Condor Gold Share Discussion Threads

[molatovkid] 18/9/2012 12:53

Been reading about El Salvador at the weekend. From memory they are moving to suspend ALL metallic mining until they can set up the right environmental and mining controls that are required. This could be a softening of their position and likely a result of the Tau report that might lead to a re-introduction of mining in El Salvador.

This would seriously bring CNR's 1m oz back into play.

[scientologyweirdo] 18/9/2012 12:51

Pavon and Trebon comparison C$20m + C$10/oz for 40% of probable or proven resources over 500koz gets them the full control of Pavon and Trebol properties. B2 had orgininally funded C$4m to earn an initial 60% stake. Pavon - In 2005, JV partner Meridian Gold funded a major drill campaign, resulting in the definition of a modest conceptual gold resource, of roughly 340koz to 350koz of gold. Trebol - B2Gold began exploring Trebol in the second half of 2009, following up and expanding upon results from a 2008 drill campaign. Soil sampling in late 2011 at Trebol East highlighted 3 zones of anomalous gold values returning gold values in excess of 17 g/t. Trenching was completed in late 2011 and first stage drilling was completed late last year. A 3,000m drill program in the winter of 2010/2011 was undertaken on the the Cerro Domingo, Paola and Trebol North zones also. B2Gold proposed to drill 2,000m of HQ core drilling during 2012, in 16 to 18 holes, to test the new Trebol East targets. There are no estimates as to a potential resource.

Analysis - The main selling point here is the near surface, open pit potential to mine a 500koz+ resource at a low strip ratio. There is however an unverified resource awaiting confirmation to JORC standards also. 1 Canadian dollar = 0.631 British pounds C$20m + $4m for 100% stake of the 500k resource ( C$24m equates to £15m) B2Gold to also pay C$10 (£6.31) per ounce for 40% of the resources over 500k so a £2.52/oz royalty for any future ounces over 500k (so £1.25m for a further 500k proven up for example). B2Gold are therefore paying C$48 (£30) per ounce plus a royalty of C$10 (£6.31) for further finds. Nb. Previous to the acquisition Radius were to receive much more for their stake according to a sliding scale linked to the prevailing quarterly average gold price. At the recent price range of between US$900-$1,699 / oz, Radius would receive the following payments per ounce of gold produced and for as long as B2 continued to produce gold from the Pavon resource property: Average POG - Production Payment to Radius / oz Au $900 to $999 - $125 $1,000 to $1,099 - $150 $1,100 to $1,199 - $175 $1,200 to $1,299 - $200 $1,300 to $1,399 - $225 $1,400 to $1,499 - $250 $1,500 to $1,599 - $275 $1,600 to $1,699 - $300 The low case scenario assuming a POG of between $900 to $999, and a 500k ounce resource would have seen Radius benefit from $62.5m over the course of production! Those figures were in place prior to the acquisition. Radius have sold their 40% stake and so are no longer entitled to the production cash payments of what would have been $300/oz today. The point to take note from is our La India resource of 2.4moz gold is today only valued at $40/oz (£25/oz), including 950koz open pit and 750koz indicated!

[warmsun] 18/9/2012 12:51

Molatovkid....lol!!

[panamabob2] 18/9/2012 12:09

A decision must be very close now,forearmed!! Yes.You're right--just the lifting of the moratorium would blast CNR much furthur North.

Anyone got an update on the El Salvador situation?

[judijudi] 18/9/2012 10:34

reckon this will edge a bit higher this afternoon

[forearmed] 18/9/2012 10:32

Morning panamabob yes I too am here for the duration. It is incredible to think that El Salvador alone could add 10p old money, £2.00 new, with one announcement of an end to the moratorium. Let's not forget that Condor set up that charity to benefit local people from the proceeds of any mining that is done there. Now why would they have done that if there hadn't been a steer from someone that eventually the moratorium would be lifted?

[tezza1180] 18/9/2012 10:20

That's because of the amount of open pit ounces included that's why the average is down but check b2 gold on open pit which is half of ours

[molatovkid] 18/9/2012 10:14

Ounces up but grade reduced - is this "the catch"?

[panamabob2] 18/9/2012 10:08

Agreed forearmed--the market is in some kind of 'shock'.Almost as if it is saying this is too good to be true.Where is the catch??

There isn't one.One of the best young companies around.I am here for the duration and adding as I go.

[forearmed] 18/9/2012 10:04

Well I have added (yet) again is morning and now own 0.1% of the company! This really is an outstanding RNS. I am only surprised by the muted response so far, but when it all sinks in I think we will surge on towards the £2.50 mark initially and after that who knows where?

[stooshe] 18/9/2012 10:03

Does he put a figure on price target?

[molatovkid] 18/9/2012 10:01

If you look on certain charts, 50% of the veins appear to be un-drilled

[molatovkid] 18/9/2012 10:00

Its alright for your guys whinging about no internet in the Algarve or being in South East Asia....here's me - at work, Middlesbrough. Doesnt get much worse than that.

[panamabob2] 18/9/2012 09:59

A truly 'great'RNS .Hard to see how it could be bettered.

''Just the beginning''.

Can only get better and bigger..The potential here is absolutely enormous.

How much longer can B2B stand and watch as they now have a very serious competitor on their doorstep?

And don't forget El Salvador!

[sunjammer] 18/9/2012 09:42

Ocean comment from Jibbo on LSE:

"Unequivocally this is a major achievement for Condor," Ocean Equities analyst Chris Welch said in a note.

"The company has met and exceeded its target of a 2Moz resource base, it has increased the indicated portion of the resource to a substantial 0.8Moz and it has been able to delineate a substantial resource of 0.9Moz that is amenable to open pit mining.

"The company deserves credit for meeting targets in a timely fashion, a rare trait in a junior mining company."

Even after the recent share price strength Welch says that Condor is undervalued.

He points out that it currently it has an enterprise value per ounce of just $37, which he says is 'a very low multiple that does not reflect the overall grade of the deposit'.

"Considering just the open pit component, the multiple would still just be $98/oz, which again is undervalued in our opinion for a high grade open pit project so close to infrastructure."

While enthusiastic about Condor's 'major success' so far in this part of Nicaragua, Welch says this is just the beginning for the company.

He says the company's formula for success so far can be easily replicated across the rest of the La India gold district, which the company now controls following recent acquisitions.

"Condor has been able to take complete control of a gold district that has already shown it to be very responsive to the appropriate drilling in the right places combined with broader exploration techniques from trenching.

Focussing on the existing project Welch said he expects Condor the upcoming technical report and preliminary economic assessment (PEA), to be a positive development given the enlarged resource and the findings of earlier metallurgical tests.

"Our focus will be on the open pit resource economics and the size of the mill that the project could potentially support. As we envisage it, the mill will mostly be fed with open pit resource tonnes and supplemented with higher grade ores from the underground mines.

"There is the potential for Condor to employ excess profits from this starter mine to explore and develop other resources within the La India gold district. We await the technical study to assess this potential."

In this morning's statement, Condor chief Mark Child said: "The La India Project has considerable potential to continue the expansion of the size of the gold mineral resource.

"It continues to develop into three main areas, separated by one kilometre to one-and-a-half kilometres that could feed a centralised processing facilit

[sunjammer] 18/9/2012 09:40

Ocean comment - courtesy of Jibbo on LSE:

"Unequivocally this is a major achievement for Condor," Ocean Equities analyst Chris Welch said in a note.

"The company has met and exceeded its target of a 2Moz resource base, it has increased the indicated portion of the resource to a substantial 0.8Moz and it has been able to delineate a substantial resource of 0.9Moz that is amenable to open pit mining.

"The company deserves credit for meeting targets in a timely fashion, a rare trait in a junior mining company."

Even after the recent share price strength Welch says that Condor is undervalued.

He points out that it currently it has an enterprise value per ounce of just $37, which he says is 'a very low multiple that does not reflect the overall grade of the deposit'.

"Considering just the open pit component, the multiple would still just be $98/oz, which again is undervalued in our opinion for a high grade open pit project so close to infrastructure."

While enthusiastic about Condor's 'major success' so far in this part of Nicaragua, Welch says this is just the beginning for the company.

He says the company's formula for success so far can be easily replicated across the rest of the La India gold district, which the company now controls following recent acquisitions.

"Condor has been able to take complete control of a gold district that has already shown it to be very responsive to the appropriate drilling in the right places combined with broader exploration techniques from trenching.

Focussing on the existing project Welch said he expects Condor the upcoming technical report and preliminary economic assessment (PEA), to be a positive development given the enlarged resource and the findings of earlier metallurgical tests.

"Our focus will be on the open pit resource economics and the size of the mill that the project could potentially support. As we envisage it, the mill will mostly be fed with open pit resource tonnes and supplemented with higher grade ores from the underground mines.

"There is the potential for Condor to employ excess profits from this starter mine to explore and develop other resources within the La India gold district. We await the technical study to assess this potential."

In this morning's statement, Condor chief Mark Child said: "The La India Project has considerable potential to continue the expansion of the size of the gold mineral resource.

"It continues to develop into three main areas, separated by one kilometre to one-and-a-half kilometres that could feed a centralised processing facilit

[panamabob2] 18/9/2012 09:28

I do so dislike them as a breed.Wish they would move along to the next opportuity and allow the serious investor to get involved without all this in/out stuff.Just holds up progress and wastes everybody's time---except their's of course.

But--great news.When this all sinks in and we are near production Lord knows where we shall be.

Then there is El Salvador......

[christianf12] 18/9/2012 08:50

CGNR Mkt Cap $0.005bn with 1m+ oz resource

[christianf12] 18/9/2012 08:49

OTC Mkt Cap $0.025bn with 1.36m+ oz resource

[tees maar khan] 18/9/2012 07:44

I don't care what the share price does in the short term. This is huge for CNR long term shareholders.TMK

[psolomons] 18/9/2012 07:39

Just need to get rid of the ultra short term 'sell on news' traders and we will be away.