Condor Gold (AIM: CNR; TSX: COG) is pleased to announce assay results from a further twelve diamond core drill holes located between and along strike of the planned high-grade La India Starter Pits, which sit within the fully permitted La India Open Pit Mineral Reserve Estimate of 6.9Mt at 3.1 g/t gold for 675,000 oz gold.
The Company is encouraged by higher than expected grades in three of the drill holes, particularly as two high grade, wide intercepts are between the two starter pits in an area previously interpreted as having lower grade gold mineralisation. These results will be incorporated into a revised feasibility-level mine plan and are expected to have a positive impact on the Project's economics
Highlights of New Drill Assay Results
60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t gold from 42.55 m drill depth in drill hole LIDC452 located between the two proposed starter pits.
The wide zone of gold mineralization near surface has the potential to reduce the strip ratio in this area due to the increase in gold mineralized tonnage verse waste rock, thus improving Project economics.
3.75 m (3.4 m true width) at 9.94 g/t gold from the hanging wall of the historic mine workings in drill hole LIDC454 located between the two starter pits.
Potential to amalgamate the two Starter Pits into a single, larger Starter Pit as a broad zone of high grade gold mineralization was previously interpreted as a low grade zone with the main La India open pit.
9.00 m (8.5 m true width) amalgamated width at 4.98 g/t gold from 55.05 m drill depth in the hangingwall and footwall of the historic mine workings, including 5.35 m (5.0 m true width) at 6.61 g/t in the hangingwall of drill hole LIDC456. This drill intercept is located to the south and below the Southern Starter Pit.
Mark Child, Chairman and CEO commented: 'The high grade, wide, drill assay results between the two La India Starter Pits are a positive surprise as this area was previously interpreted as a lower grade zone within the main fully permitted La India open pit. LIDC452 returned 60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t gold. Mine schedules will be re-run to determine whether the two Starter Pits can be amalgamated into one Starter Pit and thus provide additional high grade mill feed from surface. Furthermore, the broad zone of mineralization is likely to reduce the overall strip ratio for the main La India open pit, as there is more mineralized gold tonnage verses waste rock, thus potentially improving the Project's economics.
The drill results strengthen the case for expanding the Starter Pits, which are within 35 m of the surface and contain approximately 455Kt at 4.17g/t gold for 59,674 oz gold using a 2.00g/t cut off grade. The intention is to mine the Starter Pits early to quicken the payback period. The Starter Pits sit within the main fully permitted La India open pit, which has a Mineral Reserve Estimate of 6.9Mt at 3.1 g/t gold for 675,000 oz gold'.
Background
Following the recent completion of a 25 m-spaced infill and reverse circulation (RC) replacement drilling on the La India Starter Pits, a programme of diamond core drilling to replace 90% of the remaining RC drill holes that fall within the main La India open pit shell was completed. A total of twenty-three RC drill holes (for 1632.05 m) were twinned by diamond core drilling, including both those that intercepted mineralisation within and adjacent to the high-grade starter pits, as well as holes drilled in lower grade zones further along strike and beneath the high-grade starter pits. The current open-pit Mineral Resource partially relies upon chip samples from RC drilling. Whilst it is generally recognised that RC drilling provides reliable gold-grade data at regular metre-scale sample intervals suitable for inclusion in an open-pit Mineral Resource estimation, better and more detailed geological information on the structures that contain the gold mineralised veins and breccia is provided by diamond core drilling. This additional data will further enhance the current Mineral Resources and Mineral Reserves and be utilised in final mine schedules
Looking Ahead
Condor is very encouraged by these high-grade, high width drilling intercepts and will assess whether the starter pits can be extended along strike and to depth, and possibly amalgamated into one larger starter pit. An updated mineral resource and mineral reserve estimation and revised mine plan will be produced at feasibility level of detail using these new results along with the recent 25 m-spaced infill drilling.
About the Starter Pits
On 25 January 2019, SRK Consulting (UK) Limited completed an updated Mineral Resource Estimate on Condor's 100% owned La India Project in Nicaragua comprising 9.85 million tonnes ('M tonnes' or 'Mt') at 3.6 g/t gold for 1,140,000 oz gold in the Indicated category and 8.48M tonnes at 4.3g/t gold for 1,179,000 oz gold in the Inferred category. The La India Vein Set hosts an open pit Mineral Resource of 8,377 kt at 3.1 g/t gold for 837 Koz gold in the Indicated category and 887 kt at 2.4 g/t gold for 69,000 oz gold in the Inferred category. Beneath the La India open pit is an underground Mineral Resource estimate of 678 kt at 4.9 g/t gold for 107 Koz gold in the Indicated category and 1,718 kt at 5.6 g/t gold for 309,000 oz gold in the Inferred category.
The 25 January 2019 MRE update did not materially change the La India open pit Mineral Resource estimate and consequently the 2014 Pre-Feasibility Study ('PFS') remained unchanged. La India open pit has an existing Probable Mineral Reserve of 6.9 million tonnes ('Mt') at 3.01 g/t gold for 675,000 oz gold. As announced on 4 March 2020, Condor completed internal studies on readily accessible highgrade material within the permitted La India open pit. The starter pits within La India open pit contain a diluted tonnage of 387 Kt at 4.29 g/t gold for 53,000 oz gold. Condor has subsequently further advanced these studies. Within a designed pit shell, the starter pits have two scenarios. At 0.75 g/t gold cut-off grade, 635 Kt at 3.32 g/t gold for 67,800 oz gold with a 4.5 to 1 strip ratio. Using a 2.0 g/t cut-off grade, 445 Kt at 4.17 g/t gold for 59,700 oz gold with a 6.8 to 1 strip ratio.
About the Drilling Techniques
Drilling was undertaken using heavy duty track-mounted drilling rigs. All of the drilling was undertaken using diamond core drilling techniques employing large diameter PQ core barrels and triple tube in the mineralised zones to ensure good sample recovery. Drilling close to surface and in proximity to historical and artisanal mine workings can present challenges to the driller, however, the drilling programme benefitted from employment of local geologists, field support staff and experienced drill contractors, all with a decade of experience of drilling at la India. Consequently, all target depths were met and good sample recovery was achieved.
About the Assaying
Drill core was cut, and half core samples collected and bagged by Condor staff on-site. Samples were transported to Bureau Veritas accredited sample preparation laboratory in Managua every week in batches of two or three drill holes, generally being submitted to the lab within 5-10 days of completing the drill hole. Sub-samples of the pulverised rock samples were forwarded for assay to Bureau Veritas accredited analytical laboratory in Vancouver, Canada.
Contact:
Mark Child
Tel: +44 (0) 20 7493 2784
About Condor Gold plc
Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in January 2018. The Company is a gold exploration and development company with a focus on Nicaragua. In August 2018, the Company announced that the Ministry of the Environment in Nicaragua had granted the Environmental Permit ('EP') for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day at its wholly-owned La India gold project ('La India Project'). The EP is considered the master permit for mining operations in Nicaragua. Condor Gold published a Pre-Feasibility Study ('PFS') on the project in December 2014, summarised in the Technical Report, as defined below. The PFS details an open pit gold Mineral Reserve in the Probable category of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold, producing 80,000 oz gold per annum for 7 years. La India Project contains a Mineral Resource of 9,850 Kt at 3.6 g/t gold for 1.14 Moz gold in the Indicated category and 8,479 Kt at 4.3 g/t gold for 1.18 Moz gold in the Inferred category. The Indicated Mineral Resource is inclusive of the Mineral Reserve. A gold price of $1,500/oz and a cut-off grade of 0.5 g/t and 2.0 g/t gold were assumed for open pit and underground resources, respectively. A cut-off grade of 1.5 g/t gold was furthermore applied within a part of the Inferred Resource. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources will be converted to Mineral Reserves. Environmental Permits were granted in April and May 2020 for the Mestiza and America open pits respectively, both located close to La India. The Mestiza open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the Inferred Mineral Resource category.
The America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold (67,000 oz) in the Inferred Mineral Resource category. Following the permitting of the Mestiza and America open pits, together with the La India open pit Condor has 1.12 Moz gold open pit Mineral Resources permitted for extraction, inclusive of a Mineral Reserve of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold.
Forward Looking Statements
All statements in this press release, other than statements of historical fact, are 'forward-looking information' with respect to the Company within the meaning of applicable securities laws, including statements with respect to: the ongoing mining dilution and pit optimisation studies, and the incorporation of same into any mining production schedule, future development and production plans at La India Project. Forward-looking information is often, but not always, identified by the use of words such as: 'seek', 'anticipate', 'plan', 'continue', 'strategies', 'estimate', 'expect', 'project', 'predict', 'potential', 'targeting', 'intends', 'believe', 'potential', 'could', 'might', 'will' and similar expressions. Forwardlooking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions regarding: future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; the receipt of required permits; royalty rates; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.
CONDOR GOLD PLC 
