GODALMING - Condor Gold (AIM: CNR) (TSX: COG) announces that it has today published its unaudited financial results for the three months ending 31 March 2022 and the Management's Discussion and Analysis for the same period.
Highlights for the First Quarter of 2022
On March 10, 2022, the Company announced that all assay results have been received for an 8,004 m infill drilling programme on the fully permitted high-grade La Mestiza Open Pit Mineral Resource at La India Project.
Advanced the technical studies needed for the completion of a Definitive Feasibility Study covering the La India open pit, the processing plant facility and location, tailings storage facility, waste dump locations, explosive magazine, power supply, surface hydrology, hydrogeology (dewatering the pit), geochemistry, metallurgy, environmental and social.
Continued with acquisitions of land at the La India open pit and associated mine site infrastructure. To date, 99.6% of the core areas have been purchased.
Site clearance of 14 hectares has been completed for the processing plant location, including areas for offices, warehouses, a stockpile and a buffer zone.
Project finance discussions are underway with potential providers of project finance who have access to Condor's data room under confidentiality agreements.
Further advanced compliance with the terms of the La India Environmental Permit to construct and operate the mine, including completion of additional technical and engineering studies.
Mark Child, Chairman and CEO Commented: 'During the first quarter, we continued to make significant progress on advancing the Feasibility Study for the La India open pit and associated mine site infrastructure . All technical studies undertaken at the Project level are complete. We are currently reviewing the metallurgical test work, geotechnical analysis and capital cost estimates. Additionally, we received the results from the 8,004 m infill drill program at the fully permitted high-grade Mestiza open pit. Although not included in the scope of our forthcoming Feasibility Study, we expect Mestiza to provide an additional high-grade ore source for the La India mill.
Concurrently, we are finalizing our analysis of an updated Mineral Resource Estimate for La India Project, which is inclusive of a Mineral Reserve Estimate for the La India open pit. The geological model is consistent with our current best understanding. Lithologies, weathering and structures have been re-modelled from scratch with existing drilling, trenching and outcrops considered.
In summary, the La India open pit including the associated mine site infrastructure is essentially construction ready and materially de-risked. The plan is to add the two fully permitted high grade feeder pits of Mestiza and America to the mine plan during the construction phase. The Feasibility Study on La India open pit is almost complete, the formal announcement will probably take us into Q3. It will put the Company in a position to pursue various project financing alternatives, some of which have already been initiated.'
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.
On 25 October 2021 Condor announced the filing of a Preliminary Economic Assessment Technical Report ('PEA') for its La India Project, Nicaragua on SEDAR https://www.sedar.com. The highlight of the technical study is a post-tax, post upfront capital expenditure NPV of US$418 million, with an IRR of 54% and 12 month pay-back period, assuming a US$1,700 per oz gold price, with average annual production of 150,000 oz gold per annum for the initial 9 years of gold production. The open pit mine schedules have been optimised from designed pits, bringing higher grade gold forward resulting in average annual production of 157,000 oz gold in the first 2 years from open pit material and underground mining funded out of cashflow.
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 has purchased a new SAG Mill, which has mainly arrived in Nicaragua. Site clearance and preparation is at an advanced stage.
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 M oz gold open pit Mineral Resources permitted for extraction.
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: Developmment Plans for the La India Project, Mineral Reserves and Resources 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. Forward-looking 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.
Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to: mineral exploration, development and operating risks; estimation of mineralisation, resources and reserves; environmental, health and safety regulations of the resource industry; competitive conditions; operational risks; liquidity and financing risks; funding risk; exploration costs; uninsurable risks; conflicts of interest; risks of operating in Nicaragua; government policy changes; ownership risks; permitting and licencing risks; artisanal miners and community relations; difficulty in enforcement of judgments; market conditions; stress in the global economy; current global financial condition; exchange rate and currency risks; commodity prices; reliance on key personnel; dilution risk; payment of dividends; as well as those factors discussed under the heading 'Risk Factors' in the Company's annual information form for the fiscal year ended December 31, 2020 dated March 31, 2021, available under the Company's SEDAR profile at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
CONDOR GOLD PLC 
