Condor Gold Plc [COG-TSX, CNR-AIM] on Wednesday tabled results of a update mineral resource estimate for its 100% owned La India project in Nicaragua.
The updated estimate stands at 9.7 million tonnes of 3.5 g/t gold or 1.08 million ounces in the indicated category. On top of that is 8.6 million tonnes of 4.3 g/t gold or 1.19 million ounces in the inferred resource category.
The estimate includes an open pit resource of 893,000 ounces (indicated and 291,000 ounces (inferred) as well as an underground resource of 194,000 ounces (indicated) and 898,000 ounces (inferred).
Condor controls around 98% of the La India Mining District, which covers 588 square kilometres. In order to advance La India, the company has adopted a dual strategy to add value by advancing the project toward production alongside continuing exploration with the aim of defining 5.0 million ounces of gold.
A preliminary economic assessment has indicated that an open pit and underground operation at La India could produce an average of 150,000 ounces of gold over an initial nine-year lifespan. The initial capital requirement is forecast at US$160 million (including contingency), where underground development is funded through cash flow.
“Condor has produced a much more robust and conservative mineral resource estimate for the entire La India Project, which comprises six separate deposits all of which have the potential to be expanded,’’ said Condor Chairman and CEO Mark Child.
“The focus has been of strengthening the confidence of the geological model ahead of a forthcoming feasibility study on La India Open Pit,’’ he said.
“The update on La India Open Pit includes assay results from infill drilling, a new lithological, structural and weathering model, a new depletion model for historic and artisanal mining and an increase in the cut-off grade to 0.65 g/t gold from 0.50 g/t gold.”
Between December 2020 and June 2021, Condor completed a drilling program consisting of 59 new drill holes covering 3,413 metres within the La India open pit area.
Child went to on say he is pleased that drilling on the Cacao deposit has increased the resource estimate in the inferred category by 69% to 101,000 ounces of gold at 2.5 g/t. “The interpretation is that drilling has clipped the top of a fully preserved epithermal vein system with a strike length of at least 1.0 kilometres,” he said.
Condor Gold shares declined on the news, falling 4.8% or $0.02 to 39 cents. The shares are currently trading in a 52-week range of 83 cents and 31 cents.
A feasibility study is being conducted on the La India vein set Open Pit, which has an indicated resource of 827,000 ounces and an inferred resource of 69,000 ounces.