TIDMCNR
RNS Number : 8226Y
Condor Resources PLC
03 January 2011
Condor
Resources Plc
7 Floor 39
St. James's
Street London
SW1A 1JD
Telephone +44
020 74081067
Fax: +44 020
74938633
4th January 2011
Condor Resources Plc
("Condor" or "the Company")
Update on JORC Code compliant Resource for La India Project in
Nicaragua
Condor (AIM: CNR) is pleased to announce that SRK Consulting
(UK) Ltd has completed a JORC Compliant Mineral Resource estimation
for La India and Espinito San Pablo concessions, together known as
"La India Concession" in La India Mining District of Nicaragua. A
JORC compliant Inferred Mineral Resource of 4.58 Mt at 5.9 g/t for
868,000 oz gold has been estimated over the majority of the
mineralised veins. La India Concession covers an area of 69 sq km
and is 80% owned by Condor and 20% by B2Gold of Canada. Condor owns
100% of a further four contiguous concessions in La India Mining
District which cover a further 96 sq km.and includes the JORC
compliant inferred resource of 41,000 oz gold at Cacao defined by
Condor in 2008. The resource estimation undertaken by SRK is
restricted to La India Concession.
SRK Consulting (UK) Ltd (SRK) was engaged by Condor in September
2010 to produce a Mineral Resource estimate for La India Concession
in compliance with the Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves, The JORC
Code, 2004 Edition (The JORC Code).
SRK is an associate company of the international group holding
company SRK Consulting (Global) Limited (the "SRK Group"). The SRK
Group comprises over 1000 professional staff in 39 offices in 6
continents, offering expertise in a wide range of engineering
disciplines. The SRK Group's independence is ensured by the fact
that it holds no equity in any project. The site visit and
inspection of the sample preparation facilities was undertaken in
October 2010 by Ben Parsons, Senior Resource Geologist with SRK
(Competent Person as designated under JORC). The individuals and
team at SRK responsible for the estimate have extensive experience
in the mining industry and deposit/mineralisation type and are
members in good standing of appropriate professional
institutions.
La India Underground Mine, which is located on La India
Concession, produced an estimated 1.7Mt at 13.4g/t for 576,000oz Au
between 1938 and 1956. Exploration funded by a Soviet-Nicaraguan
government collaboration between 1986 and 1990 defined a Soviet GKZ
style C1+C2 category resource of 2.3 Mt at 9.5g/t for 709,000 oz
gold and additional Soviet GKZ style P1 category resource of 4.0 Mt
at 8.8g/t for 1.13M oz gold within the La India Concession.
Subsequent exploration by a number of Canadian exploration and
mining companies confirmed the high grades estimated by the
Soviets.
The La India Mining District contains narrow high grade
low-sulphidation epithermal gold-silver mineralised veins hosted by
Tertiary andesite and rhyodacite. Historical mining appears to have
targeted higher grade areas and veins within the district.
The Exploration History and data available for the project is
complex with Soviet-sponsored exploration and resource evaluation
carried out between 1986 and 1990, and annual and technical reports
released by TVX Resources between 1997 and 2000 and more recently
by Gold-Ore Resources and Glencairn-Central Sun-B2Gold as the
company went through various take-overs and name changes.
The low-sulphidation epithermal gold-silver mineralised veins
and associated mineralisation are interpreted as having good
geological continuity and can extend for 100 to 300 m along strike
and 100 to at least 200 m down dip, with what is considered
historically to be the main mineralised horizon based exploration
and underground mining. The veins are typically up to 3 m wide,
with an estimated average of some 1.5 m width.
Condor has since undertaken a major data capture programme to
collate all historic data from the numerous companies into a single
database for all veins. The most up-to date version of the database
has been supplied to SRK for use in the current Mineral Resource
Estimate. The exploration database includes some 135 drillholes for
17,600 m, 736 trenches for 10 900 m and 9,000 original underground
mine grade control samples on eight of the veins. This data capture
process is ongoing, and as yet not all of the data can be located
in 3D locations, but at present over 90% of the available
historical data has been located in 2D on Vertical Longitudinal
Projections (VLP's) for use in the estimate.
A Quality Assurance/Quality Control (QAQC) programme has
demonstrated that sample preparation and laboratory performance for
the various drilling campaigns provided sample assays which are
considered appropriate for the purpose of defining an Inferred
Mineral Resource estimate. Density determinations have been
provided from the previous reports and work completed by the
Soviets. SRK has not independently verified the sample data used
for the estimates, however has undertaken a site-visit and observed
the geological setting and mineralisation.
SRK has imported all of the available sample data into Datamine
Mining Software, and has projected the available 3D and 2D data
onto 2D VLP's for grade estimation, using various projection and
co-ordinate transformation methodologies, and have calculated
single vein composite grades and horizontal vein thicknesses. SRK
has produced a block model with block dimensions of 25 x 25 m into
which gold accumulation (gram meters per tonne "GMT"), and
horizontal vein width have been estimated per vein. All samples
have been composited to a single composite across the vein. Block
values have been estimated using an Inverse Distance Weighted
estimate routine with oriented search ellipse following the dip and
dip directions of potentially higher grade plunging features along
the mineralised veins, using appropriate parameters given the
geological and grade continuity and sample spacing. The resultant
block grade distribution reflects the mineralisation style and
continuity, which SRK consider to be an important feature of the
deposit. The block gold grades have then been back calculated from
the interpolated GMT and vein width block values, and validated
both visually and statistically at both local and global
scales.
SRK has considered quality of the digitised database, sampling
density, distance of block estimates from samples and estimation
methodology and quality in order to classify the deposit in
accordance with The JORC Code. Data quality, drill hole spacing and
the interpreted continuity of grades controlled by the veins have
allowed SRK to classify the portions of the deposit as an Inferred
Mineral Resource within the current estimate. It is SRK's opinion
that the sample spacing and data quality in places would have been
sufficient to classify material in the Indicated Mineral Resource
Category, however due to uncertainty of the true 3D location of a
large percentage of samples and therefore vein in three dimensional
space, and the inability to produce 3D wireframe and block models,
SRK has decided to classify the Mineral Resource within the
Inferred category at the present time. Following a further stage of
data verification it is anticipated these areas could be moved into
the Indicated category without any further exploration.
The Table below gives SRK's JORC Compliant Mineral Resource
Statement as at 31st December 2010, as signed off by Ben Parsons, a
Competent Person as defined by the JORC Code. The statement has
been depleted for historical mining, discounted for areas falling
outside of the concession area, and all remaining mineralised
material within the SRK model reported at a cut-off grade of 1.5
GMT, which has been calculated using a gold price of USD1105/oz,
and suitable benchmarked technical and economic parameters for
underground mining and conventional gold mineralised material
processing.
Inferred Mineral Resource
------------------------------- --------- ----------
Tonnes Au Grade Contained
Vein Name (kt) (g/t) Au (oz)
---------------------- ------- --------- ----------
La India 1,930 5.4 334,000
America-Constancia 1,060 6.9 234,00
Tatiana 300 7.6 72,000
Guapinol 850 5.3 143,000
San Lucas 190 5.7 34,000
Cristalito-Tatescame 250 6.3 51,000
Total Inferred 4,580 5.9 868,000
---------------------- ------- --------- ----------
The current Mineral Resource estimate does not include three
additional veins, namely Arizona, Teresa and Espinito, which offer
excellent potential to add additional Inferred Mineral Resource
following further data validation and capture and resource
estimation. In addition to the La India Concession, Condor's wholly
owned contiguous concessions to the north and east have excellent
potential and require further exploration and analysis during
2011.
Condor are currently working on verifying and updating the
sample database to be fully 3D, which will be followed by a Mineral
Resource estimate update to be completed in the first quarter of
2011.
SRK will produce a full report for the estimate presented here
by the end of January 2011 along with recommendations for further
verification work and 3D geological modelling required to convert
parts of the current estimated resource to higher confidence
categories and recommendations on bringing some of the
Russian-style P1 resource estimates into the JORC MineralResource
statement, where data quantity and quality allows.
In addition to this, Condor is currently exploring on the
wholly-owned concessions in the North and East of the District
through mapping and trench sampling, and is well advanced in
obtaining all the permits required to initiate a drilling programme
on La India Concession. This exploration is expected to verify and
increase the current Mineral Resource base. It is anticipated that
this exploration will begin during the first quarter of 2011. This
data will also be included in a further Mineral Resource update
upon receipt of the additional sample assay results, the results of
which likely to be announced in the second quarter of 2011.
Mark Child, Chairman of Condor Resources, commented:
"I am delighted that SRK has certified an independent JORC
Mineral Resource of 868,000 oz gold at 5.9 /g/t on La India
Concession, which hosted the historic La India Mine which produced
some 576,000 oz of gold at 13.4 g/t up until its closure in 1956,
demonstrating the technical viability of the deposit. Since
acquiring the concession in September 2010, Condor undertook a
massive data capture exercise in a very short period of time. The
sheer volume of data has presented unique problems, which have been
largely resolved. Due to the self imposed deadline of announcing a
JORC Mineral Resource to the stock market, the statement excludes 3
of the smaller veins and has only been completed in 2D. The data
capture is on going. I am pleased to note that in SRK's opinion, a
portion of the Inferred Mineral Resource could be moved into the
Indicated category, without the need for exploration expenditure,
once the remaining data validation is completed and a 3D model is
produced to better represent the continuity of mineralisation by
the end of the first quarter of 2011. It is also noteworthy that
SRK's block model has highlighted the continuity of the grade and
distinct higher grade oreshoots to depth, which SRK highlight as an
important feature of the deposit. confidence I would like to take
this opportunity to thank SRK for working over Christmas and the
New Year to produce the JORC Mineral Resource statement for the
first day of trading in 2011."
Competent Person's Declaration
The information in this announcement that relates to 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 fifteen years of experience in the
exploration and definition of precious and base metal Mineral
Resources. Luc English is a full-time employee of Condor Resources
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.
The Mineral Resource estimate has been completed by Ben Parsons,
a Senior Resource Geologist with SRK Consulting (UK) Ltd, who is a
Member of the Australian Institute of Mining and Metallurgy
(MAusIMM). Ben Parsons has some ten years experience in the
exploration, definition and mining of precious and base metal
Mineral Resources. Ben Parsons is a full-time employee of SRK
Consulting (UK) Ltd, an independent Consultancy 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. Ben Parsons 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.
- Ends -
For further information please visit www.condorresourcesplc.com
or contact:
Condor Resources plc Mark Child, Chairman Luc English, Country
+44 (0) 20 7408 Manager Nicaragua &
1067 El Salvador
+505 8854 0753
Ambrian Partners Limited Richard Swindells
and Samantha Harrison
+44 (0) 20 7634
4700
Farm Street Media Simon Robinson
+44 (0) 7593 340107
About Condor Resources 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 JORC Resources in Nicaragua and El
Salvador. Condor has four 100% owned licenses and 80% of La India
concession in La India Mining District; three 100% owned licences
in three other project areas and 20% in the Cerro Quiroz concession
in Nicaragua. In El Salvador, Condor has 100% ownership of four
licences in two project areas.
Condor's concession holdings currently contain a JORC compliant
inferred resource base of 909,000 ounces of gold in Nicaragua
and747,000 ounces of gold and 22 million ounces of silver in El
Salvador. The Resource calculations are compiled by independent
geologists Ravensgate, Geosure and SRK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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