Condor Gold updates La India project resource to 2.2Moz

Surrey-based Condor Gold (AIM: CNR) has updated the mineral resource for its 100%-owned La India project in Nicaragua, which now has more than 2.2 million ounces spread over six deposits.

Global resources for the project now stand at 9.7 million tonnes at 3.5 grams per tonne gold for a contained 1.088Moz (indicated), along with and inferred component of 8.8Mt at 4.3g/t gold for 1.19Moz.

The project area includes the historic La India mine which, between 1938 and 1956, produced 567,000oz gold at an average grade of 13.4g/t.

It was then owned by the Canadian major Noranda.

Confidence grows ahead of feasibility study

Condor chairman and chief executive officer Mark Child says the company has revealed a much more robust and conservative mineral resource estimate for the entire La India project, which comprises six separate deposits — all of which have the potential to be expanded.

“The focus has been on strengthening the confidence of the geological model ahead of a forthcoming feasibility study,” he added.

Within the resource is an open pit estimate that contains 1.184Moz of gold (indicated and inferred). There is an indicated and inferred underground estimate of 1.092Moz of contained gold.

More detailed work on planned open pit operation

The company added that updated geological interpretations and other models for the La India open pit reflect the higher degree of detail that is warranted for a feasibility study.

“This is supported by closer-spaced diamond drilling within the upper portion of the main La India pit,” the company noted.

Between December 2020 and June 2021, Condor completed 59 new diamond holes for 3,413m within the La India open pit area.

It also completed 15 new diamond drill holes at the Cacao vein to test the geological concept that the near surface gold mineralisation at Cacao marks the top of an epithermal gold system.

Mine’s peak was in 1953

According to Condor, at the height of production in 1953, the historical La India mine managed output that year of 41,861oz gold at 11.8g/t, along with 39,282oz of silver.

Operations there were confined to the La India vein where 1,200m strike was mined and the America-Constancia vein where a 2,200m strike length was exploited.

Since its closure in 1956, artisanal miners have worked on the ground, and have dug small pits throughout the area.