Condor Gold PLC (LON:CNR) has reported some early indications of gold from its new scout drilling programme at La India.
Drill intercepts at Cacao included 7.85m at 3.75 g/t, and 7.85 m at 2.95 g/t gold, and Condor plans more drilling as it says there is the prospect of a much larger gold resource.
The drilling is part of a 10,000m programme at the project in Nicaragua in 2017, which is being funded by its recent £5.4mln share issue.
The aim is to boost the existing mineral resource of 2.31mln ounces and to identify new resources in additional veins sets elsewhere on the 313 sq km acreage.
So far, the scout drilling has focused on the Cacao prospect, the Andrea vein, Real De la Cruz and Tatescame.
Six holes were drilled at Andrea with mixed results while Real De la Cruz and Tatescame were disappointing.
Other targets are now being selected.
Infill work has also started on the Mestiza Vein Set, where Condor expects to carry out 6,000m of drilling to upgrade the Soviet mineral resource to a NI 43-101-compliant Inferred Mineral Resource.
Soviet-backed exploration in 1991 estimated there was around 786,000oz gold at Mestiza.
While it also has a Canadian standard NI 43-101-compliant resource of 333,000oz gold this resource is currently not included in the pre-feasibility study and preliminary economic assessments for the La India project.
Condor added there is a high possibility of bringing additional high grade gold from Mestiza into a future mine plan, feeding a centralised processing plant and bringing on early production.