Condor Gold PLC (LON:CNR, TSX:COG) said it intercepted higher-than-expected gold grades at La India Starter Pits within the La India project in Nicaragua.
The AIM-listed company said it was particularly encouraged by two high grade, wide intercepts between the two starter pits in an area previously interpreted as having lower grade gold mineralisation.
Drill hole LIDC452 returned 60.60 metres at 1.98 grammes a tonne (g/t) gold from a depth of 4.15 metres, including 5.75 metres at 16.88 g/t gold. While drill hole LIDC454, located between the two starter pits, returned 3.75 metres at 9.94 g/t gold from the hanging wall of the historic mine workings.
The results, from a total of twelve diamond core drill holes between and along strike of the Starter Pits, will be incorporated into a revised feasibility-level mine plan and are expected to have a positive impact on the project's economics.
"The high grade, wide, drill assay results between the two La India Starter Pits are a positive surprise as this area was previously interpreted as a lower grade zone within the main fully permitted La India open pit,” said chairman and chief executive Mark Child.
“The broad zone of mineralization is likely to reduce the overall strip ratio for the main La India open pit, as there is more mineralized gold tonnage verses waste rock, thus potentially improving the project's economics.”
Condor will assess whether the two Starter Pits can be extended along strike and to depth and be amalgamated into one Starter Pit to provide additional high-grade mill feed from surface.
The Starter Pits sit within the main La India open pit, which has a mineral reserve estimate of 675,000 ounces of gold.