Condor Gold PLC (LON:CNR, TSE:COG) hired a GR Engineering subsidiary as its lead engineer to develop a feasibility study level of design for a new processing plant at the La India project in Nicaragua.
Hanlon Engineering & Associates will incorporate into the design a recently acquired new SAG Mill.
The plant will be designed to a nominal capacity of 2,300 tonnes per day but have built- in capacity to potentially upgrade throughput to 2,850 tonnes per day. It will equate to initial production of 80,000 to 100,000 ounces of gold per year, at the 2,300 tpd rate.
Chairman Mark Child highlighted that Hanlon was previously engaged by First Majestic Silver, which sold the SAG mill to Condor, and the engineer was involved in the design process.
“Their knowledge of the SAG Mill and involvement with many similar process plant designs completed to date will help fast track the delivery of the Feasibility Study design,” he said.
“A senior engineer from Hanlon is due on site this week. The feasibility level designs for the processing plant are due to be delivered to Condor within 12 weeks."
Condor noted that Hanlon will work in conjunction with parent company GR Engineering to utilise its extensive global experience with the design, construction and expansion of gold processing plants.
Earlier this month, Condor announced the start of a new 1,700 metres drill programme which aims to increase the size of La India’s open-pit. The programme is likely to take five-to-six weeks to complete. It been designed to achieve a feasibility-level of design by SRK Consulting and will complement other ongoing feasibility study-level work programmes already underway.
The programme will collect high quality data that will allow for the refinement of pit wall design slopes, potentially positively impacting on the waste stripping quantities, which if successful, could subsequently positively expand the reserves within La India open pit, particularly if the pit pushes deeper.
Also, because the 2014 pre-feasibility study was conducted at a US$1,250 per ounce gold price, there is considerable room for manoeuvre now, given that gold is around US$1,900.