21st Feb 2008 13:12
Condor Resources PLC21 February 2008 Condor Resources Plc (''Condor'' or ''the Company'') Significant Resources Upgrade - El Salvador. Condor Resources Plc (AIM: CNR) announces an increase in the resources at its LaCalera and El Pescadito projects in El Salvador. Highlights • 178% increase in resources at La Calera Project: • 312,800 ounces of gold • 275,900 ounces of silver • 10% increase in resources at El Pescadito Project, representing the Company's other main resource: • 434,200 ounces of gold • 22.1 million ounces of silver • 48% increase in Global JORC compliant gold resources to 747,000 ounces • 11% increase in Global JORC compliant silver resources to 22.3 million ounces Resources Upgrade The Company has increased its resources at its La Calera Project up some 178%from 112,604 ounces to 312,800 ounces of gold. In addition, a further oxideresource for the El Divisidero Prospect has also been calculated, which nowtotals 278,700 ounces of gold, representing a 17% increase. Global resources forthe company now stand at some 747,000 ounces of gold and 22.3 million ounces ofsilver. Condor Chief Executive, Mr. Nigel Ferguson, commented "We are very pleased withthe results from the La Calera and El Divisidero projects, given that we havebeen impaired in our efforts to drill test these projects. The La Calera Projecthas now confirmed its potential as a corner stone project in El Salvador withsignificant upside potential. The El Pescadito Project continues to impress withthe extent of mineralisation present in the field. We are confident that once weare awarded the environmental permits to drill, resource ounces will beincreased significantly at both of these projects." A sub-commission of the National Assembly of El Salvador is currently reviewinga document with proposed changes to the Mining Laws. Condor supports theseproposed changes which will provide a platform to facilitate metals explorationand exploitation with benefits to the social, environmental and economic sectorsof the country. A vote by the National Assembly to accept these changes isexpected in the near future, which should initiate processes resulting in thegranting of the environmental permits necessary to allow drilling Condor'sprojects. Resource Calculations Geosure Exploration and Mining Solutions ("Geosure") completed the resourcecalculations subsequent to a field visit in late 2007. The La Calera and ElDivisidero Oxide Inferred Resources at a 0.40 g/t gold bottom cut, are stated byGeosure as: Mineral Resource Tonnes Gold Contained Silver Contained Grade (g/t) Gold (oz) Grade (g/t) Silver (oz) La Calera 6,044,500 1.61 312,800 1.42 275,900 Divisidero Oxide 1,230,200 1.03 40,700 52.98 2,095,400 Modelling was completed on the La Calera and El Divisidero project data toprovide the resource statement to conform to current JORC Code standards. The La Calera resource incorporates a new interpretation based on the results of4,598 metres of trenching and geological mapping completed by Condorcomplimenting previous drilling and trenching completed by Pacific Rim Mining ofCanada. The El Divisidero oxide resource incorporates trenching and drill holemineralization down to the 170m Reduced Level ("RL") and compliments the currentresource assessment from under ground sampling completed by Javelin Resourcespreviously. The revised El Divisidero resource brings the combined resources within the ElPescadito Project area up 10% to 434,200 ounces gold and silver up 10% to 22.1million ounces silver, thereby increasing the possibility of a centralised milland plant fed by a number of closely located economic prospects. The company's global gold resources now stands at some 747,000 ounces of gold(up 48%) and silver resources 22.3 million ounces of silver (up 11%) astabulated below. These are inferred resources as defined in the JORC Code: Prospect Tonnes Gold Contained Silver Contained JORC Grade (g/t) Gold (oz) Grade (g/t) Silver (oz) Category Loma * 2,517,300 1.44 116,500 39.00 3,200,000 Inferred Divisidero 2,748,200 2.70 238,000 171.00 15,100,000 Inferred Sulphide Divisidero 1,230,200 1.03 40,700 52.98 2,095,400 Inferred Oxide El Gigante 610,000 2.00 39,000 87.00 1,700,000 Inferred La Calera 6,044,500 1.61 312,800 1.42 275,900 Inferred Total 13,150,200 1.77 747,000 52.85 22,371,300 Inferred * Loma Del Caballo Project Background At La Calera, gold mineralization is now defined over a 600 metre strike lengthon the main Rosa, Rosa West and Calichal vein systems. Outcropping quartz veinsincluding the main Rosa Vein have been traced a further 600 metres along striketo the south. Field work including infill and step-out trenching at 80 metrecentres has defined a further two vein systems over a 500 metre strike length.These veins systems, named the Escobar and Acevedo systems, also remain open inall directions. At El Divisidero, trenching at 40 metre centres over the main El Divisideroprospect has defined surface and sub-surface mineralization amenable to open-cutmining down to the 170mRL, a depth of some 70 metres from surface. Themineralization continues to the north beneath alluvial cover and requiresfurther exploration. This resource compliments the current resource estimate of238,000 ounces gold and 15.1 million ounces silver, based on primarymineralization below the 170mRL. 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 +44 20 7408 1067 Nigel Ferguson, CEO +44 20 7808 7222 Nabarro Wells & Co. Limited Hugh Oram +44 20 7710 7400 Ben Wright +44 20 7710 7419 Mirabaud Securities Limited Rory Scott +44 20 7878 3360 Parkgreen Communications Limited Simon Robinson Erica Nelson +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 RC and diamonddrilling. Drill sample and trench sample assay determinations were carried outby BSI Inspectorate of Nevada, USA. Gold determinations were by Fire Assay 30gwith Atomic Absorption finish; silver determinations were by wet chemical methodwith an Atomic Absorption finish. Modelling was completed using Surpac Vision5.2D Mining Software. Domaining was performed based on geologicalinterpretations and gold grade (0.4g/t gold bottom cut-off). 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 licenses 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 combined with a subsequent mineral resourcecalculation statement in December 2006 reported Inferred Mineral Resources, asdefined by the JORC Code standard of some 354,000 oz gold and 18.4Moz silverwithin two project areas in El Salvador. In January 2008 an independentcompetent person's report prepared by Geosure on a mineral resource calculationof 39,000 oz gold and 1.7 Moz silver at the El Gigante prospect raised thecombined global resource estimates to some 506,104 oz gold and 20.1 Moz silverwithin two project areas. In February 2008 an independent competent person'sreport prepared by Geosure on a mineral resource calculation of 312,800 oz goldand 275,900 oz silver at the La Calera prospect and 40,700 oz gold and 2.1 Mozsilver oxide material at the El Divisidero prospect, has raised the combinedglobal resource estimates as defined by JORC Code standards to some 747,000 ozgold and 22.3 Moz silver within two 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. Drilling continues withtwo drill rigs on two projects areas in Nicaragua. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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