Aim- and TSX-listed Condor Gold has entered into an agreement to buy a new semi-autogenous grinding mill (SAG) mill from First Majestic to bring the La India project, in Nicaragua, into production.
The purchase consideration is about $6.5-million, of which $3-million will be paid in shares of the company.
“I am delighted that First Majestic Silver has given a vote of confidence to Condor’s management team and endorsed a new mine at the fully permitted La India project by accepting part payment in Condor shares at 50p,” said CEO Mark Child.
Buying a mill that is superfluous to First Majestic’s needs significantly shortens the mill delivery time for La India, setting Condor on an accelerated path to production.
The mill, manufactured and supplied by Metso Outotec, comes with warrantees.
Metso Outotec’s technical support group has estimated throughput of 2 300 t/d, or 0.8-million tonnes a year, on a sustained basis, using the existing motor.
Increasing the motor size would increase throughput to 2 850 t/d.
Child said initial gold production would be between 80 000 oz/y and 100 000 oz/y.
The new SAG mill forms Stage 1 of production and the aim is to materially expand production capacity after two to three years.