Condor Gold PLC Exploration Update (8934R)

TIDMCNR

RNS Number : 8934R

Condor Gold PLC

15 December 2016

 
                                                                                 Condor Gold plc 
 
                                                                                     7(th) Floor 
                                                                    39 St. James's Street London 
                                                                                        SW1A 1JD 
                                                                      Telephone [phone] 
                                                                           Fax: [phone] 
 

15(th) December 2016

Condor Gold plc

("Condor" or "the Company")

Please click on the below link to view the full press release

http://www.rns-pdf.londonstockexchange.com/rns/8934R_1-2016-12-14.pdf

La India exploration update: 142.4 g/t gold rock chip sample identified, 1,123 m of 4,000 m Scout Drilling and 168 km(2) of Soil Survey Completed

Condor (AIM:CNR), is pleased to provide an update on scout drilling and regional exploration at the La India Project, Nicaragua, which hosts a high grade mineral resource of 18.08 M tonnes at 4.0 g/t for 2.31 M oz gold.

Highlights

-- 142.4 g/t gold rock chip sample identified approximately 30 m along strike from a 53.9 g/t gold rock chip on the Los Limones prospect at the northern end of a 12.5 km mineralised corridor, 9 km north of the main La India open pit reserve.

-- 168 km(2) of 313 km(2) soil survey completed. The aim is to identify feeder zones and new gold targets.

-- Initial interpretation of soil results shows two major feeder zones, the La India and Andrea Corridors, and supports the concept of a major gold District.

   --     1,123 m of 4,000 m scout drilling has been completed, assay results due in 2017. 

Mark Child CEO comments:

"Condor's strategy of proving that La India Project is part of a major gold District is yielding positive results. A 142.4 g/t gold rock sample, 30 m along strike from a 53.9 g/t gold rock chip, at the northern end of the 12.5 km-long Andrea mineralised corridor, and 6 km away from the nearest gold resource, is highly encouraging. A regional soil survey is about 50% completed. The purpose is to generate new gold targets and better understand the district-scale mineralisation. For example, to determine upflow zones of the fossil geothermal (epithermal) system and identify new gold targets.

The initial interpretation of the soil survey, combined with helicopter borne geophysics, structural and regional mapping, is that there are two major feeder zones. The La India Corridor is better understood and hosts 90% of the Project's high grade mineral resource of 18.08 M tonnes at 4.0 g/t (2.31 M oz gold). The Andrea Corridor is less well understood and is the focus of the current 4,000 m scout drilling programme".

Background

A regional soil geochemistry survey is underway over the 313 km(2) La India Project. During 2015 and 2016 a total of 12,208 samples were collected covering 168 km(2), assays have been received for most. Samples are collected along lines at 200 m or 400 m apart and at intervals varying from 50 m to 400 m (see Figure 1 below). The survey covers both 'virgin' territory, with no mapped epithermal veins, and areas of known mineralization, such as La India, America and Mestiza. The La India Project has approximately 105 km strike length of veins, of which about 55 km have been trenched or mapped in any detail; only 13.2 km have been drill tested. Many veins have never been sampled.

Samples collected to date are shown in Figure 2. The blue dots remain to be collected. Assays are awaited for the black dots.

Initial Soil Survey Interpretation

The soil survey is ongoing, so this is an initial interpretation. Several elements, in particular Gold (Au), Tellurium (Te), Thallium (Tl), Arsenic (As), Silver (Ag) and Antimony (Sb), define two significant trends. These are interpreted as two major basement feeder zones: La India and Andrea Corridors (see Figure 3 below). The La India Corridor cuts obliquely across some of the better known veins, such as La India, America, Mestiza and seems to localize higher gold grades at these intersections. This understanding will help future drill targeting. There is also a suggestion that some rich veins (Tatascame, Los Limones) are en echelon structures, at high angle to the Andrea Corridor. They may have provided localized dilations for fluids to rise. Drilling to test this model at Tatascame is due to commence shortly.

Antimony, along with Selenium (Se) and Te, also seem to define a sinuous, almost East-West, linking structure between the two corridors ('The Link' above). This has lower gold values, for example in the East part of the Guapinol and Constancia Veins. It may not have been as important an upflow zone as La India and Andrea corridors.

Several elements show a distinct drop off on the East side of the Highway Fault (see Figure 4), implying that the district-scale epithermal system was dropped down by a post-mineral offset. This down-throw preserves the top of the system at Cacao, which includes sinter and phreatic breccias, indicating paleosurface.

142.4 g/t Gold and 53.9 g/t Gold Rock Chip Samples

During January-November 2016 a total of 169 rock chip samples were collected during soil sampling and mapping. Of these, 5 came back with gold values greater than 5 g/t, 4 from the Los Limones prospect, including 53.9 g/t and 142.4 g/t samples (See Figure 4) and 1 sample slightly north of Tatascame. In addition, 19 samples from the Dos Hermanos, Mestiza, Tatascame-El Derrumbado and Los Limones prospects have returned with values of 1-5 g/t.

Scout Drilling Update

Condor initiated 4,000 m of scout drilling on several prospects on 7(th) November 2016, starting with Cacao (See RNS dated 10(th) November 2016). Four drill holes for a combined drilling of 719.6 m have now been completed at Cacao. The assay results will be announced in 2017, when they are all received. The drill rig has moved to the Real de La Cruz concession, which has not previously been drilled by Condor. Circa 400 m has been drilled at the time of writing. See Figure 4.

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, and reviewed, by Dr Warren Pratt, Chartered Geologist (1994), Fellow of the Geological Society of London and Fellow of the Society of Economic Geologists. Dr Pratt is a geologist with over twenty years of experience in the exploration and definition of precious metal mineral resources. Dr Pratt consults to Condor Gold plc on an ad hoc basis and has considerable experience in epithermal mineralization, the type of deposit under consideration, and sufficient experience in the type of activity that 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. Dr Pratt 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.

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 
------------------------  --------------------------------------------------- 
 En echelon                In structural geology, en echelon veins 
                            are structures within rock caused by 
                            tension fractures that are parallel 
                            to the major stress orientation. They 
                            appear as sets of short, parallel, planar, 
                            mineral-filled lenses within a body 
                            of rock. 
------------------------  --------------------------------------------------- 
 Geochemistry              The study of the elements and their 
                            interaction as minerals to makeup rocks 
                            and soils 
------------------------  --------------------------------------------------- 
 Geophysics                The measurement and interpretation of 
                            the earth's physical parameters using 
                            non-invasive methods such as measuring 
                            the gravity, magnetic susceptibility, 
                            electrical conductivity, seismic response 
                            and natural radioactive emissions. 
------------------------  --------------------------------------------------- 
 Hydrothermal              Hot water circulation often caused by 
                            heating of groundwater by near surface 
                            magmas and often occurring in association 
                            with volcanic activity. Hydrothermal 
                            waters can contain significant concentrations 
                            of dissolved minerals. 
------------------------  --------------------------------------------------- 
 Magnetic (aeromagnetic)   The measurement of the magnetic properties 
  survey                    of the earth surface as controlled by 
                            the concentration and distribution of 
                            magnetic minerals, particularly magnetite, 
                            in the rock. Rocks containing higher 
                            levels of iron, such as mafic igneous 
                            rocks or some sedimentary rocks will 
                            have a higher magnetic susceptibility 
                            than felsic igneous rocks, siliciclastic 

                            and carbonate sediments and their metamorphic 
                            derivatives.. 
------------------------  --------------------------------------------------- 
 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 
------------------------  --------------------------------------------------- 
 Mineral Reserve           The economically mineable part of a 
                            Measured and/or Indicated Mineral Resource. 
                            It includes diluting materials and allowances 
                            for losses, which may occur when the 
                            material is mined. Appropriate assessments 
                            and studies have been carried out, and 
                            include consideration of and modification 
                            by realistically assumed mining, metallurgical, 
                            economic, marketing, legal, environmental, 
                            social and governmental factors. These 
                            assessments demonstrate at the time 
                            of reporting that extraction could reasonably 
                            be justified. Ore Reserves are sub-divided 
                            in order of increasing confidence into 
                            Probable Ore Reserves and Proved Ore 
                            Reserves. 
------------------------  --------------------------------------------------- 
 Radiometric               Also known as gamma ray spectrometry, 
                            is the measure of natural radiation 
                            on the top 30-45cm of the earth's surface. 
                            The abundance of the three naturally 
                            occurring radioactive elements, potassium 
                            (K), thorium (Th) and uranium (U), is 
                            proportional to the abundance of minerals 
                            containing those elements. This information 
                            can be used in mapping the surface geology 
                            including the definition of areas of 
                            potassium enrichment related to hydrothermal 
                            alteration. 
------------------------  --------------------------------------------------- 
 Rock chip                 A sample of rock collected for analysis, 
                            from one or several close spaced sample 
                            points at a location. Unless otherwise 
                            stated, this type of sample is not representative 
                            of the variation in grade across the 
                            width of an ore or mineralised body 
                            and the assay results cannot be used 
                            in a Mineral Resource Estimation 
------------------------  --------------------------------------------------- 
 Stockwork                 Multiple connected veins with more than 
                            one orientation, typically consisting 
                            of millimetre to centimetre thick fracture-fill 
                            veins and veinlets. 
------------------------  --------------------------------------------------- 
 Strike length             The longest horizontal dimension of 
                            an ore body or zone of mineralisation. 
------------------------  --------------------------------------------------- 
 Vein                      A sheet-like body of crystallised 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. 
------------------------  --------------------------------------------------- 
 

- Ends -

For further information please visit www.condorgold.com or contact:

 
 Condor Gold plc     Mark Child, Executive 
                      Chairman and CEO 
                      [phone] 
 Beaumont Cornish     Roland Cornish and 
  Limited              James Biddle 
                       [phone] 
  Numis Securities 
  Limited              John Prior and James 
                       Black 
                       [phone] 
                       1000 
 Farm Street Media   Simon Robinson 
                      [phone] 
 

About Condor Gold plc:

Condor Gold plc was admitted to AIM on 31st May 2006. The Company is a gold exploration and development company with a focus on Central America.

Condor completed a Pre-Feasibility Study (PFS) and two Preliminary Economic Assessments (PEA) on La India Project in Nicaragua in December 2014. The PFS details an open pit gold mineral reserve of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold producing 80,000 oz gold p.a. for 7 years. The PEA for the open pit only scenario details 100,000 oz gold production p.a. for 8 years whereas the PEA for a combination of open pit and underground details 140,000 oz gold production p.a. for 8 years. La India Project contains a total attributable mineral resource of 18.08 Mt at 4.0 g/t for 2.31 M oz gold and 2.68 M oz silver at 6.2 g/t to the CIM Code.

In El Salvador, Condor has an attributable 1,004,000 oz gold equivalent at 2.6 g/t JORC compliant resource. 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 15, 2016 02:00 ET (07:00 GMT)