-- adds detail, share price --
An optimisation study of Condor’s Gold’s (LON:CNR) La India project in Nicaragua has substantially boosted the amount of gold expected to be mined in the early stages.
Consultant Whittle undertook the study to boost the early cashflows from the project and it estimates annual production could range from between 91,000oz to 165,000 oz gold in the first five years, a 22% increase.
Mark Child, chief executive, said it was a very positive outcome from the study. Indicated gold ounces within the main La India pit also rise by 29% to 866,000 oz as it pushes deeper.
Whittle specialises in work on pit shells to maximise how much can be extracted economically and has worked on numerous projects in Australia and elsewhere.
Its study showed that contained gold within the pit shells also rises 29% to 1,066k oz gold for the main pit and feeder pits.
All in sustaining cash costs remain under US$700 per oz gold, while recovered gold over life of mine ranges from 796,000 oz to 1,437,000 oz gold.
The two to three year payback period also highlighted the outstanding economics and versatility of La India, Child said.
The company recently started a strategic review of its business, which may involve its sale.
Child said one of the reasons it undertook the study was to show any interested parties the upside potential of the firm and its assets.
Shares rose 5% to 44.5p.