VANCOUVER – Condor Gold Plc [COG-TSX, CNR-AIM] on Friday said it has completed drilling and returned all assays from exploration work at the Cacao prospect at its 100% owned La India project in Nicaragua.
Condor controls around 98% of the La India Mining District, which covers 588 square kilometres. In order to advance La India, the company has adopted a dual strategy to add value by advancing the project toward production alongside continuing exploration with the aim of defining 5.0 million ounces of gold.
A preliminary economic assessment has indicated that an open pit and underground operation at La India could produce an average of 150,000 ounces of gold over an initial nine-year lifespan. The initial capital requirement is forecast at US$160 million (including contingency), where underground development is funded through cash flow.
Back in January, 2019, SRK Consulting (U.K.) Ltd. completed an updated mineral resource estimate for Condor’s La India project. It calculated 9.85 million tonnes at 3.6 g/t gold or 1.14 million ounces of gold in the indicated category and 8.48 million tonnes at 4.3 g/t gold or 1.17 million ounces of gold in the inferred category. That includes a probable mineral reserve of 6.9 million tonnes at 3.01 g/t gold for 675,000 ounces of gold.
However, Condor has estimated that it can increase resources by drilling a number of targets, including the Cacao prospect, which contain small amounts of gold resource, and could offer additional satellite feed for a nearby processing facility. On Friday, the company said 15 drill holes (3,500 metres) have been completed to test the geological concept that the near-surface gold mineralization at Cacao is the top of a fully-preserved epithermal gold system.
The company said it is also aiming to determine that the gold mineralizing system extends, buried below surface, beyond the 450-metre-long outcrop where all the drilling has been concentrated so far.
Condor CEO Mark Child said the drill program has been a success. “A 10-metre-plus true width mineralized zone, including the main Cacao vein has been confirmed for a strike length of approximately 1,000 metres beneath and extending to the east of the current Cacao mineral resource of 662,000 tonnes at 2.9 g/t gold for 60,000 ounces of gold,’’ Chile said.
Drilling highlights include hole CCDC033, which intercepted 14.9 metres true width at 3.94 g/t gold beneath the existing mineral resource, and 700 metres along strike of the intercept, drill hole CCDC028 intercepted 32.9 metres true width at 0.38 g/t gold.
The Cacao prospect has been identified as a potential satellite deposit for processing at the company’s fully permitted processing plant to be located 4.0 kilometres away. Mineral resource modelling indicates that Cacao could support a small open pit.
Meanwhile, current drilling is focused towards identifying deeper level mineralization that could support a larger pit or underground mining.
On Friday, Condor shares were unchanged at 73 cents and trade in a 52-week range of $1.20 and 65 cents.