Condor Gold (LON:CNR) (TSX:COG) said on Tuesday that first drill results from the starter pit at its flagship La India gold project in Nicaragua reinforced the company’s confidence on the geological model, mineral resource, reserve calculation and mining plan.
The miner, which acquired 85% of the land within the permitted site in August 2020, has completed 40 drill holes on the northern starter Pit, for a combined 2,170 m of infill and reverse circulation replacement drilling completed within both of La India’s initial pits.
According to a mineral resource estimate completed in January 2019, the La India project comprises 9.85 million tonnes at 3.6 g/t gold for 1.14 million oz gold in the indicated category, as well as 8.48 million tonnes at 4.3 g/t gold for 1.17 million oz gold in the inferred category.
The La India vein set hosts an open pit mineral resource of about 8.37 million tonnes at 3.1 g/t gold for 837,000 oz gold in the indicated category and 887,000 tonnes at 2.4 g/t gold for 69,000 oz gold in the inferred category.
Beneath the La India open pit is an underground mineral resource estimate of 678,000 tonnes at 4.9 g/t gold for 107,000 oz gold in the indicated category and 1.71 million tonnes at 5.6 g/t gold for 309,000 oz gold in the inferred category.
The la India open pit hosts probable mineral reserves of 6.9 million tonnes at 3.01 g/t gold for 675,000 oz gold with all-in-sustaining-cash costs of $690 per ounce.
Condor Gold staked concessions in Nicaragua, Central America’s largest country, in 2006. Since then, mining has significantly taken off in the country due to the arrival of foreign companies with the cash and expertise to tap into existing reserves.
The government of Nicaragua granted Condor Gold in 2019 the 132.1 km2 Los Cerritos exploration and exploitation concession, which expanded the La India project concession area by 29% to a total of 587.7 km2.
Condor also attracted a partner — Nicaragua Milling. The privately held company, which took a 10.4% stake in the miner in September 2019, has operated in the country for two decades.