Condor Gold Plc (AIM: CNR; TSX: COG) has a “construction ready” gold mine and has announced a sale of its assets. There are currently 5 non-binding offers, 3 site visit completed and 8 companies under a NDA. In late October 2022 Condor filed on SEDAR a NI 43-101 compliant Feasibility Study, on the fully permitted La India open pit. The Probable Mineral Reserve is 7.3Mt at 2.56g/t gold for 602,000 oz gold. Production averages 81,545 oz gold per annum for the first 6 years from the Mineral Reserve. Low initial capital requirement of US$105.5 million (including contingency and EPCM contract). Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold. Two permitted high grade feeder pits will be added during the early years of production thus increasing production ounces of gold. Early production is targeted at 100,000 oz gold p.a.
The immediate upside is highlighted in a Preliminary Economic Assessment Technical Report (“PEA”) filed in October 2021. The highlight of the technical study is a post-tax, post upfront capital expenditure NPV of US$418 million, with an IRR of 54% and 12 month pay-back period, assuming a US$1,700 per oz gold price, with average annual production of 150,000 oz gold for the initial 9 years.
The Company’s La India Project is “construction ready”, having received the key Environmental Permit to construct and operate a 2,800tpd mine producing approximately 100,000 oz gold per annum from 3 open pits. Condor purchased a new SAG Mill package for US$6.5M. The land has been purchased and 14 hectares of site clearance completed for the processing plant. Condor’s La India Project has the potential to host an additional ~5M oz gold and has potential for copper.
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