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LONDON (Alliance News) - Condor Gold PLC Wednesday said the La India projects economics remain robust after it secured a pre-feasibility study for the project in 2014 as it continues drilling in the area.
"Condor made good progress in 2014. During the year the company focused on the economic feasibility of exploiting the flagship La India project in Nicaragua and demonstrating La India project hosts a much larger gold deposit," said Chairman and Chief Executive Mark Child.
A pre-feasibility study and two preliminary economic assessments were competed during the year which "demonstrated a robust, economically viable base case," it said.
Condor said the pre-feasibility study showed an 800,000 tonne a year plant could produce average annual production of 79,300 ounces of gold over 7 years with lower quartile all-in-sustaining cash costs of USD690 per ounce. In addition, there is a high-grade 3.0 gramme gold per tonne open pit mineral reserve that will need a relatively small 2,300 tonne per day plant for a lower upfront capital cost of USD110 million.
The pre-economic assessment showed optimising the main pit and adding to satellite pits increase the open pit scenario to 96,800 ounces of gold production per year for 8 years, which adding to underground resources, increases production to 137,500 ounces of gold per year. In all cases, the all-in-sustaining-cash-cost remains below USD700 per ounce of gold.
In 2015, Condor has drilled 1,952 metres of its 4,000 metre drilling campaign at the project, intercepting 7.55 metres at 10.2 grammes of gold per tonne outside the main pit, demonstrating the resource remains open to the south.
Condor has also conducted a 60 square mile regional soil survey which has identified preliminary targets for hidden deep-seated gold mineralisation
Condor shares were up 0.7% to 69.50 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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