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| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.25 | -0.85% | 29.00 | 28.50 | 29.50 | 29.25 | 29.00 | 29.25 | 104,887 | 15:09:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | -2.53M | -0.0140 | -20.71 | 52.43M |
TIDMCNR
RNS Number : 6649S
Condor Gold PLC
21 March 2016
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Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74081067
Fax: +44 020 74938633
21 March 2016
Condor Gold plc
("Condor" or "the Company")
Revised Terms to Acquire the Espinito-Mendoza Concession
Click on, or paste the following link into your web browser, to view the associated PDF document which includes the map referred to in Figure 1.
http://www.rns-pdf.londonstockexchange.com/rns/6649S_-2016-3-20.pdf
Condor (AIM:CNR), is pleased to announce, with reference to its announcements of 24 August 2011 and 12 December 2011, that it has successfully re-negotiated the terms to acquire 100% of the Espinito Mendoza Concession (the "Concession") in the heart of La India Project, Nicaragua. The revised terms end a dispute between the sellers of the Espinito-Mendoza Concession and the Company as detailed in Condor's interim report and accounts to 30(th) June 2015. The resolution allows the Company to advance the Concession on terms acceptable to the Company.
Highlights:
-- Revised terms to acquire 100% of the 200 hectare Espinito-Mendoza Concession at the heart of La India Project settle a dispute on improved terms and allows progress of the Concession on terms acceptable to Condor.
-- Espinito-Mendoza Concession hosts a NI 43-101 compliant Mineral Resource Estimate of 908kt at 6.66g/t for 208,000 oz gold and a Soviet classified Mineral Resource of 1,442kt at 13.03g/t gold for 513,492 oz gold.
-- The enlarged Mestiza Vein Set includes epithermal gold veins on the Espinito Mendoza Concession and the surrounding La India Concession and has a NI 43-101 compliant Mineral Resource of 1,490kt at 7.47g/t for 333,000 oz gold and a Soviet classified Mineral Resource of 2,392kt at 10.21g/t for 785,684 oz gold.
-- The Mestiza Vein Set is excluded from Condor's PFS and PEAs and has potential to increase NI 43-101 compliant resources, reserves and gold mineral production from La India Project
-- Micon International produced a report in February 1998 stating: "It is Micon's opinion that La Mestiza is a property of merit, with good potential to become a small (500 to 800tpd), low cost mine."
Mark Child CEO comments:
"I am pleased, after many months of negotiation, to have settled a dispute over the purchase of the high grade Espinito-Mendoza Concession, which clears the way to advance the Concession and convert more of the Soviet classified resource on the Mestiza Vein Set of 2,392kt at 10.21g/t for 785,684 oz gold to western standards. The Mestiza Vein set hosts a NI 43-101 compliant mineral resource estimate of 1,490kt at 7.47g/t for 333,000 oz gold. In our experience, the Soviet GKZ classified resources on La India Project have generally converted to western standards upon tighter drill spacing and verification drilling of the previous drill holes. It is some comfort that Micon International's 1998 report on the Concession concluded that the property has good potential to become a small (500 to 800tpd), low cost mine. The Mestiza Vein Set is excluded from the Whittle Enterprise Optimisation of the PFS and PEA studies, which detailed 4 production scenarios ranging from 91,000 to 165,000 oz gold production per annum. We remain convinced that La India Project hosts a substantial gold field with considerable upside potential."
Background
Condor and Empresa Minera La Mestiza S.A. ("Mestiza"), together (the 'Parties") executed an Agreement on 18(th) August 2011 to transfer 100% of the Concession to Condor's wholly owned Nicaraguan subsidiary, Condor S.A. for a consideration of US$1,625,000 spread over 36 months payable in cash and shares. (the "Original Agreement"). Condor has paid US$1,155,000 of this consideration and US$470,000 is due. A dispute arose over the transfer of clean surface rights on the Concession to Condor, a 5,000m drill commitment by the Company and a bonus to be paid to Mestiza on a Mineral Reserve estimation on the Concession
The Agreed Settlement
Condor has made a cash payment of US$30,000 to Mestiza, a further cash payment (the "Further Payment") of US$470,000 is due by 1(st) June 2016. Additional payments of US$10,000 per month are payable for 20 months commencing 30 days after the Further Payment. Mestiza remains entitled to a 2.25% NSR on mineral extraction from the Concession, but not a bonus on reserve estimation. Both were part of the Original Agreement. Condor is not obligated to conduct a 5,000m drilling programme and assumes responsibility to clean up the surface rights.
Geology
The Espinito Mendoza Concession covers a rectangular 2 sq km area containing one of the highest concentrations of epithermal veins on La India Project. It is located at the heart of La India Project in the middle of Condor's wholly owned La India Concession. See Figure 1. As elsewhere in the District, the gold is low sulphidation epithermal mineralisation contained within quartz veins, breccias, stockwork zones and fault gouge clay, hosted by a Tertiary felsic to andesitic volcanic sequence. The gold mineralisation is open along strike and to depth.
Mineral Resource Estimates
A Soviet back exploration campaign estimated a Soviet GKZ mineral resource of 1,422k tonnes at 13.03g/t gold for 513,492 oz gold on the Concession. See table 1 below. SRK Consulting (UK) Limited converted the Soviet mineral resource estimate to 980k tonnes at 6.66g/t gold for 208,000 oz gold. See Table 2 below:
Table 1 Espinito-Mendoza Concession Soviet GKZ Resource Estimate
Soviet GKZ mineral resource estimate
(1991) Espinito Mendoza concession
----------------------------------------------- ---------
Vein Category Tons (kt) Grade Au (oz)
(g/t)
-------------- ---------- ---------- ------- ---------
Espinito C1,C2,P1 237 9.83 85,199
-------------- ---------- ---------- ------- ---------
Buenos Aires C2, P1 317 16.80 171,489
-------------- ---------- ---------- ------- ---------
Tatiana C2,P1 887 9.00 256,804
-------------- ---------- ---------- ------- ---------
TOTAL 1,442 13.03 513,492
-------------------------- ---------- ------- ---------
Table 2 Espinito Mendoza Concession NI 43-101 Mineral Resource Estimate
SRK NI-43-101 resource estimate (30-09-2014)
Espinito Mendoza concession
-----------------------------------------------------------
Vein Category Tons (kt) Grade Au (oz)
(g/t)
-------------- ----------- ---------- ------- ---------
Espinito Inferred 200 7.70 50,000
-------------- ----------- ---------- ------- ---------
Buenos Aires Inferred 210 8.00 53,000
-------------- ----------- ---------- ------- ---------
Tatiana Inferred 570 5.80 105,000
-------------- ----------- ---------- ------- ---------
TOTAL 980 6.66 208,000
--------------------------- ---------- ------- ---------
The Mestiza Vein Set is defined as the area of the Espinito Mendoza Concession including veins that overlap the surrounding La India Concession. A Soviet backed exploration campaign estimated a Soviet style mineral resource of 2,392k tonnes at 10.21g/t gold for 785,694 oz gold. See Table 3 below. SRK Consulting (UK) Limited converted the Soviet mineral resource estimate to an NI 43-101 mineral resource estimate of 1,490k tonnes at 7.47g/t gold for 333,000 oz gold. See table 4 below.
Table 3 Mestiza Vein Set Soviet GKZ Mineral Resource Estimate
Soviet GKZ mineral resource
estimate (1991)
--------------------------------- ---------- ------- ---------
Vein Category Tons (kt) Grade Au (oz)
(g/t)
--------------------- ---------- ---------- ------- ---------
Espinito C1,C2,P1 353 9.83 112,013
--------------------- ---------- ---------- ------- ---------
San Pablo P1 39 12.20 15,338
--------------------- ---------- ---------- ------- ---------
Buenos Aires Jicaro C2, P1 317 16.80 171,489
--------------------- ---------- ---------- ------- ---------
Tatiana (Espinito
Mendoza) C2,P1 887 9.00 256,804
--------------------- ---------- ---------- ------- ---------
Tatiana (La India) C2,P2 795 9.00 230,051
--------------------- ---------- ---------- ------- ---------
TOTAL 2,392 10.21 785,694
--------------------------------- ---------- ------- ---------
(MORE TO FOLLOW) Dow Jones Newswires
March 21, 2016 03:00 ET (07:00 GMT)
Table 4 Mestiza Vein Set NI 43-101 Mineral Resource Estimate
SRK NI-43-101 resource estimate (30-09-2014)
------------------------------------------------------------------
Vein Category Tons (kt) Grade Au (oz)
(g/t)
--------------------- ----------- ---------- ------- ---------
Espinito Inferred 200 7.70 50,000
--------------------- ----------- ---------- ------- ---------
Buenos Aires Jicaro Inferred 210 8.00 53,000
--------------------- ----------- ---------- ------- ---------
Tatiana (Espinito
Mendoza) Inferred 570 5.80 105,000
--------------------- ----------- ---------- ------- ---------
Tatiana (La India) Inferred 510 7.60 125,000
--------------------- ----------- ---------- ------- ---------
TOTAL 1,490 7.47 333,000
---------------------------------- ---------- ------- ---------
Historical Mining
Of the four principle veins, Tatiana, Espinito, Jicaro and Buenos Aires (sub-divided into the offset and overlapping Buenos Aires 1 and 2 veins), only the Espinito Vein was historically exploited as a satellite mine to the main La India and America-Constancia underground developments between 1938 and 1956. All the gold was processed at the central La India Mill which produced an estimated 576,000 oz gold at an average grade of 13.4g/t during that time. It is not known how much of this production came from the Espinito workings, which exploited a 500m strike length from two development levels. In addition to the principal veins a number of linking or cross-cutting veins have also been shown to host gold mineralisation but have not yet been assessed by drilling or underground workings.
Micon International Report
In February 1998, Micon International Limited produced a review of the resources, reserves and business plan for the Mestiza Project for Diadem Resource Limited, the owner of the 200 hectare Espinito-Mendoza concession. The conclusion reads: "It is Micon's opinion that La Mestiza is a property of merit, with good potential to become a small (500 to 800tpd), low cost mine." And goes on to say "A significant amount of work, however, still remains to be done before the resources at La Mestiza property can be upgraded to reserves. It is Micon's opinion, this further work is fully justified by the exploration results obtained to date." Assuming a head grade of 7g/t gold a 500tpd to 800tpd mill would produce between 40,000 oz to 60,000 oz gold per annum. It is important o note that the Mestiza Vein Set is excluded from Condor's NI 43-101 compliant PFS and PEA studies on La India Project.
Figure 1
http://www.rns-pdf.londonstockexchange.com/rns/6649S_-2016-3-20.pdf
Technical Glossary
C1 C1 reserves are broadly
equivalent to JORC indicated
resources and have been
estimated by a sparse
grid of trenches, drill
holes or underground workings.
The quality and properties
of the deposit are known
tentatively by analyses
and by analogy with known
deposits of the same type.
The general conditions
for exploitation are partially
known
---------------------- --------------------------------------
C2 C2 reserves are broadly
equivalent to JORC inferred
resources and have been
extrapolated from limited
data, probably only a
single hole
---------------------- --------------------------------------
g/t grams per tonne
---------------------- --------------------------------------
Indicated resource that part of a Mineral
Resource for which tonnage,
densities, shape, physical
characteristics, grade
and mineral content can
be estimated with a reasonable
level of confidence. It
is based on exploration,
sampling and testing information
gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill
holes. The locations are
too widely or inappropriately
spaced to confirm geological
and/or grade continuity
but are spaced closely
enough for continuity
to be assumed
---------------------- --------------------------------------
inferred resource that part of a Mineral
Resource for which tonnage,
grade and mineral content
can be estimated with
a low level of confidence.
It is inferred from geological
evidence and assumed but
not verified geological
and/or grade continuity.
It is based on information
gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill
holes that may be limited,
or of uncertain quality
and reliability
---------------------- --------------------------------------
Kt Thousand tonnes
---------------------- --------------------------------------
NI 43-101 Canadian National Instrument
43-101 a common standard
for reporting of identified
mineral resources and
ore reserves
---------------------- --------------------------------------
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
---------------------- --------------------------------------
PEA Preliminary Economic Assessment
- A conceptual-level study
used to demonstrate basic
economic viability under
Canadian National Instrument
43-101
---------------------- --------------------------------------
PFS Preliminary Feasibility
Study - Overall economic
accuracy of +/- 25%
---------------------- --------------------------------------
quartz veins veins of quartz rock develop
in fractures and fissures
in the surrounding rock.
They are deposited by
saturated geothermal liquids
rising to the surface
through the cracks in
the rock and then cooling
---------------------- --------------------------------------
Soviet Classification The former Soviet system
for classification of
reserves and resources,
developed in 1960 and
revised in 1981, which
divides mineral concentrations
into seven categories
of three major groups,
based on the level of
exploration performed:
explored reserves (A,
B, C1), evaluated reserves
(C2) and prognostic resources
(P1, P2, P3)
---------------------- --------------------------------------
Soviet GKZ the former Soviet State
Commission for Mineral
Reserves
---------------------- --------------------------------------
strike length The longest horizontal
dimension of an ore body
or zone of mineralisation
---------------------- --------------------------------------
- Ends -
(MORE TO FOLLOW) Dow Jones Newswires
March 21, 2016 03:00 ET (07:00 GMT)
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