logo-loader

Condor details results of bankable feasibility study for La India gold project

Published: 02:53 12 Sep 2022 EDT

Condor Gold PLC -

Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF) has released the results of a bankable feasibility study in the economics of the La India open pit gold project in Nicaragua.

The feasibility study is based around probable mineral reserve of 7.3mln tonnes of ore grading 2.56 grams per tonne for 602,000 ounces. The internal rate of return rings in at 23%.

The post-tax and post-upfront capital cost net present value is US$86.9mln, using a discount rate of 5% and price of US$1,600 per ounce of gold. T

The economic analysis in the 2022 feasibility study is based on the La India open pit only and does not include the open pit resources at the Mestiza, America, Central Breccia or El Cacao, all of which are potentially extractable, or the underground resources at the La India, Mestiza, America, El Cacao, San Lucas or Cristalito-Tatescame vein sets.

Condor believes there is a high degree of certainty that additional open pit and underground mineral resources can be converted to reserves and added to the mine plan through further studies.

The study envisages production at a rate of 81,545 ounces of gold per annum for the first six years of an 8.4 year mine life. The capital cost is estimated at US$105.5mln.

All-in sustaining cash costs are set at US$1,039 per ounce of gold.

"The company's strategy has been to develop the fully permitted La India Project in two stages using the new SAG mill that has already been purchased,” said Condor’s chief executive Mark Child in a statement.

“At US$1,600 per ounce gold, the La India open pit mineral reserve produces total revenues of US$888mln, the total operating costs of mining, process and G&A are US$480mln, leading to an operating profit of US$408mln, or a 46% operating margin. After government and other royalties, but before sustaining capital, the operating profit is US$355mln, which in Condor's opinion is ample to repay any project debt on the relatively low upfront capex," he added.

Child also pointed out the likelihood that 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 per annum,” he said.

In October 2021 the company announced the results of a preliminary economic assessment detailing average annual production of 150,000 ounces of gold over the initial nine years of production from open pit and underground.

Ramp Metals Launches Drilling Program in Pursuit of High-Grade Nickel in...

Ramp Metals CEO Jordan Black joined Steve Darling from Proactive to introduce the company to the public domain and share exciting developments in the mining industry. With a background as a geotechnical engineer and experience in venture capital, including a notable role in taking GoldSpot...

29 minutes ago