Condor Gold (LON:CNR) will continue surface exploration at La India in Nicaragua while it carries out a strategic review of its operations, it said today.
The explorer started the review after concluding the market’s current lack of appetite for junior gold miners meant it would struggle to raise the money to develop a mine at La India in Nicaragua without significant equity dilution.
To build La India will require upfront capital expenditure of between US$110mln and US$169mln.
Condor said the strategy for 2015/2016 will be to highlight the exploration upside at La India through geological mapping, soil geochemistry surveys and the production of a detailed structural model.
Drilling has been postponed until market conditions improve.
Cash of £2.4mln at the end of June was sufficient to execute the current strategy, it added.
Condor posted a loss of £1.45mln in the half year to June.