Condor Gold to sell La India project in Nicaragua

Condor Gold, the UK-headquartered gold exploration and development company, has announced that following a robust and economically attractive Bankable Feasibility Study on its La India open pit project in Nicaragua, it has appointed Hannam and Partners to seek a buyer for the assets of the company.

The La India Project is the company’s principal asset, and it comprises of la large, highly prospective land package of 588 square kilometres comprising of 12 contiguous and adjacent concessions. Condor Gold holds 100% of the concession, which covers 98% of the historic La India Gold Mining district. Eight of the concessions were awarded directly from the government between 2006 and 2019, while the four remaining concessions were acquired from other owners. 

The project hosts a high-grade Mineral Resource Estimate (MRE) of 9,672 kt at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource category and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred mineral resource category. 

The open pit MRE is 8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category. 

Total underground MRE is 979 kt at 6.2 g/t gold for 194,000 oz gold in the indicated mineral resource category and 5,615 kt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource category, the statement continued.

On October 26, 2022, a new feasibility study technical report was filed on SEDAR, entitled ‘Condor Gold Technical Report on the La India Gold Project, Nicaragua, 2022’.

Mark Child, Chief Executive of Condor Gold, commented: “Condor Gold has de-risked the La India Gold Project to a near construction-ready status with an 18-month construction period from receipt of project financing. The Board has reviewed the Company’s options including going through a financing and construction phase as a single asset, single jurisdiction company with no existing gold production and has concluded it is in the best interests of the Company and all stakeholders to sell the assets of the Company to a gold producer with mine building expertise, thus ensuring a new mine at La India, a significant investment in the local area and a regeneration of the local communities.

“The Company’s strategy has been successfully executed, de-risking the assets so that a mine can be developed in two stages using the new SAG Mill that has already been purchased. The Company owns approximately 1,000 hectares of land over the area of the mine site infrastructure and has the key permits to construct and operate the mine. 

“The delivery of a robust and economically attractive Feasibility Study on the single La India open pit demonstrates an average of 81,524 oz gold per annum for the initial 6 years for a relatively low total upfront capital cost of US$106 Million. Two additional permitted high grade feeder pits can be added during the early years of production thus increasing early production to over 100,000 oz gold pa, with a stage 2 expansion to 150,000 oz gold pa,” he continued.

Results Announced

Other assets include approximately 1,000 hectares of land purchased for the mine site infrastructure for circa US$4.2M and a new SAG Mill package purchased for US$6.5M. The 2022 FS was completed on the La India vein set open pit only, which has a MRE of 8,487 kt at 3.0g/t gold in for 827,000 oz gold in the indicated mineral resource category and 893 Kt at 2.4 g/t gold for 69,000 oz gold in the inferred mineral resource category.

The 2022 FS produced a Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold. Production averages 81,545 oz gold per annum for the first 6 years of an 8.4-year mine life. Low initial capital requirement of US$105.5 million (including contingency and EPCM contract) and low average Life of Mine All-in Sustaining Cash costs (AISC) at US$1,039 per oz gold.

On October 25, 2021, the company announced results of a Preliminary Economic Assessment (PEA) and filed on SEDAR a technical report entitled ‘Condor Gold Technical Report on the La India Gold Project, Nicaragua, 2021’ detailing average annual production of 150,000 oz of gold over the initial 9 years of production from open pit and underground Mineral Resources and provides an indication of a production target. 

Outside the main La India open pit Mineral Reserve, there are additional open pit Mineral Resources on four deposits (America, Mestiza, Central Breccia and Cacao) which represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in the indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for 223,000 oz gold in the inferred Mineral Resource category. 

In addition, there is an aggregate underground Mineral Resource (La India, America, Mestiza, Central Breccia San Lucas, Cristalito-Tatescame, and Cacao) of 979Kt at 6.2 g/t for 194,000 oz gold in the indicated Mineral Resource category and 5.6Mt at 5.0 g/t gold for 898,000 oz gold in the inferred Mineral Resource category, the statement concluded.