Condor Gold Regulatory News (CNR)

17 Aug 2006 10:48

Condor Resources PLC17 August 2006 17th August 2006 Condor Resources Plc ("Condor" or "the Company") Assay Results and Trading Update Condor Resources Plc (AIM symbol "CNR") is pleased to announce further assayresults for its El Potosi Project in El Salvador and provide a trading update.Highlights include: • El Potosi Project Further assay results: 5.0 metres @ 9.23 g/t Au including 1m @ 30.93g/t Au, and5.35 metres @ 22.15g/t Au including 0.38m @ 98.6g/t Au and 41.1g/t Ag. Based on these results Condor intends to spend between US$250,000 and US$500,000in the next 12 months and embark on a drill campaign of up to 4,000m of combinedReverse Circulation and Diamond drilling to further prove the project. Initialinterpretation by Condor technical staff is that the El Potosi Project maycontain significant gold resources. • El Pescadito Project Condor has been awarded the 42.5km(2) El Gigante Licence in El Salvador. Thelicence area is contiguous with Condor's existing El Pescadito and CarolinaLicences and enlarges the existing El Pescadito Project area to 133km(2). The ElGigante Licence exhibits a geological setting similar to that of the SanSebastian Gold Mine area to the south east which is recorded as being one of themost prolific gold producers in Central America.. Additionally the licence areahas several historical gold workings that have never been fully explored inmodern times. • Loma del Caballo Prospect Significant results are reported from recent trenching at the Loma del CaballoProspect, in line with those disclosed in the Independent Competent Person'sReport in the Admission Document, and confirming the width and nature ofmineralization in the resource area. These include: LOTR02 8m @ 0.57g/t Au and 46.94g/t AgLOTR03 7m @ 1.88g/t Au and 17.61g/t AgLOTR04 15m @ 3.24g/t Au and 41.96g/t AgIncl. 2m @ 17.53g/t Au and 229.25g/t Ag • Personnel Mr. Steve Friberg has been appointed Exploration Manager for El Salvador and Mr.Mark Aldridge will drive the exploration program in Nicaragua. These 2expatriate geologists have combined experience of over 50 years in goldexploration. • Drilling Rigs The Company has secured the services of 3 drilling rigs and intends to commencedrilling with one drill rig on the Loma del Caballo Prospect in the first weekof September 2006. The Directors expect the second drilling rig to arrivein-country by mid October 2006 and the third by the end of October 2006 or earlyNovember 2006 subject to any further delays beyond the control of Condormanagement. The Company will use these drilling rigs to embark on a drillingprogramme of some 20,000m in the next 12 months and up to 40,000m in the nexttwo years. • Aerial Photography has been completed for all licences in El Salvador which allows regional targeting and topographical control within the project areas. • Negotiations are at an advanced stage to secure two new prospects in Nicaragua. Detailed Update El Potosi Project The further assay results at the El Potosi Project, where Condor is earning a100% interest, confirm the Company's initial interpretations of multiple, narrowhigh grade ore zones. The two main mineralised vein systems, 613 Vein andF-Potosi Vein, are now open down dip and along strike to the south. Highlights of the new assay results include down hole reported widths of: PTRC0017* 5m @ 9.23g/t Au from 57 to 62m, including 1m @ 30.93g/t Au. PTDT0013# 5.35m @ 22.15g/t Au from 106.80 to 112.15m. including 0.38m @98.6g/t Au and 41.1g/t Ag (true width). * PTRC0017 is a drill hole completed utilising Reverse Circulation methodology("R.C."). # PTDT0013 is a drill hole completed utilising HQ diamond core methodology. NB: All intercepts have utilised uncut assay results. Exploration to date has centered on the historical El Potosi Mine, whichoperated from the late 19th Century until the 1950's and is estimated to haveproduced 60,000 ounces of gold with values ranging between 18g/t Au and 30g/tAu. In December 2005, Condor completed a 24 drill hole program, totaling 3,092.6m(and comprising 2,334m of R.C. and 758.6m of HQ diamond drilling), designed totest several sub-parallel structures identified in historical mine plans and aslogical follow-up to initial field work. Initial 4m R.C. composite samples werere-analysed on a 1m basis where gold assays returned greater than 1g/t Au. Numerous narrow quartz-chalcedony veins, with variably developed quartz veinletstockworks evolving to breccia zones, were encountered during this drillingprogram. Significant 4m composite assay results from drill holes, as disclosedin the Independent Competent Person's Report in the Admission Document, aresummarised in Table 1. Table 1. Significant Intercepts - 4m Composite Samples Drill Hole Id From (m) To (m) Interval (m) Au g/t Ag g/t PTRC0002 8.00 20.00 12.00 2.11 1.7PTRC0004 100.00 104.00 4.00 2.78 1.0PTRC0016 0.00 4.00 4.00 2.32 2.1PTRC0017 56.00 72.00 16.00 9.77 11.5Incl. 56.00 60.00 4.00 35.07 11.5Incl. 68.00 72.00 4.00 2.86 4.7PTRC0020 17.00 29.00 12.00 1.33 1.46Incl. 17.00 21.00 4.00 2.47 2.33PTRC0022 37.00 49.00 12.00 1.70 1.3 Individual 1m samples were then collected from anomalous 4m composite samplesand sent to BSI Inspectorate for analytical determinations. These results aresummarised in Table 2. Table 2. Significant Intercepts - 1m Samples Drill Hole Id From (m) To (m) Interval (m) Au g/t Ag g/t PTRC0002 8.00 19.00 11.00 2.05 2.5Incl. 13.00 16.00 3.00 5.52 4.2PTRC0004 28.00 30.00 2.00 1.17 2.65 102.00 104.00 2.00 3.78 1.65PTRC0017 57.00 62.00 5.00 9.23 -Incl. 57.00 59.00 2.00 21.49 7.4 70.00 71.00 1.00 5.34