Name of the Project
La India gold project.
Location
Nicaragua.
Project Owner/s
Condor Gold.
Project Description
Condor released a preliminary economic assessment (PEA) on the project in October 2021, which presented two scenarios for its development.
In Scenario A, the PEA envisages mining from four openpits – La India, America, Mestiza and Central Breccia Zone – that will target a plant feed rate of 1.225-million tonnes a year.
About 1.47-million ounces of gold are expected to be produced over a 12-year life-of-mine (LoM).
In Scenario B, mining is extended to include three underground operations at La India, America and Mestiza, in which the processing rate is increased to 1.4-million tonnes a year.
This scenario will produce an average of 120 000 oz/y over an initial six years of production and 862 000 oz over a nine-year life-of-mine.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Scenario A has an estimated post-tax net present value (NPV) , at a 5% discount rate, of $302-million and an internal rate of return (IRR) of 58%, with a payback of 12 months
Scenario B has an estimated post-tax NPV, at a 5% discount rate, of $418-million, after deducting upfront capital expenditure (capex), and an IRR of 54%, with a payback of 12 months.
Capital Expenditure
Scenario A estimates capital investment of $160-million, including contingency, where the underground development is funded through cash flow.
Scenario B will require a capital investment of $153-million, including contingency.
Planned Start/End Date
Not stated.
Latest Developments
Condor Gold is searching for a buyer for its La India project, preferably a gold producer with mine building expertise.
The company has appointed Hannam and Partners as an adviser to seek a buyer for the asset.
Key Contracts, Suppliers and Consultants
SRK Consulting (PEA).
Contact Details for Project Information
Condor Gold, tel +44 20 7493 2784 or email information@condorgold.com.