Condor Gold plc said that progress had been made on studies in support of a feasibility study (FS) expected during Q1 2022 for its La India gold project in Nicaragua.
ADDITIONAL DRILLING
The FS is for La India open pit and associated mine site infrastructure.
Condor added that a review of the initial round of 1,700m of geotechnical drilling by SRK indicated that an additional 690m of oriented core drilling was needed, followed by televiewer logging, to meet FS level confidence.
Drilling and logging is expected to be completed by the middle of November, and the televiewer inspection will follow the completion of each hole.
KEY STUDIES
Key studies include the completion of the processing plant, incorporating the SAG Mill, by Hanlon Engineering, with infrastructure designs and costs under development.
A surface water hydrological model has also been completed and detailed water management structure designs are underway.
The design for the tailings storage facility (TSF) is now finished and the draft report is being reviewed by Condor.
The stormwater attenuation structure at La Simona is under design and 90% complete.
More then 95% of the analytical work on the metallurgical studies has been completed with a draft report due by the end of October.
The company said that the deepest level of the 1950s-era underground mine workings, in hole LIDC 178, were suitable to draw down ground water levels and support depressurisation of the pit slopes.
A test borehole close to the historical mineshaft will be drilled in November to one of the options for the location of the long-term pumping station.
A revised mineral resource estimate, including recent in-fill drilling on La India open pit, is 80% complete.
SHOVEL-READY
Chairman and chief executive Mark Child added that the development of the FS was in line with international best practices.
“There are no negative surprises and the project continues to be materially de-risked, nearing a shovel ready status.
“A feasibility study increases the confidence of the project, incorporating a feasibility level engineering design, and +/- 15% capital and operating costs.
“This in turn will facilitate project financing ahead of project construction.”
He added that Condor and contractors Hanlon Engineering, Tierra Group International, SGS Lakefield Laboratories and SRK Consulting (UK and USA) had spent more than a year preparing for the FS despite the challenges of logistics, market conditions and Covid travel restrictions.