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Condor Gold begins drill programme at Cacao prospect

Mon 22 February 2021 13:56 | A A A

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(Sharecast News) - Condor Gold has started a 5,000 metre diamond drill programme at the Cacao prospect of La India Project in Nicaragua, it announced on Monday.

The AIM-traded firm said Cacao is located four kilometres from the planned processing plant at the fully-permitted La India mine, adding that it was a potential satellite deposit to the already-permitted La India, America and Mestiza open pits.

It said the programme had three main objectives, with the first being to increase the inferred mineral resource on the Cacao vein.

Secondly, it said it would increase the strike length of the vein towards the Santa Barbara prospect three kilometres away, and thirdly would prove the structural geological model that Cacao represented a dilational opening between two major basement feeder zones.

Cacao already hosted an inferred mineral resource of 662 kilotonnes at 2.8 grams of gold per tonne for 60,000 ounces of gold, defined by Condor from 2,890 metres of drilling in 2019.

It described Cacao as a "highly prospective" target, sitting on a "major" dilational opening between two major feeder zones, adding that the vein was one of the thickest in the district, comparable to the main La India nein, with mineral textures said to be "identical" to La India.

Isolated exposures of quartz veins in bedrock and colluvium suggested the Cacao structure extended for between three and four kilometres, with samples from active artisanal mine workings in the Rio Viejo, about 1.6 kilometres along strike from Cacao, returning assays of up to 11.6 grams of gold per tonne.

A hot spring deposit, or 'sinter', at Cacao indicated minimal erosion, with the entire epithermal system preserved.

The board explained that sinter is the rock found at the top of an epithermal boiling zone.

Higher grades were located at depth at Cacao, with Condor saying that previous drilling indicated an improving gold grade at depth, suggesting the presence of a boiling-related bonanza zone.

Mineralisation was open down-dip and along strike, with historic drilling demonstrating "broad zones" of gold mineralisation, with intercepts including 7.85 metres at 3.75 grams per tonne, 7.85 metres at 2.95 grams per tonne, and 17.1 metres at 1.74 grams per tonne.

The principal vein showed "excellent" continuity, the board said.

Underlying felsic, glassy volcanic rocks were expected at depth, which Condor described as "a more favourable host" for veining, for example at La India, adding that the andesite or felsic contact could be "especially favourable" for veining and bonanza grade.

"Condor has successfully permitted a new processing plant of up to 2,800 tonnes per day, along with the associated mine site infrastructure, and is currently completing detailed engineering studies to make the project 'shovel ready'," said chairman and chief executive officer Mark Child.

"Initial production is expected to be 120,000 ounces of gold per annum from three permitted open pits.

"In parallel, Condor is now embarking on the exciting second part of its strategy: demonstrating the potential for a five million ounce gold district with the initial focus on a 5,000 metre drilling programme at Cacao."

Child said the company considered that the "significant" potential of Cacao was now demonstrated by its 2,890 metres of drilling, resultant Inferred Mineral Resource of 662 kilotonnes at 2.8 grams of gold per tonne for 60,000 ounces of gold, and subsequent geological interpretation.

"Cacao is open at depth and along strike in both directions.

"The vein width is comparable to the best intersections at La India and the hanging wall of the vein is increasingly stockworked, as at La India.

"Structurally controlled ore shoots, as at La India, are to be expected in this major dilational, and continuous, vein."

At 1131 GMT, shares in Condor Gold were up 0.87% at 50.99p.

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