We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Condor Gold Plc | LSE:CNR | London | Ordinary Share | GB00B8225591 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.50 | 1.68% | 30.25 | 30.00 | 30.50 | 30.25 | 29.75 | 29.75 | 271,373 | 15:12:33 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | -2.53M | -0.0140 | -21.61 | 54.69M |
From Apr 2019 to Apr 2024
TIDMCNR
RNS Number : 3598R
Condor Gold PLC
21 September 2017
Condor Gold plc
7th Floor
39 St. James's Street
London SW1A 1JD
Telephone +44 020 74932784
Fax: +44 020 74938633
21 September 2017
Condor Gold Plc
("Condor" or "the Company")
Interim Report and Accounts for the Six Months Ended 30 June 2017
Highlights
Condor Gold PLC ("Condor Gold", "Condor", the "Group" or the "Company"), an AIM listed gold exploration company, presents its unaudited interim financial report for the six month period to 30 June 2017.
Condor completed a Pre-Feasibility Study ("PFS") and two Preliminary Economic Assessments ("PEAs") on La India Project in Nicaragua in December 2014. Whittle Consulting Limited produced a mining optimisation study in January 2016, which produced an average NPV US$196 million and average IRR 30%across four production scenarios. Production ranges from 101,000oz gold per annum from a single open pit to 165,000oz gold per annum once feeder pits and underground production is included. Condor has applied to permit a base case, which has a processing plant of 2,800 tonnes per day capable of producing 100,000oz gold per annum for the first five years of production from a single open pit. Condor's drilling programme in the first half of 2017 was aimed at expanding the current mineral resource of 18Mt at 4.0g/t gold for 2.31Moz gold and proving a major Gold District.
Highlights to 30 June 2017
-- GBP5.242 M raised by way of a private placement of new ordinary shares. -- 7,291 m drilling completed on the Mestiza vein set and scout drilling prospects.
-- High grade ore shoot on the Tatiana vein identified for a strike length 300 m, depth of 200 m and average width of 2.2 m.
-- LIDC348 drill width 3.6 m (true width 2.3 m) at 23.3 g/t gold and 66.6 g/t silver from 160.5 m depth.
-- LIDC348 is 100 m vertically down dip of LIDC344 drill width 3.3 m at 28.3 g/t gold and demonstrates a high grade ore shoot which extends to 200 m below surface.
-- LIDC360 drill width 3.1 m (true width 2.7 m) at 14.4 g/t gold and 29.2 g/t silver from 40.3 m depth.
-- Soil geochemistry survey completed over entire 313 km(2) La India Project area identifying two major basement feeder zones in a structurally complete geological setting.
-- Condor's shares commenced trading on the OTCQX Market in the United States.
Post Period Highlights
-- 5,922 m drill programme completed on Mestiza, with drilling restricted to the top 200 m (below ground surface).
-- A high-grade ore shoot on the Tatiana vein is defined over a strike length of 450 m. It has mineralised true widths up to 4.6 m (averaging 2.2 m over the main mineralised section).
-- LIDC365 drill width 3.60 m (true width 3.12 m) at 13.7 g/t gold and 13.9 g/t silver from 142.6 m downhole depth.
Mark Child, Chairman and Chief Executive of Condor Gold, commented:
"It is a pleasure to report these results and the strong progress that the Company has made at its La India Project. During the first half of the year, Condor has focussed on proving a major Gold District whilst continuing the permitting process for the 100,000 oz processing plant at the La India Project.
"We have completed a soil geochemistry programme, covering the entire La India Project area, which has identified two major mineralised basement feeder zones and generated several new drill targets.
"A significant drilling programme of approximately 6,000 m has also been undertaken at Mestiza, and current mapping has identified a larger vein system than previously thought. Whilst this is excluded from the PFS and PEAs, a successful resource conversion of the Soviet style resource of 2,392 kt at 10.2 g/t gold for 785,694 oz gold has the potential to add large, high grade, and relatively shallow resources to a future mine plan, thereby increasing the annual gold production, life of mine, and project economics.
"In addition, a high grade ore shoot with an estimated grade of 10 g/t gold, strike length of 450 m and depth of 200 m has been identified on the Tatiana vein, one of the highlights of the drill results so far.
"In the coming months the Company will carry out further exploration work in order to prove a major Gold District, and I look forward to updating shareholders on the progress of this, and the permitting process, in due course."
A copy of the Company's unaudited Interim Report for the six months ended 30 June 2017 is also available on the Company's website, www.condorgold.com.
For further information please visit www.condorgold.com or contact:
Hot Features
Premium
Condor Gold Mark Child, Executive
plc Chairman and CEO
+44 (0) 20 74932734
Beaumont Cornish Roland Cornish
Limited and James Biddle
+44 (0) 20 7628
Numis Securities 3396
Limited John Prior and James
Black
+44 (0) 20 72601000
Blytheweigh Tim Blythe and Camilla
Horsfall
+44 (0) 02 7138
3204
Company number: 05587987
CONDOR GOLD PLC
Interim Report and Accounts
For the Six Months Ended 30 June 2017
CONDOR GOLD PLC
CONTENTS OF THE INTERIM REPORT
FOR THE SIX MONTHS TO 30 JUNE 2017
TABLE OF CONTENTS Page
-------------------------------------------- -----
Highlights 2
3 -
Chairman's Statement 5
6 -
Review of Operations & Project Overview 13
14
Concession Data - 19
Independent Review Report 20
Condensed Consolidated Statement of
Comprehensive Income 21
Condensed Consolidated Statement of
Financial Position 22
Condensed Consolidated Statement of
Changes in Equity 23
Condensed Consolidated Cash Flow Statement 24
25
Notes to the Condensed Financial Statements - 29
CONDOR GOLD PLC
HIGHLIGHTS
FOR THE SIX MONTHS TO 30 JUNE 2017
Condor Gold PLC ("Condor Gold", "Condor", the "Group" or the "Company"), an AIM listed gold exploration company presents its unaudited interim financial report for the six month period to 30 June 2017.
Condor completed a Pre-Feasibility Study ("PFS") and two Preliminary Economic Assessments ("PEAs") on La India Project in Nicaragua in December 2014. Whittle Consulting Limited produced a mining optimisation study in January 2016, which produced an average NPV US$196 million and average IRR 30% across four production scenarios. Production ranges from 101,000 oz gold per annum from a single open pit to 165,000 oz gold per annum once feeder pits and underground production is included. Condor has applied to permit a base case, which has a processing plant of 2,800 tonnes per day ("tpd") capable of producing 100,000 oz gold per annum for the first five years of production from a single open pit. Condor's drilling programme in the first half of 2017 was aimed at expanding the current mineral resource of 18 Mt at 4.0 g/t Au for 2.31 Moz gold and proving a major Gold District.
Highlights to 30 June 2017
-- GBP5.242 M raised by way of a private placement of new ordinary shares. -- 7,291 m drilling completed on the Mestiza vein set and scout drilling prospects.
-- High grade ore shoot on the Tatiana vein identified for a strike length 300 m, depth of 200 m and average width of 2.2 m.
-- LIDC348 drill width 3.6 m (true width 2.3m) at 23.3 g/t gold and 66.6 g/t silver from 160.5 m depth.
-- LIDC348 is 100 m vertically down dip of LIDC344 drill width 3.3 m at 28.3 g/t gold and demonstrates a high grade ore shoot which extends to 200 m below surface.
-- LIDC360 drill width 3.1 m (true width 2.7 m) at 14.4 g/t gold and 29.2 g/t silver from 40.3 m depth.
-- Soil geochemistry survey completed over entire 313 km(2) La India Project area identifying two major basement feeder zones in a structurally complete geological setting.
-- Condor's shares commenced trading on the OTCQX Market in the United States.
Post Period Highlights
-- 5,922 m drill programme completed on Mestiza, with drilling restricted to the top 200 m (below ground surface).
-- A high-grade ore shoot on the Tatiana vein is defined over a strike length of 450 m. It has mineralised true widths up to 4.6 m (averaging 2.2 m over the main mineralised section).
-- LIDC365 drill width 3.60 m (true width 3.12 m) at 13.7 g/t gold and 13.9 g/t silver from 142.6 m downhole depth.
CONDOR GOLD PLC
CHAIRMANS STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2017
Dear Shareholder,
I am pleased to present Condor Gold PLC's ("Condor Gold", "Condor", the "Group" or the "Company" www.condorgold.com) unaudited interim financial report for the six months ended 30 June 2017.
On the 20 February 2017, the Company announced it had raised GBP5.242 M by way of a private placement of new ordinary shares (See RNS for details). The fund raising has allowed the Company to advance its twin strategy of permitting and constructing a base case 2,800 tpd processing plant at La India Project, Nicaragua with the capacity to produce 100,000 oz gold per annum from a single open pit and secondly to prove a major Gold District at La India Project by adding 1 M to 2 Moz gold to the current NI 43-101 compliant mineral resource of 18 Mt at 4.0 g/t gold for 2.31 Moz gold. Permitting is taking longer than anticipated, but this provides time and an opportunity to expand the resource and prove a major Gold District while we are waiting for permits. The strategy is to expand the core area of the three main vein sets, which are close together, from 2.1 Moz gold to 3 Moz gold and prove a major Gold District containing 4 M to 5 M oz gold.
Exploration
Condor has a dual exploration strategy. First to expand the resources within the core area of the three main vein sets of La India, America and Mestiza from 2.1 Moz gold to 3 Moz gold. Secondly, to prove a major Gold District of 4 M to 5 M oz gold within the 313 km(2) La India Project. It is estimated that approximately 20,000 m drilling is required to expand the resource within the three main vein sets from 2.1 Moz gold to 3 Moz gold. The geological team has developed a multi-disciplined approach combining detailed geological mapping, a soil geochemistry survey, a helicopter born geophysics survey and continued updating of the structural geological model to generate exploration targets and prove a major Gold District. The exploration targets are followed up with trenching and scout drilling.
In March, Condor commenced an initial drill programme of approximately 6,000 m on Mestiza, which was completed in August. The objective is to convert a historic Soviet mineral resource of 2,392 kt at 10.2 g/t gold for 785,694 oz gold to Canadian NI 43-101 standard. Mestiza currently hosts a NI 43-101 compliant Inferred Mineral Resource of 1,490 kt at 7.47 g/t for 333,000 oz gold.
The highlight of the drill results so far is the delineation of a high grade ore shoot with an estimated strike length of 450 m, depth of 200 m (average true width of 2.2 m) on the Tatiana vein. The drill result for LIDC344, drill width of 3.30 m at 28.3 g/t gold is 60 m vertically beneath surface. The drill result for LIDC358, drill width of 3.55 m at 23.3 g/t gold is approximately 100 m vertically below LIDC344.
Condor's geologists, current mapping on Mestiza, have identified a larger vein system than previously thought. The Mestiza vein set covers an area of 3.5 km north to south, and of 1 km width. Rock chip samples of 41.5 g/t gold and 47.7 g/t gold are located 2 km north of the recent drilling. Mapping will continue and is aimed at identifying further high-grade shoots by targeting the dilational bends in the vein.
Mestiza is excluded from the current mine plans in the PFS and PEAs. A successful resource conversion of the Soviet style resource has the potential to add large, high grade, and relatively shallow resources to a future mine plan, thereby increasing the annual gold production, life of mine, and project economics. It is some comfort that Micon International's 1998 report on the Espinito-Mendoza Concession concluded that the property has good potential to become a small (500 to 800 tpd), low cost mine. Mestiza has the potential to add 40,000 oz gold per annum to the mine plan.
During the first half, Condor's geologists worked on the soil geochemistry survey, which has now been completed over the entire 313 km(2) La India Project. It is a major milestone in proving La India Project hosts a major Gold District. Major Gold Districts tend to be discovered in complex structural settings such as La India Project. The soil geochemistry survey has identified two major, mineralised basement feeder zones running noth west to south east through the Project, cut by the Highway Fault, which down-throws the south-eastern part of the District, which is in turn cut by an east-west link structure, to produce such a complex structural setting. Condor's multi-disciplined approach and a boots-on-the-ground philosophy, is generating several new drill targets and will eventually contribute to the global gold resource.
CONDOR GOLD PLC
CHAIRMANS STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2017
The Company has completed approximately 2,800 m of scout drilling since November 2016 on four exploration targets. Drill intercepts on the Cacao vein included 7.85 m at 3.75 g/t, and 7.85 m at 2.95 g/t gold and the Andrea vein of 5.1 m at 1.9 g/t gold are highly encouraging. Follow up drilling is planned.
Permitting
The permitting process is ongoing. Readers are referred to: 1) The December 2014 announcement detailing a robust, economically attractive NI 43-101 technical report containing a PFS and two PEAs and 2) the January 2016 Whittle Optimisation of the PFS and PEA studies detailing four production scenarios ranging from 91,000 to 165,000 oz gold production per annum based on the PFS and PEAs. 3) The 2016 audit annual report and accounts as issued on 19 May 2017. Mineral concessions in Nicaragua are granted by the Ministry of Energy and Mines ("MEM") for a period of 25 years and contain both exploration and exploitation permits and therefore allow a mine to be constructed and operated subject to a successful Environmental and Social Impact Assessment ("ESIA") being approved by the Ministry of the Environment and Natural Resources ("MARENA") who grant an Environmental Permit. The latter is seen as the "master permit", with other permits for electricity, explosives etc. to follow.
In November 2015, Condor formally submitted a 700 page ESIA document to MARENA, applying for an Environmental Permit for the construction and operation of an open pit mine, a CIL processing plant and associated infrastructure at the La India Project. The ESIA envisaged two production scenarios using a 2,300 tpd processing plant as detailed in the PFS and a larger 2,800 tpd processing plant as detailed in the Whittle Optimisation. The Whittle Optimisation estimates an average of 101,000 oz gold production per annum for the first five years of the life of mine, once the Inferred Material within the pit is included. All-in-sustaining-cash-cost are circa US$700 per oz gold and upfront capital cost are approximately US$120 M. The ESIA includes processing of an additional 10,000 oz of gold per annum from artisanal miners through the main processing plant, although the artisanal miners ore is excluded from the PFS, PEAs and Optimisation Studies.
MARENA has confirmed in writing that the Company has passed the technical studies contained within the ESIA. As disclosed in the PFS, it is envisaged that approximately 300 dwellings have to be relocated as part of the development of 800 hectares of mine site infrastructure. The extraction of mineralised ore from La India open pit requires the relocation of these dwellings over the life of mine. MARENA has requested a detailed resettlement action plan, which has been prepared and is ready to present to the Government. The Government will require the inhabitants of the dwellings to agree to the terms of the resettlement as part of the permitting process; in addition the Company is committed to carrying out resettlement in accordance with the requirements of the IFC Performance Standards, specifically PS5. This requires negotiated settlements to be reached with each household and the provision not only of new homes and comparable infrastructure, but livelihood replacement in a new location, with interim livelihood support if necessary. The Company has developed a number of plans for preparing for and implementing this work, written in conjunction with experienced resettlement practitioners and reviewed by the International Finance Corporation ("IFC"), the private sector investment body of the World Bank, team dedicated to the project. In April 2017 the Company hired an additional 10 people to work in the social department to add depth to the team communicating with key stakeholders.
Permitting is taking longer than anticipated. The main reason for the delay is the requirement for the physical and economic displacement of approximately 300 households to implement the project design. Resettlement will be implemented through negotiated settlements, and appropriate measures to mitigate adverse impacts on displaced persons and host communities will be carefully planned and implemented. As far as possible, expropriation will be avoided.
CONDOR GOLD PLC
CHAIRMANS STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2017
During the run up to the Presidential elections in November 2016, several large projects seeking permits in Nicaragua, including La India, were asked to keep a low profile with regards to their communications with local communities. In January 2017, I held a meeting with three Government Ministers and a senior member of the Presidency (the "Committee"). The Committee said the Presidency supports the Project and wants to see a new mine re-opened at Mina La India, the US$120 M in foreign direct investment and 500 jobs. The Committee asked for a Resettlement Action Plan ("RAP") to be presented to it: once the Committee and local mayors approve the RAP, it could be presented to the village. It is understandable that the Government should want to approve a RAP prior to the RAP being presented to the Community. However, an unforeseen negative side effect is that for almost 12 months the Company was not able to communicate the resettlement plans directly to the village. This in turn created uncertainty and understandable concern among the people to be relocated and led to some protests in the village against the Company. In mid-August, the Presidency signalled to the Company that the Company should reach an agreement over resettlement directly with the village. This represents a change in policy, as the Company can now communicate directly with the
village regarding resettlement. The Company will therefore discuss details of the RAP with the community, which will include, proposed resettlement locations, type and size of house and garden and the compensation matrix. It is hoped this will go a long way to removing concerns about the resettlement and establish the fact that Condor will act in a professional manner over resettlement. A top resettlement expert consultancy has been engaged.
Condor has been working on a land acquisition programme for over three years and plans to acquire approximately 800 hectares of rural land for the production scenario in the PFS. A few months ago a property lawyer joined the team to strengthen the land acquisition team and assist with a clean up of the land titles, to ensure that all were registered and in good order. This makes providing title to new land and property easier, during the resettlement process. Two resettlement sites have been surveyed and valued.
IFC was a 7.3% shareholder in the Company at 30 June 2017. Condor is committed to complying with the IFC Performance Standards, which are an international benchmark for identifying and managing environmental and social risk. Condor has fulfilled the requirements of an Environmental Social Action Plan (ESAP), which was agreed with the IFC as part of their investment process.
The Company's fulfilment of the ESAP items, in line with IFC's expectations, is establishing the basis for sustainability of a future mine at the La India Project. Implementation of the IFC Performance Standards help Condor manage and improve its environmental and social performance through an outcomes-based approach and also provides a solid base from which the Company may enhance the sustainability of its business operations and provides benefits for all shareholders.
Turning to the financial results for the six months to 30 June 2017, the operating loss for the six month period was GBP3,345,479. Gross proceeds of GBP5.242 M raised during the period. The cash equivalents at 30 June 2017 were GBP3,168,265. There are currently 61,365,380 ordinary shares in issue.
Shareholders will note that the interims include quarterly information for the first time as the Company is considering a secondary listing on the TSX or TSXv for which such information is required.
On 20 February 2017, the Company announced it had raised GBP5.242 M by way of a private placement of 8,454,733 new ordinary shares at a placement price of 62 pence. A half warrant, which is unlisted, was attached to each placement share. A total of 4,701,298 warrants were issued with an exercise price of 93 pence and a two year life. If exercised in full, the warrants would raise gross proceeds of GBP3.932 M.
Mark Child
Chairman and CEO
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
LA INDIA PROJECT
Following completion of the PFS and PEAs on 21 December 2014, the Company's focus shifted to permitting the base case 2,800 tpd processing plant with capacity to produce 100,000 oz gold per annum and demonstrating that La India Project hosts a district scale gold deposit, while minimising environmental and social risks. Following a successful financing in April 2016 and March 2017, Condor re-commenced a soil geochemistry programme covering the entire 313 km(2) on La India Project. The soil geochemistry survey was completed during the period. During the first half 423.6 m of scout drilling was completed on the Tatescame prospect and 945.2 m on the Andrea prospect in the El Rodeo concession. Furthermore, 5922.30 m of resource expansion drilling was completed in the on the Mestiza Vein Set.
Exploration Activity
Condor has a dual exploration strategy of proving a major Gold District of 4 M oz to 5 M oz gold within the 313 km(2) La India Project and expanding the resources within the three main vein sets of La India, America and Mestiza from 2.1 Moz gold to 3 Moz gold. The geological team has developed a multi-disciplined approach utilising geological mapping, a soil geochemistry survey, a helicopter-born geophysics survey and continued updating of the structural geological model to generate exploration targets and prove a major Gold District. The exploration targets are followed up with trenching and scout drilling. It is estimated that approximately 20,000 m drilling is required to expand the resource within the 3 main vein sets from 2.1 Moz gold to 3 Moz gold.
Scout drilling commenced in November 2016 and continued during January and February 2017 with two drill holes for 423.6 m in Tatascame and six drill holes for 945.2 m at the Andrea vein. A total of 17 holes for 2,757.40 m were drilled at Cacao, Real de la Cruz, Tatascame and El Rodeo concessions as part of the overall scout drilling programme.
Previous drilling in 2016, with a total of 720 m of drilling at the Cacao vein, demonstrated a significant dilational vein, below near surface phreatic breccia and sinter. Drill intercepts included 7.85 m at 3.75 g/t, and 7.85 m at 2.95 g/t gold.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
Link to Figure 1. Cacao long section with prior and current results.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
The drill rig also completed 429 m at Real De la Cruz and 664 m drilling at Tatascame. Drill results from Real de la Cruz demonstrated poor continuity of the high-grade veins, though it may still have bulk mineable potential. The drilling at Tatascame gave poor results and it has been downgraded. It effectively demonstrated that the known vein, with grades up to at least 10 g/t gold, terminates towards the West.
The six relatively shallow holes on the Andrea vein encountered abundant zeolite veinlets, minerals typical of the upper parts of epithermal systems (above the boiling zone). The northern holes hit barren quartz/carbonate veins, but the deepest, and southernmost, hole encountered significant gold mineralisation, with 5.1 m at 1.9 g/t gold. This began at 186 m depth. Drilling at Andrea was suspended because of the lack of water required for drilling. Future drilling is planned to follow up on these encouraging results and will probably recommence in the wet season, expected to be in around six months' time. It will target the southern portion and be deeper.
Drilling commenced at Mestiza to test and convert an historic Soviet mineral resource (2,392 kt at 10.2 g/t gold for 785,694 oz gold) to Canadian NI 43-101 standard. The initial focus was on the Tatiana Vein, one of the four constituent veins and the largest portion of the resource. As of mid-August, a total of 44 drill holes for 5,922.30 m have been drilled along the Tatiana and Buenos Aires veins.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
Link to Figure 2. Tatiana vein long section indicating the location of a high-grade zone within the 'Big Bend'.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
Results are encouraging and have identified a high-grade ore shoot in a major dilational bend (Figures 2 and 3). High recoveries have been achieved in the mineralised zone, including mineralised fault breccias that previous drilling failed to recover.
Link to Figure 3. Tatiana vein Cross Section showing recent drill results in a High Grade Ore Shoot.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
During the reporting period 126 rock chip samples were obtained from different localities (Figure 4), the majority coming from La Cuchilla, Tierra Blanca, El Rodeo, La Mojarra, Cacao and Santa Barbara concessions and a few samples from La India concession.
A point of interest, is a 3.1 g/t gold sample obtained from a stockwork of druzy quartz veinlets in the far northwest sector of the La Cuchilla concession (figure 4). Most of the samples obtained during soil sampling at La Cuchilla concession have <1 g/t gold but fall in a corridor that seems to extend towards the main La India corridor to the southeast.
Several >1 g/t gold rock chips were collected from a possible southeast extension of the Andrea vein, amongst which a 23.8 g/t gold sample stands out and was obtained from a 0.5 m quartz breccia vein inside a recent artisanal excavation.
In the Santa Barbara concession, along a possible extension of the Cacao vein to the east, a 11.6 g/t gold sample was collected from a 1.4 m wide vein zone with fine disseminated pyrite in an active artisanal excavation.
Link to Figure 4 . Rock chip samples for the period January-June 2017.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
Soil sampling of the entire La India Project was completed with a total of 7,997 samples collected since June 2016, out of which 6,685 samples were sent for assaying covering an area of approximately of 242 m(2) (Figure 4). The overall total number of samples collected during 2015-2017 in the entire La India project concession package of 313 km(2) is 13,114.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
Link to Figure 5. Final results Au for district wide soil sampling.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
Several elements, in particular gold, tellurium, titanium, arsenic, silver and antimony, define two significant trends. These are interpreted as two major basement feeder zones; La India and Andrea Corridors (Figure 6). There is a suggestion that some rich veins (Tatascame, Los Limones, the veins at Andrea with visible gold) are en-echelon structures, at high angle to the Andrea Corridor. They may have provided localised dilations for fluids to rise.
The two corridors seem to converge west of Los Limones as broad anomalies (particularly tellurium), suggesting this area is also a target for future exploration. However, the target may be a concealed vein since gold and silver anomalies are not developed. The vein at Los Limones may be an example of a mostly concealed target: the surface rocks here comprise lapilli tuffs and mudstones, poor for brittle fracture.
Link to Figure 6. Interpreted major basement feeder zones from soil geochemisty results.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
Geology mapping and vein interpretation was bolstered with the incorporation of Don Allen and Miguel Ponce into the geological team. Don Allen (MSc Geological Engineering and Economic Geology) has over 30 years of experience in gold/copper exploration in mapping sedimentary and igneous terrains in Canada, the United States, Ecuador and Bolivia. Miguel Ponce (MSc in Ore Deposits, Geochemistry and Petrology, University of Geneva), an Ecuadorian geologist has considerable experience in various types of deposits, including: precious metals LS - IS - HS epithermal deposits, copper-gold Porphyry systems, VHMS "Kuroko-type", Manto-type copper deposits, iron-skarn and geothermal exploration projects in Ecuador, Colombia, Mexico, Panama, Peru and Argentina.
Link to Figure 7. Cacao vein mapping.
http://www.rns-pdf.londonstockexchange.com/rns/3598R_-2017-9-20.pdf
Detailed mapping of the litho-stratigraphy and vein characteristion was carried out at the Cacao vein (Figure 7), Andrea vein, Mestiza veins and Santa Barbara prospect with the objective of identifying possible extensions of this systems that would ultimately produce additional drilling targets.
Carlos Pullinger
Senior Geologist
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
Environmental Work
Implementation of the Environmental and Social Management System as required by the IFC Performance Standards has included the implementation of programmes and procedures in the areas of Environment, Social and Community, Health and Safety, Human Resources and Administration. Condor also attended the IFC Sustainability Exchange this year in Cartagena, Colombia; while the IFC conducted a site visit to La India Project in June.
During the period, Condor continued exploration activities on its El Rodeo, Real de la Cruz, La India and Espinito-Mendoza concessions. Condor successfully applied for a temporary water permit from MARENA on the El Rodeo concession to use water for the drilling campaign. Also, in El Rodeo, a special permit for drilling was submitted in another area called Los Limones, which was inspected and is under review by MARENA.
Condor presented to MARENA and INAFOR (The Forestry Institute "INAFOR") the updated Reforestation Plan for the Real de la Cruz concession, which was approved and is to be implemented in 2017-2018. Condor received a certificate in recognition of its work and commitment to the National Reforestation Campaign and promotion of the protection of the environment from INAFOR.
In March 2017, Condor submitted to MARENA and other government institutions further information regarding the Resettlement Plan, which was included in the EIA.
Condor continues monitoring surface water flow at five sites and groundwater level at 25 sites as part of its hydrology and hydrogeology baseline studies.
Social work
Condor continues working with La India village to improve social engagement and explain the economic and social benefits of the Project. Condor has hired a sociologist with experience in resettlement processes in mining projects in Latin America. Furthermore, to strengthen the social team, Condor hired five social technicians with experience in social engagement, communication and resettlement processes; four people from the village were also hired to join the social team. The social team currently totals 12 employees who have been implementing social projects and working house-to-house to approach the villagers and clarify their concerns and doubts about resettlement.
Condor opened a new and larger information office in La India village, organised public activities to inform the community about exploration, and implemented a Grievance Mechanism for stakeholders.
The social and environmental team also implemented a Participatory Water Monitoring Programme. Condor supplies drinking water to over 200 houses in the village of La India to supplement the current supply, which is estimated at 30 minutes within a 48 hour period. Condor held a number of workshops in the community to discuss the scheme.
Condor has promoted an open dialogue and meetings with stakeholders to inform them about the economic and social benefits of the La India Project and has been working with a group of villagers who decided to form a pro-mining group in order to obtain more information about the Project.
Condor continues to support the training programme for villagers, which aims to ultimately train some 320 people for future jobs at the mine. A sports programme has been initiated to increase youth engagement, promote a healthy lifestyle and encourage social interaction.
The social team has been involved in working and negotiating with landowners to gain access to their land to ensure exploration activities can proceed. This has involved meetings with landowners or landholders, signing agreements and constant communication throughout the process.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2017
Land Acquisition
Condor has continued its land acquisition process. Approximately 800 hectares of land has to be purchased for the mine site infrastructure and in addition, a village resettlement site has to be acquired. This involves maintaining close communication with landowners to address their concerns and explain the land acquisition process. Negotiations for options to buy the land have continued, resulting in new contracts and addenda being signed.
The regularisation and provision of correct land titles has continued, with inspections on 20 properties by the State Attorney's Office (PGR) and Intendancy for Property. Condor has provided the appropriate documents and awaits the clean land titles for those properties.
Condor hired a property lawyer to work in the Land Acquisition team in July 2017. The new lawyer had been working through PRONicaragua with Condor for more than a year and is very familiar with the challenges and tasks involved in securing clean property title.
Condor conducted a survey of with the villagers regarding five potential resettlement sites, asking the villagers as to their preferred sites, these have been surveyed by the Company's land acquisition team.
Irene Chow
Head of Environmental and Social Department
CONDOR GOLD PLC
CONCESSION DATA
FOR THE SIX MONTHS TO 30 JUNE 2017
CURRENT CONCESSION HOLDINGS
Nicaragua Projects
Project Concession Ownership Expiry Date Area
(km(2))
------------------- --------------- ------------ -------------- ---------
La India
Project La India 100% Owned January 2027 68.50
--------------- ------------ -------------- ---------
Espinito November
Mendoza 100% Owned 2026 2.00
--------------- ------------ ---------------------------------- ---------
Cacao 100% Owned January 2032 11.90
--------------- ------------ ---------------------------------- ---------
Santa Barbara 100% Owned April 2034 16.20
--------------- ------------ ---------------------------------- ---------
Real de
la Cruz 100% Owned January 2035 7.66
--------------- ------------ ---------------------------------- ---------
Rodeo 100% Owned January 2035 60.40
--------------- ------------ ---------------------------------- ---------
La Mojarra 100% Owned June 2029 27.00
--------------- ------------ ---------------------------------- ---------
La Cuchilla 100% Owned August 2035 86.39
--------------- ------------ ---------------------------------- ---------
El Zacatoso 100% Owned October 2039 1.00
--------------- ------------ ---------------------------------- ---------
Tierra
Blanca 100% Owned June 2040 32.21
--------------- ------------ ---------------------------------- ---------
Subtotal 313.26
--------------------------------------------- ----------------- ---------
Boaco Rio Luna 100% Owned June 2035 43.00
------------------- --------------- ------------ -------------- ---------
RACCN Estrella 100% Owned April 2035 18.00
------------------- --------------- ------------ -------------- ---------
December
Nueva Segovia Potrerillos 100% Owned 2031 12.00
------------------- --------------- ------------ -------------- ---------
La Libertad-Santo
Domingo
District Cerro Quiroz 20% Owned April 2035 22.50
------------------- --------------- ------------ -------------- ---------
TOTAL 408.76
------------------------------------------------------------------ ---------
All concessions in Nicaragua are combined exploration and exploitation concessions.
El Salvador Projects
Project Concession Ownership Expiry Date* Area
(km(2))
-------------- -------------- ------------ ------------------ ---------
La Calera La Calera 100% Owned under moratorium 42.00
-------------- -------------- ------------ ------------------ ---------
El Pescadito El Pescadito 100% Owned under moratorium 50.00
-------------- ------------ ------------------ ---------
Carolina 100% Owned under moratorium 40.50
-------------- ------------ --------------------------------- ---------
El Gigante 100% Owned under moratorium 42.50
-------------- ------------ --------------------------------- ---------
TOTAL 175.00
---------------------------------------------------------------- ---------
*All exploration and mining licences in El Salvador are currently under El Salvador's moratorium on mining and exploration activity. Condor owns 90% interest in El Salvador licences (remaining 10% gifted to the Condor Resources El Salvador Charitable Foundation).
CONDOR GOLD PLC
CONCESSION DATA
FOR THE SIX MONTHS TO 30 JUNE 2017
CURRENT GLOBAL CIM/JORC CODE MINERAL RESOURCE
The following Mineral Resource estimations have been reported by independent geologists in accordance with the terms and definitions of the CIM/JORC Code. The Mineral Resource Estimations for Nicaragua were completed by SRK Consulting (UK) Ltd. and for El Salvador by Geosure Exploration and Mining Solutions (La Calera and part of Pescadito) and Ravensgate Resources (part of Pescadito).
Tonnes Gold Silver Gold Equivalent CIM/JORC
(kt) Grade Contained Grade Contained Grade Contained Attributable Category
(g/t) (koz) (g/t) (koz) (g/t) (koz) Contained
(koz)
----------- ------- ------- ---------- ------- ---------- ------- ---------- ------------- ----------
Nicaragua Projects (100% Condor owned)
La
India 9,600 3.5 1,083 6 1,792 3.6 1,110 1,110 Indicated
Project 8,500 4.5 1,233 7 865 4.6 1,246 1,246 Inferred
----------- ------- ------- ---------- ------- ---------- ------- ---------- ------------- ----------
Ind +
Total 18,100 4.0 2,316 6 2,656 4.1 2,356 2,356 Inf
----------- ------- ------- ---------- ------- ---------- ------- ---------- ------------- ----------
Rio
Luna 694 3.5 80 56 500 4.4 86 86 Inferred
=========== ======= ======= ========== ======= ========== ======= ========== ============= ==========
Total 18,800 4.0 2,395 7 3,158 4.1 2,442 2,442 Ind+Inf
----------- ------- ------- ---------- ------- ---------- ------- ---------- ------------- ----------
El Salvador Projects (90% Condor owned)
Pescadito 7,100 1.9 434 97 22,100 3.4 764 688 Inferred
----------- ------- ------- ---------- ------- ---------- ------- ---------- ------------- ----------
La
Calera 6,000 1.6 313 - - 1.6 317 285 Inferred
=========== ======= ======= ========== ======= ========== ======= ========== ============= ==========
Total 13,100 1.8 747 53 22,380 2.6 1,081 964 Inferred
Grand
Total 31,900 3.1 3,142 30 25,530 3.5 3,523 3,415 Inferred
=========== ======= ======= ========== ======= ========== ======= ========== ============= ==========
Note that tonnage is rounded to nearest 10,000 t, gold grade is rounded to nearest 0.1 g/t, silver and gold equivalent grade to nearest 1 g/t, contained gold and gold equivalent to nearest 1,000 oz and contained silver to nearest 10,000 oz. Gold equivalent is calculated using silver:gold ratio of 67:1. Attributable gold is calculated as 90% interest in El Salvador licences (remaining 10% gifted to the Condor Resources El Salvador Charitable Foundation).
CURRENT LA INDIA PROJECT CIM CODE MINERAL RESOURCE
The following Mineral Resource estimations detail Condor's CIM compliant Mineral Resource Statement as at 30 September 2014 for the La India Project, as signed off by Ben Parsons of SRK Consulting (UK) Ltd, a Competent Person as defined by the CIM Code.
CONDOR GOLD PLC
CONCESSION DATA
FOR THE SIX MONTHS TO 30 JUNE 2017
Table 1. CIM Compliant Mineral Resource Statement
as at 30 September 2014 for the La India Project
(SRK Consulting (UK) Ltd.).SRK MINERAL RESOURCE STATEMENT
SPLIT PER VEIN as of 30 September 2014 (4),(5),(6)
----------------------------------------------------------------------------------------------------------------
Category Area Name Vein Name Cut-Off Gold Silver
---------- --------------------- ------------------------ ---------------------- -----------------
Tonnes Au Au Ag Ag (Koz)
(kt) Grade (Koz) Grade
(g/t) (g/t)
---------- --------------------- ------------------------ ------ ------ ------ ------- --------
La India La India/ 0.5 g/t
Indicated veinset California(1) (OP) 8,267 3.1 832 5.5 1,462
---------- ---------------------
La India/ 2.0 g/t
California(2) (UG) 706 4.9 111 10.6 240
America America 0.5 g/t
veinset Mine (OP) 114 8.1 30 4.9 18
---------------------
America 2.0 g/t
Mine (UG) 470 7.3 110 4.7 71
------------------------ ----------------------------------------- ------ ------ ------ ------- --------
La India La India/ 0.5 g/t
Inferred veinset California(1) (OP) 895 2.4 70 4.3 122
---------- ---------------------
0.5 g/t
Teresa(3) (OP) 4 6.6 1
------ ------ ------ ------- --------
La India/ 2.0 g/t
California(2) (UG) 1,107 5.1 182 11.3 401
2.0 g/t
Teresa(2) (UG) 82 11.0 29
----------------------------------------- ------ ------ ------ ------- --------
Arizona(3) 1.5 g/t 430 4.2 58
Agua Caliente(3) 1.5 g/t 40 9.0 13
------------------------ ----------------------------------------- ------ ------ ------ ------- --------
America America 0.5 g/t
veinset Mine (OP) 677 3.1 67 5.5 120
--------------------- ------ ------ ------ ------- --------
America 2.0 g/t
Mine (UG) 1,008 4.8 156 6.8 221
------ ------ ------ ------- --------
Guapinol(3) 1.5 g/t 751 4.8 116
------------------------ ----------------------------------------- ------ ------ ------ ------- --------
Mestiza
veinset Tatiana(3) 1.5 g/t 1,080 6.7 230
---------------------
Buenos Aires(3) 1.5 g/t 210 8.0 53
Espenito(3) 1.5 g/t 200 7.7 50
Central Central 0.5 g/t
Breccia Breccia(1) (OP) 922 1.9 56
--------------------- ------------------------ ------------------- ------ ------ ------ ------- --------
San Lucas San Lucas(3) 1.5 g/t 330 5.6 59
--------------------- ------------------------ ------------------- ------ ------ ------ ------- --------
Cristalito-Tatescame Cristalito-Tatescame(3) 1.5 g/t 200 5.3 34
------------------------ -------------------
El Cacao El Cacao(3) 1.5 g/t 590 3.0 58
--------------------- ------------------------ ------------------- ------ ------ ------ ------- --------
(1) The La India, America and Central Breccia pits
are amenable to open pit mining and the Mineral Resource
Estimates are constrained within Whittle optimised
pits, which SRK based on the following parameters:
A gold price of USD1,500 per ounce of gold with no
adjustments. Prices are based on experience gained
from other SRK Projects. Metallurgical recovery assumptions
of 91% for gold, based on assumptions provided by
the Company. Marginal costs of USD19.2 /t for processing,
USD5.63 /t G&A and USD2.47 /t for mining, slope angles
defined by the Company Geotechnical study which range
from angle 46 - 48deg.
(2) Underground mineral resources beneath the open
pit are reported at a cut-off grade of 2.0 g/t over
a minimum width of 1.0 m. Cut-off grades are based
on a price of USD1,500 per ounce of gold and gold
recoveries of 91% for resources, costs of USD19.0
/t for processing, USD10.0 /t G&A and USD50.0 /t
for mining, without considering revenues from other
metals.
(3) Mineral resources as previously quoted by SRK
(22 December 2011) are reported at a cut-off grade
of 1.5 g/t, and have not been updated as part of
the current study due to no further detailed exploration.
(4) Mineral Resources are not Ore Reserves and do
not have demonstrated economic viability. All figures
are rounded to reflect the relative accuracy of the
estimate and have been used to derive sub-totals,
totals and weighted averages. Such calculations inherently
involve a degree of rounding and consequently introduce
a margin of error. Where these occur, SRK does not
consider them to be material. All composites have
been capped where appropriate. The Concession is
wholly owned by and exploration is operated by Condor
Gold plc
(5) The reporting standard adopted for the reporting
of the MRE uses the terminology, definitions and
guidelines given in the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral
Resources and Mineral Reserves (May 2014) as required
by NI 43-101.
(6) SRK Completed a site inspection to the deposit
by Mr Benjamin Parsons, MSc (MAusIMM(CP), Membership
Number 222568, an appropriate "independent qualified
person" as this term is defined in National Instrument
43-101.
----------------------------------------------------------------------------------------------------------------
CONDOR GOLD PLC
CONCESSION DATA
FOR THE SIX MONTHS TO 30 JUNE 2017
Table 2. Summary of La India Project Mineral Resource Statement as of 30 September 2014 (SRK Consulting (UK) Ltd.).
SRK MINERAL RESOURCE STATEMENT SPLIT PER
VEINSET as of 30 September 2014
-----------------------------------------------------------------------------------------
Category Area Vein Name Cut-Off gold silver
Name
---------- --------- ---------- -------- ------------------------ ------------------
Tonnes Au Grade Au Ag Grade Ag (Koz)
(kt) (g/t) (Koz) (g/t)
---------- --------- ---------- -------- ------ -------- ------ -------- --------
Subtotal La India 0.5g/t
Indicated Areas veinset (OP) 8,267 3.1 832 5.5 1,462
---------- ---------
2.0
g/t
(UG) 706 4.9 111 10.6 240
America 0.5g/t
veinset (OP) 114 8.1 30 4.9 18
2.0
g/t
(UG) 470 7.3 110 4.7 71
---------------------------------------- ------ -------- ------ -------- --------
Subtotal La India 0.5g/t
Inferred Areas veinset (OP) 899 2.5 71 4.3 122
---------- --------- ----------
2.0
g/t
(UG) 1,189 5.5 211 11.3 401
1.5
g/t 470 4.7 71
---------------------------------------- ------ -------- ------ -------- --------
America 0.5g/t
veinset (OP) 677 3.1 67 5.5 120
----------
2.0
g/t
(UG) 1,008 4.8 156 6.8 221
1.5
g/t 751 4.8 116
---------------------------------------- -------- --------
Mestiza 1.5
veinset g/t 1,490 7.0 333
---------- ----------------------------- ------ -------- ------ -------- --------
Central 0.5g/t
Breccia (OP) 922 1.9 56
-------- --------
Other 1.5
veins g/t 1,120 4.2 151
---------- ----------------------------- ------ -------- ------ -------- --------
CONDOR GOLD PLC
CONCESSION DATA
FOR THE SIX MONTHS TO 30 JUNE 2017
Table 3. Summary of La India Project Mineral Resource Statement as of 30 September 2014 (SRK Consulting (UK) Ltd.)
SRK MINERAL RESOURCE STATEMENT as of 30 September
2014 (4),(5),(6)
-------------------------------------------------------------------------------------------
Category Area Vein Name Cut-Off gold silver
Name
---------- ------- ------------ -------- -------------------------- ------------------
Tonnes Au Grade Au (Koz) Ag Grade Ag (Koz)
(kt) (g/t) (g/t)
---------- ------- ------------ -------- ------ -------- -------- -------- --------
0.5g/t
Grand (OP)
Indicated total All veins (1) 8,382 3.2 862 5.5 1480
---------- ------- ------ -------- -------- -------- --------
2.0
g/t
(UG)
(2) 1,176 5.9 221 8.2 312
------ -------- -------- -------- --------
Subtotal Indicated 9,557 3.5 1,083 5.8 1792
---------------------- ------ -------- -------- -------- --------
0.5g/t
Grand (OP)
Inferred total All veins (1) 2,498 2.4 194 4.8(7) 242
---------- ------- ------ -------- -------- -------- --------
2.0
g/t
(UG)
(2) 2,197 5.2 366 8.8 622
------ -------- -------- -------- --------
1.5
g/t
(3) 3,831 5.4 671
---------------------------------------- ------ -------- -------- -------- --------
Subtotal Inferred 8,526 4.5 1,231 7.1(8) 865
---------------------- ------ -------- -------- -------- --------
(1) The La India, America and Central Breccia
pits are amenable to open pit mining and the
Mineral Resource Estimates are constrained within
Whittle optimised pits, which SRK based on the
following parameters: A Gold price of USD1,500
per ounce of gold with no adjustments. Prices
are based on experience gained from other SRK
Projects. Metallurgical recovery assumptions
of 91% for gold, based on assumptions provided
by the Company. Marginal costs of USD19.2 /t
for processing, USD5.63 /t G&A and USD2.47 /t
for mining, slope angles defined by the Company
Geotechnical study which range from angle 46
- 48deg.
(2) Underground mineral resources beneath the
open pit are reported at a cut-off grade of 2.0
g/t over a minimum width of 1.0 m. Cut-off grades
are based on a price of USD1500 per ounce of
gold and gold recoveries of 93 percent for resources,
costs of USD19.0 /t for processing, USD10.0 /t
G&A and USD50.0 /t for mining, without considering
revenues from other metals.
(3) Mineral resources as previously quoted by
SRK (22 December 2011) are reported at a cut-off
grade of 1.5 g/t, and have not been updated as
part of the current study due to no further detailed
exploration.
(4) Mineral Resources are not Ore Reserves and
do not have demonstrated economic viability.
All figures are rounded to reflect the relative
accuracy of the estimate and have been used to
derive sub-totals, totals and weighted averages.
Such calculations inherently involve a degree
of rounding and consequently introduce a margin
of error. Where these occur, SRK does not consider
them to be material. All composites have been
capped where appropriate. The Concession is wholly
owned by and exploration is operated by Condor
Gold plc
(5) The reporting standard adopted for the reporting of the MRE uses the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by NI 43-101. (6) SRK Completed a site inspection to the deposit by Mr Benjamin Parsons, MSc (MAusIMM(CP), Membership Number 222568, an appropriate "independent qualified person" as this term is defined in National Instrument 43-101. (7) Back calculated silver grade based on a total tonnage of 1,576 kt as no silver estimates for Central Breccia (922 kt). (8) Back Calculated silver grade based on total tonnage of material estimated for silver of 3,773 1 kt, for veins where silver assays have been recorded in the database -------------------------------------------------------------------------------------------
CONDOR GOLD PLC
CONCESSION DATA
FOR THE SIX MONTHS TO 30 JUNE 2017
CURRENT LA INDIA PROJECT CIM CODE MINERAL RESERVE
Table 3. La India Open Pit Mineral Reserve Estimate for La India Project Mineral Resource Statement as of 21 December 2014 (SRK Consulting (UK) Ltd.).
Mineral Diluted Diluted Grade Contained
Reserve Tonnes Metal
Class
(Mt dry) (g/t (g/t (koz (koz
Au) Ag) Au) Ag)
---------------- ------------- ------------- ----------- ------------------ -----
Proven - - - - -
Probable 6.9 3.0 5.3 675 1,185
---------------- ------------- ------------- ----------- ------------------ -----
Total 6.9 3.0 5.3 675 1,185
---------------- ------------- ------------- ----------- ------------------ -----
*Open pit mineral reserves are reported at
a cut-off grade of 0.75 g/t gold assuming:
metal price of USD 1,250 per ounce gold,
processing cost of USD 20.42 per tonne milled,
G&A cost of 5.63 USD per tonne milled, 10
USD /oz Au selling cost, 3% royalty on sales
and a processing recovery of 91%.
CURRENT RIO LUNA CONCESSION CIM CODE MINERAL RESOURCE
The following JORC compliant Mineral Resource and Reserve estimates contained within Condor Gold PLC's 100%-owned Rio Luna Concession is signed off by Ben Parsons of SRK Consulting (UK) Ltd., a Competent Person as defined by the CIM Code.
Table 4. JORC Compliant Mineral Resource Statement as at 28 November 2011 for the Rio Luna Concession (SRK Consulting (UK) Ltd.).
SRK Mineral Resource Statement, Rio Luna Deposit, 28(th) November 2011
----------------------------------------------------------------------------------------------------------------------
Category Vein Name Tonnes (kt) Gold Grade Contained Tonnes (kt) Silver Grade Contained
(g/t) Gold (oz) (g/t) Silver (oz)
---------- ------------- ------------ --------------- -------------- ------------ -------------- --------------
Inferred El Paraiso 395 4.01 52,000
Inferred El Rodeo 20 2.66 2,000
Inferred San Andreas 280 2.88 26,000 26 56 500,000
Inferred Subtotal 695 3.50 80,000 26 56 500,000
---------- ------------- ------------ --------------- -------------- ------------ -------------- --------------
Mineral Resources are reported at a cut-off grade of 1.5 g/t. Cut-off grades are based on a price of US$1200 per ounce of gold and gold recoveries of 90 percent for resources, without considering revenues from other metals. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate. The Concession is wholly owned by and exploration is operated by Condor Resources plc.
CONDOR GOLD PLC
INDEPENT REVIEW REPORT
FOR THE SIX MONTHS TO 30 JUNE 2017
Report on Review of Interim Financial Information to Condor Gold Plc
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the six months ended 30 June 2017 which comprises the Interim Consolidated Statement of Comprehensive Income, the Interim Consolidated Statement of Financial Position, the Interim Consolidated Statement of Changes in Equity, the Interim Consolidated Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company, as a body, in accordance with our instructions. Our review has been undertaken so that we might state to the Company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the opinions we have reached.
Directors' Responsibilities
The interim financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim financial report in accordance with the AIM rules.
As disclosed in note one, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom.
A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the 6 months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union.
As explained in the Basis of preparation to the Condensed financial information, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as issued by the IASB.
Crowe Clark Whitehill LLP
Statutory Auditor
St Bride's House
10 Salisbury Square
London EC4Y 8EH, UK 20 September 2017
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2017
As restated Three Three
Six months Six months Months Months
to 30.06.17 to 30.06.16 to 30.06.17 to 30.06.16
unaudited unaudited unaudited unaudited
GBP GBP GBP GBP
Revenue - - - -
Administrative
expenses (3,345,479) (3,298,208) (2,392,219) (2,068,790)
Operating loss (3,345,479) (3,298,208) (2,392,219) (2,068,790)
Finance income - 1,361 - -
Loss before income
tax (3,345,479) (3,296,847) (2,392,219) (2,068,790)
Income tax expense - - - -
Loss for the period (3,345,479) (3,296,847) (2,392,219) (2,068,790)
============= ================ ============= =============
Other comprehensive
income/(loss):
Currency translation
differences 1,521,217 2,021,250 2,053,210 2,039,250
------------- ---------------- ------------- -------------
Other comprehensive
income/(loss) for
the period 1,521,217 2,021,250 2,053,210 2,039,250
============= ================ ============= =============
Total comprehensive
income/(loss) for
the period (1,824,262) (1,275,597) (339,009) (29,540)
============= ================ ============= =============
Income/(loss) attributable
to:
Non-controlling
interest - (386) - 226
Owners of the parent (3,345,479) (3,296,461) (2,392,219) (2,069,016)
------------- ---------------- ------------- -------------
(3,345,479) (3,296,847) (2,392,219) (2,068,790)
================ ============= =============
Total comprehensive
income/(loss) attributable
to:
Non-controlling
interest (9,755) (8,245) 11,273 (8,673)
Owners of the parent (1,814,507) (1,267,352) (350,282) (20,867)
------------- ---------------- ------------- -------------
(1,824,262) (1,275,597) (339,009) (29,540)
================
Loss per share
expressed in pence
per share:
Basic and diluted Note
(in pence) 5 (5.68) (6.94) (3.90) (3.91)
============= ================ ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
As restated
30.06.17 31.12.16 30.06.16
unaudited GBP unaudited
GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 304,792 234,390 314,659
Intangible assets 18,265,630 15,924,194 20,338,233
18,570,422 16,158,584 20,652,892
------------- ------------- -------------
CURRENT ASSETS
Trade and other receivables 623,959 545,251 1,040,246
Cash and cash equivalents 3,168,265 583,610 2,272,992
------------- ------------- -------------
3,792,224 1,128,861 3,313,238
------------- ------------- -------------
TOTAL ASSETS 22,362,646 17,287,445 23,966,130
============= ============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 353,392 351,551 112,420
------------- ------------- -------------
TOTAL LIABILITIES 353,392 351,551 112,420
============= ============= =============
NET CURRENT ASSETS 3,438,832 777,310 3,200,818
------------- ------------- -------------
NET ASSETS 22,009,254 16,935,894 23,853,710
============= ============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital 12,273,077 10,582,129 10,570,463
Share premium 32,426,047 28,875,061 28,851,728
Legal reserves - - 71
Exchange difference reserve 2,163,498 632,526 3,578,710
Retained earnings (24,764,909) (23,075,118) (19,062,004)
22,097,713 17,014,598 23,938,968
============= ============= =============
TOTAL EQUITY ATTRIBUTABLE
TO:
Non-controlling interest (88,459) (78,704) (85,258)
22,009,254 16,935,894 23,853,710
============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2017
Share Share Legal Exchange Retained Total Non Total
capital premium reserve difference earnings controlling equity
reserve interest
As restated GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2016 9,161,463 27,442,728 71 1,549,601 (17,893,453) 20,260,410 (77,013) 20,183,397
Comprehensive
income:
Loss for
the period - - - - (3,296,461) (3,296,461) (386) (3,296,847)
Other
comprehensive
income:
Currency
translation
differences - - - 2,029,109 - 2,029,109 (7,859) 2,021,250
----------- ----------- -------- ----------- ------------- ------------ ------------ ------------
Total
comprehensive
income - - - 2,029,109 (3,296,461) (1,267,352) (8,245) (1,275,597)
New shares
issued 1,409,000 1,409,000 - - - 2,818,000 - 2,818,000
Share based
payment - - - - 2,127,910 2,127,910 - 2,127,910
At 30 June
2016 10,570,463 28,851,728 71 3,578,710 (19,062,004) 23,938,968 (85,258) 23,853,710
----------- ----------- -------- ----------- ------------- ------------ ------------ ------------
At 1 January
2017 10,582,129 28,875,061 - 632,526 (23,075,118) 17,014,598 (78,704) 16,935,894
Comprehensive
income:
Loss for
the period - - - - (3,345,479) (3,345,479) - (3,345,479)
Other
comprehensive
income:
Currency
translation
differences - - - 1,530,972 - 1,530,972 (9,755) 1,521,217
Total
comprehensive
income - - - 1,530,972 (3,345,479) (1,814,507) (9,755) (1,824,262)
New shares
issued 1,690,948 3,550,986 - - - 5,241,934 - 5,241,934
Share based
payment - - - - 1,655,688 1,655,688 - 1,655,688
At 30 June
2017 12,273,077 32,426,047 - 2,163,498 (24,764,909) 22,097,713 (88,459) 22,009,254
----------- ----------- -------- ----------- ------------- ------------ ------------ ------------
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 JUNE 2017
As restated
Six months Six months
to 30.06.17 to 30.06.16
unaudited unaudited
GBP GBP
Cash flows from operating activities
Loss before tax (3,345,479) (3,296,847)
Share based payment 1,655,688 2,127,909
Depreciation charges 51,297 36,530
Impairment charge of
intangible fixed assets - 18,045
Finance income - (1,361)
------------- -------------
(1,638,494) (1,115,724)
(Increase) in trade and
other receivables (78,708) (94,919)
Increase/(decrease) in
trade and other payables 1,841 (447,564)
Net cash absorbed in
operating activities (1,715,361) (1,658,207)
------------- -------------
Cash flows from investing
activities
Purchase of intangible
fixed assets (1,606,526) (869,111)
Purchase of tangible
fixed assets (109,557) (12,528)
Interest received - 1,361
Net cash absorbed in
investing activities (1,716,083) (880,278)
------------- -------------
Cash flows from financing
activities
Net proceeds from share
issue 5,241,934 2,818,000
Net cash absorbed in
financing activities 5,241,934 2,818,000
------------- -------------
Increase in cash and
cash equivalents 1,810,490 279,515
Cash and cash equivalents
at beginning of period 583,610 1,105,457
Exchange losses on cash
and bank 774,165 888,020
------------- -------------
Cash and cash equivalents
at end of period 3,168,265 2,272,992
------------- -------------
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
1. COMPLIANCE WITH ACCOUNTING STANDARDS
Basis of preparation
This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the EU.
The annual financial statements of the group are prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the IASB and as adopted by the EU. This condensed set of financial statements has been prepared applying the accounting policies and presentation that are to be applied in the preparation of the groups consolidated financial statements for the year. IFRS is subject to ongoing review and endorsement by the EU or possible amendment by interpretative guidance and the issuance of new standards by the IASB.
The statutory accounts for the year ended 31 December 2016, which have been filed with the Registrar of Companies. The auditors reported on those accounts; their Audit Report was unqualified and did not contain a statement under either Section 237(2) or Section 237(3) of the Companies Act 2006.
The Interim Report is unaudited and does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. The Interim Report for the six months ended 30 June 2017 was approved by the Directors on 20 September 2017.
The Directors consider the going concern basis to be appropriate based on cash flow forecasts and projections and current levels of commitments, cash and cash equivalents. The comparative period presented is that of the six months ended 30 June 2016. The Company has restated the interim financial information for the period ended 30 June 2016 in order to recognise the share based payment charge amounting to GBP2,127,909 arising on issued warrants and options which are charged to Administrative expenses. The financial statements for the year ended 31 December 2016 remains unaffected.
The Directors are of the opinion that due to the nature of the Group's activities and the events during that period these are the most appropriate comparatives for the current period. The additional information for the three months ended 30 June 2017 and comparative 30 June 2016 has been shown, as the Company is considering a secondary listing on the TSX or TSXv. Copies of the Interim Report are available from the Company's website www.condorgoldplc.com.
2. ACCOUNTING POLICIES
The interim financial information for the six months ended 30 June 2017 has been prepared on the basis of the accounting policies set out in the most recently published financial statements for the Group for the year ended 31 December 2016, which are available on the Company's website www.condorgoldplc.com, as the Company does not anticipate the addition of new standards to the Group's results for the year ended 31 December 2017 which would materially impact the results.
3. REVENUE AND SEGMENTAL REPORTING
The Group has not generated any revenue during the period. The Group's operations are located in England, El Salvador and Nicaragua.
The following is an analysis of the carrying amount of segment assets, and additions to plant and equipment, analysed by geographical area in which the assets are located.
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the six month period ended 30 June 2017 are as follows:
UK El Salvador Nicaragua Consolidation
Six months Six months Six months Six months
to 30.06.2017 to 30.06.2017 to 30.06.2017 to 30.06.2017
GBP GBP GBP GBP
RESULTS
Operating
(loss) (2,639,337) - (706,142) (3,345,479)
Interest - - - -
income
Income tax - - - -
expense
The Group's results by reportable segment for the three month period ended 30 June 2017 are as follows:
UK El Salvador Nicaragua Consolidation
Three months Three Three Three
to 30.06.2017 months months months
GBP to 30.06.2017 to 30.06.2017 to 30.06.2017
GBP GBP GBP
RESULTS
Operating
(loss) (2,472,533) - 80,314 (2,392,219)
Interest - - - -
income
Income tax - - - -
expense
Assets
All transactions between each reportable segment are accounted for using the same accounting policies as the Group uses.
UK El Salvador Nicaragua Consolidation
30.06.2017 30.06.2017 30.06.2017 30.06.2017
GBP GBP GBP GBP
ASSETS
Total assets 3,669,927 - 18,692,719 22,362,646
============ ============ ============ ==============
UK El Salvador Nicaragua Consolidation
30.06.2017 30.06.2017 30.06.2017 30.06.2017
GBP GBP GBP GBP
LIABILITIES
Total liabilities (214,958) - (138,434) (353,392)
============ ============ ============ ==============
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the restated six month period ended 30 June 2016 are as follows:
UK El Salvador Nicaragua Consolidation
Six months Six months Six months Six months
to 30.06.2016 to 30.06.2016 to 30.06.2016 to 30.06.2016
GBP GBP GBP GBP
RESULTS
Operating (loss) (2,373,422) (56,703) (868,083) (3,298,208)
Interest income 1,347 14 - 1,361
Income tax expense - - - -
The Group's results by reportable segment for the restated three month period ended 30 June 2016 are as follows:
UK El Salvador Nicaragua Consolidation
Three Three Three Three
months months months months
to 30.06.2016 to 30.06.2016 to 30.06.2016 to 30.06.2016
GBP GBP GBP GBP
RESULTS
Operating (loss) (1,727,924) (1,507) (339,359) (2,068,790)
Interest income - - - -
Income tax expense - - - -
Assets
All transactions between each reportable segment are accounted for using the same accounting policies as the Group uses.
UK El Salvador Nicaragua Consolidation
30.06.2016 30.06.2016 30.06.2016 30.06.2016
GBP GBP GBP GBP
ASSETS
Total assets 2,300,306 4,640,969 17,024,855 23,966,130
============ ============ ============ ==============
UK El Salvador Nicaragua Consolidation
30.06.2016 30.06.2016 30.06.2016 30.06.2016
GBP GBP GBP GBP
LIABILITIES
Total liabilities (21,720) (905) (89,795) (112,420)
============ ============ ============ ==============
4. TAXATION
There is no current tax charge for the period. The accounts do not include a deferred tax asset in respect of carry forward unused tax losses as the Directors are unable to assess that there will be probable future taxable profits available against which the unused tax losses can be utilised.
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
5. INTANGIBLE FIXED ASSETS
During the six months ended 30 June 2017, the Group acquired assets with a cost of GBP1,606,526 (six months ended 30 June 2016: GBP869,111).
During the three months ended 30 June 2016, the Group acquired assets with a cost of GBP1,259,736 (three months ended 30 June 2016: GBP372,711).
6. EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS
The estimated fair value of the options and warrants granted was;
As restated Three Three
Six months Six months Months Months
to 30.06.17 to 30.06.16 to 30.06.17 to 30.06.16
unaudited unaudited unaudited unaudited
GBP GBP GBP GBP
Warrants and options
charge 1,655,697 2,127,909 633,160 1,385,865
The fair value has been fully recognised within administration expenses, on a pro-rata basis over the vesting period. This fair value has been calculated using the Black-Scholes option pricing model. The latest inputs into the model were as follows:
2017 2016
Share price 63p 63p
Exercise price 93p 80p
Expected volatility 39.9% 149.5%
Expected life (yrs.) 2 5
Risk free rate 0.23% 0.23%
Expected dividend yield - -
7. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
A reconciliation is set out below:
Six months Six months
to 30.06.17 to 30.06.16
Basic EPS
Loss for the period (3,345,479) (3,296,847)
Weighted average
number of shares 58,933,197 47,493,565
Loss per share (in
pence) (5.68) (6.94)
============== =============
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
Three Three
months months
to 30.06.17 to 30.06.16
Basic EPS
Loss for the period (2,392,219) (2,068,790)
Weighted average
number of shares 58,933,197 47,493,565
Loss per share (in
pence) (3.90) (3.91)
In accordance with IAS 33, as the Group has
reported a loss for the period, diluted earnings
per share are not included.
8. CALLED-UP SHARE
CAPITAL
30.06.17 30.06.16
GBP GBP
Allotted and fully
paid
Ordinary shares 61,365,380
of 20p each (30.06.16: 52,852,316
of 20p each) 12,273,077 10,570,463
============== =============
On 20 February 2017, 8,454,733 ordinary shares were issued at a price of 62p per share.
9. RELATED PARTY TRANSACTIONS
During the half year the Company received consultancy
advice from the following related parties:
Company Related Six Six Three Three
party months months months months
to 30.06.2017 to 30.06.2016 to 30.06.2017 to 30.06.2016
GBP GBP GBP GBP
------------------ ---------------- --------------- --------------- --------------- ---------------
Axial Associates
Limited Mark Child 25,000 21,665 12,500 11,667
Burnbrae Limited Jim Mellon 12,500 8,167 6,250 5,166
Peter Flindell 12,500 18,238 6,250 15,238
No amounts were outstanding at the period end
date (30 June 2016: GBPNIL).
10. SEASONALITY OF THE GROUP'S BUSINESS OPERATIONS
There are no seasonal factors which affect
the trade of any company in the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKKDBFBKDCCB
(END) Dow Jones Newswires
September 21, 2017 02:00 ET (06:00 GMT)
1 Year Condor Gold Chart |
1 Month Condor Gold Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
