Condor Gold’s (LON:CNR) latest drilling programme at La India in Nicaragua has intercepted another notable high grade shoot to the south of the planned main pit.
So far, Condor has completed almost half of the 4,000m programme.
The intercept was 7.55m at 10.2g/t gold and demonstrated the resource remains open to the south, Condor said.
A 60 sq km regional soil survey is also well advanced it said and had identified potential deep-seated gold mineralisation targets to be drilled.
Over the past year, Condor completed a pre-feasibility study at La India that detailed an open pit gold mineral reserve of 6.9M tonnes at 3.0g/t gold or 675,000 oz gold and a life of mine of seven years at 79,300 oz gold annually.
Scoping studies also included an underground option, which would boost production to 137,500oz per year for eight years.
La India has a total attributable mineral resource of 18.4Mt at 3.9g/t for 2.33M oz gold and 2.68M oz silver at 6.2g/t.
Mark Child, chairman and chief executive, said that over the past year the company had shown economic feasibility of La India Project and that it hosts a much larger gold deposit.
Losses for the 12 months to December rose to £3.26mln net, while cash at the year-end amounted to £4.75mln.
Shares rose 0.5p to 69.5p.