Condor Gold studying new options to develop La India project

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 year.

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.