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LONDON (Alliance News) - Exploration company Condor Gold PLC on Tuesday said it has begun the permitting process for two high grade satellite feeder pits, America and Mestiza, at its La India gold project in Nicaragua.
Shares in Condor Gold were up 7.2% at 23.59 pence on Tuesday.
The America pit is approximately 2 kilometres from the processing plant for the La India pit - already permitted - and Mestiza is 4 kilometres away.
The decision to seek permits for the two pits is based on a January 2019 updated mineral resource estimate which included a new, high grade open pit.
Condor Gold Chair & Chief Executive Mark Child said: "Permitting the high grade Mestiza and America satellite feeder pits has the potential to increase annual production from open pit material by 50% to 120,000 ounces gold per annum for a seven year life of mine."
America and Mestiza have, in total, 206,000 tonnes at a grade of 9.9 grammes of gold per tonne of ore for 66,000 ounces of contained metal in the indicated category, and 1.0 million tonnes at 4.6 grammes of per tonne of ore for 152,000 ounces of contained gold in the inferred category.
Child said the feeder pits complement the La India open pit which has mineral reserves of 6.9 million tonnes at 3.0 grammes per tonne for 675,000 ounces of gold based on a pre-feasibility study.
"The higher grade feeder pits have the potential to materially enhance the project economics," Child added.