News Column

Condor Gold plc Drilling and Trenching update on La India Project, Nicaragua

Mar 4 2013 12:00AM

Marketwire

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LONDON, ENGLAND -- (Marketwire) -- 03/04/13 -- Condor (AIM: CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce the results of a further 31 drill holes for 3,931m of the current phase of resource infill drilling at the La India Vein Set and the initial drill testing and further trenching of wallrock gold mineralisation on the America Vein Set.

Highlights

-- A total of 35 drill holes for 5,359m have now been completed on La India open pit resource area to convert the existing resource from Inferred to Indicated category.-- Drilling results continue to confirm continuity of gold mineralisation and grade of the current geological model.-- Best new drill intercept from la India of 6.80m at 13.99g/t gold.-- Drill intercept of 41.26m at 1.41g/t gold near surface demonstrates coalescence of La India and California veins-- 28 drill holes for 2663.5m completed on the America Vein Set to test for remnant wallrock gold.-- Wallrock of historic America mine intercepts up to 4.65m (4.4m true width) at 6.11g/t gold.-- Significant zones of quartz brecciation intercepted at the intersection of the America-Escondido-Constancia veins, assay results pending.-- Trench testing of Escondido Vein on the America Vein Set returned best intercept of 6.8m at 3.59g/t gold.



Table 1. Best new drill intercepts on La India Vein Set.

============================================================================ Drill True From To Width Width Gold SilverRank Hole_ID (m) (m) (m) (m) (g/t) (g/t) Vein============================================================================1 LIDC193 20.70 27.50 6.80 6.5 13.99 21.8 India----------------------------------------------------------------------------2 LIDC183 50.74 93.10 41.26 35.7 1.41 2.0 amalgamated India remnant wallrock----------------------------------------------------------------------------3 LIDC205 102.20 112.95 9.85 9.4 1.76 3.5 amalgamated India remnant wallrock----------------------------------------------------------------------------4 LIDC209 66.70 69.55 2.85 2.5 5.02 5.6 India wallrock============================================================================5 LIDC186 128.60 132.27 3.67 2.1 5.64 4.6 India wallrock============================================================================



True width is based on the current interpretation of the veins and may be revised in the future. Top five intercepts ranked by grade multiplied by true width.

Table 2. Best new drill intercepts on the America Vein Set.

============================================================================ Drill True From To Width Width Gold SilverRank Hole_ID (m) (m) (m) (m) (g/t) (g/t) Vein============================================================================1 LIDC179 92.85 105.60 4.65 4.4 6.11 3.3 Constancia-Escondido intersection----------------------------------------------------------------------------2 LIRC190 34 37 3 2.8 5.67 6.5 America (open to depth)----------------------------------------------------------------------------3 LIRC207 65 70 5 4.9 3.11 2.5 America footwall----------------------------------------------------------------------------4 LIDC199 37.50 39.20 1.70 1.6 8.05 5.8 America footwall----------------------------------------------------------------------------5 LIDC185 28.20 37.20 7.00 6.3 1.74 6.3 America wallrock============================================================================6 LIDC189 17.00 20.00 3.00 2.7 3.72 4.3 America============================================================================



True width is based on the current interpretation of the veins and may be revised in the future. Top six intercepts ranked by grade multiplied by true width.

Mark Child, Chairman and CEO commented:

"The assay results from the infill drilling programme within the whittle pit shell on La India open pit resource continue to demonstrate continuity of gold mineralization and grade, reaffirming our view that the current drilling programme's target of 800,000 oz gold resource in the Indicated category should be achievable. 5,359m out of a 7,000m drilling programme has been completed of which 1,901m of new drill results are included in this announcement. The best new drill intercept is in drill hole LIDC193, approximately 15m beneath surface, of 6.80m at 13.99g/t gold. Drill hole LIDC183 of 41.26m at 1.41g/t gold near surface demonstrates the coalescence of the India and California veins.

The interconnecting America-Constancia-Escondido veins have a resource of 288,000 oz at 6.0g/t gold including 120,000 oz at 7.8g/t gold in the Indicated Category. The latter is largely estimated from historic underground channel sampling, which was restricted to the high grade core of the veins that were historically targeted for mining. The resource estimation excludes gold mineralisation in the remnant wallrock of the old mine workings as this area has not been previously drilled. Condor has completed 2,664m of a 4,000m drilling programme through the historic mine works of the America-Constancia-Escondido veins. Several drilling intercepts through the old mine workings, including LIDC179 of 4.65m at 6.11g/t gold demonstrate significant gold mineralisation remains in the remnant wallrock."

La India Vein Set

Thirty-five drill holes for 5,359m out of a 7,000m drilling programme on the La India Vein Set have been completed with the primary aim of upgrading the mineral resource that falls within the bounds of the current Whittle open-pit from Inferred to the Indicated level of confidence. The current in-pit resource is 8.21 million tonnes at 3.6g/t for 954,000 oz gold of which 534,000 oz gold at 3.9 g/t is in the Indicated Category and 420,000 oz gold at 3.3g/t in the Inferred Category. Most of the Inferred Category is targeted for conversion. The drilling programme also aims to extend the open pit to the north and increase the resource within the existing whittle pit shell by targeting areas that have been sparsely drilled and have the potential to add in-situ ounces once drilled to the Indicated level of confidence. In addition, four drill holes are being extended into the footwall of La India Vein with the dual aim of testing for a parallel vein within the footwall zone and providing geotechnical data that will be used to better assess potential open-pit wall stability and plan pit wall angles.

Assay results have been received for a further 12 drill holes for 1,901m (Table 3 below) since the last announcement (see RNS announcement dated 11th January 2013) such that a total of 31 drill holes for 4,692m of the current drilling programme on the India-California vein trend have been received to date. The latest results are generally consistent with expectations and appear to validate the geological model used in the current resource by confirming the continuity and average grade of the gold mineralisation.

In the southern zone an intercept of 6.2m (4.7m true width) at 2.39g/t gold in drill hole LIDC181 is consistent with drilling 50m up and down-dip and along strike in both directions confirming geological continuity of mineralisation in this area (Figure 3 below). Weak mineralisation on the 450 cross-section (drill holes LIDC180 and LIDC182) and the 500 cross-section (drill hole LIDC196) confirms the low grade zone modelled in the current mineral resource between the Southern and Central high grade shoots. The 750 and 900 cross-sections of the Central zone continued to return wide moderate to high grade intercepts with a best intercept of 6.8m (6.5m true width) at 13.99g/t gold in drill hole LIDC193. In the Central-North zone an intercept of 1.75m (1.5m true width) at 3.45g/t gold in drill hole LIDC178 was returned from a California Vein in the hangingwall zone of the historic mine workings.

Assay results have been received from two of the four drill holes planned to test for parallel veins in the footwall zone. One of the two drill holes intercepted gold mineralisation in the footwall, an intercept of 0.55m (0.3m true width) at 1.70g/t gold in drill hole LIDC193 located in the footwall approximately 180m across strike from the La India mine workings. This footwall vein is interpreted as the down-dip extension of a near vertical vein that crops out at the top of the hill behind the historic mine workings where it has similar width.

Table 3. Significant drill intercepts for the latest 12 drill holes for 1901m of the current drill programme on the India-California veins.

To view Table 3, please visit the following link: http://media3.marketwire.com/docs/Table%203.pdf.

America Vein Set

Twenty-eight drill holes for 2,664m, including 17 reverse circulation (RC) drill holes for 1,360m, out of a 4,000m drilling programme on the America Vein Set have been completed. The drilling programme is designed to test for remnant wallrock gold mineralisation on the historic America Mine workings. Assay results have been received for 21 drill holes for 1,842m (see Table 4 below). Additional trenching has been carried out at the intersection of the America, Escondido and Constancia veins in order to better understand the geometry of the gold mineralisation in this zone where multiple gold mineralised veins have a number of different orientations.

The America Vein Set currently contains a mineral resource of 2.11Mt at 6.0g/t for 405,000 oz gold, of which 288,000 oz gold is on the interconnected America-Constancia-Escondido veins, including 480kt at 7.8g/t for 120,000 oz gold in the Indicated category (Figure 1 below). The Indicated Resource is contained within and as extensions of the historic mine workings and is based largely on historic underground channel sampling which was restricted to the high-grade core of the veins that was historically targeted for mining. At the time of the last resource estimation an absence of drilling and trench sampling in the wallrock of the historic mine workings meant that no remnant gold was included in the current resource estimation. Recent trench sampling has demonstrated that there are significant zones of moderate to high-grade gold mineralisation remaining in the wallrock (see RNS announcement dated 30th November 2012).

The additional trenching, which was carried out using a mechanical excavator, and initial drilling has demonstrated that the moderate (50 degrees -60 degrees ) dipping America and Escondido veins formed along two edges of an upthrown block. The steeper dipping Constancia Vein formed along a related structure bounding an adjacent block. The widest trench and drill intercepts to date; 6.8m at 3.59g/t gold in trench LITR158 and 4.65m (4.4m true width) at 6.11g/t gold in drill hole LIDC179 have been returned from the axis of the flexure between the America and Escondido veins. Strike continuity around the flexure is demonstrated by an intercept of 5.0m (4.9m true width) at 3.11g/t gold from 50m along strike on the America Vein side in drill hole LIRC207. In addition multiple close-spaced narrower veins have been intersected where the Constancia Vein intersects this flexure. Further drilling is currently underway to better define the gold distribution in this structurally complex zone.

Further along strike to the northwest drilling has confirmed remnant gold mineralisation in the wallrock of the historic America mine workings with 50m spaced drilling intersecting both high-grade shoots and low grade zones, with a best intercept of 3m (2.8m true width) at 5.67g/t gold open to depth in drill hole LIRC190 returned to date.

Table 4. Significant drill intercepts for initial 21 drill holes for 2029.5m of the current drill programme on the America Vein Set

To view Table 4, please visit the following link: http://media3.marketwire.com/docs/Table%204.pdf.

Future Drill Programme

Less than 2000m of the 7000m infill drilling programme within the current La India Whittle open pit shell is required to complete the 50m grid spacing needed for conversion from Inferred to Indicated resource category with a target of 800,000 oz gold in the Indicated Category. Some additional drilling is planned in the northern zone where infill drilling has defined a new high-grade zone. It is expected that the high grade zone will positively affect the open pit design in this zone.

A 1700m geotechnical drilling programme is planned for April and May of this year at La India. The geotechnical drilling will improve knowledge of the footwall and hangingwall rock properties and refine the design of the open pit. The current open pit is designed with pit wall slopes of 40 degrees in the footwall and 42 degrees in the hangingwall. If the rocks can support a steeper angle then the strip ratio will be reduced, improving economics and possibly allowing the open pit to be deeper and adding gold resource considered to be underground to the open pit.

A further 2000m of drilling is planned on the America Vein Set with the aim of testing open pit potential of mining remnant wallrock material. The programme is being adjusted to focus on the wide zones of quartz brecciation and multiple veining encountered at the intersection of the America, Escondido and Constancia veins in the initial drilling.

Over 500m out of a 1000m of trenching across the Mestiza Vein Set has already been completed. Further trenching and drilling will be planned based on the assay results.

To view "Figure 1. Location of the Drilling on the La India and America Vein Sets within the La India Project area", please visit the following link: http://media3.marketwire.com/docs/CNRfig1.jpg.

To view "Figure 2. Plan showing location of drill holes and cross-sections on La India Vein Set", please visit the following link: http://media3.marketwire.com/docs/CNRfig2.jpg.

To view "Figure 3. Cross-section through the newly defined high-grade intercept in the Southern La India area (250 section) showing latest wide high-grade intercepts at depth", please visit the following link: http://media3.marketwire.com/docs/CNRfig3.jpg.

To view "Figure 4. Cross-section through the newly defined high-grade intercept in the Central La India area (900 section) showing latest wide high-grade intercepts at depth", please visit the following link: http://media3.marketwire.com/docs/CNRfig4.jpg.

To view "Figure 5. Cross-section through the newly defined high-grade intercept in the Northern area La India (1250 section) showing latest wide high-grade intercepts at depth", please visit the following link: http://media3.marketwire.com/docs/CNRfig5.jpg.

To view "Figure 6. Plan showing location of drill holes and cross-sections on the America Vein Set", please visit the following link: http://media3.marketwire.com/docs/CNRfig6.jpg.

To view "Figure 7. Cross-section through the newly defined high-grade intercept in the America 500 section showing latest wide high-grade intercepts at depth", please visit the following link: http://media3.marketwire.com/docs/CNRfig7.jpg.

Competent Person's Declaration

The information in this announcement that relates to the mineral potential, geology, Exploration Results and database is based on information compiled by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with seventeen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Luc English consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

For further information please visit www.condorgold.com.

About Condor Gold plc:

Condor Resources plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up CIM/JORC Resources in Nicaragua and El Salvador. Condor has seven 100% owned concessions in La India Mining District ("La India Project"); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.

Condor's concession holdings in Nicaragua currently contain an attributable CIM/JORC compliant resource base of 2,497,000 ounces of gold equivalent at 4.6 g/t in Nicaragua and an attributable 1,004,000 oz gold equivalent at 2.6g/t JORC compliant resource base in El Salvador. The Resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua, and Ravensgate and Geosure for El Salvador.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Technical Glossary

----------------------------------------------------------------------------Assay The laboratory test conducted to determine the proportion of a mineral within a rock or other material. Usually reported as parts per million which is equivalent to grams of the mineral (i.e. gold) per tonne of rock----------------------------------------------------------------------------CIM Canadian Institute of Mining, Metallurgy and Petroleum whose terminology, definitions and guidelines are an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee (CRIRSCO) as required by National Instrument 43- 101.----------------------------------------------------------------------------Dip A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal.----------------------------------------------------------------------------Foot wall The rock adjacent to and below an ore or mineralised body or geological fault. Note that on steeply-dipping tabular ore or mineralised bodies the foot wall will be inclined nearer to the vertical than horizontal.----------------------------------------------------------------------------Grade The proportion of a mineral within a rock or other material. For gold mineralisation this is usually reported as grams of gold per tonne of rock (g/t)----------------------------------------------------------------------------g/t grams per tonne----------------------------------------------------------------------------Hanging wall The rock adjacent to and above an ore or mineralised body or geological fault. Note that on steeply-dipping tabular ore or mineralised bodies the hanging wall will be inclined nearer to the vertical than horizontal.----------------------------------------------------------------------------Inferred That part of a Mineral Resource for which tonnage, grade and Mineral mineral content can be estimated with a low level of Resource confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited, or of uncertain quality and reliability----------------------------------------------------------------------------Indicated that part of a Mineral Resource for which tonnage, resource densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed----------------------------------------------------------------------------Intercept Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralized zone. The intercept is described by the entire thickness and the average grade of mineralisation----------------------------------------------------------------------------oz troy ounces----------------------------------------------------------------------------kt Thousand tonnes----------------------------------------------------------------------------Mineral A concentration or occurrence of material of economic Resource interest in or on the Earth's crust in such a form, quality, and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, estimated from specific geological knowledge, or interpreted from a well constrained and portrayed geological model----------------------------------------------------------------------------Mt Million tonnes----------------------------------------------------------------------------Open pit mining A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining).----------------------------------------------------------------------------oz Troy ounce, equivalent to 31.103477 grams----------------------------------------------------------------------------Strike length The longest horizontal dimension of an ore body or zone of mineralisation.----------------------------------------------------------------------------True width The shortest axis of a body, usually perpendicular to the longest plane. This often has to be calculated for channel or drill samples where the sampling was not exactly perpendicular to the long axis. The true width will always be less than the apparent width of an obliquely intersect sample.----------------------------------------------------------------------------Vein A sheet-like body of crystalised minerals within a rock, generally forming in a discontinuity or crack between two rock masses. Economic concentrations of gold are often contained within vein minerals.----------------------------------------------------------------------------Wallrock The rock adjacent to an ore or mineralised body or geological fault.----------------------------------------------------------------------------





Contacts:
Condor Gold plc
Mark Child
Executive Chairman and CEO
+44 (0) 20 7408 1067

Condor Gold plc
Luc English
Country Manager Nicaragua
+505 8854 0753
www.condorgold.com

Beaumont Cornish Limited
Roland Cornish / James Biddle
+44 (0) 20 7628 3396

Ocean Equities Limited
Will Slack
+44 (0) 20 77864385

Farm Street Media
Simon Robinson
+44 (0) 7593 340107





Source: Marketwire


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