LONDON (ShareCast) - (Sharecast News) - Condor Gold has been granted an environmental permit for the development and exploitation of gold from the high-grade Mestiza open pit, it announced on Wednesday.
The AIM-traded firm said the pit hosts 92,000 tonnes at a grade of 12.1 grams of gold per tonne, or 36,000 ounces of contained gold, in the indicated mineral resource category, and 341,000 tonnes at a grade of 7.7 grams of gold per tonne, or 85,000 ounces of contained gold, in the inferred category.

It said the mestiza open pit complimented the already-permitted La India open pit, which hosts 8.38 million tonnes at a grade of 3.1 grams of gold per tonne, or 837,000 ounces of contained gold, in the indicated category and 883,000 tonnes at grade of 2.4 grams of gold per tonne, or 68,000 ounces of contained gold, in the iInferred mineral resource category.

Condor said the La India open pit has a "robust, economically viable" pre-Feasibility study, with mineral reserves of 6.9 million tonnes at three grams per tonne for 675,000 ounces of gold.

Following the permitting of the Mestiza open pit, the company said it had just over one million ounces of gold open pit mineral resources permitted for extraction, inclusive of a mineral reserve of 6.9 million tonnes at three grams of gold per tonne for 675,000 ounces of gold.

"It is a significant development, after a 15 month process, that Condor has been granted the key environmental permit to develop and exploit gold from the high grade Mestiza open pit," said chairman and chief executive officer Mark Child.

"When added to the high grade La India open pit, Condor has just over one million ounces gold open pit mineral resources, including mineral reserves permitted for extraction."

Child noted that Condor also had the permit to construct and develop a processing plant, with capacity of up to 2,800 tonnes per day, at La India.

"The permitted high grade Mestiza open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mine."

At 1608 BST, shares in Condor Gold were up 34.64% at 34.33p.

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