TIDMCNR
RNS Number : 5623U
Condor Gold PLC
01 April 2019
Condor Gold plc
7th Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74932784
Fax: +44 020 74938633
1 April 2019
Condor Gold plc
("Condor Gold" or the "Company")
Metallurgical Test Work undertaken at B2Gold's Mines confirms
95.4% Metallurgical Recovery from samples within the Permitted La
India Open Pit
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce recent
metallurgical test work conducted by B2Gold Inc. ("B2Gold") on
behalf of the Company from samples taken from an area within the
permitted La India open pit. Two samples of approximately 23kg each
produced an average head grade of 12.1 g/t gold and average
metallurgical gold recoveries of 95.4%. This confirms the
suitability of La India ores to be processed at B2Gold's processing
plants in Nicaragua or a similar processing plant. The gold
recoveries are better than previous metallurgical sampling compiled
for the 2014 Preliminary Feasibility Study ("PFS").
Mark Child, Chairman and CEO of Condor Gold, commented:
"First, I would like to thank B2Gold for their cooperation and
allowing Condor Gold to conduct metallurgical tests on mineralised
ore sampled by B2Gold's personnel from within the permitted La
India open pit at laboratories at both their mines in Nicaragua.
Secondly, I am delighted with the exceptional gold recoveries of
95.4% as it confirms the suitability of La India ores to be
processed at B2Gold's processing plants. The high grade samples,
producing an average head grade of 12.1 g/t gold, were taken from
the principal La India Vein. It is invaluable to conduct
metallurgical test work at two nearby producing gold mines whose
laboratories are set up to replicate the metallurgical recoveries
at the mines. It assists Condor in deciding on a final mine design
and metallurgical process as the La India Project progresses to the
construction phase."
Background
On behalf of Condor, SRK Consulting (US) Inc. ("SRK") designed
and supervised a metallurgical test development programme as part
of the December 2014 PFS on the mineralised material taken from
drill core from La India and America Vein Sets using the
independent laboratories of Bureau Veritas in Richmond, Canada.
These tests were completed to a PFS level of metallurgical study
and are intended to determine the most effective and efficient
means of extracting gold and silver from the mineralised material.
The SRK analysis indicated that the ores were amenable to Carbon-in
Pulp ("CIP") or Carbon-in-Leach ("CIL") methods. Gold recovery from
La India Vein Set was estimated at 90% to 92%, which includes a 2%
reduction to allow for plant inefficiencies. Reagent consumptions
were also tested, indicating consumption of 0.75 to 1.5 kg/t of
sodium cyanide and lime consumption of 1.0 to 1.5 kg/t. La India
Vein Set ores were noted as harder than usual with the Bond Ball
mill work index determinations ranging from 17.5 to 21.9kWh/t.
Grind-recovery test work indicated that a grind of 80% passing
(P80) 75 microns will be required.
Recently, as a part of Condor's on-going investigations of the
La India ores, staff from B2Gold's El Limon mine collected samples
of the ore from artisanal workings near Condor's drillholes LIRC
131 and LIRC115, within the permitted La India open pit. B2Gold's
personnel collected two samples of approximately 23 kilograms each
from the site and transported the samples to the laboratories at
the El Limon mine and La Libertad mine for analysis.
Results From El Limon Mine Laboratory
Three separate sub-samples were created from the initial 23 kg
sample and subjected to standard metallurgical tests to determine
grade, recovery and reagent consumption.
The head grades were calculated to be 11.27 g/t gold. The
samples were crushed to a size of 75 microns, then leached for 48
hours with a solution of sodium cyanide at a 450ppm concentration.
Samples were then washed and dried for assay determinations.
The results of the analysis are very encouraging:
Overall average results for the tests indicated recovery of
95.6% of the contained gold and 96.3% of the silver (B2Gold
personnel noted that the silver rarely recovers at these levels at
the plant scale of processing). Reagent consumption was noted to be
slightly higher than would be normal for the El Limon ores and
confirmed that the La India ores are typically harder than
comparable ore at El Limon.
The report concluded that the average 95.6% gold recovery was
'outstanding' and that the ores were amenable to cyanide
leaching.
Results From La Libertad Mine Laboratory
The second sample was delivered to the La Libertad operation for
a parallel analysis to demonstrate feasibility at the much larger
plant. Similar tests were conducted for recovery, reagent
consumption, and leach times. The results were similarly
impressive:
Overall average results for the tests indicated recovery of
95.2% of the contained gold. Reagent consumption for lime was
similar to the results for El Limon, but was substantially lower
for cyanide (0.87kg/t at El Limon vs. 0.27kg/t at La Libertad). It
should be noted that the reagent consumption from B2Gold is lower
for cyanide for both plants, but higher for lime consumption than
indicated by the Condor 2014 PFS.
As with the El Limon results, the recoveries, at 95.2% are
exceptional, and better than those estimated in the La India 2014
PFS.
Commentary
Condor notes that the improved recovery of gold in the B2Gold
test cases may be attributable to the impressive average head grade
of 12.1 g/t gold of the underlying samples, regardless, the B2Gold
test effort substantiates that SRK's analyses of the samples
assayed at Bureau Veritas for the PFS are reliable. The tests
further demonstrate that B2Gold's plants in Nicaragua could readily
process La India ores if called upon to do so.
- Ends -
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, Chairman and CEO
+44 (0) 20 7493 2784
Beaumont Cornish Limited Roland Cornish and James Biddle
+44 (0) 20 7628 3396
Numis Securities Limited John Prior and James Black
+44 (0) 20 7260 1000
Blytheweigh Tim Blythe, Camilla Horsfall and Megan
Ray
+44 (0) 20 7138 3204
About Condor Gold plc:
Condor Gold plc was admitted to AIM in May 2006 and dual listed
on the TSX in January 2018. The Company is a gold exploration and
development company with a focus on Nicaragua.
In August 2018, the Company announced that the Ministry of the
Environment in Nicaragua had granted the Company the Environmental
Permit ("EP") for the development, construction and operation of a
processing plant with capacity to process up to 2,800 tonnes per
day at its wholly-owned La India gold project ("La India Project").
The EP is considered to be the master permit for mining operations
in Nicaragua. Condor Gold published a PFS on La India Project in
December 2014, as summarised in the Technical Report (as defined
below). The PFS details an open pit gold Mineral Reserve in the
Probable category of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold,
producing 80,000 oz gold per annum for seven years. La India
Project contains a Mineral Resource of 9,850Kt at 3.6 g/t gold for
1,140Koz gold in the Indicated category and 8,479Kt at 4.3g/t gold
for 1,179Koz gold in the Inferred category. The Indicated Mineral
Resource is inclusive of the Mineral Reserve.
Disclaimer
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.
Qualified Persons
The preceding technical discussion has been completed by Gerald
D. Crawford (Dave), Chief Technical Officer for Condor Gold, who is
a Registered Professional Engineer in the states of Nevada and
Colorado and is a member of the Society of Mining, Metallurgy and
Exploration in the United States. Mr. Crawford has over 40 years'
experience in mining engineering and consultancy including resource
estimation, mine design and property evaluation, including 5 years
with Newmont Mining and 10 years with Pincock Allen and Holt. Mr.
Crawford is a part-time contractor with Condor Gold, and has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration, and to the
type of activity which he is undertaking to qualify as a "qualified
person" as defined by NI 43-101. Mr. Crawford 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.
Technical Information
Certain disclosure contained in this news release of a
scientific or technical nature has been summarised or extracted
from the technical report entitled "Technical Report on the La
India Gold Project, Nicaragua, December 2014", dated November 13,
2017 with an effective date of December 21, 2014 (the "Technical
Report"), prepared in accordance with NI 43-101. The Technical
Report was prepared by or under the supervision of Tim Lucks,
Principal Consultant (Geology & Project Management), Gabor
Bacsfalusi, Principal Consultant (Mining), Benjamin Parsons,
Principal Consultant (Resource Geology), each of SRK Consulting
(UK) Limited, and Neil Lincoln of Lycopodium Minerals Canada Ltd.,
each of whom is an independent "qualified person" as defined by NI
43-101.
Forward Looking Statements
All statements in this press release, other than statements of
historical fact, are 'forward-looking information' with respect to
the Company within the meaning of applicable securities laws,
including statements with respect to: the Mineral Resources,
Mineral Reserves and future production rates and plans at the La
India Project. Forward-looking information is often, but not
always, identified by the use of words such as: "seek",
"anticipate", "plan", "continue", "strategies", "estimate",
"expect", "project", "predict", "potential", "targeting",
"intends", "believe", "potential", "could", "might", "will" and
similar expressions. Forward-looking information is not a guarantee
of future performance and is based upon a number of estimates and
assumptions of management at the date the statements are made
including, among others, assumptions regarding: future commodity
prices and royalty regimes; availability of skilled labour; timing
and amount of capital expenditures; future currency exchange and
interest rates; the impact of increasing competition; general
conditions in economic and financial markets; availability of
drilling and related equipment; effects of regulation by
governmental agencies; the receipt of required permits; royalty
rates; future tax rates; future operating costs; availability of
future sources of funding; ability to obtain financing and
assumptions underlying estimates related to adjusted funds from
operations. Many assumptions are based on factors and events that
are not within the control of the Company and there is no assurance
they will prove to be correct.
Such forward-looking information involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to: mineral
exploration, development and operating risks; estimation of
mineralisation, resources and reserves; environmental, health and
safety regulations of the resource industry; competitive
conditions; operational risks; liquidity and financing risks;
funding risk; exploration costs; uninsurable risks; conflicts of
interest; risks of operating in Nicaragua; government policy
changes; ownership risks; permitting and licencing risks; artisanal
miners and community relations; difficulty in enforcement of
judgments; market conditions; stress in the global economy; current
global financial condition; exchange rate and currency risks;
commodity prices; reliance on key personnel; dilution risk; payment
of dividends; as well as those factors discussed under the heading
"Risk Factors" in the Company's annual information form for the
fiscal year ended December 31, 2017 dated March 29, 2018, available
under the Company's SEDAR profile at www.sedar.com.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. The Company disclaims any intention
or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
Technical Glossary
Bond Ball Mill Work Index
The Bond Ball Mill Work Index is a standard metallurgical test
of the energy required to grind a given material in a ball mill. It
is used to estimate the amount of power required for a given
throughput of material under ball mill grinding conditions. The
work index can be used to design a grinding circuit in a commercial
plant, and can be used to optimize throughput in those plants. It
also serves as a means to compare the relative hardnesses of ore
from different locations. The units of measurement are typically
kw-hr/metric tonne.
Carbon in Pulp
A metallurgical process for extracting gold by leaching gold
from pulverized ore with a cyanide solution. Gold is subsequently
adsorbed onto activated charcoal for later recovery. CIP adds
carbon (activated charcoal) to the ground ore pulp after a cyanide
leaching stage and is applicable to ores that do not have
deleterious components that would prematurely bind to the gold.
Carbon in Leach (CIL)
A metallurgical process for extracting gold by leaching gold
from pulverized ore with a cyanide solution. Gold is subsequently
adsorbed onto activated charcoal for later recovery. CIL plants add
carbon to the ground ore pulp during the leach cycle, and hence are
better suited to ores that have deleterious components that would
prematurely bind to the gold.
Mineral Resource
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories. An Inferred Mineral Resource has a lower level of
confidence than that applied to an Indicated Mineral Resource. An
Indicated Mineral Resource has a higher level of confidence than an
Inferred Mineral Resource but has a lower level of confidence than
a Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other
geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling.
Material of economic interest refers to diamonds, natural solid
inorganic material, or natural solid fossilized organic material
including base and precious metals, coal, and industrial
minerals.
The term Mineral Resource covers mineralization and natural
material of intrinsic economic interest which has been identified
and estimated through exploration and sampling and within which
Mineral Reserves may subsequently be defined by the consideration
and application of Modifying Factors. The phrase 'reasonable
prospects for eventual economic extraction' implies a judgment by
the Qualified Person in respect of the technical and economic
factors likely to influence the prospect of economic extraction.
The Qualified Person should consider and clearly state the basis
for determining that the material has reasonable prospects for
eventual economic extraction. Assumptions should include estimates
of cutoff grade and geological continuity at the selected cut-off,
metallurgical recovery, smelter payments, commodity price or
product value, mining and processing method and mining, processing
and general and administrative costs. The Qualified Person should
state if the assessment is based on any direct evidence and
testing.
Interpretation of the word 'eventual' in this context may vary
depending on the commodity or mineral involved. For example, for
some coal, iron, potash deposits and other bulk minerals or
commodities, it may be reasonable to envisage 'eventual economic
extraction' as covering time periods in excess of 50 years.
However, for many gold deposits, application of the concept would
normally be restricted to perhaps 10 to 15 years, and frequently to
much shorter periods of time.
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource
for which quantity and grade or quality are estimated on the basis
of limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
An Inferred Mineral Resource has a lower level of confidence
than that applying to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and
sampling gathered through appropriate sampling techniques from
locations such as outcrops, trenches, pits, workings and drill
holes. Inferred Mineral Resources must not be included in the
economic analysis, production schedules, or estimated mine life in
publicly disclosed Pre- Feasibility or Feasibility Studies, or in
the Life of Mine plans and cash flow models of developed mines.
Inferred Mineral Resources can only be used in economic studies as
provided under NI 43-101.
There may be circumstances, where appropriate sampling, testing,
and other measurements are sufficient to demonstrate data
integrity, geological and grade/quality continuity of a Measured or
Indicated Mineral Resource, however, quality assurance and quality
control, or other information may not meet all industry norms for
the disclosure of an Indicated or Measured Mineral Resource. Under
these circumstances, it may be reasonable for the Qualified Person
to report an Inferred Mineral Resource if the Qualified Person has
taken steps to verify the information meets the requirements of an
Inferred Mineral Resource.
Indicated Mineral Resource
An Indicated Mineral Resource is that part of a Mineral Resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit.
Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing and is sufficient to
assume geological and grade or quality continuity between points of
observation.
An Indicated Mineral Resource has a lower level of confidence
than that applying to a Measured Mineral Resource and may only be
converted to a Probable Mineral Reserve.
Mineralization may be classified as an Indicated Mineral
Resource by the Qualified Person when the nature, quality, quantity
and distribution of data are such as to allow confident
interpretation of the geological framework and to reasonably assume
the continuity of mineralization. The Qualified Person must
recognize the importance of the Indicated Mineral Resource category
to the advancement of the feasibility of the project. An Indicated
Mineral Resource estimate is of sufficient quality to support a
Pre-Feasibility Study which can serve as the basis for major
development decisions.
Mineral Reserve
Mineral Reserves are sub-divided in order of increasing
confidence into Probable Mineral Reserves and Proven Mineral
Reserves. A Probable Mineral Reserve has a lower level of
confidence than a Proven Mineral Reserve.
A Mineral Reserve is the economically mineable part of a
Measured and/or Indicated Mineral Resource. It includes diluting
materials and allowances for losses, which may occur when the
material is mined or extracted and is defined by studies at
Pre-Feasibility or Feasibility level as appropriate that include
application of Modifying Factors. Such studies demonstrate that, at
the time of reporting, extraction could reasonably be
justified.
The reference point at which Mineral Reserves are defined,
usually the point where the ore is delivered to the processing
plant, must be stated. It is important that, in all situations
where the reference point is different, such as for a saleable
product, a clarifying statement is included to ensure that the
reader is fully informed as to what is being reported.
The public disclosure of a Mineral Reserve must be demonstrated
by a Pre-Feasibility Study or Feasibility Study.
Mineral Reserves are those parts of Mineral Resources which,
after the application of all mining factors, result in an estimated
tonnage and grade which, in the opinion of the Qualified Person(s)
making the estimates, is the basis of an economically viable
project after taking account of all relevant Modifying Factors.
Mineral Reserves are inclusive of diluting material that will be
mined in conjunction with the Mineral Reserves and delivered to the
treatment plant or equivalent facility. The term 'Mineral Reserve'
need not necessarily signify that extraction facilities are in
place or operative or that all governmental approvals have been
received. It does signify that there are reasonable expectations of
such approvals.
'Reference point' refers to the mining or process point at which
the Qualified Person prepares a Mineral Reserve. For example, most
metal deposits disclose mineral reserves with a "mill feed"
reference point. In these cases, reserves are reported as mined ore
delivered to the plant and do not include reductions attributed to
anticipated plant losses. In contrast, coal reserves have
traditionally been reported as tonnes of "clean coal". In this coal
example, reserves are reported as a "saleable product" reference
point and include reductions for plant yield (recovery). The
Qualified Person must clearly state the 'reference point' used in
the Mineral Reserve estimate.
Probable Mineral Reserve
A Probable Mineral Reserve is the economically mineable part of
an Indicated, and in some circumstances, a Measured Mineral
Resource. The confidence in the Modifying Factors applying to a
Probable Mineral Reserve is lower than that applying to a Proven
Mineral Reserve.
The Qualified Person(s) may elect, to convert Measured Mineral
Resources to Probable Mineral Reserves if the confidence in the
Modifying Factors is lower than that applied to a Proven Mineral
Reserve. Probable Mineral Reserve estimates must be demonstrated to
be economic, at the time of reporting, by at least a
Pre-Feasibility Study.
Pre-Feasibility Study (Preliminary Feasibility Study)
The CIM Definition Standards requires the completion of a
Pre-Feasibility Study as the minimum prerequisite for the
conversion of Mineral Resources to Mineral Reserves.
A Pre-Feasibility Study is a comprehensive study of a range of
options for the technical and economic viability of a mineral
project that has advanced to a stage where a preferred mining
method, in the case of underground mining, or the pit
configuration, in the case of an open pit, is established and an
effective method of mineral processing is determined. It includes a
financial analysis based on reasonable assumptions on the Modifying
Factors and the evaluation of any other relevant factors which are
sufficient for a Qualified Person, acting reasonably, to determine
if all or part of the Mineral Resource may be converted to a
Mineral Reserve at the time of reporting. A Pre-Feasibility Study
is at a lower confidence level than a Feasibility Study.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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