Condor Gold (LON:CNR) will focus this year on obtaining permission for a 2,800 tonne daily processing plant at it La India gold project in Nicaragua, said chief executive Mark Child.
“Much of 2015 was spent executing a twin strategy of de-risking the La India Project, Nicaragua, by preparing and submitting an Environmental Impact Assessment,” he said.
Condor submitted an EIA in November as part of its application for an environmental permit for the plant, which will be capable of producing approximately 100,000 oz gold per annum at an all in sustaining cash cost of US$700 per oz gold. Upfront capital cost will be US$120mln.
Exploration work this year will comprise geochemistry soil sampling over the entire 313 sq km of the La India concession, he added, to follow 71 sq km covered in 2015.
Condor also wants to acquire approximately 800 hectares of rural land for the site infrastructure.
The company has signed an agreement with ProNicaragua, which should materially de-risks the permitting process and construction of a mine.
ProNicaragua is the official investment and export agency of the Government of Nicaragua, has Ministerial status and reports directly to the President.
“The agreement with ProNicaragua allows for two lawyers working for ProNicaragua to be assigned to Condor on a full time basis to assist with permitting, land acquisition and other social areas,” said Child.
The gold group recently raised £2.82mln in a funding round that saw Canadian mining entrepreneur Ross Beaty take a stake and one of mining institution Sprott’s fund come on board.
Net losses in 2015 were £3.06mln (£3.26mln).