Condor Gold Regulatory News (CNR)

19 Mar 2008 07:00

Condor Resources PLC19 March 2008 19 March 2008 Condor Resources plc (''Condor'' or ''the Company'') Phase 2 Drilling Completed at El Cacao Prospect in Nicaragua Condor Resources Plc (AIM: CNR) announces that the second phase of drilling hasbeen completed at its 100% owned El Cacao Prospect. 1,117 metres of reversecirculation and diamond core drilling has been completed in 13 drill holes tobring the total drilling at El Cacao to 2,170 metres including 697 metres ofdiamond core, in addition to 1,121 metres of trenching. The second phase of drilling followed up on some excellent intersectionsreturned from the first round of drilling completed in October 2007. The firstphase of drilling defined two gold mineralised zones at El Cacao, withhigh-grade gold intercepts of up to 14 metres at an average of 6.05g/t gold overa combined strike length of 330 metres and down to a maximum depth of 120 metresbelow surface. The drill intersections are supported by surface mineralisationof up to 7 metres at an average of 2.39g/t gold defined in trench sampling. The latest round of drilling undertook the following tasks: (1) test the mineralisation for depth extensions with promising lookingquartz vein breccias intercepted up to 160 metres below surface. (2) define gold mineralisation in the main zones at 40m drill spacing inorder to provide sufficient grade continuity to undertake a first resourceestimation. (3) test the western strike extent of gold mineralisation where goldmineralisation is open along strike, and (4) test the low-grade zone between the two main shoots for potentiallyhigher grade gold mineralisation at depth. Assay results are pending from the last five drill holes, and as soon as thesehave been returned a maiden resource calculation will be undertaken. Theseresults are expected by the end of March and the maiden resource estimate isexpected soon after, at which time Condor will make an announcement on itsfindings. The drilling rig has now moved to the Arras Prospect on Condor's San AlbinoProject to undertake a reverse circulation drilling programme aimed at testingthe down dip extension to the high-grade gold mineralisation discovered atsurface and in shallow drill intersections there. Condor's Chief Executive, Mr. Nigel Ferguson, stated: "Our El Cacao Prospectremains open along strike in both directions and an ongoing trenching programmeis testing both the ground immediately along strike to the west and to the east.In addition trenching is currently underway over one kilometre along strike ofthe Cacao Prospect to follow-up on a gold mineralised trench intersection withan assay result of 1 metre at 1.39g/t gold which we discovered in 2007. El Cacaois becoming one of our substantial assets, and we are confident of a strongmaiden resource statement in the near future." Qualified Person's Declaration The information in this announcement that relates to Exploration Results isbased on information compiled by and reviewed by Nigel Ferguson, CEO, who is aMember of the Australian Institute of Mining and Metallurgy and a geologist withover 23 years of experience in the exploration and definition of precious andbase metal Mineral Resources and has sufficient experience that is relevant tothe style of mineralization and type of deposit under consideration and to thetype of activity which he is undertaking to qualify as a Qualified Person asdefined in the March 2006 Edition of the AIM Guidance Note for Mining, Oil andGas Companies. He consents to the inclusion in the report of the matters basedon his information in the form and context in which they appear and confirmsthat this information is accurate and not false or misleading. - Ends - Enquiries: Condor Resources Plc Mark Child, Chairman Nigel Ferguson, CEO +44 20 7408 1067 +44 20 7808 7222Nabarro Wells & Co. Limited Hugh Oram Kevin Lynch +44 20 7710 7400 +44 20 7710 7419Mirabaud Securities Limited Rory Scott +44 20 7878 3360Parkgreen Communications Erica Nelson +44 20 7851 7480 Chain of Custody Condor enforces a strict chain of custody, with all field samples beingcollected under the supervision of a qualified senior geologist. Samples aresealed in larger bags and kept under lock and key until being delivered to thedesignated Laboratories, for completion of final assay determinations. A totalof 10% of samples returning significant assay results have their pulps forwardedto a second laboratory for repeat assay determinations as part of the companiesQAQC procedure. Resource Calculation Notes The reported tonnages and grades are in accordance with the guidelines andrecommendations of the JORC Code. Drill results are from both ReverseCirculation and diamond drilling. Drill sample and trench sample assaydeterminations were carried out by commercial laboratories enforcing strict QAQCprocedures. Gold determinations were by Fire Assay 30g with Atomic Absorptionfinish; silver determinations were by wet chemical method with an AtomicAbsorption finish. Modelling was completed using Surpac Vision 5.2D MiningSoftware. Domaining was performed based on geological interpretations and goldgrade (0.4g/t gold bottom cut-off). Only mineralization that showed continuityalong strike of more than 2 sections was domained. Silver results were analysedon the basis of the wireframes created to domain gold samples. Ordinary Krigingwas considered an appropriate method of estimation for the dataset. OrdinaryKriging estimates were made for gold and silver, with visual inspections of thegrade estimate along with statistical analysis used to validate the block model. About Condor Resources Plc: Condor Resources Plc was admitted to AIM on 31st May 2006 raising £4.9m. Condoris a mineral exploration company focused on El Salvador and Nicaragua. TheCompany has 100% ownership of four licenses in two project areas in El Salvador.It withdrew from the El Potosi project in 2007. Condor also has four 100% ownedlicences and the option to earn an 80% interest in a further four licencescontained within four project areas in Nicaragua. An independent competent person's report prepared by Ravensgate and included inthe Company's Admission Document stating JORC complaint resources of 354,500ounces of gold and 18.3 million ounces of silver. Subsequent mineral resourcecalculation statement in December 2006 by Ravensgate, and in January 2008 andFebruary 2008 by Geosure, has raised the combined global resource estimates asdefined by JORC Code standards to some 747,000 oz gold and 22.3 Moz silverwithin two project areas. The Company's objective is to prove up significant gold and silver resources ofbetween 1 to 2 million ounces of gold and 30 to 50 million ounces of silver toJORC reportable standards by the 31st May 2008. The Company intends to continueto drill test targets within its Project areas as required by each prospect.Drilling is expected to commence in El Salvador upon granting of the necessaryEnvironmental Permits by the Ministry of Environment. Drilling currentlycontinues with two drill rigs on two projects areas in Nicaragua. This information is provided by RNS The company news service from the London Stock Exchange