LONDON (Alliance News) - Condor Gold PLC Thursday said additional exploration potential has been shown by a district-scale gold mineralisation geological model of its La India Project in Nicaragua.
The gold exploration company said the new model, which permits a greater understanding of the structures and locations of mineralisation on the site, followed an airborne geophysics programme and mineral resource update in November 2013 and the detailed NI 43-101 mineral resource estimated published in January.
The company said eight exploration targets have now been identified outside existing resource areas and 90 out of 400 rock ship samples from the zones have assayed above 1 gram per tonne of gold, with 22 returning results above 10 grams per tonne of gold.
Condor Gold said it is now prioritising near surface targets and is interested in its Dos Hermanos Vein which is interpreted as a backbone structure, with rock chip samples of up to 67.7 grams per tonne of gold from a quartz-calcite-clay vein.
The company said it has also identified areas of abundant quartz vein outdrops along a five kilometre strike length to the south of La India Open Pit which could indicate hidden gold mineralisation that may have underground mining potential.
The La India Project contains a mineral resource of 18.4 million tonnes at 3.9 grams per tonne for 2.33 million ounces of gold, including an indicated minerals resource of 1.08 million ounces of gold and an inferred mineral resource of 1.25 million ounces of gold.
In January, the company said its operations at La India are relatively safe from a reasonable drop in the gold price and that in the event of lower gold prices, subject to further studies, the company could move to a higher-grade gold operation at the La India open pit and operate at reduced cash costs.
Finally, the company said a trench programme of 1,400 metres is ongoing on five target areas, with the majority of results soon to be released.
Condor Gold shares were down 1.0% to 70.30 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Condor Gold (CNR)