Condor Gold Regulatory News (CNR)

27 Jun 2007 07:03

Condor Resources PLC27 June 2007 Condor Resources Plc 1 Warwick Row London SW1E 5ER 27th June, 2007 Condor Resources plc (''Condor'' or ''the Company'') Operational Update Condor Resources, (AIM: CNR), the mineral exploration Company, today announcesan operational update on licences in Nicaragua and El Salvador Significant Regional Rock Chip Results at San Albino-Murra, Nicaragua Regional rock chip sampling on the San Albino Licence in north-western Nicaraguahas defined a number of prospects with similar geological characteristics to theold San Albino Mine, where high grade gold intercepts were recently returnedfrom a trench programme (including 18 metres at 6.77g/t Gold, RNS release 18 May2007). Five areas with mineralization exceeding 1g/t Gold in rock chips have nowbeen identified, including the San Albino and San Lorenzo prospect areas, alonga 20 kilometre section of a north-east trending belt of metamorphic rocks knownas the Guayape Suture Zone. The three additional areas are described below. Las Conchitas area - rock chip samples of up to 14.5g/t Gold definemineralization at a 1g/t Gold cut off over an area of at least 1.5km(2) with upto four parallel mineralized structures striking north-west. These appear to beparallel systems to the San Albino mineralization approximately 1km to thenorth. A trenching program is underway and positive assay results areanticipated. Cerro El Perico - Approximately 10km northwest of the San Albino Mine A line ofthree rock chip samples assaying between 3.7g/t and 26.9g/t gold appear todefine a north-north-west trending zone of mineralization with at least 500mstrike length along the eastern flank of a hill (Cerro El Perico). The samplesare all grab samples from old adit entrances. Follow-up trenching and drillingis planned. Santo Domingo area - Located approximately 15km northwest of the San Albinomineralization. Widespread rock chip sampling of old adits and rare outcroppingquartz veins has returned half a dozen rock chips assaying over 1g/t gold overan area of greater than 1.5km2. These include up to 18.9g/t gold in a grabsample and 7.4g/t gold in a channel sample. Mapping is underway in this area toestablish the geological controls of mineralization and plan the most effectivemethod of further exploration. Condor Resources considers the potential for the discovery of significant lodegold deposits on the Guyape Suture Zone very high. The San Albino Licence iswell located on this highly prospective metamorphic belt and Condor Resources isactively pursuing the acquisition of further exploration concessions in thisgeological terrain. El Pescadito and La Calera Projects, El Salvador A total of 2318.5m of RC and Diamond drilling has been completed on the ElPescadito Licence to date. Drilling was completed at Santo Tomas (204m),Protectora (403.9m) and Pepe (397.5m) Prospects along the main DivisideroStructure in the east; Virginia (666m) Prospect in the centre, and at Loma delCaballo (647.1m) deposit in the southwest of the Licence. The holes drilled along the main Divisidero Structure intersected quartzveining, silicification and alteration, but did not produce any significant goldor silver assay results. A re-interpretation of the data is currently underwaywith a focus on structural controls to the mineralization. Drilling at Loma del Caballo (JORC Inferred Resource of 117,000oz gold, 3Mozsilver) twinned previous holes drilled by Bema-Intrepid and tested some down-dipextensions of trench structures with anomalous results. The results generallysupported the earlier data that was used for the resource calculation, thoughsome new areas of mineralization were identified. The best intersection was inLODDH002, which returned 42.08 meters at 2.3g/t gold, 69.3g/t silver (from18.2m). Drilling at the Virginia Prospect produced mixed results with only one hole(ACRD009) returning significant results for gold and silver mineralization.Recent geological mapping indicates a more complex vein geometry than initiallythought and suggests that some holes may have missed intersecting the mainnorthwest trending 10m thick structure. Drill hole ACRD009 did intersect thismain structure, and returned 16m @ 1.04g/t Au (from 20.0m) in samples from theReverse Circulation pre-collar. The diamond tail intersected 20m (36-56m) ofstrongly silica +chlorite +pyrite altered vein breccia similar to that observedat Loma. Assay results from the diamond tail samples are still pending. Virginia is located approximately 3 kilometres northwest of the Montecristo Mine(104,000oz gold historical production), and may represent a fault displacedcontinuation of the Montecristo structure. The prospect is a 400 metres x 200metres northwest trending zone of epithermal textured quartz veins andsilicified vein breccia. Rock chips of vein outcrop and float returned assays ofup to 35.9 g/t gold and 1043 g/t silver. The results are encouraging, andfurther drilling is planned. Trenching to define the main zone is underway, withgeological logging to date confirming the continuation of the main breccia zoneover 180m along strike to the southeast of ACRD009. At the La Calera Concession, a third phase of trenching has commenced, withapproximately 1,319 metres of a 4,000 metre program completed. The third phaseof trenching is designed to in-fill Phase 1 and Phase 2 trenches and to test thesouthern continuation of the Rosa, Rosa West and Calichal vein systems. Resultsfrom the first 3 trenches from the southern extension of the mineralized zone(LCTR040, 041, 042) have been received. The trenches tested ground between the 3main vein systems and results indicate that minor mineralized veins continue tobe found, further supporting the option of a shallow open-pittable resource. Trench ID Width gold Grade silver Grade LCTR040 0.7 metres 5.39g/t 2.4g/t LCTR041 2.0 metres 1.08g/t 0.4g/t LCTR041 4.0 metres 1.50g/t 1.2g/t LCTR041 2.0 metres 2.65g/t 1.7g/t LCTR042 0.8 metres 2.48g/t 0.9g/t Trenches along strike but 300m southeast of the main Rosa Vein System exposedquartz veining and stock work zones with weak alteration beneath deeptransported cover, confirming the continuation of the main Rosa Vein system over1000 metres of strike length. An extensive RC drilling program to test depthextensions of the several, well mineralized zones is planned. Condor has planned a 5,000m drilling programme at La Calera, which has beendelayed because an Environmental Permit has not been granted by the Ministry ofEnvironment and Natural Resources ("MARN") the delay is not in accordance withthe Mining Laws and Bye Laws of El Salvador. Recent enquiries have revealed thatall mining and exploration companies operating in El Salvador are experiencingsimilar delays and have started lobbying the Government. Condor is strongly lobbying the Government to issue the Environmental Permitsthat will allow drilling to commence on La Calera. Condor has lobbied with thesupport of the British Embassy in Guatemala and prominent Ministers andCongressmen of the ruling Arena party. The Company will keep shareholdersupdated on any material developments. In the meantime, Condor has demobilized a drill rig from El Salvador and ispresently mobilizing the drill rig to Nicaragua to drill test the Cacao vein andthe San Albino prospects where Condor has identified several high gradestructures. Condor anticipates a two week mobilisation period and expects tocommence drilling on these prospects in Nicaragua in the next few weeks. 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 21 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 +44 20 7408 1067Nigel Ferguson, CEO +44 20 7808 7222 Nabarro Wells & Co. Limited Hugh Oram +44 20 7710 7400Anthony Rowland +44 20 7710 7419 Mirabaud Securities Limited Rory Scott +44 20 7878 3360 Parkgreen Communications Limited Clare Irvine +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 BSIInspectorate Laboratories, Guatemala for completion of the sample preparationphase. Prepared samples are then forwarded by courier to BSI Laboratories inSparks, Nevada, USA for final assay determinations. 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 and is earning 100% interest in afifth licence contained in three project areas in El Salvador. Condor also hasfour 100% owned licences and the option to earn an 80% interest in a furtherfour licences contained within four project areas in Nicaragua. An independent competent person's report prepared by Ravensgate and included inthe Company's Admission Document combined with a subsequent mineral resourcecalculation statement in December 2006 reported Inferred Mineral Resources, asdefined by the JORC standard of some 467,104oz gold and 18.4Moz silver withintwo project areas in El Salvador. 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. The drilling programme isplanned to be between 20,000m and 40,000m of combined reverse circulation anddiamond drilling. This information is provided by RNS The company news service from the London Stock Exchange