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Nicaragua-focused Condor Gold (LON:CNR) (TSX:COG) has been granted an environmental permit for the development and exploitation of the Mestiza gold asset, a complementary open pit to the company’s flagship La India gold project, in the country’s west.
The high-grade Mestiza deposit hosts more than 100,000 ounces of contained gold resources and is one of the two satellite pits to the fully permitted La India, which is slated to produce 80,000 to 100,000 ounces of the precious metal per year.
The high-grade open-pit complements Condor’s flagship La India project
“When added to the high-grade La India open pit, Condor has just over 1 million ounces of gold open pit mineral resources, including mineral reserves permitted for extraction,” the company’s chief executive, Mark Child, said in the statement.
Having the Mestiza permitted adds flexibility to the development schedule, potentially improving project economics and extending the life of mine, he added.
Child noted that Mestiza has double the gold grade compared to La India. It is also located within easy trucking distance (less than 4km) to the firm’s planned and already permitted processing plant. The facility will have a capacity of up to 2,800 tonnes per day.
With the Mestiza and America feeders in operations, Condor Gold would be able to churn out bout 120,000 ounces annually during a seven-year mine life.
The miner staked concessions in Nicaragua, Central America’s largest country, in 2006. Since then, mining has significantly taken off in the country due to the arrival of foreign companies with the cash and expertise to tap into existing reserves.
Last year, the government of Nicaragua granted Condor Gold the 132.1 km2 Los Cerritos exploration and exploitation concession, which expanded the La India project concession area by 29% to a total of 587.7 km2.
Condor also attracted a partner — Nicaragua Milling. The privately held company, which took a 10.4% stake in the miner in September, has operated in the country for two decades.
