Condor Gold upbeat on latest drilling results from Mestiza

Condor Gold announced on Friday that the first phase of infill drilling of 39 holes for 3371.58 metres, using diamond core drilling, had been completed on the Mestiza open pit, with all assay results received.

The AIM-traded firm said the results were consistent with previous drilling grades and widths, demonstrating “good continuity” in gold mineralisation between adjacent drill holes in the high-grade zones, adding confidence to its geological model.

It said the total drilling programme on Mestiza pit was around 7,800 metres, with two drill rigs operating on site, meaning drilling should be completed within six weeks.

The primary objective of the programme was to convert the inferred mineral resource to a higher level of confidence indicated resource, for inclusion in an economic mineral reserve and prepare the permitted Mestiza open pit for extraction.

Condor highlighted a 4.1 metre true width at 15.23 grams of gold per tonne from 47.80 metres in hole LIDC514, approximately 40 metres below surface, and a 3.6 metre true width at 29.1 grams per tonne from 105.7 metres in hole LIDC471, around 85 metres below surface.

The board said the Mestiza pit had currently estimated fully-diluted feed mill feed in the September preliminary economic assessment of 499,000 tonnes at 5.37 grams of gold per tonne for 86,000 ounces of gold, and was targeted for early extraction.

“I am delighted with the initial results of the 7,800 metre infill drilling programme on our permitted high-grade Mestiza open pit, which is targeted for early production,” said chairman and chief executive officer Mark Child.

“The high grade drill intercepts announced today may add to our mineral resource inventory at Mestiza, and possibly improve the project's economics, although this will only be confirmed at the conclusion of the drilling campaign.

“The tighter drill spacing has delivered relatively shallow, high grade drill intercepts which add considerable confidence to the existing monthly mine schedules.”

At 1039 BST, shares in Condor Gold were down 1.27% at 39p.