TIDMCNR

RNS Number : 8785C

Condor Gold PLC

01 July 2016

 
                                                                               Condor Gold plc 
                                                                                   7(th) Floor 
                                                                         39 St. James's Street 
                                                                                        London 
                                                                                      SW1A 1JD 
                                                                    Telephone +44 020 74932794 
                                                                         Fax: +44 020 74938633 
 

1(st) July 2016

Condor Gold plc

("Condor" or "the Company")

Exploration update on the La India Project

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/8785C_1-2016-6-30.pdf

Condor (AIM:CNR), is pleased to provide an update on regional exploration activity at the La India Project, Nicaragua. Amongst the activities undertaken by Condor during the first half of 2016 are:

Highlights

-- Follow up field work on 33 exploration targets identified in a structural geology study and 13 exploration targets identified by the on-going soil survey as at the end of 2015

-- Initial success highlights a 12.5 km mineralised corridor 9 km north of the main La India open pit resource with high grade rock chip of 53.9 g/t gold

-- Soil survey expanded to cover the remaining 242 km(2) of La India Project to delineate further prospects and demonstrate the district scale gold potential

-- Dr Warren Pratt has joined Condor as a senior geological consultant and will focus on the exploration upside. He is producing a detailed geological, stratigraphic and structural map of La India Project.

Mark Child CEO comments:

"Following on from the successful structural geology study last year, which identified 33 new exploration targets, and a 71 km(2) soil survey that identified an additional 13 new exploration targets, Condor recently initiated a further 242 km(2) soil survey programme at La India Project aimed at identifying additional prospects and demonstrating the district-scale gold potential of La India Project. Recent work by Condor geologists has identified a 12.5 km long mineralised corridor 9 km to the north of La India open pit. A high grade rock chip of 53.9 g/t gold at the northern end of the Andrea-Limones mineralised corridor, some 6 km away from the nearest gold mineral resource, is highly encouraging. Follow up trenching is being planned in the area.

I am delighted that Dr Warren Pratt has joined Condor as a senior geological consultant. He will advise the Board on the exploration upside of La India Project. Earlier this month he spent two weeks at Mina La India and will lead the production of a detailed geological, stratigraphic and structural map across the entire District. Dr Pratt contributed to the due diligence ahead of the recent investment in the Company by Ross Beaty and strengthens the geological team."

Background

In 2015 Condor geologists completed a regional B-horizon 53 element ultra-trace soil geochemistry survey (a soil survey) comprising 6,156 samples covering 71 km(2). This included an initial phase of 5,767 samples over 55 km(2) on a 200m by 50m grid with some 100 m x 50 m infill sampling in La India South - Mojarra Area and a second phase of 389 samples over 16.3 km(2) collected on a 400 m by 100 m grid over the interpreted northwest strike extension of the El Tanque structure. A detailed review of the results identified thirteen exploration targets, including five priority targets with overlapping gold, upflow and high level indicators and a further seven targets with coincident gold and upflow indicators.

Also in 2015 senior consultant structural geologist Dr Tony Starling of Telluris Consulting Ltd completed a study on the structural geology of the La India Gold District. This work represented a stepwise improvement in our understanding of the structural evolution of the district geology and defined the favourable structural orientations that control the flow and deposition of epithermal gold. Dr Starling identified 33 exploration targets, 23 of which have known gold veining at surface (See RNS dated 15(th) September 2015).

Follow up of exploration of targets

Follow up geological mapping and prospecting has been carried out over the majority of the areas covered by the soil survey and structural geology study since the fourth quarter of 2015.

During this period a total of 114 rock chips were sampled (figure 1) of which 15 samples have come back with gold values of 1-5 g/t and 6 samples with gold values > 5 g/t, including a 53.9 g/t sample from a new site in the Los Limones area, at the very northwest end of the Andrea vein structure. This is significant when put into the context of the high level epithermal characteristics observed in this area, including opaline quartz, sinter and silicified wood fragments.

Some highlights of the follow up work are:

-- Several rock chips with anomalous gold values identify a possible NW striking 1.5 km structure to the southeast of the El Tanque prospect. This structure was identified as a target in Dr Starling's structural geology analysis. Rock chips have characteristic high level quartz textures and lie 70-140 m topographically above high grade samples in the main El Tanque prospect (figure 1), possibly indicating that mineralization at depth can be extended to the southeast.

-- The soil survey identified a gold anomaly along a corridor that extends from the southernmost surface exposure of the Andrea vein down to the Cristalito prospect, approximately 4.5 km to the southeast. Prospecting to date has not been able to identify a surface expression of the continuity of the Andrea vein to the southeast, but high level textures and surface silica deposits identified recently, may represent the surface expression of a deeper level mineralized structure that connects the Andrea vein with the Cristalito prospect.

-- To the northwest of the Andrea vein, several rockchips with anomalous gold values and boiling textures were collected in an area previously not sampled that connects the Andrea vein to the Los Limones area, where high grade veins have been sampled, including a 53.9 g/t Au. These findings indicate that the NW mineralised corridor possibly extends for 12.5 km from the Cristalito prospect northwest to Los Limones area.

Figure 1. Location of rock chip samples obtained during the period October 2015-May 2016.

District wide soil sampling

During the first week of June 2016, Condor initiated a district wide soil sampling survey to cover the remaining areas of Condor Gold's concession package in La India project, not covered by the 2015 survey. An estimated total of 6,300 samples will be collected covering an approximate area of 242 km2.

The fine-fraction B-horizon soil samples will be analysed for 53 elements at ultra-trace detection limits at Bureau Veritas Laboratories in Vancouver using standard ICP-MS method.

The survey will be carried out using three different sampling spacings (figure 2). A core area covering the main area of known veins in La India concession will be sampled using a grid of 200 x 50 m. The northwest mineralized corridor within the El Rodeo concession will be sampled with a grid of 400 x 100 m. The rest of the areas within the concession package will be sampled at a wider spacing of 400 x 400 m.

Sampling and interpretation of results is planned to conclude by the end of 2016. Infill sampling of geochemical anomalies in the widely sampled areas will be conducted in 2017 to better define the prospects.

Figure 2. Soil sampling areas covered during 2015 and proposal for 2016 survey.

Geological mapping

Condor has engaged Dr. Warren Pratt of Specialised Geological Mapping Ltd. as a senior geological consultant who, together with Condor geologists, will carry out detailed geological, stratigraphic and structural mapping of La India District. Dr. Pratt will also train Condor's geologists and establish a methodology for mapping and core logging in order to standardise data collection and interpretation procedures.

Dr. Pratt (BSc Geology, Hull, 1986; PhD Structural Geology, University of Wales, 1990) is the founder of Specialised Geological Mapping Ltd. and has a decade of British Geological Survey field experience and extensive world-wide field mapping experience in a great variety of geological terrains. Since 1995 he has worked extensively in gold, silver and copper exploration, including consulting on some World Class mineral deposits. These include Navidad (Argentina) and Ventana Gold (Colombia). Dr Pratt has a track record of generating gold/copper targets in under-explored areas, including the Cañicapa high sulfidation gold project, discovered during a World Bank program in Ecuador. He is also part of the team that recently discovered the Igor gold/silver epithermal deposit (Peruvian Precious Metals Corp) in Peru.

Competent Person's Declaration

The information in this announcement that relates to the mineral potential, geology, Exploration Results and database has been reviewed by Peter Flindell, Senior Geological Consultant, who is a Member of the Australian Institute of Geoscientists and Australian Institute of Mining and Metallurgy, and a geologist with thirty years of experience in the exploration and definition of precious and base metal mineral resources. Peter Flindell is a Non-Executive Director of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualifying Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Peter Flindell consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

Technical Glossary

 
 B-horizon                 The organic-poor soil horizon consisting 
  soil                      of typically brown coloured completely 
                            weathered rock material with no primary 
                            textures. This horizon often occurs 
                            beneath the organic-rich A-horizon and 
                            contains some organic material such 
                            as roots are usually present. 
------------------------  --------------------------------------------------- 
 Assay                     The laboratory test conducted to determine 
                            the proportion of a mineral within a 
                            rock or other material. Usually reported 
                            as parts per million which is equivalent 
                            to grams of the mineral (i.e. gold) 
                            per tonne of rock 
------------------------  --------------------------------------------------- 
 Geochemistry              The study of the elements and their 
                            interaction as minerals to makeup rocks 
                            and soils 
------------------------  --------------------------------------------------- 
 Geophysics                The measurement and interpretation of 
                            the earth's physical parameters using 
                            non-invasive methods such as measuring 
                            the gravity, magnetic susceptibility, 
                            electrical conductivity, seismic response 
                            and natural radioactive emissions. 
------------------------  --------------------------------------------------- 
 Hydrothermal              Hot water circulation often caused by 
                            heating of groundwater by near surface 
                            magmas and often occurring in association 
                            with volcanic activity. Hydrothermal 
                            waters can contain significant concentrations 
                            of dissolved minerals. 
------------------------  --------------------------------------------------- 
 ICP-MS (Inductively       A technique that measures the concentrations 
  Coupled Plasma            of elements in a substance, such as 
  Mass Spectrometry)        a rock, by dissolving the substance 
                            in a solution, typically an acid, ionizing 
                            a sample and separating the ions to 
                            measure the relative concentrations 
                            based on their mass-to-charge ratio. 
                            The technique is capable of measuring 
                            very low concentrations with high precision. 
------------------------  --------------------------------------------------- 
 Magnetic (aeromagnetic)   The measurement of the magnetic properties 
  survey                    of the earth surface as controlled by 
                            the concentration and distribution of 
                            magnetic minerals, particularly magnetite, 
                            in the rock. Rocks containing higher 
                            levels of iron, such as mafic igneous 
                            rocks or some sedimentary rocks will 
                            have a higher magnetic susceptibility 
                            than felsic igneous rocks, siliciclastic 
                            and carbonate sediments and their metamorphic 
                            derivatives.. 
------------------------  --------------------------------------------------- 
 Mineral Resource          A concentration or occurrence of material 
                            of economic interest in or on the Earth's 
                            crust in such a form, quality, and quantity 
                            that there are reasonable and realistic 
                            prospects for eventual economic extraction. 
                            The location, quantity, grade, continuity 
                            and other geological characteristics 
                            of a Mineral Resource are known, estimated 
                            from specific geological knowledge, 
                            or interpreted from a well constrained 
                            and portrayed geological model 
------------------------  --------------------------------------------------- 
 Mineral Reserve           The economically mineable part of a 
                            Measured and/or Indicated Mineral Resource. 
                            It includes diluting materials and allowances 
                            for losses, which may occur when the 
                            material is mined. Appropriate assessments 
                            and studies have been carried out, and 
                            include consideration of and modification 
                            by realistically assumed mining, metallurgical, 
                            economic, marketing, legal, environmental, 
                            social and governmental factors. These 
                            assessments demonstrate at the time 
                            of reporting that extraction could reasonably 
                            be justified. Ore Reserves are sub-divided 
                            in order of increasing confidence into 
                            Probable Ore Reserves and Proved Ore 
                            Reserves. 
------------------------  --------------------------------------------------- 
 Radiometric               Also known as gamma ray spectrometry, 
                            is the measure of natural radiation 
                            on the top 30-45cm of the earth's surface. 
                            The abundance of the three naturally 
                            occurring radioactive elements, potassium 
                            (K), thorium (Th) and uranium (U), is 
                            proportional to the abundance of minerals 
                            containing those elements. This information 
                            can be used in mapping the surface geology 
                            including the definition of areas of 
                            potassium enrichment related to hydrothermal 
                            alteration. 
------------------------  --------------------------------------------------- 
 Rock chip                 A sample of rock collected for analysis, 
                            from one or several close spaced sample 
                            points at a location. Unless otherwise 
                            stated, this type of sample is not representative 
                            of the variation in grade across the 
                            width of an ore or mineralised body 
                            and the assay results cannot be used 
                            in a Mineral Resource Estimation 
------------------------  --------------------------------------------------- 
 Stockwork                 Multiple connected veins with more than 
                            one orientation, typically consisting 
                            of millimetre to centimetre thick fracture-fill 
                            veins and veinlets. 
------------------------  --------------------------------------------------- 
 Strike length             The longest horizontal dimension of 
                            an ore body or zone of mineralisation. 
------------------------  --------------------------------------------------- 
 Vein                      A sheet-like body of crystallised minerals 
                            within a rock, generally forming in 
                            a discontinuity or crack between two 
                            rock masses. Economic concentrations 
                            of gold are often contained within vein 
                            minerals. 
------------------------  --------------------------------------------------- 
 

- Ends -

For further information please visit www.condorgold.com or contact:

 
 Condor Gold plc     Mark Child, Executive    Peter Flindell, 
                      Chairman and CEO         non executive 
                      +44 (0) 20 74932734      director and senior 
                                               geological consultant 
                                               +60 17 770 2095 
 Beaumont Cornish     Roland Cornish and 
  Limited              James Biddle 
                       +44 (0) 20 7628 3396 
  Numis Securities 
  Limited              John Prior and James 
                       Black 
                       +44 (0) 20 72601000 
 Farm Street Media   Simon Robinson 
                      +44 (0) 7593 340107 
 

About Condor Gold plc:

Condor Gold plc was admitted to AIM on 31st May 2006. The Company is a gold exploration and development company with a focus on Central America.

Condor completed a Pre-Feasibility Study (PFS) and two Preliminary Economic Assessments (PEA) on La India Project in Nicaragua in December 2014. The PFS details an open pit gold mineral reserve of 6.9M tonnes at 3.0g/t gold for 675,000 oz gold producing 80,000 oz gold p.a. for 7 years. The PEA for the open pit only scenario details 100,000 oz gold production p.a. for 8 years whereas the PEA for a combination of open pit and underground details 140,000 oz gold production p.a. for 8 years. La India Project contains a total attributable mineral resource of 18.4Mt at 3.9g/t for 2.33M oz gold and 2.68M oz silver at 6.2g/t to the CIM Code.

In El Salvador, Condor has an attributable 1,004,000 oz gold equivalent at 2.6g/t JORC compliant resource. The resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua and Ravensgate and Geosure for El Salvador.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 01, 2016 02:00 ET (06:00 GMT)