Condor Gold Share Discussion Threads

[drradcliffe] 01/10/2012 11:42

I see the shareholder correspondence from Mark contained another hint about B2 Gold's cash cost per ounce. Clive Johnson must be following this with great interest. What will he do when he reads in the PEA that La India cost per ounce is half that of Libertad?

[deadcert] 01/10/2012 09:50

Some tantalising figures from Tester123 over the week-end and they're only based on 3million oz @ $1350. Might end up at 4 or 5million @ $1750.

Morning all
Sun 08:12
Thanks for all the input / replies chaps - much appreciated. This is exactly what I was hoping to bring out in public when I asked the questions yesterday am, so I really do thank you for your time in working this out! I think some will be reading this and thinking we are ramping the SP, but when we base it on some pretty solid assumptions, it makes it a bit more genuine/realistic!

SO... Given that we all think that the NPV will be significantly (i.e 3-4x) north of the current share price (with ballpark figures around £8) my question is now...

When that PEA (aka royal flush!! :-) is put on the table, and every II can calculate for themselves the NPV figure (along with Edisons inevitable revised NPV figure that they will publish), at that point is there anything stopping the share price from moving up to that new NPV figure from mid november onwards? i.e up to £8 or whatever... or will that only be realised if/when we get an offer for CNR (but will take at least a few months of due diligence to happen) ? What do you all think / based on past experience?

We already have another way of valuing CNR based on the Extorre / Yamana case which puts CNR at £8.50 a share. That bid came on the strength of a PEA. Therefore I dont think the £8-£9 valuation is out of the question as we can arrive at it independently from 2 ways. In fact I think a buyer would have to pay a premium as CNR has significant advantages over other projects (friendly country, good logistics, low costs, high grades etc).

If a company is "following" CNR and wanted to buy them/La India, they would HAVE to wait until that PEA comes out so that their bank or shareholders will finance/support that takeover bid. When the PEA is out, the risk is significantly reduced because the project has been independently proven to be economic.

Also, if you were a buyer - wouldnt you rather try to buy CNR before the 3Moz / 1Moz upgrade (who are you kidding MC, its going to be lot more than that old chap!) next September that is almost guaranteed to happen...? Waiting a year from now will cost you an awful lot more, and you might get beaten to it by someone else!!

Again, all comments gratefully received!!

regards

T123

[scientologyweirdo] 01/10/2012 06:55

Maybe it will be worthwhile for MC to slow down the updates ? Let the market digest all the good news properly. He seems in a hurry ;-)

I know some have speculated that B2Gold and/or other predators may be having a look so this may explain the increased newsflow. MC won't want this to go on the cheap.

[scientologyweirdo] 01/10/2012 06:45

Losing track of the potential here now ! 3-5m oz seems nailed on and with a lot of open pit potential to boot.

[theabbey] 01/10/2012 06:34

Go Condor! Second open pit potential!

"1 October 2012
Condor Gold plc
("Condor" or "the Company")
Trench results and initiation of mechanized trenching on America Vein Set, La India Project, Nicaragua.
Highlights
-- 10m at 3.56g/t gold in trenching demonstrates remnant wallrock gold mineralisation in the historic America Mine.
-- Up to four mineralised zones over a 30m width in the hangingwall demonstrates a stacked vein system with the potential to coalesce into wide moderate to high-grade zones along strike or down-dip
-- 800m strike length of the historic America Mine remains untested by trench sampling and the entire 1200m strike length has never been drilled.
-- 4.1m at 6.17g/t gold trench intercept in a remnant pillar of the historic America Mine demonstrates significant gold left behind during mining operations.
-- Follow up trenching using a mechanical digger over 1,200m length of historic America Mine has started at 50m intervals.
Mark Child, Chairman and CEO commented:
"The historic mine on the America vein is estimated to have produced circa 250,000 oz gold at 13.5g/t prior to its closure in 1956, which is the same amount of gold production as the historic mine on La India vein. The recently announced open pit resource on La India/California veins of 954,000 oz gold at 3.6g/t gold encompasses a large part of the historic La India mine. We aim to prove whether the success of the open pit resource on La India veins can be repeated on the America veins. The initial trench results are encouraging, demonstrating multiple mineralised zones over a 30m length.
The old mine workings on the America vein have a strike length of approximately 1,200m and were mined on 9 levels to a depth of circa 250m. These have never been drill tested to determine whether remnant wall rock remains in the hanging wall and footwall of the old mine workings and whether there are parallel veins at surface or at depth which coalesce. A mechanical digger is now on site, trenching at 50m intervals over a 1,200m strike length. Condor plans to follow up with a 2,000m drill programme through the old mine workings, if successful this may prove a second open pit resource on La India Project"
..."

[steeplejack] 01/10/2012 06:26

A bright star in a dull firmament.Market won't react happily to the Chinese PMI figures i suspect but it just gets better and better for Condor.

[molatovkid] 01/10/2012 06:18

could be massive excellent news! even more gold in a potentially 2nd open pit!

[scientologyweirdo] 01/10/2012 06:07

Trench results and initiation of mechanized trenching on America Vein Set, La India Project, Nicaragua.

Highlights

· 10m at 3.56g/t gold in trenching demonstrates remnant wallrock gold mineralisation in the historic America Mine.

· Up to four mineralised zones over a 30m width in the hangingwall demonstrates a stacked vein system with the potential to coalesce into wide moderate to high-grade zones along strike or down-dip

· 800m strike length of the historic America Mine remains untested by trench sampling and the entire 1200m strike length has never been drilled.

· 4.1m at 6.17g/t gold trench intercept in a remnant pillar of the historic America Mine demonstrates significant gold left behind during mining operations.

· Follow up trenching using a mechanical digger over 1,200m length of historic America Mine has started at 50m intervals.

Mark Child, Chairman and CEO commented:

"The historic mine on the America vein is estimated to have produced circa 250,000 oz gold at 13.5g/t prior to its closure in 1956, which is the same amount of gold production as the historic mine on La India vein. The recently announced open pit resource on La India/California veins of 954,000 oz gold at 3.6g/t gold encompasses a large part of the historic La India mine. We aim to prove whether the success of the open pit resource on La India veins can be repeated on the America veins. The initial trench results are encouraging, demonstrating multiple mineralised zones over a 30m length.

The old mine workings on the America vein have a strike length of approximately 1,200m and were mined on 9 levels to a depth of circa 250m. These have never been drill tested to determine whether remnant wall rock remains in the hanging wall and footwall of the old mine workings and whether there are parallel veins at surface or at depth which coalesce. A mechanical digger is now on site, trenching at 50m intervals over a 1,200m strike length. Condor plans to follow up with a 2,000m drill programme through the old mine workings, if successful this may prove a second open pit resource on La India Project"

[scientologyweirdo] 01/10/2012 06:05

America Trench update

[panamabob2] 28/9/2012 18:35

£15 per share will do me very nicely thankyou!!

And....not at all unrealistic!The Condor just gets bigger and BIGGER!!!!!

[tees maar khan] 28/9/2012 14:57

MC has a habit of under promising and over delivering.TMK

[scientologyweirdo] 28/9/2012 13:33

888ICB
28 Sep'12 - 11:17 - 249 of 252

MC is now making comparisons with B2Gold which is very encouraging.
CNR's Market Cap is £53 Million compared with B2 Gold at £970 Million that is 18X higher!!
So lets be conservative and say CNR's potential is half that of B2 Gold so 9x which would give a share price of £15.75.
In the Interim report MC says 'there is a strong chance that the PEA will produce a robust economic model etc' When MC says'strong chance' I think we can be pretty sure that chance isn't a factor -it will happen!
Lets hope we finish the week on a positive note because the future looks very bright.

[deadcert] 28/9/2012 13:26

The Abbey

I can't believe he will ever have had a more attractive mining stock to evaluate.
It is now so derisked that I'm sure he will be following you in as an investor.

[theabbey] 28/9/2012 10:48

888ICB - my line and kind of thinking. To date MC has been very conservative with what he publishes, so for him to say that...!!!

deadcert - much appreciated. We are lucky to have the likes of V1d and Jibbo dotting the i's and crossing the t's...I have to rely on my bro' who is very cursory about my investment although he did admit for the first time he would invest if it would go into an ISA (he's mineral processing out of Vancouver but still has an ISA wrap available over here). He has agreed to read the PEA once it comes out so I will be interested to hear his views then.

[deadcert] 28/9/2012 10:28

something else Jibbo has noticed in todays interim report

Breccia
Today 09:48
Now 1000m x 800m in size - up from 350m x 150m. This is big, big news!!!!!!!!!! 50,000 oz from just a few drill holes completed so far, on one Breccia pipe. There will be plenty more pipes within the new parameters. This could hold a big open pit resource. News shortly regarding mapping and magnetic survey.

V1d
Jibbo, being a boring accountant, I just had to look at the numbers to get a real feel for just how big.

The contained weight of rock in 350m by 150m to 100m depth and 2.6SG is 350x150x100x2.6 = 13.65Mt

In 1,000m by 800m it rises to 1000x800x100x2.6 = 208.0Mt.

Now the IS a big increase!!

[888icb] 28/9/2012 10:17

MC is now making comparisons with B2Gold which is very encouraging.
CNR's Market Cap is £53 Million compared with B2 Gold at £970 Million that is 18X higher!!
So lets be conservative and say CNR's potential is half that of B2 Gold so 9x which would give a share price of £15.75.
In the Interim report MC says 'there is a strong chance that the PEA will produce a robust economic model etc' When MC says'strong chance' I think we can be pretty sure that chance isn't a factor -it will happen!
Lets hope we finish the week on a positive note because the future looks very bright.

[deadcert] 28/9/2012 09:21

From tester123 lse bb

Taken from this mornings interim statement

WOW!

!The medium term strategy is multi-fold: 1) To increase the CIM Standard resource for La India Project to 3 million oz gold with 1 million oz gold in the indicated category. 2) To increase the size and confidence of the open pit resource and in particular convert inferred to indicated resources. 3) To conduct an exploration programme on the America Vein, the location of the historic America mine, which produced circa 250,000 oz gold at 13g/t prior to its closure in 1956 to determine whether veins coalesce beneath surface as they do in La India Vein Set and prove and open pit resource along the historic mine's 1,000m strike length. 4) Depending on the outcome of the PEA, decide whether to fast track La India open pit to production on a circa 100,000 oz p.a. open pit mine. It is worth noting that in the 2nd quarter 2012, B2Gold Corp (TSX:BTO), which operates the only large open pit mine in Nicaragua, at its La Libertad mine, produced 25,135 oz gold at a head grade of 1.69g/t with cash operating costs of US$505 per oz gold. With Condor's open pit resource of 954,000 oz gold at 3.6g/t there is a strong chance that the PEA will produce a very robust economic model, with high internal rates of return due to the high grade open pit resource "



"These are exciting times for Condor; we own 100% of La India Project which hosts a 2.4m oz resource, including a high grade open pit resource of close to 1M oz gold at 3.7g/t and we are now in an enviable position of knowing the minimum size mill for La India Project is 100,000 oz gold per annum and we expect it, in terms of cost, to be a lower quartile producer. The Company will require significant additional funds to carry out its strategy outlined above. In the meantime, the Company is in the process of securing interim funding. Following receipt of the PEA there will be a strategy review to determine whether the open pit resource is fast tracked to production or the Company keeps drilling to increase the gold resource on La India Project or a comb

[deadcert] 28/9/2012 09:19

The above is from the interim statement this morning

[deadcert] 28/9/2012 09:18

From tester123 lse bb

WOW!

!The medium term strategy is multi-fold: 1) To increase the CIM Standard resource for La India Project to 3 million oz gold with 1 million oz gold in the indicated category. 2) To increase the size and confidence of the open pit resource and in particular convert inferred to indicated resources. 3) To conduct an exploration programme on the America Vein, the location of the historic America mine, which produced circa 250,000 oz gold at 13g/t prior to its closure in 1956 to determine whether veins coalesce beneath surface as they do in La India Vein Set and prove and open pit resource along the historic mine's 1,000m strike length. 4) Depending on the outcome of the PEA, decide whether to fast track La India open pit to production on a circa 100,000 oz p.a. open pit mine. It is worth noting that in the 2nd quarter 2012, B2Gold Corp (TSX:BTO), which operates the only large open pit mine in Nicaragua, at its La Libertad mine, produced 25,135 oz gold at a head grade of 1.69g/t with cash operating costs of US$505 per oz gold. With Condor's open pit resource of 954,000 oz gold at 3.6g/t there is a strong chance that the PEA will produce a very robust economic model, with high internal rates of return due to the high grade open pit resource "



"These are exciting times for Condor; we own 100% of La India Project which hosts a 2.4m oz resource, including a high grade open pit resource of close to 1M oz gold at 3.7g/t and we are now in an enviable position of knowing the minimum size mill for La India Project is 100,000 oz gold per annum and we expect it, in terms of cost, to be a lower quartile producer. The Company will require significant additional funds to carry out its strategy outlined above. In the meantime, the Company is in the process of securing interim funding. Following receipt of the PEA there will be a strategy review to determine whether the open pit resource is fast tracked to production or the Company keeps drilling to increase the gold resource on La India Project or a comb

[scientologyweirdo] 28/9/2012 06:59

they are just historic results

its next few weeks and PEA which are important

[theabbey] 28/9/2012 06:41

Amongst other things in the Interim's, MC's statement included:

"It is worth noting that in the 2(nd) quarter 2012, B2Gold Corp (TSX:BTO), which operates the only large open pit mine in Nicaragua, at its La Libertad mine, produced 25,135 oz gold at a head grade of 1.69g/t with cash operating costs of US$505 per oz gold. With Condor's open pit resource of 954,000 oz gold at 3.6g/t there is a strong chance that the PEA will produce a very robust economic model, with high internal rates of return due to the high grade open pit resource."

[sadone] 28/9/2012 06:18

Understated statement from MC as expected......

[b2l] 28/9/2012 06:16

Interim results out ...

[paid_piper] 27/9/2012 20:44

post from jibbo lse bb.

1. An excellent management team of Mark Child, Jim Mellon and Roger Davey. Mark Child's negotiation skills have contributed significantly to the resource in Nicaragua growing from 41,000 oz to the current 2.49 million oz at an average cost of just $4 an ounce. The industry average is $20 an oz.

2. The high grade of gold. The 2,497,000 million ounces in Nicaragua is at 4.6 g/t

3. Nicaragua is a mining friendly country with several established gold mines and the World Bank has recognized that Nicaragua is now the top location in Central America for investor protection. The exploration and mining licences held by CNR were awarded for a 25 year period. Despite the presence of B2Gold in the country with two operating mines and over 100k oz pa production, it is CNR that has by far the biggest resource in Nicaragua.

4. The recent RNS has confirmed a maiden open pit resource of 954,000 oz at a very high grade (for open pit) of 3.6 g/t. B2Gold, which operates a 100k oz pa open pit nearby, has an average open pit grade of 1.8g/t and operational costs of $500 an oz. CNR should be able to produce at nearer to $325 an oz, given the higher grade, and La India District will host one of the lowest cost mines in the world. By combining high grade narrow vein mining with open pit, a mill producing at least 150k oz pa should be feasible (based on the resource to date, which will continue to grow rapidly) and that will hopefully be confirmed in the forthcoming PEA in October.

5. The aim is to prove up a large commercial reserve at La India District. The NI 43-101 total in the District is now 2,410,000 ounces. CNR's recent drilling has been highly successful, not only returning some bonanza grades, but also in terms of the ounces returned per metre drilled. The industry average is 250,000 oz per 5000m drilled or 354,000 oz per the 7090m drilled by CNR. The rate of return at La India has been 525,387 oz per 5000m - more than double the industry average.The last 7090m drilling campaign cost around $1.1 million and resulted in 750,000 new ounces (of which 500k were Indicated). That works out at around $1.4 per ounce. Soviet exploration estimated 2.4 million oz in the District but CNR has been exceeding the Soviet figures by more than 50%. CNR has since made several new and important discoveries and it is no wonder that Mark Child is now talking about the likelihood of 3.6 million oz in La India District.

6. Good local infrastructure with a main road, water, cheap labour and power lines nearby.

7. Ocean Equities have previously suggested 220p per share based on 1.5 million ounces – CNR now has 2.49 million oz in Nicaragua. Independent broker Optiva has valued CNR at 296p prior to the recent addition of 750k oz and 500k of Indicated ounces. B2Gold's recent purchase of two concessions in Nicaragua (which contain an unclassified 350k oz of gold) equates, pro rata, to 500p per share. Edison value CNR's revised resource at £3.25 a share.