Condor Gold files NI 43-101 report on La India, Nicaragua
Condor Gold PLC [COG-TSX; CNDGF-OTC; CNR-LSE] released the key findings of a technical report on its La India gold project in Nicaragua prepared by SRK Consulting U.K. Ltd. This technical report presents the results of a strategic mining study to Preliminary Economic Assessment (PEA) standards completed on the Project in 2021.
The strategic study covers two scenarios: Scenario A, in which the mining is undertaken from four open pits, termed La India, America, Mestiza and Central Breccia Zone (CBZ), which targets a plant feed rate of 1.225 million tonnes per annum (Mtpa); and Scenario B, where the mining is extended to include three underground operations at La India, America and Mestiza, in which the processing rate is increased to 1.4 Mtpa.
Highlights for 1.4 Mtpa PEA Open Pit + Underground Operations: Internal Rate of Return (IRR) of 54% and a post-tax Net Present Value (NPV) of US$418 million, after deducting upfront capex, at a discount rate of 5% and gold price of US$1,700/oz. Average annual production of ~150,000 oz of gold over the initial nine years of production.1,469,000 oz of gold produced over 12-year Life Of Mine (LOM). Initial capital requirement of US$160 million (including contingency), where the underground development is funded through cash flow. Pay back period 12 months. All-in Sustaining Costs of US$958/oz gold over LOM. Robust Base Case presents an IRR of 43% and a post-tax NPV of US$312 million at a discount rate of 5% and gold price of US$1,550/oz.
Highlights for 1.225 Mtpa PEA La India Open Pit + Feeder Pits: IRR of 58% and a post-tax NPV of US$302 million, at a discount rate of 5% and gold price of US$1,700/oz. Average annual production of ~120,000 oz of gold over the initial six years of production. 862,000 oz of gold produced over nine-year LOM. Initial capital requirement of US$153 million (including contingency). Pay back period 12 months. All-in Sustaining Costs of US$813/oz gold. Robust Base Case presents an IRR of 48% and a post-tax NPV of US$236 million at a discount rate of 5% and gold price of US$1,550/oz.
Mark Child, Chairman and CEO commented: “I am delighted to announce robust economics for two mining scenarios in an updated technical study on Condor’s 100%-owned La India Project. 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$1,70/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 two years from open pit material and underground mining funded out of cashflow.”