Shares in Condor Gold (LON: CNR) (TSX: COG) jumped on Thursday after unveiling final metallurgical tests results for its flagship La India open pit gold project in Nicaragua, which it said “provide confidence” in recovery rates ahead of a definitive feasibility study.
The results indicate a metallurgical recovery of 91% over the life of mine, assuming a 75-micron grind size, the company said.
At a finer grind size of 53 microns an average gold extraction rose to 94.7%, which Condor Gold says indicates a potential upside gold recovery of about 93%.
“Ninety one per cent metallurgical recovery over the life of mine is a terrific result and represents a significant de-risking of one of the most important variables in the development of a new mine at La India project and provides significant comfort to investors, “ chief executive Mark Child said in the statement.
Shares in the company rose as much as 5.6% in early trading in London to 23.49p and were last trading at 23p each, giving the miner a market capitalization of slightly over £36 million ($44 million).
Condor Gold staked concessions in Nicaragua in 2006. Since then, the country’s mining sector has taken off due to the arrival of foreign companies with the cash and expertise to tap into existing reserves.
The government of Nicaragua granted Condor 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 2020, has operated in the country for two decades. The definitive feasibility study for La India is expected in the third quarter of this year.