Condor Gold hopes to start using bulldozers by the end of this year to clear the site at La India gold mine in Nicaragua.
In an interview with Proactive Investors, Condor’s chief executive Mark Child added that the company had been granted permits for two feeder pits and that he hoped the site would be shovel ready by the end of 2020.
Condor has bought more than 30 pieces of land and now owns up to 65% of the location within the main pit and site infrastructure, and is currently conducting engineering studies.
“We’re de-risking the project by doing those engineering studies,” said Mr Child.
“We’re making good progress [and] we look to have all the land bought and studies completed this year.
“I’d like to put bulldozers on the land before the end of the year and start clearing the site.
“Next year is a construction year. We’ve done studies which show we could be immediately at 4,000 tonnes a day – that’s obviously quite a big mill, it’s a longer construction period.”
Mr Child added that the company could alternatively carry out the work in two stages by initially using a smaller plant with a second-hand processing mill to provide a quick return based on the current gold price.
This phase of some three years would be followed by an increase in production and could include extraction from underground for which the company is hopeful of receiving a permit.
Condor is also considering toll milling as another way of generating cashflow, but all options are dependent on negotiations with second or third parties.
Funding will come from £6.6 million recently raised from placements.
The company is due to announce its interim results in the next two to three weeks.