Condor Gold acquires La Mojarra Concession adjacent to its La India Project, Nicaragua
Mark Child, Chairman and CEO commented:
"Condor has purchased the strategically important La Mojarra Concession that lies only 400m to the south of La India Vein Set resource of 1,481,000 oz gold at 4.0g/t; the location of a high grade open pit resource of 954,000 oz gold at 3.61g/t. The open pit resource is open to the south. One of the southern most drill intercepts recorded was 21.08m at 10.24g/t. There is a possibility that La India resource extends onto La Mojarra Concession and additional gold mineralised resources can be defined elsewhere on the 27sq km La Mojarra Concession to complement La India Project's existing CIM Code resource of 2,375,000 oz gold at 4.6g/t. Condor's initial assessment of La Mojarra Concession summises that the surface geological features suggest the potential for the discovery of significant buried gold mineralisation. Condor will initiate a geophysics programme on La Mojarra and other concessions in La India Project within the next 6 months".
Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial resource on its 100%-owned La India Project in Nicaragua is pleased to announce that it has acquired La Mojarra Concession (the "Concession") which lies adjacent to the main La India Concession of La India Project and immediately to the south of La India Vein Set which host a CIM Code resource of 11.2 million tonnes at 4.0g/t containing 1,484,000 oz gold including an open pit resource 8.21 million tonnes at 3.61g/t containing 954,000 oz gold. The addition of La Mojarra Concession will increase the Company's La India Project by 27km² to 194km² contained within seven contiguous wholly owned concessions. See location of Concession in Figure 1 below.
Condor and the Seller, together (the "Parties") executed an Agreement on 9th October 2012 to transfer 100% of the Concession to Condor's wholly owned Nicaraguan subsidiary La India Gold S.A. A total consideration of US$1,010,815 (the "Purchase Consideration") will be paid as followed:
1. US$20,815 on signing the Agreement, which will be repaid in full if the authorization to assign the Concession is not issued by MEM's General Department of Mines within 90 days of this Agreement, provided that the delay is the responsibility of the Seller.
2. US$240,000 payable in cash on approval of the transfer of the Concession from the Seller to La India Gold S.A. by the Director General of the Department of Mines.
3. US$300,000 on approval of the transfer of the Concession by the Minister of Energy and Mines. US$200,000 is payable in cash. US$100,000 is payable by way of issuing new shares in Condor at the 20 day average traded price prior to the said approval.
4. US$450,000 is payable 6 months after La India Gold S.A. obtains and receives a drilling permit for the Concession, issued by the Ministry of Natural Resources. US$200,000 is payable in cash. US$250,000 is payable by way of issuing new shares in Condor at the 20 day average traded price prior to the receipt of a drilling permit by La India Gold S.A.
In summary, Condor has reached an Agreement to purchase the Concession for US$1,010,815. The Purchase Consideration is payment US$660,815 in cash and US$350,000 by way of issuing shares in Condor. Condor has, at its sole discretion, the right to substitute the share payments with cash payments. Again, Condor has, at its sole discretion, the right to terminate the Agreement at any point with 30 days written notice. Condor has worked in Nicaragua for 7 years, given our experience we expect the Purchase Consideration to be spread over approximately 9 months.
La Mojarra Concession lies along strike to the South of the India-California Vein trend. Gold mineralisation at the southern end of the India-California veins does not reach surface, however significant gold intercepts have been defined at depths from 50m below surface with intercepts such as 21.08m (16.1m true width) at 10.24g/t gold from 193.80m drill depth in drillhole LIDC152 (see RNS dated 29thAugust 2012) located 500m from the La Mojarra Concession boundary. Gold mineralisation on the India Vein remains open to depth and along strike below surface, and it is highly conceivable that the mineralisation continues into La Mojarra Concession. In addition to the potential strike extension of the La India Structure, the Company is encouraged by surface geological features that suggest that there is the potential for the discovery of significant buried gold mineralisation:
1. The Concession contains extensive outcrops and float of silicified rocks and veins including banded and chalcedonic quartz textures characteristic of the near surface expression of a large epithermal system with significant deposition of silica-rich fluids in multiple phases.
2. Intense argillic alteration over several hundred metres diameter has been recognised, also indicating the circulation of significant amounts of hydrothermal fluids.
The field evidence of abundant near surface hydrothermal activity combined with a location close to the interpreted central caldera of the volcanic complex that hosts the La India epithermal gold mineralisation, makes La Mojarra Concession highly prospective for the discovery of a large buried epithermal gold deposit. The Company plans to undertake a regional rock chip, soil sampling, geophysics and geological mapping programme in order to target deep exploratory drilling for potential buried gold deposits.