Condor Gold (AIM: CNR; TSX: COG https://www.commodity-tv.com/ondemand/companies/profil/condor-gold-plc/) is pleased to announce the filing of a Feasibility Study Technical Report, sometimes referred to as a Bankable Feasibility Study (“2022 FS”) on the La India open pit, which forms part of the larger La India Project, Nicaragua on SEDAR (https://www.sedar.com). The 2022 FS is also available on the Company’s website www.condorgold.com under “Technical Reports”. The 2022 FS was conducted in accordance with the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves (May 2014) (the “CIM Code”) as required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”. The CIM Code is an internationally recognised reporting code as defined by the Committee for Mineral Reserves International Reporting Standards. The filing of the 2022 FS follows the RNS dated 12 September 2022 summarising the 2022 FS including sensitivity analyses. The 2022 FS is available on Condor’s website and under Condor’s profile on SEDAR.
Highlights: Feasibility Study La India Open Pit only
The 2022 FS demonstrates a robust and economically viable base case for the La India open pit:
- Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
- Production averages 81,545 oz gold per annum for the first 6 years of an 8.4 year mine life
- An Internal Rate of Return (“IRR”) of 23% and a post tax, post upfront capital cost NPV of US$86.9 million using a discount rate of 5% and price of US$1,600 oz gold (Mineral Reserve Case).
- An Internal Rate of Return (“IRR”) of 43% and a post tax, post upfront capital cost NPV of US$205.2 million using a discount rate of 5% and price of US$2,000 oz gold.
- Low initial capital requirement of US$105.5 million (including contingency and EPCM contract)
Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold
Outside the main La India open pit Mineral Reserve (the subject of the 2022FS), there is a historical estimate, outlined in the 2021 PEA, of additional open pit Mineral Resources on four deposits (America, Mestiza, Central breccia and Cacao) which represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in the indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for 223,000 oz gold in the inferred Mineral Resource category. In addition, there is an aggregate underground Mineral Resource (La India, America, Mestiza, Central Breccia San Lucas, Cristalito-Tatescame, and Cacao) of 979Kt at 6.2 g/t for 194,000 oz gold in the indicated Mineral Resource category and 5.6Mt at 5.0 g/t gold for 898,000 oz gold in the inferred Mineral Resource category.
Condor’s plan is to materially expand production with a stage 2 expansion and is working to convert existing Mineral Resources into Mineral Reserves and to develop an associated integrated mine plan. On 25 October 2021, the Company announced the results of a Preliminary Economic Assessment and filed on SEDAR a technical report entitled “Condor Gold Technical Report on the La India Gold Project, Nicaragua, 2021” (the “2021 PEA”) detailing average annual production of 150,000 oz of gold over the initial 9 years of production from open pit and underground Mineral Resources and provides an indication of a potential production target (Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability).
Background and Reporting Standards
The 2022 FS has been coordinated and compiled by SRK Consulting (UK) Ltd (“SRK”) and represents the next stage in development of the La India Project following publication of the 2021 PEA Technical Report on 9 September 2021. SRK also took responsibility for the following sections of the 2022 FS: Mineral Reserves and financial modelling, geology and Mineral Resources, open pit geotechnics, hydrology and hydrogeology, mining and waste dump schedules, metallurgical testing, geochemistry and acid rock drainage metal leaching (“ARDML”) and SRK has reviewed the environment and social management approach. Hanlon Engineering and Associates Incorporated (“Hanlon”) completed, and take responsibility for, the plant processing design of a 886ktpa (2,530 tpd) single stage SAG comminution and conventional carbon in pulp (“CIP”) circuit and the associated project infrastructure; and Tierra Group International Limited (“Tierra Group”) completed, and take responsibility for, the tailings waste management design and the La Simona water attenuation structure.
The reporting standard adopted for the reporting of the Mineral Resource Estimate and Mineral Reserve Estimate is the CIM Code as required by NI 43-101. The CIM Code is an internationally recognised reporting code which is aligned with the Combined Reserves International Reporting Standards Committee.
The Qualified Persons responsible for this study and the reported Mineral Reserves are:
- On behalf of SRK: Dr Tim Lucks of SRK Consulting (UK) Limited, Mr Fernando Rodrigues, Mr Eric Olin and Mr Ben Parsons of SRK Consulting (U.S.) Inc., Mr Parsons assumes responsibility for the Mineral Resource Estimate, Mr Fernando Rodrigues for the Mineral Reserve estimate and the open pit mining study and production schedule. Mr Eric Olin for the Processing testwork and associated processing recovery relationship, and Dr Lucks for the oversight of the remaining SRK technical disciplines.
- On behalf of Hanlon: Mike Rockandel for the Process design and Project Infrastructure
- On Behalf of Tierra Group: Justin Knudsen P.E. for the tailings waste management and La Simona water attenuation structure design.
The 2022 FS replaces the previously reported Preliminary Economic Assessment (“PEA”) as presented in the Technical Report filed on SEDAR in October 2021.
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