Condor Gold unveils positive assessment for La India Project

AIM-listed Condor Gold has unveiled details of a preliminary economic assessment on its 100 per cent owned La India Project gold deposit in Nicaragua.

The assessment described the open pit and underground gold mine with an initial life of mine of 13 years at an average gold grade of 3.8 grams per tonne for total production of 1.46m ounces of recovered gold.

Average production of 152,000 ounces of gold was forecast per annum for the first eight years, with years one-to-four average production of 172,000 ounces of gold per annum and years five-to-eight average production of 133,000 ounces of gold per annum.

The assessment estimated pre-production capital cost of $180.5m for mine construction and processing construction, with a three year pay-back period.

Total capital expenditure over entire life of mine was estimated at $287m.

The cumulative life of mine earnings before interest, tax, depreciation and amortisation were estimated at $1.0bn and net cash flow of $512m

Mark Child, Chairman and Chief Executive Officer of Condor Gold, commented: "Total production of 1.46bn ounces of gold over the life of mine is at an average operating cost of $575 per ounce gold; production is split evenly between open pit and underground mining."

Condor Gold's share price was up 1.92% to 159.50p at 13:48 on Tuesday.

MF