What does the company do?
Condor Gold PLC (LON:CNR) is a specialist gold exploration and development company run by seasoned mining professional Mark Child. Also on the boar are serial entrepreneurs Jim Mellon and Ian Stalker, who both bring a wealth of industry connections and expertise.
What does it own?
Condor’s principal asset is the La India gold project in Nicaragua, which has an existing resource totalling 2.3mln ounces of gold. Of that nearly 700,000 ounces has been modelled as open-pittable.
The company also owns the Estrella, Rio Luno and Potrerillos gold projects, also in Nicaragua.
How it is doing
The quarter to 31 March ended with £1.73mln in the bank.
During the quarter the company announced an extension to the permitting at its La India gold project in Nicaragua.
It also held public consultations in the local community as part of the environmental permitting process for the development and extraction of gold from the Mestiza and America open pits. Subsequently, plans for a high-grade mini-open pit mining scenario were revealed.
Post period end, Condor was awarded an environmental permit for the Mestiza open pit and the America open pit.
What the boss says: Mark Child, chief executive
“During the first quarter 2020, Condor continued to de-risk La India Project and demonstrate a clear route to production.”
“The company has been working on the engineering and other technical studies required ahead of a construction decision and acquiring land for the mine site infrastructure.”
“A high-grade mining dilution scenario study was completed, which supports a smaller, 1,000 tonnes per day processing plant capable of producing approximately 50,000 ounces of gold per year.”
What do the brokers think?
“Condor Gold is giving careful consideration to the effective management of mine dilution on the development of La India and the associated satellite deposits,” SP Angel said in a morning note released on 4 March 2020.
“This work should inform a future production decision and we look forward to the production schedule which arises from this work. The possibility of reduced pre-production capital costs as a result of starting with a small plant or using nearby toll-milling should prove beneficial to the economics of the project.”