Study Significantly Enhances Economics On La India Project

LONDON - Condor reported results from Whittle Consulting Limited's Enterprise Optimization study on La India Project, Nicaragua. The optimization involves the application of advanced analytical techniques to construct a model of the operation from the ore bodies through mining and ore treatment processes to products sold to the market with a view to maximizing a project's economics. The study used the reserves/pages and technical studies used in the NI 43-101 compliant Pre-Feasibility Study (PFS) and Preliminary Economic Assessments (PEA) produced by independent mineral resource and mining consultants SRK Consulting Limited.

Highlights of Optimization Study: 22% increase in average gold production for the first 5 years, ranging from 91,000 oz to 165,000 oz gold per annum across three production scenarios; The object of the optimization is to bring forward future cash flows; 29% increase to 866k oz gold from 674k oz gold of contained gold of Indicated ounces only in the base case La India open pit, as the pit pushes deeper; 29% increase to 1,066k oz gold from 827k oz gold contained gold of Indicated and Inferred ounces within La India open pit + two feeder pits; 18% increase to 1,544k oz gold from 1,313 oz gold of contained gold of Indicated and Inferred within all pits and underground; The model shows payback improves to 2-3 production years across three production scenarios; The recovered gold over life of mine ranges from 796,000 oz to 1,437,000 oz gold across the 3 production scenarios; All in sustaining cash costs remain under US$700 per oz gold for all production scenarios. Mark Child, CEO said, "The results of the optimization study are extremely positive. Indicated ounces of gold within the main La India open pit increase by 29% to 866k oz gold as the pit pushes deeper. Contained gold within the pit shells increases 29% to 1,066k oz gold for the main pit and feeder pits. The annual gold production for the first 5 years increases on average 22% and ranges from 91,000 oz gold to 165,000 oz gold per annum versus the PFS and PEA studies. All in sustaining cash costs remain under US$700 per oz gold. The recovered gold over life of mine ranges from 796,000 oz to 1,437,000 oz gold. The average pay back of upfront capital costs is between two and three production years, highlighting the outstanding economics and versatility of La India Project. The optimization study commenced in May 2015 to maximize the economics for four production scenarios at La India Project by bringing forward future cash flows and increasing production ounces. The main optimization mechanisms applicable to the La India Project are: variable cut-off grade, stockpile use, grind-throughput-recovery, optimized pit and phasing, and multi-mine scheduling."