Condor Gold Regulatory News (CNR)

17 Nov 2006 07:01

Condor Resources PLC17 November 2006 17 November 2006 Condor Resources Plc ("Condor" or "the Company") Project Acquisition and Trading Update Condor Resources Plc (AIM:ticker code "CNR") announces that, after completingdetailed due diligence, it has acquired an option over two new gold projects,the Kuikuinita and Columbus projects (the "Projects"), in the north easternquadrant of Nicaragua, Central America. The Directors believe that bothKuikuinita and Columbus hold potential, yet to be fully tested, and that theresults demonstrated by previous explorers merit further investigation. Highlights Under the terms of the Option and Farm In Agreement, signed on 20th August 2006with a full Due Diligence completed with signing a Variation Agreement on the26th October 2006: • Condor has made an initial payment of US$100,000 to the Nicaraguan vendors, Chorti Holdings SA for both licences; • Condor has a deadline of 31 March 2007 to complete initial field studies to allow a full geological assessment of the Projects' potential and to exercise its options; • Upon the exercise of its options, Condor will make a further payment of US$100,000 per licence to Chorti Holdings SA by 31 March 2007; and • Condor will earn an 80% interest by expending at least US$1 million on each Project in the three year period to 31 March 2010. The Company has commenced initial confirmatory mapping and sampling programmesand will also re-sample existing drill core from the two Project areas. Theinitial and future considerations in respect of the options will be met from theCompany's existing resources. Condor raised £4.85m gross in a successfulPlacing of 40.95 million shares at 10p per share on Admission to AIM in May 2006and a subsequent placement of 7.5 million shares at 10p per share on the 2ndJune 2006. Nigel Ferguson, CEO of Condor, commented: "Our review of the available data iswell advanced and we will complete further field check studies to confirm thatboth the Kuikuinita and Columbus Projects have significant potential asbelieved. A further four months of work, in addition to the two months of duediligence work already completed, will be undertaken to ensure that the projectsmeet the strict selection criteria used by Condor's management. "Initial review work has been very encouraging for both Projects and furthergeochemical results should be available early in 2007. We hope to be able toannounce positive results for both Projects." The Kuikuinita Project The Kuikuinita Project contains Tertiary aged Dacitic tuffs overlaying anUltramafic sequence that are intruded by coeval Dacite dykes. A trenchingprogramme carried out by Pila Gold demonstrated that gold mineralisation in theLoma Los Indios area occurs either in the Dacite dykes or adjacent to them inthe surrounding intruded units. More intense alteration in the dykes and theassociation with elevated gold values strongly suggests that the alteration andmineralisation are related to the Dacite dykes. Trench sampling by Pilar Gold in the San Antonio area in an oxidized andweathered Ultramafic returned up to 17.3 grammes per tonne of gold ("g/t Au")over 5 metres. Panned concentrate from these high grade samples revealedmagnetite grains with native gold. The most significant gold mineralisationintercepted in the Pilar Gold program in drill core was in the following drillholes: • KUDH-10, an apparently stratiform pyritic lens in an agglomerate carries 12.85g/t Au over 2.8 metres; • KUDH-11, a gossanous sample in mafic volcanics reported 16.2g/t Au and 82.6g/t of silver ("Ag") over 0.86m, and in • KUDH-20, a pyritic zone reported 8.6g/t Au over 1.52 metres. These apparently represent three separate sulfide lenses. This style ofmineralisation potentially represents a volcanic hosted massive sulfide (VMS)exploration target. Additionally, silver plus base metal mineralisation associated with a fault zonewas intercepted in drill hole KUDH-7. Oxide mineralisation occurs in maficvolcanics adjacent to a Dacite dyke, suggesting a genetic association with thedyke. This intercept averaged 226g/t Ag, 0.82g/t Au, 0.6% copper ("Cu"), 3.35%lead ("Pb") and 1% Zinc ("Zn") over 20.9 metres, with a high of 774g/t Ag, 2.2g/t Au, 12.48% Pb, and 1.9% Cu over 2.74 metres. Follow up drilling showed thisfault zone to be cone shaped and pinching at depth, with significant supergeneenrichment. Further investigative work is required to determine its fullpotential. The Columbus Project The Columbus area includes Cerro Columbus, which extends west to another zone ofgreisen alteration with associated breccia pipes where gold occurs in aquartz-specularite breccia pipe. Trench results by previous explorers includeCOL-04 with 2.26g/t Au over 19.5 metres. Gold is also associated with thequartz-tourmaline breccia pipes in oxide zones after sulphides, with results intrench COL-03 reporting 1.43g/t Au over 13.35 metres from this zone. The presence of the quartz-tourmaline breccias and the greisen alterationindicate a high temperature or proximal intrusion related to a gold coppersystem. Previous explorer, Pila Gold, believed that another stock phaseunderlying Cerro Columbus is the source of the alteration and prospectivemineralization present, possibly indicating multiple mineralized intrusivephases. The quartz-specularite breccia, south of Cerro Columbus, is also highlyanomalous in molybdenum ("Mo"), averaging 682ppm Mo over 35.4 metres in trenchCOL-04. The high levels of Mo present may indicate a proximal intrusion relatedsystem consistent with the theory that there are multiple intrusive phases, afavorable environment for porphyry hosted mineralization. Significant results from previous diamond drilling completed by Pila Goldinclude: Hole Interval (metres) g/t Au g/t Ag % Cu % MoCODH-1 8.68 2.52 *NR *NR *NR including 1.52 6.5 22.3 0.12 0.2CODH-2 19.8 3.14 *NR *NR *NR including 2.58m 18.37 *NR *NR *NRCODH-3 22.4m 1.07 *NR *NR *NR including 3.05m 2.46 12.3 0.23 *NR *NR - Not Reported Current Projects in Nicaragua The Company has also completed its initial review of four licences withinNicaragua through field verification of anomalous zones as defined by previousexploration programs. The Company considers the results of the verificationprogram on the four licences, Chachagua, Cerro de Oro, Guapinol and El Gallo, tofall short of the criteria for further work commitments. It has thus beendecided to return the licences to the vendors, Chorti Holdings. 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 20 years of experience in the exploration and definition of precious andbase metal Mineral Resources and has sufficient experience that is relevant tothe style of mineralisation 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 it appears and confirms thatthis information is accurate and not false or misleading. Ends Enquiries: Condor Resources Plc Mark Child, Chairman +44 20 7629 1331 Nigel Ferguson, Chief Executive +61 8 9240 7227Nabarro Wells & Co. Limited Hugh Oram +44 20 7710 7400 Anthony Rowland +44 20 7710 7419Parkgreen Communications Limited Ana Ribeiro +44 20 7493 3713 Brendan McNamara +44 20 7493 3713 About Condor Resources Plc: Condor Resources Plc was admitted to AIM on 31st May 2006 and raised £4.9m.Condor is a mining exploration company focused on El Salvador and Nicaragua.The Company has 100% ownership of four licences and is earning 100% interest ina fifth licence contained in three project areas in El Salvador. Condor alsohas the option to earn an 80% interest in five existing licences, not includingKuikuinita and Columbus, and one licence which is under application containedwithin three project areas in Nicaragua. An independent competent persons report prepared by Ravensgate and included inthe Company's Admission Document reported Inferred Mineral Resources, as definedby the JORC standard, of some 354,500oz gold and 18.3Moz silver within twocontiguous licences in El Salvador. The Company's principal objective is to update and extend its mineral resources.The Company intends to continue to drill test targets within its' Projectareas. The drilling programme is planned to be between 20,000m and 40,000m ofcombined reverse circulation and diamond drilling. This information is provided by RNS The company news service from the London Stock Exchange