Condor Gold (LON:CNR) (TSX:COG) said on Thursday it had finished infill drilling at the two starter pits that are part of its flagship La India gold project in Nicaragua, adding that the latest results reinforce the company’s geological model, mineral resource, reserve calculation and mining plan.
The miner, which acquired 85% of the land within the permitted site in August 2020, said assay results have been returned for 29 of the planned drill holes, which gives it a complete dataset for the Northern Starter Pit and for the first six drill holes in the Southern Starter Pit.
Condor will continue advancing the development of the two pits, located within 35 metres of the surface. The intention, it said, is to mine them early to quicken the payback period and enhance the project’s economics.
La India’s initial pits contain 455,000 tonnes at 4.17g/t gold for 59,674 oz gold using a 2.00g/t cut-off grade. The main open pit, in turn, has a mineral reserve estimate of 6.9 million tonnes at 3.1 g/t gold for 675,000 ounces of gold.
Condor Gold staked concessions in Nicaragua, Central America’s largest country, in 2006. Since then, mining has significantly taken off in the country due to the arrival of foreign companies with the cash and expertise to tap into existing reserves.
The government of Nicaragua granted Condor Gold in 2019 the 132.1 km2 Los Cerritos exploration and exploitation concession, which expanded the La India project concession area by 29% to a total of 587.7 km2.
Condor also attracted a partner — Nicaragua Milling. The privately held company, which took a 10.4% stake in the miner in September 2019, has operated in the country for two decades.