Condor Gold plc said its activities during 2020 had been transformational as it reported a decrease in losses and increased fundraising and cash balance for its La India project in Nicaragua.
For the year 2020, the group’s losses were £1,309,992 (2019: £1,542,781).
The company raised a total of £8 million after expenses (2019: £5.8m), and had net cash balance of £4,159,391 (2019: £2,903,556).
OPERATIONS
During 2020, Condor Gold was awarded the environmental permit for the Mestiza and America open pits which together with the La India open pit hold 1.12 million ounces (M oz) gold.
The company significantly de-risked La India through the purchase of land in and around the permitted La India open pit mine site area.
It also acquired 85% of the land within the permitted La India open pit mine site infrastructure, including the key areas of the location of the processing plant, tailings storage facility, open pit, waste dump area, explosive magazine.
Some 40% of the tailings storage facility and two water retention ponds are have been completed.
Preliminary designs for the layout of the mine site infrastructure including and for the location of the processing plant have been completed.
Mine and waste dump schedules for a number of mining scenarios have been completed.
During October 2020, Condor Gold began ground investigation programme on the tailings storage facility, water retention reservoir and plant, comprising 20 geotechnical drill holes and 58 test pits.
In December, the company began a 4,000 metre in-fill diamond drilling programme at La India open pit, as well as site preparation activities.
OBJECTIVES
“It has been a transformational year for the company with the permitting of two additional open pits, and a significant de-risking of the project with the acquisition of land and advancement of engineering studies,” said chairman Mark Child.
“The company’s twin strategy remains the construction and operation of a base case processing plant with capacity of up to 2,800 tonnes per day capable of producing approximately 100,000 oz of gold per annum, increasing this production capacity, and proving a major gold district of 5M oz gold potential at the 588km² La India project.
“Exploration activities during 2020 took second place to the key objective of completing the technical studies which are a condition of the Environmental Permit for La India open pit and permitting the two feeder pits.”
Mr Child added that Condor’s geologists had identified two major north-northwest-striking mineralised basement feeder zones traversing the project, the ‘La India Corridor’, which host 90% of Condor’s gold mineral resource and the ‘Andrea Los Limones Corridor’.
ENVIRONMENT AND SOCIAL
Condor Gold said it continued to enhance its social engagement and activities in the community and in doing so maintaining its social licence to operate.
The main local focus has been the drinking water programme, implemented in April 2017.
The miner has also extended its ‘Involvement Programmes’ which began in January 2018, to six groups in the local village. The programmes benefit communities which might be affected by the mine.
An updated forestry inventory has been completed and Condor’s tree nursery now has some 5,400 trees.
The compensation plan under the local law is to replace every tree removed with 10 new trees.