18th Apr 2008 14:36
Condor Resources PLC18 April 2008 18 April 2008 Condor Resources plc (''Condor'' or ''the Company'') Condor's Maiden Resource at the El Cacao Prospect, Nicaragua Highlights • Maiden resource calculated to JORC Inferred status of 41,000 ounces gold • The mineralised structure is open along strike in both directions and at depth below the current level of drilling • Signs of three parallel mineralised structures are apparent and will be tested further within the coming months. • Gold grades of up to 88.75g/t gold over 2.6 metres and 6.05g/t gold over 14 metres width. Condor Resources Plc (AIM:CNR) is pleased to announce a maiden resource for itsEl Cacao Project of some 41,000 ounces of gold to JORC Inferred category. Thissupplements Condor's more extensive El Salvador resource base and brings thecompany's global resource base up to 788,000 ounces of gold and 22.3 millionounces of silver. Condor's Chief Executive, Mr. Nigel Ferguson, stated: "I am extremely pleased toannounce this maiden resource from our project in Nicaragua. The El CacaoProject has produced an initial maiden resource that in our opinion can quicklybe built on through further work on the additional, plus 2,000 metres of strikepotential which is as yet untested. The Company has discovered low grademineralisation some 1,500 metres to the west beneath cover, which appears to bethe western strike extent of the El Cacao structure." El Cacao Resource Independent Geologists, Geosure ("Geosure") completed the resource calculationson the El Cacao Prospect following completion of the latest drilling programmeand subsequent to a field visit in late 2007. Condor has completed some 2,170metres of drilling and 1,855 metres of trenching within the licence area. Theinferred resource using a 0.5g/t gold bottom-cut and a 12.5g/t gold top-cut isstated by Geosure as: Mineral Resource Tonnes Gold Grade (g/t) Contained Gold (oz) El Cacao 1,052,383 1.22 41,279 Gold mineralisation at the El Cacao Prospect is contained within an epithermalquartz-carbonate vein and associated breccia and stock-work zone hosted byandesitic volcanic rocks. The east-west striking mineralised structure has beentraced over a 600 metre strike extent and tested down to a maximum of 120 metresbelow surface. In the drill tested area high grade gold mineralisation isconcentrated in two zones with a combined strike length of 330 metres and drillintercepted average grades of up to 7g/t gold over 10 metres. The mineralised structure remains open to depth and along strike in bothdirections where alluvial cover obscures the surface expression. Themineralisation and geological setting is very similar to the Limon Mine located55 kilometres to the west of the El Cacao Prospect, which has producedintermittently, approximately 2.7 million ounces of gold over the last 67 years. Exploration to date has concentrated on establishing the width and tenure ofgold mineralisation to a relatively shallow depth below the area where the ElCacao structure is exposed in outcrop. This work has demonstrated that the ElCacao structure hosts high grade zones of gold mineralisation with continuity atthe 10's to 100's of metre scale. Based on the positive results from thisinitial resource estimation and the geological knowledge gained, the company isnow confident that the El Cacao structure warrants further exploration toestablish the depth and strike extent of the gold mineralisation. It is furtherencouraged by the fact that gold mineralisation in the analogous Limon Mine hasbeen demonstrated to extend to at least 270 metres below surface, over twice thedepth that has been explored at El Cacao to date. Resource Upgrade The company's global resource now stands at approximately 788,000 ounces of goldand 22.3 million ounces of silver: Prospect Tonnes Gold Contained Silver Contained JORC Grade (g/ Gold (oz) Grade (g/ Silver (oz) Category t) t)Loma de 2,517,300 1.44 116,500 39.00 3,200,000 InferredCaballoDivisideroOxide 1,230,200 1.03 40,700 52.98 2,095,400 InferredDivisidero 2,748,200 2.70 238,000 117.00 15,100,000 InferredEl Gigante 610,000 2.00 39,000 87.00 1,700,000 InferredLa Calera 6,044,500 1.61 312,800 1.42 275,900 InferredEl Cacao 1,052,383 1.22 41,279 TBA TBA Inferred Total 13,150,200 1.87 788,279 41.56 22,371,200 Inferred A resource on the Arras Prospect on the company's Nueva Segovia project area inthe north of Nicaragua will be undertaken as soon as the assay results arereturned from the latest round of drilling. It is anticipated that the resourceestimate for Arras will be completed within the next few weeks. Qualified Person's Declaration The information in this announcement that relates to Exploration Results isbased on information compiled by and reviewed by Nigel Ferguson, CEO, who is aMember of the Australian Institute of Mining and Metallurgy and a geologist withover 23 years of experience in the exploration and definition of precious andbase metal Mineral Resources and has sufficient experience that is relevant tothe style of mineralization and type of deposit under consideration and to thetype of activity which he is undertaking to qualify as a Qualified Person asdefined in the March 2006 Edition of the AIM Guidance Note for Mining, Oil andGas Companies. He consents to the inclusion in the report of the matters basedon his information in the form and context in which they appear and confirmsthat this information is accurate and not false or misleading. - Ends - Enquiries: Condor Resources Plc Mark Child, Chairman Nigel Ferguson, CEO +44 20 7408 1067 +44 20 7808 7222Nabarro Wells & Co. Limited Hugh Oram Robert Lo +44 20 7634 4700 +44 20 7634 4700Mirabaud Securities Limited Rory Scott +44 20 7878 3360Parkgreen Communications Justine Howarth Erica Nelson +44 20 7851 7480 +44 20 7851 7480 Chain of Custody Condor enforces a strict chain of custody, with all field samples beingcollected under the supervision of a qualified senior geologist. Samples aresealed in larger bags and kept under lock and key until being delivered to CASLaboratories, Honduras for completion of final assay determinations. A total of10% of samples returning significant assay results have their pulps forwarded toBSI Inspectorate Laboratories, in Sparks, Nevada, USA for repeat assaydeterminations as part of the companies QAQC procedure. Resource Calculation Notes The reported tonnages and grades are in accordance with the guidelines andrecommendations of the JORC Code. Drill results are from both ReverseCirculation and diamond drilling. Drill sample and trench sample assaydeterminations were carried out by BSI Inspectorate of Nevada, USA. Golddeterminations were by Fire Assay 30g with Atomic Absorption finish; silverdeterminations were by wet chemical method with an Atomic Absorption finish.Modelling was completed using Surpac Vision 5.2D Mining Software. Domaining wasperformed based on geological interpretations and gold grade (0.4g/t gold bottomcut-off or a 0.5g/t bottom cut in the case of El Cacao). Only mineralizationthat showed continuity along strike of more than 2 sections was domained. Silverresults were analysed on the basis of the wireframes created to domain goldsamples. Ordinary Kriging was considered an appropriate method of estimation forthe dataset. Ordinary Kriging estimates were made for gold and silver, withvisual inspections of the grade estimate along with statistical analysis used tovalidate the block model. About Condor Resources Plc: Condor Resources Plc was admitted to AIM on 31st May 2006 raising £4.9m. Condoris a mineral exploration company focused on El Salvador and Nicaragua. TheCompany has 100% ownership of four licences in two project areas in El Salvador.It withdrew from the El Potosi project in 2007. Condor also has four 100% ownedlicences and the option to earn an 80% interest in a further four licencescontained within four project areas in Nicaragua. An independent competent person's report prepared by Ravensgate and included inthe Company's Admission Document stating JORC complaint resources of 354,500ounces of gold and 18.3 million ounces of silver. Subsequent mineral resourcecalculation statement in December 2006 by Ravensgate, and in January, Februaryand April 2008 by Geosure, has raised the combined global resource estimates asdefined by JORC Code standards to some 788,000 oz gold and 22.3Moz silver withintwo project areas. The Company's objective is to prove up significant gold and silver resources ofbetween 1 to 2 million ounces of gold and 30 to 50 million ounces of silver toJORC reportable standards by the 31st May 2008. The Company intends to continueto drill test targets within its Project areas as required by each prospect.Drilling is expected to commence in El Salvador upon granting of the necessaryEnvironmental Permits by the Ministry of Environment. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Condor Gold