Condor Gold Regulatory News (CNR)

28 Jan 2008 07:01

Condor Resources PLC28 January 2008 28 January 2008 Condor Resources plc (''Condor'' or ''the Company'') Resources Upgrade Condor's JORC Code Compliant Resources exceeds 500,000 ounces of gold and 20million ounces of silver with the delineation of a maiden resource at the ElGigante Prospect, El Salvador. The El Gigante mineralized structure remains openat depth and along strike in both directions. Maiden Resource for the El Gigante Prospect Condor Resources plc (AIM: CNR) announces a maiden resource calculation of39,000 ounces of gold and 1,700,000 ounces of silver at its El Gigante Prospect("El Gigante") in El Salvador. Further to the Exploration Update announced on 11December 2007, this represents an increase of approximately 8% in the Company'sglobal resource base. Condors' Independent Resource Consultant, Geosure Exploration and MiningSolutions ("Geosure"), have completed a maiden resource calculation, subsequentto a field visit in late 2007, and reported an Inferred Resource at El Giganteas defined by JORC Code categories. The El Gigante Inferred Resource at 0.4 g/tgold at a bottom cut is stated by Geosure as: Resource Category Tonnes Gold Contained Silver Contained Grade (g/t) Gold (oz) Grade (g/t) Silver (oz) Inferred 610,000 2.0 39,000 87.0 1,700,000 Geosure have completed modelling of the El Gigante data to provide the resourcestatement to current JORC standards. Geosure noted in their report: "El Gigante contains a JORC Code compliant Inferred Resource of 610,000 tonnesat 2.0g/t gold for 39,000 ounces of gold and 87g/t silver for 1.7 million ouncesof silver. At a silver price of US$15/oz and gold price of US$850/oz, thisequates to a resource of 610,000 tonnes at a 'gold equivalent' grade of 3.5g/tAu for 68,600 ounces." El Gigante forms part of the El Pescadito Project which encompasses threecontiguous licences. The El Pescadito Project has two prospects with reportedJORC Code compliant resources adjacent to El Gigante. The maiden El Giganteresource calculation brings the combined resource within the El PescaditoProject area to 345,500 oz gold and 20 million oz silver, thereby enhancing thepossibility of a centralised mill and plant fed by a number of nearby prospects. The company's global resources now stand at some 506,104 ounces of gold and 20.1million ounces of silver: Prospect Tonnes Gold Contained Silver Contained JORC Grade (g/t) Gold (oz) Grade (g/t) Silver (oz) Category Loma del Caballo 2,517,300 1.44 116,500 39.00 3,200,000 InferredDivisidero 2,748,200 2.70 238,000 171.00 15,100,000 InferredEl Gigante 610,000 2.00 39,000 87.00 1,700,000 InferredLa Calera 1,692,000 2.07 112,604 1.79 97,373 InferredTotal 7,567,500 2.08 506,104 82.50 20,097,373 Inferred Successful infill trenching over the main mineralized zone at a 40 metre spacingand along strike at 80 metre spacing has allowed the calculation of the maidenresource at El Gigante. Gold mineralization, complimenting previous drilling results received byIntrepid Minerals Corp. of Canada, is now defined over a 600 metre strike lengthon the main vein system. Outcropping quartz veins have been traced a further 600metres along strike, and field work including infill and step-out trenching at80 metre centres continues to define the structure which remains open in alldirections. Anomalous results produced by the infill trenching (based on a 0.5g/t gold cut off) include: • 6 metres at 2.12g/t gold, 9.17g/t silver • 3 metres at 2.71g/t gold, 126.94g/t silver • 6 metres at 1.35g/t gold, 100.12g/t silver • 4 metres at 3.37g/t gold, 174.57g/t silver Condor Chief Executive, Mr. Nigel Ferguson, commented: "The independent results for El Gigante confirm our beliefs in the possibilitiesof this obviously well mineralised structure. Statistical analysis of the assaydata suggests that average gold grades increase from 1.5g/t at surface togreater than 5g/t gold at 100 metres depth within the historical workings.Significant silver credits are also being returned and we believe that resourceounces will be increased significantly at this project once drilling commences." Condor requires environmental permits issued by El Salvador's Ministry ofNatural Resources ("MARN") in order to commence drilling on three of its fourlicences including El Gigante. Applications have been submitted to MARN, and theCompany is currently awaiting the issue of the permits. 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 +44 20 7408 1067 Nigel Ferguson, CEO +44 20 7808 7222 Nabarro Wells & Co. Limited Hugh Oram +44 20 7710 7400 Mirabaud Securities Limited Rory Scott +44 20 7878 3360 Parkgreen Communications Limited Simon Robinson 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 CASLaboratories, Honduras for completion of final assay determinations. Anapproximate total of 10% of the samples returning significant assay results havetheir pulps forwarded to BSI Inspectorate Laboratories, in Sparks, Nevada, USAfor repeat assay determinations as part of the companies QAQC procedure. Resource Calculation Notes The reported tonnages and grades are in accordance with the guidelines andrecommendations of the JORC Code. Drill data is from diamond drilling. Drillsamples were half core. Drill sample assay determinations were carried out byBSI Inspectorate of Nevada, USA, while trench sample assay determinations werecarried out by CAS Laboratories of Honduras. Gold determinations were by FireAssay 30g with Atomic Absorption finish; silver determinations were by wetchemical methods with and Atomic Absorption finish. Modelling was completedusing Surpac Vision 5.2D Mining Software. Domaining was performed based ongeology and Au grade (0.4g/t gold bottom cut-off). Only mineralization thatshowed continuity along strike of more than 2 sections was domained. Ag resultswere analysed on the basis of the wireframes created to domain Au samples. ElGigante sample data displayed a distribution that appeared to be log normal.Ordinary Kriging (OK) was considered an appropriate method of estimation for thedataset. Variography was completed on uncomposited domained sample data with atop cut set at 15g/t Au (Coe. of Var =1). Ordinary Kriging estimates were madefor Au and Ag, with visual inspections of the grade estimate along withstatistical analysis used to validate the block model. Calculation of "Gold Equivalent" Gold Equivalent Grades were calculated in this report by applying a gold:silverprice ratio of 56:1 to gold and silver assay results. The gold equivalentgrades are therefore calculated by the following formula: Gold Equivalent Grade= Gold Grade + (Silver Grade divided by 56). 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 licences and is applying for two further 100%owned licences 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 Code standard of some 467,104 oz gold and 18.4Moz silverwithin two project areas in El Salvador. In January 2008 an independentcompetent person's report prepared by Geosure on a mineral resource calculationof 39,000 oz gold and 1.7 Moz silver at the El Gigante prospect, has raised thecombined global resource estimates as defined by JORC Code standards to some506,104 oz gold and 20.1 Moz silver within 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. The drilling programme isplanned to be between 20,000m and 40,000m of combined reverse circulation anddiamond drilling. The drilling in El Salvador is expected to commence upongranting of the necessary Environmental Permits by the Ministry of Environment.The necessary permits have already been granted for licences in Nicaragua. This information is provided by RNS The company news service from the London Stock Exchange