Condor Gold (TSX: COG; LSE: CNR) has outlined two mining situations in an updated technical study for its flagship La India gold challenge in Nicaragua, each of which anticipate strong economics.
The preliminary financial evaluation ready by SRK Consulting considers two potential routes to develop the asset.
One is to go along with a blended open pit and underground operation, which might produce a complete of 1.47 million ounces of gold over its 12 yr mine life, with a median of 150,000 ounces every year throughout the first 9 years.
This mannequin would require an preliminary US$160 million funding, with underground improvement funded via money movement.
The opposite state of affairs is for an open pit operation solely, with improvement of the core La India pit and satellite tv for pc pits at Mestiza, America and Central Breccia zones. This various would yield about 120,000 ounces of gold every year over an preliminary interval of six years, with whole output of 862,000 ounces over 9 years of mine life.
“The spotlight of the technical examine is a post-tax, publish upfront capital expenditure NPV of US$418 million, with an IRR of 54% and 12 month pay-back interval, assuming a US$1,700 per oz. gold worth with a median annual manufacturing of 150,000 oz. gold every year for the preliminary 9 years of gold manufacturing,” chairman and CEO Mark Little one said in a statement.
“The open pit mine schedules have been optimized from designed pits, bringing larger grade gold ahead leading to common annual manufacturing of 157,000 oz. gold within the first two years from open pit materials and underground mining funded out of cashflow,” he famous
Condor Gold staked concessions in Nicaragua, Central America’s largest nation, in 2006.
Since then, mining has considerably taken off within the nation because of the arrival of overseas firms with the money and experience to faucet into current reserves.
The federal government of Nicaragua granted Condor in 2019 the 132.1 sq. km Los Cerritos exploration and exploitation concession, which expanded the La India challenge concession space by 29% to a complete of 587.7 sq. kilometres.
Condor additionally attracted a accomplice — Nicaragua Milling. The privately held firm, which took a ten.4% stake within the miner in September 2020, has operated within the nation for 20 years.