29th Nov 2006 07:00
Condor Resources PLC29 November 2006 29th November 2006 Condor Resources plc ("Condor" or "the Company") Unaudited Interim Results for the six months ended 31st August 2006 Condor (AIM: CNR) announces unaudited accounts for the six month period ended31st August 2006. The Company has had an active period since listing on the 31stMay 2006 and has further developed its core Central American explorationproperties with continued exploration on lead projects and review of potentialnew licences. Highlights: • The consolidated net loss after taxation of the Group in respect of the 6 months ended 31st August 2006 amounted to £362, 945.• Loss per share 0.28p.• The net assets of the Group amounted to approximately £8,241,956 as at the 31st August 2006.• Reporting of excellent drill results from the El Potosi Project in El Salvador including 5m at 9.23g/t Au from 57m depth, 1m at 5.34g/t Au from 71m depth both in PTRC017 and 1.83m at 22.15g/t Au from PTDT013 including 0.66m at 52.9g/t Au.• Engagement of three additional expatriate technical staff and four local technical staff.• Commissioning of the Nicaraguan operations office.• Award of the 42.5km(2) El Gigante licence in El Salvador to further consolidate the Pescadito Project area covering several significant historical gold and silver workings.• Commencement of diamond drilling at the Loma del Caballo Prospect. Post Period Highlights: • Securing the Kuikuinita and Columbus Projects in Nicaragua where Condor geologists have indications of porphyry copper-gold style mineralisation. Commenting on the results, Mark Child, Chairman of Condor Resources, commented:"During the period under review the Company achieved a successful listing on theAIM Market of the London Stock Exchange on 31st May 2006 and raised £4.85m.Condor focused its exploration activities on two countries; El Salvador andNicaragua. The Company's objective is to prove up significant gold and silverresources of between 1 to 2 million ounces of gold and 30 to 50 million ouncesof silver to JORC reportable standards by the 31st May 2008. The funds that Condor raised on AIM have allowed us to put in place furtherbuilding blocks to achieve this objective. To this end, we have significantlyincreased the number of experienced geologists and technical staff in bothcountries. All concessions have been mapped and rock chip sampled. Over 3,000metres of trenches have been excavated and drilling has commenced on the Lomadel Caballo Prospect in El Salvador. Further detailed drill campaigns areplanned; and indeed the Company has budgeted for up to 40,000 metres of drillingover the next 18 months. The strategy is to identify one or two major commercialresources in each country. As part of the ongoing assessment of concessions, Condor has returned fourconcessions to the original owners and taken on a further three concessions,leaving us with three project areas in El Salvador and three project areas inNicaragua. The recent drill and trench results, showing up to 1.5 ounces of goldper tonne are most encouraging and our geologists are confident of significantlyincreasing the gold and silver resources in the short, medium and long term." Chief Executive Officer's Statement During the reporting period, the Company made excellent progress operationallyon its core El Salvadoran and Nicaraguan gold and silver assets. On thecompletion of a successful listing process to raise £4.85 million, the Companywas able to establish operational bases in Nicaragua and further establishitself in El Salvador. A further 7 technical and 3 administrative staff have been employed sincelisting, taking staff numbers to 14. This will greatly assist the Company tofulfil its objective of proving up its stated resource objectives to JORCreportable standards by the 31st May 2008. The Company was also able to report exciting drill results from the El PotosiProject in El Salvador where three main quartz veins of approximately 600 metresstrike length covering the historical El Potosi gold workings were tested. Best intercepts of 5m at 9.23g/t gold from 57m depth; 1m at 5.34g/t gold from71m depth, both in PTRC017 and 1.83m at 22.15g/t gold from PTDT013 including0.66m at 52.9g/t gold indicate the prospect has potential for a medium tonnagehigh grade under ground resource. Elsewhere in El Salvador, focussed work programmes during the reporting periodhave revealed the El Pescadito, La Calera and El Potosi projects in El Salvadorand the San Albino Project in Nicaragua as priority targets for furtherexploration with very encouraging results reported to date. The Company was also awarded the El Gigante licence in El Salvador, whichfurther consolidates the El Pescadito Project and covers an area of some 42.5km(2) containing several significant historical gold and silver workings. Initial trench results at the La Calera Project to test the three main veinssystems (Rosa, Rosa West and Calichal) has exposed significant quartz stock-worksystems that give the Company further encouragement of a significant mineralisedsystem. Assay results for the trenches completed on a central 600 metre strikelength zone are awaited. Follow-up trenching is in progress to further infill "gap" areas between veins and also further along strike, where similarmineralisation is expected. Excellent gold assay continue to be reported from the San Albino Prospect fromfour target areas containing numerous historical workings. Staff geologists arehighly encouraged by the intensity of quartz veining carrying significant goldmineralisation. These main target areas are to be tested further with an initialtrenching programme, currently in progress and subsequent drilling testing ofthe targets. Post Period Highlights Condor commenced diamond drilling at the Loma del Caballo prospect where anInferred Resource to JORC standards, of some 116,500 ounces of gold has alreadybeen reported. The Company is hopeful of extending this resource through thiscurrent drilling programme and initial drill hole geology indicates broad zonesof silicic brecciation containing sulphide mineralisation. Field crews in Nicaragua have worked hard to follow-up on anomalous areasdefined by previous explorers with four of the six licences, held under optionwith a local vendor, having had initial reviews completed on them. The Companyconsidered that the results of the verification programme on the four licences,Chachagua, Cerro de Oro, Guapinol and El Gallo, did not meet with the Company'sexpectations and it was decided to return the licences to the vendors ChortiHoldings. The Company also secured two high quality projects after completing an extendedand detailed due diligence process on the 26th October 2006. Both the Kuikuinitaand Columbus projects, located in the north eastern quadrant of Nicaragua, holdsignificant potential as shown by previous explorers. The Company can earn an80% interest in the licences through a mixture of cash payments and commitmentto exploration over a three year period. Both projects hold untested potential and the Company is particularly excitedabout the prospects of the Columbus project returning significant value to itsshareholders. This project includes the main target area of Cerro Columbuscontaining a zone of greisen alteration where gold occurs in aquartz-specularite breccia pipe. Previous trenching by Pila Gold Inc of Canadaproduced results of 2.26g/t Au over 19.5 metres and 1.43g/t Au over 13.35 metreswith associated copper and molybdenum mineralisation. Both the initial datareview and completed field work indicates the potential for a significantporphyry copper gold system. Financial The consolidated net loss after taxation of the Group in respect of the 6 monthsended 31st August 2006 amounted to £362,945 (loss per share 0.28p). The Group's only source of income during the year arose from bank depositinterest, which amounted to £54,158. The net assets of the Group amounted to approximately £8,241,956 as at the 31stAugust 2006. Net cash was £3,708,772. Intangible assets relate to accumulated deferred exploration and evaluationcosts in respect of the Group's exploration interests in El Salvador andNicaragua. The Group's accounting policy is to capitalise these costs pendingdetermination of the feasibility of the project to which they relate. Outlook In closing I should like to take this opportunity to thank our staff,shareholders, advisors and particularly our corporate partners for theirexcellent support during the initial establishment period since listing. I believe the Company now has the structure, staff, low cost base and access toadequate financial and exploration resources, such as drilling rigs, to succeed.Recent exploration results, including the drilling completed to date, havebeen most encouraging and I believe that the prospect of our team in CentralAmerica significantly increasing our resource base has never been better. We continue to focus our full efforts on the strategic objective of building aworld-class junior mining company based on a core foundation of high qualityprojects and I strongly believe that we are well on track for that goal to beachieved through excellent technical exploration. Nigel FergusonChief Executive Officer29th November 2006 Qualified Person's Declaration The information in this announcement that relates to exploration results isbased on information compiled and reviewed by Nigel Ferguson, CEO, who is aMember of the Australian Institute of Mining and Metallurgy and a geologist with20 years of experience in the exploration and definition of precious and basemetal Mineral Resources and has sufficient experience that is relevant to thestyle of mineralisation and type of deposit under consideration and to the typeof activity which he is undertaking to qualify as a Qualified Person as definedin the March 2006 Edition of the AIM Guidance Note for Mining, Oil and GasCompanies. He consents to the inclusion in the announcement of the mattersbased on his information in the form and context in which it appears andconfirms that this information is accurate and not false or misleading. CONDOR RESOURCES PLC CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS TO 31 AUGUST 2006 Notes £CONTINUING OPERATIONSRevenue - Administrative expenses (417,103) OPERATING LOSS (417,103) Finance income 54,158 LOSS BEFORE TAX (362,945) Tax 3 - LOSS FOR THE PERIOD (362,945) (Loss) per share:Basic (0.28p) CONDOR RESOURCES PLC CONSOLIDATED BALANCE SHEET 31 AUGUST 2006 Notes £ASSETSNON-CURRENT ASSETSGoodwill 6 3,598,677Property, plant and equipment 52,083Investments -Exploration costs 457,977 4,108,737 CURRENT ASSETSTrade and other receivables 7 594,760Cash and cash equivalents 3,708,772 4,303,532 LIABILITIESCURRENT LIABILITIESTrade and other payables 170,313 NET CURRENT ASSETS 4,133,219 NET ASSETS 8,241,956 SHAREHOLDERS' EQUITYCalled up share capital 8 1,298,118Share premium 8 7,306,486Profit and loss account (362,945) Total shareholders' equity 8,241,659Minority interests 297 TOTAL EQUITY 9 8,241,956 CONDOR RESOURCES PLC CASH FLOW STATEMENT FOR THE SIX MONTHS TO 31 AUGUST 2006 £Cash flows from operating activitiesCash generated from operations (838,681) Net cash from operating activities (838,681) Cash flows from investing activitiesPurchase of subsidiary (54,631)Purchase of tangible fixed assets (47,813)Exploration costs (172,690)Interest received 54,158 Net cash from investing activities (220,976) Cash flows from financing activitiesShare issue 884,500Share premium 3,883,929 Net cash from financing activities 4,768,429 Increase in cash and cash equivalents 3,708,772Cash and cash equivalents at beginning of period - Cash and cash equivalents at end of period 3,708,772 CONDOR RESOURCES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS TO 31 AUGUST 2006 1. Presentation of Interims This interim report was approved by the Directors on 27th November 2006. Thefinancial information contained in this interim report does not constitutestatutory accounts as defined by Section 240 of the Companies Act 1985. Nocomparative figures have been disclosed as this is the Company's firstaccounting period. 2. Directors The directors during the period under review were: N Ferguson - appointed 24.03.06M L Child - appointed 24.05.06S Dobson - appointed 24.03.06K P Eckhof - appointed 24.03.06T L Wall - appointed 11.10.05 - resigned 07.04.06Gower Nominees Limited - appointed 10.10.05 - resigned 22.03.06 S. Dobson resigned after this reporting period on 13.09.06. 3. Taxation No tax has been provided due to losses in the period. 4. Dividends The Directors do not recommend the payment of a dividend. 5. Acquisitions On 24 March 2006, the Company acquired the following shares and assets inconsideration for £50,000 and the issue of 38,361,753 ordinary shares of 1p eachat 10p per share: • Certain assets of Condor Resources Limited (Australia); • 100 per cent of the issued share capital of Minerales Morazan S.A. de C.V, a company registered in El Salvador; and • 100 per cent of the issued share capital of Condor Sociedad Anonima, a company registered in Nicaragua. 6. Intangible Non-Current Asset The goodwill is in respect of the acquisition of the Condor Resources Limited(Australia), Minerales Morazan S.A. de C.V and Condor Sociedad Anonima. 7. Trade and Other Receivables £Unpaid share capital 578,801Other debtors 6,206Prepayments 9,753 594,760 The unpaid share capital has been paid post period. 8. Share Capital AuthorisedNumber: Class: Nominal value: £1,000,000,000 Ordinary shares 1p 10,000,000 Allotted and issued:Number: Class: Nominal value: £129,811,753 Ordinary shares 1p 1,298,118 The following shares were allotted at par during the period: 40,000,000 Ordinary shares of 1p each. The following were allotted during the period at a premium as shown below: 89,811,753 Ordinary shares of 1p each at 10p per share. The costs directly attributable to the issue of shares, including AIM admissioncharges and commissions paid on share issues have been offset against thispremium. The total amount of options held over the shares at 31st August 2006 was11,750,000. These options are exercisable at 15p per share for a period up toMay 2011. 9. Reconciliation of movement in shareholders' funds £Loss for the financial period (362,945)Share capital 1,298,118Share premium 7,306,486 Closing reserves 8,241,659 Enquiries: Condor Resources Plc Nabarro Wells Parkgreen MediaMark Child Hugh Oram Ana Ribeiro+44 020 74081067 +44 020 7710 7407 +44 020 7493 3713Nigel Ferguson+61 8 9240 7227 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Condor Gold