Nicaragua’s Ministry of Energy and Mines has granted the explorer and developer Condor Gold the Las Cruces concession, expanding the La India project package by 45% to 455.6 km2.
The La India project now comprises 11 adjacent and contiguous exploration and exploitation concessions, which Aim- and TSX-listed Condor acquired over the last 12 years.
CEO Mark Child commented that the 25-year concession confirmed that Nicaragua was pro-mining and open for business.
He added that the La India project could be a major gold district and that it had the potential to host more than five-million ounces of gold.
Condor's geologists have identified a major north-northeast-striking basement feeder zone through the La India corridor, which hosts 90% of Condor's 2.4-million ounce gold resource. The feeder zone can be projected south-east into Las Cruces.
Child said that mapping and early prospecting/sampling showed that Las Cruces was inside a volcanic caldera and had extensive clay alteration and rare vuggy silica.
“This alteration appears to be a 'lithocap', which raises the possibility of underlying porphyry-style mineralisation (copper and/or gold). This porphyry is potentially the 'heat engine' and metal source that caused gold mineralisation across the entire La India gold district. We are particularly keen to follow up on anomalous samples of up to 0.1% copper."
Condor jumped 10% on the Aim on Friday to trade at 31p a share.