Company Overview

Condor Gold Plc is a UK based AIM and TSX-listed exploration company focused on developing and further proving a large commercial reserve on its 100% owned La India Project in Nicaragua ("La India"). In August 2018 Condor received an Environmental Permit for the development, construction and operation of a processing plant with a capacity of up to 2,800 tonnes per day and associated mine site infrastructure at La India.

Following the grant of the Environmental Permit the Company’s objective is to progress the redesigned mine site infrastructure for La India Open Pit to a bankable level of Feasibility Study.  In addition, under the conditions of the Environmental Permit, the Company has to submit to MARENA final engineered designs for several key components of the mine prior to construction. Subject to financing, completion of a BFS and completion of the final engineering designs, construction is expected to commence within 18 months of the grant of the Environmental Permit. The construction period is expected to take 18 to 24 months.

At 14th November 2014 La India Project’s NI 43-101 compliant mineral resource stood at 18.1Mt at 4.0g/t for 2.32M oz gold and 2.66M oz silver at 6g/t, comprising an indicated mineral resource of 9.6Mt at 3.5g/t for 1.08M oz gold and an inferred mineral resource of 8.5Mt at 4.5g/t for 1.23M oz gold. This includes total open pit indicated and inferred mineral resources of 1.06M oz gold at 3.0g/t. A pre-feasibility study on open pit mining on the principal La India Vein has defined a probable open pit mineral reserve of 6.9Mt at 3.0g/t gold for 675k oz gold and 5g/t silver for 1.185M oz silver.

In addition to the La India Resource, 87k oz gold on the Rio Luna Resource takes Condor's total resource to 2.39M oz gold in Nicaragua to CIM standards.

Condor's management team have extensive experience in mineral exploration, project development and project financing, ensuring that the Company has the best possible opportunity to achieve exploration success and take La India Project through to a bankable feasibility study.

The Company was successfully admitted to the London Stock Exchange, AIM Market, on 31st May 2006 and listed on the TSX on 15th January 2018.

From 2011 to August 2017 Condor drilled 397 drillholes for circa over 59,000m and over 18,000m of trenching. This data was combined with the historic exploration and mining data and included in the latest mineral resource estimate completed by independent geologists at SRK Consulting (UK) Ltd and announced in November 2013 and updated as part of the Pre-Feasibility Study (PFS) in September 2014. The current mineral resource estimate on the project area is a CIM-compliant combined inferred and indicated mineral resource of 18.1Mt at 4.0g/t for 2.32M oz gold, including 9.6Mt at 3.5g/t for 1.08M oz gold in the indicated category, all contained within a 9km radius within the La India Project area. In addition there is a mineral resource of 2.66M oz silver at a grade of 6.2 g/t silver, estimated on the La India-California veins and America Mine Resource only where there is sufficient silver assay data. The mineral resource has been estimated in three parts using different parameters based on the potential economics and the confidence of the data available:

  1.  An open pit mineral resource of 10.9Mt at 3.0g/t for 1.06M oz gold, including 862,000 oz in the indicated category with the balance inferred, constrained by a Whittle open pit model. The optimised Whittle in-pit resource has been estimated using a 0.5g/t cut-off and is contained within three close-spaced pits: La India Open Pit containing 904,000 oz gold at 3.1g/t (including 832,000 indicated), the America Open Pit containing 97,000 oz gold at 3.8g/t (including 30,000 oz indicated) and the Central Breccia Open Pit containing 56,000 oz gold at 1.9g/t. 
  2. An underground mineral resource of 3.4Mt at 5.4g/t for 588,000 oz gold which falls outside of the Whittle pit shells on La India and America has been estimated using a higher cut-off of 2.0g/t over 1m width to reflect the higher costs of underground mining.
  3. The remainder of the resource areas which have not been subject to Whittle Pit modelling have been estimated using a 1.5g/t cut-off, reflecting an anticipated combination of open pit and underground mining.  

The CIM-compliant Mineral Resource Statement was reported to NI 43-101 guidelines by independent geological consultants SRK (UK) Ltd and signed off by SRK's Ben Parsons, a Competent Person as defined by the CIM Code. 

Pre-Feasibility Study 

Towards the end of 2013 SRK Consulting (UK) Limited was commissioned to undertake a PFS and updated preliminary economic assessments (“PEA”) to determine whether La India Project could support an open pit only mine for several years, with underground development funded at a later date out of cash flow. The study considered three different scenarios: a prefeasibility study on open pit mining at La India only; a PEA on open pit mining on La India, America and Central Breccia; and a PEA on open pit mining at La India, America and Central Breccia and underground mining at La India and America. In November 2014 the combined PFS and PEA study was completed.

  1. 0.8Mtpa PFS La India Open Pit only demonstrates a robust and economically viable base case for the project. The study envisages Open pit mining of 6.9Mt of ore at 3.0g/t gold with a 91.0% recovery for 614k oz gold production. The Life of Mine (“LOM”) stripping ratio is 13.6 t:t over a mine schedule of 8 years producing 94.5Mt of waste. The mining rate will be 0.8Mtpa over 8 year mine life feeding a 2,300 tpd plant for an average annual production of 79,300 oz over the 7 years of maximum production. The LOM all-in sustaining costs are US$690/oz, the capital expenditure is US$110M, the Internal Rate of Return (“IRR”) is 22% and the Net Present Value (“NPV”) is US$92M.
  2. 1.2Mtpa PEA Scenario A, La India Open Pit + Feeder Pits. Open pit mining of 9.5Mt of ore at 2.8g/t gold with a recovery of 91.0% for La India, 94.5% for America and 87.0% for Central Breccia, to return 774k oz gold production. The LOM stripping ratio is 12.5 t:t over a mine schedule of 8 years producing 118.2Mt of waste. The mining rate will be 1.2Mtpa feeding a 2,800 tpd plant for an average annual production of 96,800 oz gold. The LOM all-in sustaining costs are US$685/oz, the capital expenditure is US$127M, the IRR is 25% and the NPV is US$124M.
  3. 1.6Mtpa PEA Scenario B, La India Open Pit + Feeder Pits + Underground. Open pit and underground mining of 13.0Mt of ore at 3.2g/t gold with a recovery of 91.0% for La India, 94.5% for America and 87.0% for Central Breccia, for 1.2M oz gold production over a 12 year mine life. The open pit component will be completed in 8 years with a LOM stripping ratio is 12.4 t:t producing 118.2Mt of waste. The mining rate will be 1.6Mtpa for the first 8 year mine life feeding a 2,800 tpd plant for an average annual production of 137,500 oz. After Year 8 mining will switch to a lower rate extracting underground ore only for a further 4 years. Underground mining will use cut-and-fill method assuming 5% dilution and 95% mining recovery. The underground component accounts for 3.52Mt at 4.31g/t gold. The LOM all-in sustaining costs are US$697/oz, the capital expenditure is US$169M, the IRR is 24% and the NPV is US$187M.