LONDON (ShareCast) - (Sharecast News) - Condor Gold has started an 8,500 metre infill diamond drilling programme within the permitted La Mestiza open pit mineral resource at La India Project in Nicaragua, it announced on Thursday.
The AIM-traded firm said two diamond core drill rigs were currently operating on Mestiza, and had drilled about 600 metres to date.

It said the programme was expected to take a further four months to complete.

Condor also updated the preliminary mine schedules on La Mestiza open pits conducted by SRK Consulting USA, based on the existing mineral resource and in support of the 8,500 metre drilling programme.

It said the existing open pit mineral resource hosted 433,000 tonnes at 8.6 grams of gold per tonne for 120,000 ounces of gold.

The Mestiza vein set was said to be open down dip and along strike, and had the potential for a "material increase" with additional drilling.

Preliminary mine schedules indicated the potential to deliver 499,000 tonnes of high-grade material to the processing plant at a diluted head grade of 5.37 grams of gold per tonne, with the potential to produce 86,000 ounces of gold.

"Following the purchase of a new SAG mill package in April, Condor engaged SRK Consulting USA to produce strategic mine schedules on the high-grade fully permitted La Mestiza open pit mineral resource, which hosts 433,000 tonnes at 8.6 grams of gold per tonne for 120,000 ounces of gold," said chairman and chief executive officer Mark Child.

"The schedules developed indicate a potential feed to the processing plant estimated at 499,000 tonnes, at a diluted head grade of 5.37 grams of gold per tonne, with potential to produce 86,000 ounces of gold.

"The aim of the 8,500m infill drilling programme in La Mestiza open pit is to convert a significant proportion of the inferred mineral resource to an indicated mineral resource for inclusion in future pre-feasibility study or feasibility studies, enhance the geological confidence, de-risk future mine plans and attract project financing."

At 1053 BST, shares in Condor Gold were up 0.16% at 46.08p.

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