LONDON, ENGLAND--(Marketwire - Feb. 5, 2013) -
Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce the acquisition of 100% of the 86.4 sq km 'HEMCO-SRP-NS' Concession (the "HEMCO Concession") from HEMCO Nicaragua SA ("HEMCO") for a consideration of US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc at £2.00 per share. The acquisition of the HEMCO Concession increases the Company's La India Project area to 280 sq km from 194 sq km.
86.4 sq km Concession covering a potential 13km strike extension to the America and Mestiza Vein Sets.
Consideration of US$275,000 payable by issuing new ordinary shares in Condor Gold plc at a price of £2.00 per share.
Four areas of quartz veining identified, indicating epithermal fluid movement.
Historically poorly explored area due to poor access.
Mark Child, Chairman and CEO commented:
"The purchase of the 86sq km HEMCO-SRP-NS concession (the "HEMCO Concession") on the eastern edge of La India Project is part of Condor's strategy of consolidating the sub surface mineral rights around the 2.4m oz gold resource on La India Project. The dominant trend of the quartz veins that comprise La India Project is from the North-West to the South-East. Preliminary field work by Condor's geologists indicates that the veins within the America Vein Set which hosts a resource of 405,000 oz gold at 6.0g/t and the Mestiza Vein Set which hosts a resource of 334,000 oz gold at 7.0g/t are open to the North West and trend into the HEMCO Concession. Four target areas have been identified for further exploration within the HEMCO Concession. See Figures 1 and 2 below.
"HEMCO Nicaragua S.A. (HEMCO) owns and operates the Bonanza gold mine in Nicaragua, which produced circa 50,000 oz gold in 2012. I am pleased with HEMCO's vote of confidence by agreeing to accept the US$275,000 purchase consideration in shares of Condor Gold plc, at a premium to the market price."
The 8,639.28 hectare Concession is located adjacent and to the north and west of Condor's wholly owned El Rodeo and La India Concessions (see Figure 1 below), along strike to the northwest of the main America and Mestiza Vein Set trends, covering a potential additional 13km strike length. Gold mineralisation has been recorded in rockchip samples within 600m of the southern boundary of the Concession, however there is very little known historic exploration activity on the concession area itself.
Four areas of quartz veining were identified during reconnaissance exploration carried out by Condor geologists as part of due diligence prior to signing the agreement and these areas will form the initial exploration targets (see Figure 2 below). The existence of extensive quartz veining along strike of the La India epithermal gold District suggests that there is potential for the discovery of economic gold mineralisation. Condor plans to extend geological mapping over the Concession and plans to undertake first pass regional exploration appropriate to the geological terrain, which may include satellite image interpretation, geophysics, stream and surface geochemical sampling.
The principal terms of the purchase of the Concession are:
- US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc once authorisation of the assignment of the Concession in favour of Condor is issued by the Director General of the Department of Mines, such authorisation has been received.
- Condor has 14 business days to issue the said shares at £2.00 per share. Accordingly, 87,330 new ordinary shares will be issued and admitted to AIM on 11th February 2013.
- Payment of US$7.00 per ounce of gold of proven and probable reserves as defined under the CIM Standards, during the time that Condor holds the Concession, payable in shares of Condor Gold plc.
To view figure 1, "Location of the HEMCO-SRP-NS concession within the La India Project area," please visit the following link: http://media3.marketwire.com/docs/CNRfigure1.pdf.
To view figure 2, "The HEMCO-SRP-NS concession within the La India Project area showing four identified areas of interest with epithermal quartz veining," please visit the following link: http://media3.marketwire.com/docs/CNRfigure2.pdf.
Competent Person's Declaration
The information in this announcement that relates to the mineral potential, geology, Exploration Results and database is based on information compiled by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with seventeen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Luc English consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
For further information please visit www.condorgold.com.
About Condor Gold plc:
Condor Resources plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up CIM/JORC Resources in Nicaragua and El Salvador. Condor has seven 100% owned concessions in La India Mining District ("La India Project"); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.
Condor's concession holdings in Nicaragua currently contain an attributable CIM/JORC compliant resource base of 2,497,000 ounces of gold equivalent at 4.6 g/t in Nicaragua and an attributable 1,004,000 oz gold equivalent at 2.6 g/t JORC compliant resource base in El Salvador. The Resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua, and Ravensgate and Geosure for El Salvador.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
||Canadian Institute of Mining, Metallurgy and Petroleum whose terminology, definitions and guidelines are an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee (CRIRSCO) as required by National Instrument 43-101.
||The proportion of a mineral within a rock or other material. For gold mineralisation this is usually reported as grams of gold per tonne of rock (g/t).
||Grams per tonne.
|Inferred Mineral Resource
||That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited, or of uncertain quality and reliability.
||That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
||Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralized zone. The intercept is described by the entire thickness and the average grade of mineralisation.
||Thousand troy ounces.
||A concentration or occurrence of material of economic interest in or on the Earth's crust in such a form, quality, and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, estimated from specific geological knowledge, or interpreted from a well constrained and portrayed geological model.
|Open pit mining
||A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining).
||Troy ounce, equivalent to 31.103477 grams.
||The longest horizontal dimension of an ore body or zone of mineralisation.
||The shortest axis of a body, usually perpendicular to the longest plane. This often has to be calculated for channel or drill samples where the sampling was not exactly perpendicular to the long axis. The true width will always be less than the apparent width of an obliquely intersect sample.
||A sheet-like body of crystalised minerals within a rock, generally forming in a discontinuity or crack between two rock masses. Economic concentrations of gold are often contained within vein minerals.
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