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.
Nicaragua-focused Condor Gold (LON:CNR) (TSX:COG) revealed on Wednesday a new alternative open pit development for its flagship La India gold project, in the country’s western region.
The company, which is running a number of mining scenarios ahead of a construction decision, said the leading option was to proceed with the development of the main, permitted La India open pit, which would produce 80,000 to 100,000 ounces of gold per year.
The company is weighing various production scenarios ahead of a construction decision
The second option, said Condor, would be to complement the main pit with two smaller, nearby feeders — Mestiza and America — which are currently being permitted. This plan would increase La India’s production to about 120,000 gold ounces annually during a seven-year mine life.
Condor Gold initially 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 its 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.
The company also attracted a partner — Nicaragua Milling. The privately held company, which took a 10.4% stake in Condor Gold in September, has operated in the country for two decades.
