Condor Gold Regulatory News (CNR)

26 Sep 2006 15:28

Condor Resources PLC26 September 2006 26th September 2006 Condor Resources Plc ("Condor" or "the Company") Commencement of Drilling at the El Pescadito Project and Corporate Update, Commencement of Drilling Condor Resources Plc (AIM: CNR) is pleased to announce that it has commenceddrilling at the Loma del Caballo Prospect within the El Pescadito Project in ElSalvador. Condor plans to drill 835m of HQ diameter coring in this initial phase at theLoma del Caballo quartz vein breccia stockwork system, which is at least 650mlong with widths of up to 60m and is open along strike and down dip, to obtainstructural geological information that will allow better drill location planningfor the major Reverse Circulation programme that the Company expects to startlater in the year. The subsurface mineralisation intercepted in drill holes will be joined tosurface mineralisation exposed in trenching to allow wire-framing of the orezones and calculation of mineral resources. Chief Executive Officer, Nigel Ferguson, commented: "We are delighted that thisfirst phase of drilling has started at Loma del Caballo as it is an importantstep in our strategy to increase the known resources at the El PescaditoProject. We look forward to announcing results from the drilling programmes indue course." Trenching Since listing on AIM, Condor has completed a total of 1005 metres of trenchingon the El Pescadito and La Calera Projects in addition to mapping of furtherprospects within El Salvador. Mineralised and altered zones encountered withinthe trenches provide confirmation of Condor's target model of broad zones ofgold mineralisation with inter-fingering high grade quartz veins. Completeassay results will be available shortly, however, in an update to the initialtrenching results at the Loma del Caballo Prospect (RNS 17/08/06) completeresults for that area are presented below: Trench Structure Intercept (m) Gold (g/t) Silver (g/t) CommentLOTR1 Main 2 2.18 18.5 OpenLOTR2 Main 2 0.69 13.9 Open and Main 5 0.62 29.8LOTR3 Main 7 1.88 17.6 Open Inc Main 1 5.01 27.4LOTR4 Main 15 3.24 42.0 Open Inc Main 2 17.52 229.2LOTR5 Main No significant resultsLOTR6 Main 2 1.78 24.6LOTR7 Main 13 1.97 59.0LOTR8 Main 11 2.59 188.5 Open Inc Main 2 11.11 680.2 and Main 3 0.63 52.6 and Main 4 0.68 44.4 and Main 1 0 2,298.3 Qualified Person's Declaration The information in this announcement that relates to exploration results isbased on information compiled and reviewed by Nigel Ferguson, CEO, who is aMember of the Australian Institute of Mining and Metallurgy and a geologist with20 years of experience in the exploration and definition of precious and basemetal Mineral Resources and has sufficient experience that is relevant to thestyle of mineralisation and type of deposit under consideration and to the typeof activity which he is undertaking to qualify as a Qualified Person as definedin the March 2006 Edition of the AIM Guidance Note for Mining, Oil and GasCompanies. He consents to the inclusion in the announcement of the mattersbased on his information in the form and context in which it appears andconfirms that this information is accurate and not false or misleading Corporate Update The Company has appointed Breams Registrars and Nominees Limited of 52 BedfordRow, London, WC1R 4LR as Secretary to the Company and the Company's registeredaddress has been changed accordingly. In order to align the accounting reference date of Condor with its operatingsubsidiaries, the Company has changed its accounting reference date from 31October to 31 December and the first accounting period of the company will beextended to 31 December 2006. The first half-yearly report will be in respectof the six months ended 31 August 2006 and will be announced by 30 November2006. Ends Enquiries: Condor Resources plc Nabarro Wells & Co Limited Parkgreen CommunicationsMark Child, Chairman / Hugh Oram, Director Simon Robinson /Nigel Ferguson, CEO Lindsay Bancroft+44 (0)20 7408 1067 +44 (0) 20 7710 7400 +44 (0) 20 7493 3713 Notes to Editors About Condor Resources Plc Condor Resources Plc (AIM: CNR) is a London based mineral resources company witha focus on gold and silver exploration within Central America. The Companycontrols a portfolio of concessions largely prospective for high gradeepithermal gold and silver in El Salvador and Nicaragua in Central America. The Group holds the rights to, or the rights to farm into, mineral explorationconcessions over a combined area of some 980km(2) of ground in prospective areasof El Salvador and Nicaragua. Within the two contiguous licences contained within the El Pescadito Project inEl Salvador, Ravensgate has reported Inferred Mineral Resources, as defined bythe JORC standard, of some 354,500 ounces of gold and 18.3 million ounces ofsilver. The Company commenced exploration in late 2003 in El Salvador and hascontinued actively to evaluate new projects and develop its key assets at the ElPescadito and El Potosi Projects in El Salvador. Condor was recently awarded theEl Gigante licence (RNS dated 17/08/2006) which is adjacent to the two ElPescadito Project licences already held and affords Condor a consolidation ofground holding in the area and further additional targets. The Group's principal objective is to update and extend its mineral resources Inaddition the Company intends to drill test several other targets within theprojects. The drilling programme is planned to be between 20,000m to 40,000m ofcombined reverse circulation and diamond drilling. Exploration Areas: El Salvador Within the El Pescadito Project in El Salvador, Condor has reported InferredMineral Resources, as defined by to JORC standard, of some 354,500 ounces ofgold and 18.3 million ounces of silver within two contiguous licences. At the La Calera Project, a 100 per cent. owned licence, previous drill testinghas outlined mineralised structures in the Rosa and Rosa West and Calichal veinswith excellent potential for shallow, potentially open pittable gold resourcesas well as subsequent high grade underground gold resources. Trenching hasrecently been completed at La Calera and results are expected soon. The fourthlicence area, the El Potosi Project, where Condor is earning a 100 per centinterest, contains the historical El Potosi Mine which produced an estimated60,000 ounces of gold at between 18 and 30g/t prior to 1950. Condor hascompleted a first phase drilling programme of Reverse Circulation ('R.C.') anddiamond drilling to test these structures with positive results. Furtherdrilling is planned. Nicaragua An option and farm in Agreement within Nicaragua over five licences and onelicence which is under application, contained within three project areas,affords Condor exposure to a number of projects, many of which have historicalmines and workings. Further assessment work on other opportunities continues. At the Segovia Project area, Condor has concentrated on the high gradestructures containing the historical San Albino Mine, and field work to date hasconfirmed several high grade quartz veins within the district, some of whichcontain visible gold. This information is provided by RNS The company news service from the London Stock Exchange