Condor Gold 'making good progress' at La India project

AIM listed miner Condor Gold said it was “making good progress” de-risking its Nicaraguan mine as it secured an environmental test for its processing plant during the first half of the year.

During the six months ended 30 June, Whittle Consulting conducted a pre-feasibility study and preliminary economic assessments which found that the company's La India project in Nicaragua has a net present value of $196m and an average internal rate of return of 30% across four production scenarios at the mine.

The company renegotiated terms for the final payments for the purchase of the Espinito-Mendoza concession in the La India project, which allows conversion of a Soviet classified resource on the Mestiza Vein to western standards, which was excluded from the pre-feasibility study and preliminary economic assessments.

Nicaragua's Ministry of Environment confirmed an environmental impact assessment for the company's processing plant, which has the capacity to produce about 100,000 ounces of gold per year , which has also passed a technical review.

Condor Gold is preparing for a public consultation expected on 6 November, after presidential elections in Nicaragua.

At the mine production ranged from 91,000 ounces of gold per year from a single open pit to 165,000 ounces once feeder pits and underground production is included.

The feasibility study also found that the mine could recover between 796,000 ounces of gold to 1.437m ounces of gold over a life of the mine.

In May, the company raised £2.818m through a private placement, which was led by Canadian mining entrepreneur Ross Beaty.

Chairman and chief executive Mark Child, said: "Condor Gold is making good progress in de-risking its La India project and we are very pleased that the Ministry of Environment in Nicaragua has confirmed an environmental impact assessment for our proposed processing plant.

“The extensive soil sampling program, rock chip sampling and geological mapping continues to yield positive results, enhancing our interpretation of the geology and demonstrating the potential for a substantial gold district at La India project. The board of Condor Gold continues to use its best endeavours to maximise value for its shareholders."

Shares in Condor Gold were down 0.43% to 71.94p at 0834 BST.