Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Condor Gold PLC to get resource boost after acquiring La India concession

Espinito Mendoza includes a portion of the Mestiza vein set and the settlement will allow Condor now to include its resources
Condor Gold PLC to get resource boost after acquiring La India concession
Espinito Mendoza includes a portion of the Mestiza vein set

Condor Gold (LON:CNR) expects to boost the resources at its La India concession in Nicaragua after acquiring a key concession in the centre of the licence.

Condor had been in dispute with the vendors of the Espinito-Mendoza concession since original purchase terms were agreed in 2011.

Espinito Mendoza includes a portion of the Mestiza vein set and the settlement will allow Condor now to include its resources within the overall La India project.

Mark Child, Condor’s chief executive, said Mestiza had a NI 43-101 compliant resource of 333,000 oz gold, though a Soviet –standard resource estimate was 786,000 oz.

“In our experience, the Soviet GKZ classified resources on La India Project have generally converted to western standards upon tighter drill spacing and verification drilling of the previous drill holes,” Child said.

Mestiza was also excluded from the Whittle Enterprise Optimisation at La India, he added.

That showed four different production scenarios ranging from  91,000 to 165,000 oz gold production each year.

Under the new agreement, Condor will pay US$30,000 cash upfront to the Mestiza vendor, a further cash payment of US$470,000 by June and US$200,000 over the following 20 months.

Mestiza remains entitled to a 2.25% net royalty on the production from the concession but not a bonus on reserve estimation.

Condor also no longer has to carry out a 5,000m drilling programme.

View full CNR profile View Profile

Condor Gold PLC Timeline

Related Articles

Bjorkdal.jpg
April 13 2017
In the three months to March 31 this year, Mandalay produced 32,481 ounces of gold equivalent from the three mines
Gold bars and dollar bills
April 21 2017
Processing extra material from South America could help to push Goldplat to the next level in terms of production
1504520720_Gold-bars-plus-nugget.jpg
September 04 2017
Hummingbird is one of the few miners in recent years that's actually been able to finance and build a significant gold mine

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use