Condor Gold has announced that it has entered into an agreement to purchase a complete new semiautogenenuous mill (SAG Mill) package from First Majestic Silver Corp. The purchase consideration is approximately US$6.5 million, including US$3 million payable in shares of the company (the consideration shares). The SAG Mill package represents a key item of the plant required to bring the company’s La India Project into production. The SAG Mill is estimated by Metso Outotec’s technical support group to have a throughput of up to 2300 tpd or 0.8 million tpy on a sustained basis, based on the metallurgical characteristics of the ore and mineralised material at Condor’s La India Project. Based on internal technical studies and mining dilution studies conducted by SRK Consulting (UK) Limited, initial production is expected to be 80 000 – 100 000 oz/y gold.
- Condor purchases a complete new SAG Mill package for approximately US$6.5 million.
- US$3 million worth of consideration shares is to be issued immediately at a price of 50 pence per consideration share to First Majestic as part consideration. The balance of approximately US$3.5 million to be paid in cash over the next 3 – 4 months.
- SAG Mill and parts are 90% ready to be shipped.
- 2300 tpd capacity or 0.8 million tpy form Stage 1 of production with capacity to be expanded materially after 2 to 3 years of production.
- Initial production expected to be 80 000 – 100 000 oz/y gold.
- Reduces order time of this key long lead item by 12 months.
- Sizes the SAG Mill and fast tracks the La India Project to production.
- Possibility of increasing throughput by 22% to 2850 tpd by installing a larger motor.
Mark Child, Chairman and CEO, commented: “The key message is Condor has purchased and sized the mill at 2300 tpd, significantly shortened the mill delivery time, set a trajectory for detailed project design and an accelerated path to production. What’s more, Condor has acquired a state of the art, complete new SAG Mill package with warrantees, manufactured and supplied by Metso Outotec, the premier manufacturer of grinding mills and entire grinding systems for the global mining industry. Metso Outotec’s technical support group has estimated a throughput of 2300 tpd or 0.8 million tpa on a sustained basis using the existing motor. Increasing the motor size would increase throughput to 2850 tpd. Initial gold production is expected to be between 80 000 to 100 000 oz/y gold. The new SAG Mill forms stage 1 of production, the aim is to materially expand production capacity after 2 – 3 years. I am also delighted that First Majestic Silver Corp has given a vote of confidence to Condor’s management team and endorsed a new mine at the fully permitted La India Project by accepting part payment in Condor’s shares at 50p. The Board joins me in welcoming them as a shareholder.”
Read the article online at: https://www.globalminingreview.com/handling-processing/19032021/condor-gold-to-purchase-sag-mill-from-first-majestic-silver-corp/
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