Last checked at 11 Oct 2012 07:00
Condor Gold plc
7th Floor 39 St. James's Street London SW1A 1JD Telephone +44 020 74081067 Fax: +44 020 74938633 |
11th October 2012
Condor Gold plc
(''Condor'' or "the Company")
Condor Gold acquires La Mojarra Concession adjacent to its La India Project, Nicaragua.
Highlights
·; Purchase of 27sq km La Mojarra Concession for US$1,010,815 in cash and shares.
·; La Mojarra Concession lies 400 meters from La India Vein Set resource of 1,481,000 oz gold at 4.0g/t, which contains an open pit resource of 954,000 oz gold at 3.61g/t.
·; La India open pit resource is open to the south with one of the southern most drill intercept of 21.08m at 10.24g/t.
·; Possibility that La India resource extends to La Mojarra Concession.
·; Alteration and quartz veining at surface suggest potential for discovery of a large buried epithermal gold deposit.
Mark Child, Chairman and CEO commented:
"Condor has purchased the strategically important La Mojarra Concession that lies only 400m to the south of La India Vein Set resource of 1,481,000 oz gold at 4.0g/t; the location of a high grade open pit resource of 954,000 oz gold at 3.61g/t. The open pit resource is open to the south. One of the southern most drill intercepts recorded was 21.08m at 10.24g/t. There is a possibility that La India resource extends onto La Mojarra Concession and additional gold mineralised resources can be defined elsewhere on the 27sq km La Mojarra Concession to complement La India Project's existing CIM Code resource of 2,375,000 oz gold at 4.6g/t. Condor's initial assessment of La Mojarra Concession summises that the surface geological features suggest the potential for the discovery of significant buried gold mineralisation. Condor will initiate a geophysics programme on La Mojarra and other concessions in La India Project within the next 6 months".
Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial resource on its 100%-owned La India Project in Nicaragua is pleased to announce that it has acquired La Mojarra Concession (the "Concession") which lies adjacent to the main La India Concession of La India Project and immediately to the south of La India Vein Set which host a CIM Code resource of 11.2 million tonnes at 4.0g/t containing 1,484,000 oz gold including an open pit resource 8.21 million tonnes at 3.61g/t containing 954,000 oz gold. The addition of La Mojarra Concession will increase the Company's La India Project by 27km² to 194km² contained within seven contiguous wholly owned concessions. See location of Concession in Figure 1 below.
The Agreement
Condor and the Seller, together (the "Parties") executed an Agreement on 9th October 2012 to transfer 100% of the Concession to Condor's wholly owned Nicaraguan subsidiary La India Gold S.A. A total consideration of US$1,010,815 (the "Purchase Consideration") will be paid as followed:
1. US$20,815 on signing the Agreement, which will be repaid in full if the authorization to assign the Concession is not issued by MEM's General Department of Mines within 90 days of this Agreement, provided that the delay is the responsibility of the Seller.
2. US$240,000 payable in cash on approval of the transfer of the Concession from the Seller to La India Gold S.A. by the Director General of the Department of Mines.
3. US$300,000 on approval of the transfer of the Concession by the Minister of Energy and Mines. US$200,000 is payable in cash. US$100,000 is payable by way of issuing new shares in Condor at the 20 day average traded price prior to the said approval.
4. US$450,000 is payable 6 months after La India Gold S.A. obtains and receives a drilling permit for the Concession, issued by the Ministry of Natural Resources. US$200,000 is payable in cash. US$250,000 is payable by way of issuing new shares in Condor at the 20 day average traded price prior to the receipt of a drilling permit by La India Gold S.A.
In summary, Condor has reached an Agreement to purchase the Concession for US$1,010,815. The Purchase Consideration is payment US$660,815 in cash and US$350,000 by way of issuing shares in Condor. Condor has, at its sole discretion, the right to substitute the share payments with cash payments. Again, Condor has, at its sole discretion, the right to terminate the Agreement at any point with 30 days written notice. Condor has worked in Nicaragua for 7 years, given our experience we expect the Purchase Consideration to be spread over approximately 9 months.
Geology
La Mojarra Concession lies along strike to the South of the India-California Vein trend. Gold mineralisation at the southern end of the India-California veins does not reach surface, however significant gold intercepts have been defined at depths from 50m below surface with intercepts such as 21.08m (16.1m true width) at 10.24g/t gold from 193.80m drill depth in drillhole LIDC152 (see RNS dated 29th August 2012) located 500m from the La Mojarra Concession boundary. Gold mineralisation on the India Vein remains open to depth and along strike below surface, and it is highly conceivable that the mineralisation continues into La Mojarra Concession. In addition to the potential strike extension of the La India Structure, the Company is encouraged by surface geological features that suggest that there is the potential for the discovery of significant buried gold mineralisation:
1. The Concession contains extensive outcrops and float of silicified rocks and veins including banded and chalcedonic quartz textures characteristic of the near surface expression of a large epithermal system with significant deposition of silica-rich fluids in multiple phases.
2. Intense argillic alteration over several hundred metres diameter has been recognised, also indicating the circulation of significant amounts of hydrothermal fluids.
The field evidence of abundant near surface hydrothermal activity combined with a location close to the interpreted central caldera of the volcanic complex that hosts the La India epithermal gold mineralisation, makes La Mojarra Concession highly prospective for the discovery of a large buried epithermal gold deposit. The Company plans to undertake a regional rock chip, soil sampling, geophysics and geological mapping programme in order to target deep exploratory drilling for potential buried gold deposits.
Figure 1. Location of La Mojarra Concession.
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/4371O_1-2012-10-10.pdf
Competent Person's Declaration
The information in this announcement that relates to the mineral potential, geology, Exploration Results and database is based on information compiled by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with seventeen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Luc English consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
- Ends -
For further information please visit www.condorgold.com or contact:
Condor Gold plc | Mark Child, Executive Chairman and CEO +44 (0) 20 7408 1067
| Luc English, Country Manager Nicaragua & El Salvador +505 8854 0753
|
Beaumont Cornish Limited
Ocean Equities Limited | Roland Cornish. James Biddle +44 (0) 20 7628 3396
Will Slack +44 (0) 20 77864385
| |
Farm Street Media | Simon Robinson +44 (0) 7593 340107
|
About Condor Gold plc:
Condor Gold plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up JORC Resources in Nicaragua and El Salvador. Condor has six 100% owned concessions in La India Mining District ("La India Project"); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.
Condor's concession holdings in Nicaragua currently contain an attributable CIM/JORC compliant resource base of 2,497,000 ounces of gold equivalent at 4.6g/t in Nicaragua and an attributable 973,000 oz gold equivalent at 2.6g/t JORC compliant resource base in El Salvador. The Resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua, and Ravensgate and Geosure for El Salvador.
Disclaimer
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
Technical Glossary
Assay | The laboratory test conducted to determine the proportion of a mineral within a rock or other material. Usually reported as parts per million which is equivalent to grams of the mineral (i.e. gold) per tonne of rock |
CIM Code | The reporting standard adopted for the reporting of the Mineral Resources is that defined by the terms and definitions given in the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by NI 43-101. The CIM Code is an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee |
Dip | A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal. |
Down-dip | Further down towards the deepest parts of an ore body or zone of mineralisation |
Foot wall | The rock adjacent to and below an ore or mineralised body or geological fault. Note that on steeply-dipping tabular ore or mineralised bodies the foot wall will be inclined nearer to the vertical than horizontal. |
Grade | The proportion of a mineral within a rock or other material. For gold mineralisation this is usually reported as grams of gold per tonne of rock (g/t) |
g/t | grams per tonne |
Inferred Mineral Resource | That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited, or of uncertain quality and reliability |
Indicated resource | that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed |
Intercept | Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralized zone. The intercept is described by the entire thickness and the average grade of mineralisation |
JORC | Australian Joint Ore Reserves Committee, common reference to the Australasian Code for reporting of identified mineral resources and ore reserves |
koz | Thousand troy ounces |
kt | Thousand tonnes |
Mineral Resource | A concentration or occurrence of material of economic interest in or on the Earth's crust in such a form, quality, and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, estimated from specific geological knowledge, or interpreted from a well constrained and portrayed geological model |
Open pit mining | A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining). |
oz | Troy ounce, equivalent to 31.103477 grams |
Quartz veins | Deposit of quartz rock that develop in fractures and fissures in the surrounding rock. They are deposited by saturated geothermal liquids rising to the surface through the cracks in the rock and then cooling, taking on the shape of the cracks that they fill. |
Strike length | The longest horizontal dimension of an ore body or zone of mineralisation. |
True width | The shortest axis of a 3 dimensional object (i.e. ore/mineralised body), usually perpendicular to the longest plane. This often has to be calculated where channel or drill sampling was not exactly perpendicular to the long axis. The true width will always be less than the apparent width of an obliquely intersect sample. |
Mt | Million tonnes |
Vein | A sheet-like body of crystallised minerals within a rock, generally forming in a discontinuity or crack between two rock masses. Economic concentrations of gold are often contained within vein minerals. |