Condor Gold (AIM: CNR; TSX: COG) announces that it has today published its unaudited financial
results for the three and nine months ending 30 September, 2022 and the Management’s
Discussion and Analysis for the same period.
Both of the above have been posted on the Company’s website www.condorgold.com and are also
available on SEDAR at www.sedar.com .
Highlights for the third quarter of 2022
• Feasibility Study confirmatory metallurgical testwork demonstrated that gold recovery is
independent of grade and a fixed gold recovery of 91% assuming a 75 micron grind size
is being used in the project economics
• Gold extraction from the 11 variability composites averaged 92.6% at the 75 micron
grind size, which is reduced by 2% to allow for gold being locked up in the processing
plant.
• At a finer grind size of 53 microns an average gold extraction of 94.7% was achieved, indicating a potential upside gold recovery of about 93%.
• Updated Mineral Resource Estimate of 9,672 kt at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource category and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred mineral resource category.
• The open pit Mineral Resource Estimate is 8,693 kt at 3.2 g/t gold for 893,000 oz gold in
the indicated mineral resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category.
• Total underground Mineral Resource Estimate is 979 kt at 6.2 g/t gold for 194,000 oz gold in the indicated mineral resource category and 5,615 kt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource category.
• The Cacao Mineral Resource has increased 69% to 1,164 kt at 2.5g/t gold for 101,000 oz gold in the inferred mineral resource category. The deposit remains ‘open’ on strike and at depth.
• Updated geological interpretations and integrated litho-structural, weathering and mineralisation models are integrated in the MRE and reflect the higher degree of detail that is warranted for a Feasibility level of study on La India Open Pit. This is supported by closer-spaced diamond drilling within the upper portion of the main La India pit, along with additional detailed deposit-scale surface mapping.
On 12 September 2022, the 2022 Feasibility Study 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
Post Period Highlights
• 12 October 2022. Jim Mellon assumed the Chairmanship of Condor Gold
• 26 October 2022. Feasibility Study Technical Report filed on SEDAR
Mark Child, Chief Executive of Condor Gold, commented:
“During the third quarter of 2022, Condor Gold continued on its journey of de-risking the La India Gold Project, advancing the Project to near construction-ready status. The Company’s strategy has
been to develop the fully permitted La India Project in 2 stages using the new SAG Mill that has already been purchased. The delivery of a Feasibility Study on La India open pit with an average of 81,524 oz gold per annum for the initial 6 years for a relatively low total upfront capital cost of
US$106 Million is a landmark and further de-risks the Project. At US$1,600 oz gold, the La India open pit Mineral Reserve produces total revenues of US$888 Million, the total operating costs of
mining, process and G&A are US$480M, leading to an operating profit of US$408 Million or a 46% operating margin. After government and other royalties, but before sustaining capital, the operating
profit is US$355M, which in Condor’s opinion is ample to repay any project debt on the relatively
low upfront capex. At US$2,000 oz gold after paying royalties, but before sustaining capital the
operating profit is US$563 Million. In reality, two permitted high grade feeder pits will be added
during the early years of production thus increasing production ounces of gold. Early production is
targeted at 100,000 oz gold p.a..
The plan is to materially expand production with a stage 2 expansion by converting existing Mineral
Resources into Mineral Reserves and 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 Indian Gold Project, Nicaragua, 2021” 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 production target.
Outside the main La India open pit Mineral Reserve, there are 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 a 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
see & read more on
http://condorgold.com/sites/default/files/news/Condor_RNS_Condor_Q3_2022%20Financials%20Final%20v4.pdf |
