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. 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  30th September 2014 La India Project’s resource, prepared in accordance with NI 43-101, comprised 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 included total probable reserve of 6.9MT at 3.0g/t for 0.675M oz gold and 5.5 g/t for 1.185 M oz silver. In addition to the La India Resource, there is further resource prepared in accordance with CIM standards of 0.7Mt at 3.5g/t for 87k oz gold in the inferred category.

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, with secondary trading commencing 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, as set out above and 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 is contained within a 9km radius within the La India Project area. 

The Mineral Resource Statement was prepared in accordance with NI 43-101 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 included expansion scenarios to evaluate 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; an expansion scenario ("Expansion Scenario A") with open pit mining on La India , America and Central Breccia; and a further expansion scenario ("Expansion Scenario B") with open pit mining at La India, America and Central Breccia and underground mining at La India and America. In November 2014 the PFS 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 Expansion 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. The LOM all-in sustaining costs are US$685/oz..
  3. 1.6Mtpa Expansion  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. 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 LOM all-in sustaining costs are US$697/oz.