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Condor Gold plc announces unaudited results for three and nine months ended 30 September 2021

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Global Mining Review,

Condor Gold has published its unaudited financial results for the three and nine months ending 30 September 2021, and the management’s discussion and analysis for the same period.

3Q21 highlights

  • Completion of 3370 m of diamond core infill drilling and replacement of RC drilling within and around the La India Starter Pits, which are within the fully permitted La India Open Pit.
  • Infill drilling was to 25 x 25 m drill spacing. Highlight drill assay results:
    • Drill hole LIDC413: 22.05 m (21.6 m true width) at 6.48 g/t gold (Au) from 24.75 m drill depth, including 15.35 m (15 m true width) at 8.68 g/t Au from 24.75 m drilled depth.
    • Drill hole LIDC452: 60.6 m (54.5 m true width) at 1.98 g/t Au from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t Au from 42.55 m drill depth (located between the two proposed starter pits).
    • Drill hole LIDC416: 16 m (15.7 m true width) at 5.3 g/t Au from 18.35 m drill depth, including 5.9 m (5.8 m true width) at 12.35 g/t Au from 22.1 m drilled depth.
  • Completed of 3500 m exploration drilling and received all assay results at the Cacao Prospect. Highlights of the drilling include:
    • Cacao epithermal gold system is interpreted as being fully preserved, open along strike and to depth. The latest drilling is clipping the top of the system.
    • 10 m plus true width mineralised zone including the Cacao vein has been confirmed for a strike length of approximately 1000 m beneath and along strike of the existing Cacao mineral resource.
    • Drill hole CCDC033: 25.93 m (14.9 m true width) at 3.94 g/t Au from 263.82 m, including 4.58 m (2.6 m true width) at 7.76 g/t Au from 282.12m drill depth below the Cacao mineral resource and open to depth and along strike in both directions.
  • The first phase of infill drilling of 39 drill holes for 3371.58 m using diamond core drilling was completed on the Mestiza Open Pit and all assay results received. Highlights include:
    • Drill hole LIDC514: 4.1 m true width at 15.23 g/t Au from 47.8 m (approximately 40 m below surface).
    • Drill hole LIDC471: 3.6 m true width at 29.1 g/t Au from 105.7 m (approximately 85 m below surface).
  • On 9 September 2021, the company provided the key findings of a technical report on its 100% owned La India Gold Project prepared by SRK Consulting (UK) Limited. This technical report presents the results of a strategic mining study to preliminary economic assessment (PEA) standards completed on the project in 2021. The highlights of the PEA include:
    • 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$1700/oz.
    • Average annual production of ~150 000 oz Au over the initial nine years of production.

Post period highlights

  • On 19 October 2021, the company provided an update on the status of studies underway in support of a feasibility study (FS) for its fully permitted La India Project, Nicaragua. The FS is being conducted on La India Open Pit and associated mine site infrastructure.
  • On 21 October 2021, the company announced the completion of an 8004 m infill drilling programme on the fully permitted high-grade La Mestiza Open Pit mineral resource at La India Project, Nicaragua.
  • On 25 October 2021, the company announced the filing of a preliminary economic assessment technical report (PEA) for its La India Project, Nicaragua on SEDAR.
  • On 28 October 2021, the company announce a placing of 11 714 286 units at a price of 35 p per unit, including a Directors and CFO subscription of 2 972 144 units, for aggregate gross proceeds of £4.1 million before expenses (the placing).

Mark Child, Chairman and Chief Executive of Condor Gold, commented: “During 3Q21, Condor Gold continued on its journey of de-risking the La India Gold Project, advancing the project to near shovel-ready status. Several significant step-out and in-fill exploration programmes were either advanced or completed. Additionally, the company provided the key findings of a technical report on the project which summarises the results of a strategic mining study to PEA standards. This report reveals the exceptional potential of the project under two scenarios, one opencast mining scenario incorporating four opencast and another scenario that layers in the underground resources beneath the opencasts. Both scenarios provide robust economics with a payback period of approximately 12 months. The highlight production scenario is 150 000 oz/y Au for nine years with an IRR of 54% and a post-tax NPV of US$418 million, after deducting upfront CAPEX, at a discount rate of 5% and gold price of US$1700/oz. Subsequent to 3Q21, Condor successfully completed a private placement raising £4.1 million, providing the necessary capital to continue advancing the project towards production.”

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