Condor Gold (LON:CNR) has expanded the size of its La India concession in Nicaragua by more than 40% with the acquisition of a prospect to the north and west.
The new 84.6 square kilometre (sq km) area covers a potential 13km strike extension to La India’s America and Mestiza vein sets, which preliminary geology suggests trend into the new concession.
Four areas of quartz veining were identified during reconnaissance exploration and these areas will form the initial exploration targets, Condor said.
"Gold mineralisation has been recorded in rock chip samples within 600m of the southern boundary of the concession; however, there is very little known historic exploration activity on the concession area itself," it added.
Condor will pay Nicaraguan gold miner HEMCO US$275,000 in shares for the concession at a price of £2 per share. The closing price yesterday for Condor shares was 169.4p.
Mark Child, Condor’s chairman and chief executive, said the purchase was in line with its strategy of consolidating the sub-surface mineral rights around La India.
“The dominant trend of the quartz veins that comprise La India Project is from the North-West to the South-East.
"Preliminary field work by Condor's geologists indicates that the veins within the America Vein Set, which hosts a resource of 405,000 oz gold at 6.0g/t [grams per tonne] and the Mestiza Vein Set which hosts a resource of 334,000 oz gold at 7.0g/t, are open to the North West and trend into the HEMCO concession.”
Child added that Condor will extend geological mapping over the concession with first pass regional exploration that may include satellite image interpretation, geophysics, stream and surface geochemical sampling.
Condor has seven 100% owned concessions at the La India project, which has a 2.4mln oz gold resource. Following today's acquisition, Condor's total acreage at the project now totals 280 sq km.