Condor Gold upbeat on progress at La India project

(Sharecast News) - Condor Gold updated the market on its third quarter on Wednesday, pointing out that it raised £4.04m during the period by way of a private placement of new ordinary shares.
The AIM-traded firm, which remains pre-revenue, said the primary use of the proceeds was to meet conditions of the environmental permit to construct and operate a mine for the La India open pit.

Proceeds were being used to buy the land required for the mine site infrastructure, complete engineering studies ahead of a construction decision and complete 18 technical studies required for environmental and social impact assessments for two high-grade satellite feeder pits, the board said.

It said it had made "significant" advancement in the three month period ended 30 September, with 18 technical studies required for environmental and social impact assessments for the two feeder pits.

Nicaragua Milling Company became a new 10.4% shareholder in the company, with the board pointing out that Randy Martin - the majority owner - had built three gold mines in Nicaragua, which were currently in operation.

Around 300 hectares of land had been purchased at the La India Project on and surrounding the mine site infrastructure.

The Government of Nicaragua also granted Condor Gold the 132.1 square kilometre Los Cerritos exploration and exploitation concession during the quarter, which expanded the La India Project concession area by 29% to a total of 587.7 square kilometres.

Since the period ended, Condor Gold said the engineering studies for the tailings storage facility and water management system for the mine had been awarded to Tierra Group, based in Denver, Colorado.

It also confirmed that the environmental and social impact assessments required for the application for the environmental permits to extract gold from the two high grade satellite feeder pits were "almost" completed.

"During the third quarter of 2019, Condor Gold continued to make solid progress by de-risking the La India Project ahead of a construction decision," said chairman and chief executive officer Mark Child.

"Offers have been made to all landowners to purchase the freehold land within the area of the mine site infrastructure.

"The majority of the technical and engineering studies required prior to construction by the Ministry of the Environment and Natural Resources have been initiated."

Child confirmed the engineering studies for the tailings storage facility and water management system for the mine had been awarded to Tierra Group, and added that the mine and waste dump schedules had been completed, while the sewage and water system designs for the office and accommodation blocks at the mine were approved.

"The company will submit two environmental and social impact assessments to the Ministry of the Environment and Natural Resources within the near future, which apply for environmental permits to extract gold from the high grade Mestiza and America satellite feeder pits.

"These have the potential to increase annual production from open pit material by 50% to 120,000 ounces of gold per annum for a seven year life-of-mine, as compared to the pre-feasibility study, and would result in over one million ounces gold being permitted for extraction."

At 0810 GMT, shares in Condor Gold remained flat at 20.25p.