Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Condor Gold (LON:CNR) (TSX:COG) said on Tuesday it had kicked off a ground investigation program consisting of 20 geotechnical drill holes and 58 test pits on the tailings storage facility, water retention reservoir and processing plant for its flagship La India gold project in Nicaragua.
The miner, which acquired 85% of the land within the permitted site in August, said the move would further speed up the project transition from a pre-feasibility level of design to final engineering plans on key infrastructure, in preparation for the mine construction.
The decision to begin ground an investigation program seeks to fast-track the gold project to an operational status
“The decision has been taken to accelerate the project, by-passing a feasibility level design, which is typically required for bank lending and go directly to a tailings storage facility final level of design,” chief executive Mark Child said in the statement.
Child noted that the slated work would, subject to funding, allow the fast-tracking of the project to an operational status.
The company continues to analyze a number of production scenarios for La India, including a high-grade open pit mine. Such operation would produce between 80,000 and 100,000 ounces of gold a year.
A second scenario involves adding the Mestiza and America pits, which would bring production up to 120,000 ounces of the precious metal annually over seven years.
Condor Gold 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 last year, has operated in the country for two decades.
