include the wallrock gold mineralisation of the America Mine in a future resource estimation. An initial 2,000m drill programme is planned. Additional trenching is currently underway along the 250m strike length of the Escondido Vein that was historically mined from the point where it intersects the America-Constancia veins. Positive results from the Escondido Vein could fall within the walls of a potential open pit on the America Vein and therefore add ore at the expense of waste rock. Subject to positive trench results a part of the drilling programme will be used to test the Escondido Vein at depth.

Table 2. Significant drill intercepts for initial 19 drill holes for 2790.60m of the current drill programme on the India-California veins
Prospect Drillhole
ID
From To Drill
Width
True
Width
Gold
(g/t)
Silver
(g/t)
Vein
(vein assignments
subject to revision)
India North
1700
LIDC159 52.45 54.45 2.00 2.0 2.15 1.2 India
India North LIDC160 9.60 9.95 0.35 0.3 14.46 14.1 Cal 2
1600 116.00 116.60 0.60 0.6 0.55 0.4 Cal 1
154.00 156.10 2.10 2.1 2.95 4.6 India
165.30 166.60 1.30 1.3 1.45 8.8 India FW1
India Central- LIDC161 117.90 118.10 0.20 0.2 1.09 0.9 Cal 1
South 138.20 140.70 2.50 2.1 2.21 3.4 India hangingwall
650 140.70 145.20 4.50 3.9 0.00 0.0 India stope
145.20 146.90 1.70 1.4 6.23 12.4 India middle
146.90 148.20 1.30 1.1 0.00 0.0 India stope lower
148.20 161.15 12.95 11.0 4.26 4.0 India footwall
amalgamated 138.20 148.20 17.15 14.6 4.16 4.7 India remnant wallrock
170.70 172.97 2.27 1.9 0.73 0.5 India footwall
India North LIDC162 35.30 35.50 0.20 0.20 2.26 0.7 Cal 3
1400 59.15 60.10 0.95 0.95 0.58 0.5 Cal 2
102.50 103.40 0.90 0.90 0.51 0.8 Cal 1
120.50 120.80 0.30 0.30 1.18 1.2 India upper
132.60 135.60 3.00 3.00 3.38 4.1 India
India North LIDC163 50.55 52.50 1.95 1.9 2.02 1.2 Cal upper
1650 57.00 58.00 1.00 1.0 1.24 0.9 Cal lower
74.20 75.00 0.80 0.8 4.80 4.3 India upper
76.80 77.20 0.40 0.4 3.00 2.0 India lower
India North LIDC164 17.00 20.40 3.40 3.2 8.06 18.0 Cal
1400 140.40 145.70 5.30 4.9 2.39 9.0 India upper
148.05 151.00 2.95 2.8 1.53 2.5 India lower
India Central- LIDC165 103.35 104.70 1.35 1.3 16.57 9.2 India hangingwall
South 114.00 124.60 10.60 9.8 4.33 7.2 India footwall
650 amalgamated 103.35 124.60 11.95 11.1 5.72 7.4 India remnant wallrock
161.60 163.20 1.60 1.5 0.66 0.2 IIndia footwall
India North LIDC166 83.50 84.40 0.90 0.8 1.35 0.6 Cal 1
1550 95.60 96.40 0.80 0.7 6.45 5.2 India
India North LIDC167 64.95 67.30 2.35 2.3 0.34 0.4 Cal 3
1350 92.80 93.60 0.80 0.8 0.81 2.0 Cal 2
121.25 122.90 1.65 1.6 0.79 1.5 Cal 1
151.80 154.10 2.30 2.2 1.21 1.2 India
India North LIDC168 99.20 101.50 2.30 2.1 2.30 16.0 India hangingwall
1450 101.50 103.00 1.50 1.4 - - stope
103.70 109.80 6.10 5.5 3.15 11.7 India footwall
amalgamated 101.40 109.80 8.40 7.6 2.92 12.8 India remnant wallrock
India Central- LIDC169 61.82 63.09 1.27 1.2 0.90 0.2 Cal
South 70.70 72.70 2.00 1.9 - - stope
700 72.70 84.30 11.60 11.2 0.63 2.8 India
Including 72.70 74.60 1.90 1.8 2.22 6.3
including 77.05 77.40 0.35 0.3 2.28 3.1
94.50 96.00 1.50 1.4 1.14 0.9 India footwall upper
98.90 99.80 0.90 0.9 1.08 1.9 India footwall lower
India Central- LIDC170 59.50 60.20 0.70 0.6 2.86 2.0 Cal 2
North 83.50 86.50 3.00 2.7 0.66 0.6 Cal 1
1200 98.10 107.10 9.00 8.2 6.34 7.0 India upper
107.10 114.90 7.80 7.1 - - stope
114.90 123.90 9.00 8.2 2.02 3.3 India lower
amalgamated 98.10 123.90 18.00 16.4 4.18 5.12 India remnant wallrock
India North LIDC171 80.60 80.80 0.20 0.2 5.33 14.1 Cal
1450 104.90 107.78 2.88 2.8 12.16 15.0 India
India Central- LIDC172 96.50 100.50 4.00 3.6 - - stope
South 100.50 117.65 17.15 15.5 2.21 8.0 India lower
700 including 100.50 106.50 6.00 5.4 5.58 19.1
Including 112.15 112.65 0.50 0.5 1.79 2.4
including 116.85 117.65 1.07 0.7 0.80 0.7
127.00 127.40 0.40 0.4 0.71 0.4 India footwall
India Central- LIDC173 81.80 87.70 5.90 5.5 1.46 2.6 Cal 2 upper
Centre 92.85 94.00 1.15 1.1 4.70 2.6 Cal 2 lower
1100 100.35 123.80 32.45 31.8 0.41 1.8 India-Cal
Including 118.00 118.60 0.60 0.4 2.20 2.4 Cal 1
including 128.30 129.80 1.50 1.4 3.50 18.5 India
India Central
950 LIDC174 NSR - hole abandoned
India North LIDC175 98.10 101.00 2.90 2.8 0.72 1.5 Cal 2
1300 111.50 112.00 0.50 0.5 1.84 4.9 Cal 1
141.18 144.70 3.52 3.4 0.69 1.1 India hangingwall
144.70 144.90 0.20 0.2 - - stope
144.90 146.40 1.50 1.4 0.28 1.2 India pillar
146.40 146.60 0.20 0.2 - - Stope
India Central LIDC176 7.80 24.70 16.90 9.7 3.49 18.3 Cal 3
950 including 9.10 14.10 5.00 2.9 9.63 48.9
57.80 59.10 1.30 0.7 1.00 1.7 Cal 2
65.10 68.80 3.70 2.1 0.70 0.8 Cal 1 upper
76.00 77.20 1.20 0.7 1.10 0.9 Cal 1 lower
99.00 107.70 8.70 5.0 0.59 1.2 India hangingwall
including 105.90 107.70 1.80 1.0 1.21 2.6
107.70 108.30 0.60 0.3 - - stope
108.30 109.60 1.30 0.7 1.29 2.0 India footwall
India Central LIDC177 82.45 83.25 0.80 0.7 0.51 0.6 Cal 2 upper
-South 92.50 92.90 0.40 0.4 0.52 0.3 Cal 2
550 99.80 100.35 0.55 0.5 1.48 0.7 Cal 1
111.90 115.80 3.90 3.5 0.82 1.1 India hangingwall
including 111.90 113.10 1.20 1.1 1.61 1.0
115.80 122.40 6.60 6.0 0.00 0.0 stope
122.40 132.80 10.40 9.4 0.61 2.0 India footwall
including 122.40 122.80 0.40 0.4 2.70 0.8

True width is based on the current interpretation of the veins and may be revised in the future. True width is an interpretation based on the current interpretation of the veins and may be revised in the future.

To view "Figure 1. Location of the Drilling on the La India and America Vein Sets within the La India Project area", please visit the following link: http://media3.marketwire.com/docs/CONFIG1.pdf.

To view "Figure 2. Plan showing location of drillholes and cross-sections (Figures 3 and 4)", please visit the following link: http://media3.marketwire.com/docs/CONFIG2.pdf.

To view "Figure 3. Cross-section through the newly defined high-grade intercept in the Central area (650 section) showing latest wide high-grade intercepts at depth", please visit the following link: http://media3.marketwire.com/docs/CONFIG3.pdf.

To view "Figure 4. Cross-section through the Central area (1200 section) showing latest wide high-grade intercepts at depth", please visit the following link: http://media3.marketwire.com/docs/CONFIG4.pdf.

To view "Figure 5. Cross-section through the newly defined high-grade intercept in the northern area (1400 section) showing up-dip continuity of latest high-grade intercept near surface with previous explorer's intercept", please visit the following link: http://media3.marketwire.com/docs/CONFIG5.pdf.

To view "Figure 6. Cross-section through the newly defined high-grade intercept in the northern area (1450 section) showing latest wide high-grade intercept near surface and continuity of mineralization to depth", please visit the following link: http://media3.marketwire.com/docs/CONFIG6.pdf.

Competent Person's Declaration

The information in this announcement that relates to the mineral potential, geology, exploration Results and database is based on information compiled by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with seventeen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Luc English consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

For further information please visit www.condorgold.com.

About Condor Gold plc:

Condor Resources plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up CIM/JORC Resources in Nicaragua and El Salvador. Condor has seven 100% owned concessions in La India Mining District ("La India Project"); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.

Condor's concession holdings in Nicaragua currently contain an attributable CIM/JORC compliant resource base of 2,497,000 ounces of gold equivalent at 4.6 g/t in Nicaragua and an attributable 1,004,000 oz gold equivalent at 2.6g/t JORC compliant resource base in El Salvador. The Resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua, and Ravensgate and Geosure for El Salvador.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Technical Glossary

Assay The laboratory test conducted to determine the proportion of a mineral within a rock or other material. Usually reported as parts per million which is equivalent to grams of the mineral (i.e. gold) per tonne of rock.
CIM Canadian Institute of Mining, Metallurgy and Petroleum whose terminology, definitions and guidelines are an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee (CRIRSCO) as required by National Instrument 43-101.
Dip A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal.
Foot wall The rock adjacent to and below an ore or mineralised body or geological fault. Note that on steeply-dipping tabular ore or mineralised bodies the foot wall will be inclined nearer to the vertical than horizontal.
Grade The proportion of a mineral within a rock or other material. For gold mineralisation this is usually reported as grams of gold per tonne of rock (g/t).
g/t grams per tonne
Hanging wall The rock adjacent to and above an ore or mineralised body or geological fault. Note that on steeply-dipping tabular ore or mineralised bodies the hanging wall will be inclined nearer to the vertical than horizontal.
Inferred Mineral Resource That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited, or of uncertain quality and reliability.
Indicated resource that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
Intercept Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralized zone. The intercept is described by the entire thickness and the average grade of mineralisation.
oz troy ounces
kt Thousand tonnes
Mineral Resource A concentration or occurrence of material of economic interest in or on the Earth's crust in such a form, quality, and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, estimated from specific geological knowledge, or interpreted from a well constrained and portrayed geological model.
Mt Million tonnes
Open pit mining A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining).
oz Troy ounce, equivalent to 31.103477 grams
Strike length The longest horizontal dimension of an ore body or zone of mineralisation.
True width The shortest axis of a body, usually perpendicular to the longest plane. This often has to be calculated for channel or drill samples where the sampling was not exactly perpendicular to the long axis. The true width will always be less than the apparent width of an obliquely intersect sample.
Vein A sheet-like body of crystalised minerals within a rock, generally forming in a discontinuity or crack between two rock masses. Economic concentrations of gold are often contained within vein minerals.
Wallrock The rock adjacent to an ore or mineralised body or geological fault.

Contact Information

  • Condor Gold plc
    Mark Child
    Executive Chairman and CEO
    +44 (0) 20 7408 1067

    Condor Gold plc
    Luc English
    Country Manager Nicaragua
    +505 8854 0753
    www.condorgold.com

    Beaumont Cornish Limited
    Roland Cornish
    +44 (0) 20 7628 3396

    Beaumont Cornish Limited
    James Biddle
    +44 (0) 20 7628 3396

    Ocean Equities Limited
    Will Slack
    +44 (0) 20 77864385

    Farm Street Media
    Simon Robinson
    +44 (0) 7593 340107