19 August 2021

Condor Gold Plc

("Condor", "Condor Gold" or the "Company")

6.6 m True Width at 10.51 g/t Gold Amongst Final Drilling Results from 3,370 m Drilling Programme

Condor Gold (AIM: CNR; TSX: COG) is pleased to announce that all assay results have now been received for the 3,370 m drilling programme in the La India starter pit infill and reserve circulation ("RC")-replacement drill holes completed between December 2020 and June this year.

The highlight new drill result is LIDC464 of 6.6 m true width at 10.51 g/t gold.

The drilling programme has successfully completed 4 objectives: Firstly, to tighten the drill hole spacing to 25 m by 25 m within high grade starter pits within the fully permitted La India open pit. Secondly, to provide the sample density required to finalize pit designs and mine schedules ahead of production. Thirdly, the diamond drilling programme has replaced all historical RC drill holes within the overall La India open pit Mineral Resource and Mineral Reserve, the results of which will improve the integrity of the geological model and sample quality. Lastly, the diamond drilling targeted nearby Inferred Mineral Resources to potentially upgrade the target to an Indicated Mineral Resource, and its then potential inclusion in the mine plan.

Highlights

·    3,370 m diamond core drilling programme completed, all assay results have been received and all significant intercepts have been reported.

·    22.05 m (21.6 m true width) at 6.48 g/t gold from 24.75 m drill depth including 15.35 m (15.0 m true width) at 8.68 g/t gold from 24.75 m drilled depth (drill hole LIDC413).

·    60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t gold from 42.55 m drill depth in drill hole LIDC452 located between the two proposed starter pits.

·    16.00 m (15.7 m true width) at 5.30 g/t gold from 18.35 m drill depth, including 5.90 m (5.8 m true width) at 12.35 g/t gold from 22.10 m drilled depth (drill hole LIDC416).

·    The wide zone of gold mineralization of 54.5 m true width at 1.98 g/t gold near surface has the potential to reduce the strip ratio in the area between the starter pits due to the increase in gold mineralized tonnage verses waste rock, thus potentially improving Project economics.

·    Potential to amalgamate the two Starter Pits into a single, larger Starter Pit as a broad zone of high grade gold mineralization including a high grade intercept was previously interpreted as a low grade zone within the main La India open pit.

Mark Child, Chairman and CEO commented: 

"All assay results for a 3,370 m diamond core drill programme have been received. Please see Table 1 below for top 10 gold intercepts, notably: 22.05 m (21.6 m true width) at 6.48 g/t gold from 24.75 m drill depth including 15.35 m (15.0 m true width) at 8.68 g/t gold from 24.75 m drilled depth (drill hole LIDC413) and 60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t gold from 42.55 m drill depth in drill hole LIDC452 located between the two proposed Starter Pits. Using a 2.0 g/t cut-off grade, the Starter Pits contain 445 Kt at 4.17 g/t gold for 59,700 oz gold with a 6.8 to 1 strip ratio and represent less than 10% of the full permitted La India open pit.

This has been a very successful drill programme and achieved a number of key objectives: Firstly, the geological model has been re-affirmed and is now more robust following a close spaced 25 m by 25 m drill programme in the Starter Pits with some drill assay results better than expected. Secondly, the Starter Pits are now "shovel ready", are within 35 m of surface and will provide early high-grade mill feed for the recently purchased SAG Mill. The replacement of RC drill holes with diamond core drilling strengthens the geological model ahead of production. Project economics are likely to improve with A) confirmation of a broad zone of mineralisation between the starter pits which should reduce the overall strip ratio and B) the discovery of an additional vein in the footwall".

Background and Summary of Drill Programme

The drilling has returned grades and widths of the principal gold mineralised structures in-line with expectations and achieved the four objectives stated earlier.  It has also extended the strike length of an approximately 2 m wide vein in the footwall zone which potentially can add extra ounces of gold to the mineral resource. A broad zone of mineralisation from near surface, LIDC452 of 54.5 m true width at 1.98 g/t gold, including 5.75 m (5.2 m true width) at 16.88 g/t gold, has been confirmed between the two Starter Pits.

Table 1. Top ten gold intercepts from La India Pit infill and RC-replacement drilling.

Gold intercepts include amalgamated intercepts combining remnant mineralisation in the hanging wall and/or footwall of the historic and recent artisanal mine workings. All significant intercepts have been previously reported, and LIDC464 in this RNS.

The twinning and replacement of RC drilling data with diamond core drilling within the open pit Mineral Resource and Mineral Reserve Estimate was undertaken to improve the quality and resolution of the geological model. The diamond core twin drill holes generally confirmed the results of the RC drilling. However, some higher than expected grades and broader zones of mineralisation intersected near surface between the two planned Starter Pits are expected to improve the near surface mineral resource and positively impact on early mining economics, as the strip ratio maybe reduced due to the wider zone of mineralisation:

1.    60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t gold from 42.55 m drill depth in drill hole LIDC452 located between the two proposed Starter Pits.

2.    3.75 m (3.4 m true width) at 9.94 g/t gold from the hanging wall of the historic mine workings in drill hole LIDC454 located between the two Starter Pits.

The starter pits are currently planned to exploit two high-grade segments of the La India open pit to a depth of approximately 35 m below surface; the Southern starter Pit along a 250 m strike length and the Northern starter Pit along 300 m strike are separated by 200 m of what was previously considered a low grade zone. These new drill intercepts will be considered in the final starter pit resource estimation and mine design to see if the starter pits can be extended, of even joined, by exploiting the near-surface gold mineralisation now demonstrated along the intervening 200 m of strike length.

Latest Assay Results

Results for the final two drill holes, one infill drill hole and one RC-twin drill hole were returned:

1.    An infill drill hole (LIDC464) intercepted 6.65 m (6.6 m true width) at 10.51 g/t gold some 10 m below the Northern Starter Pit. The drill hole was designed to pin-down the strike extent of the high-grade shoot that supports the Northern Starter Pit by infilling at 25 m-spacing between a high-grade intercept of 10.11 m (9.8 m true width) at 6.72 g/t gold beneath the starter pit and a notably lower grade 6.28 m (6.1 m true width) at 2.27 g/t gold some 50 m along strike to the north. The intercept should have a positive impact on the mineral resource and extends the high-grade shoot along strike to the north.

2.    A broad intercept of moderate-grade mineralization returned from the final RC-twin drill hole LIDC468 is comparable with the original RC drilling results and confirms mineralization as modelled in this relatively low-grade section of the La India Vein.

Table 2.  Final assay results from La India Pit infill drilling, previously unreported.

*Note: Bureau Veritas Mineral Laboratories, Canada. www.bureauveritas.com/um was used for the drill assay results.

Notes:

1.   The sample chain of custody is managed by the Condor's Geology Team on site. Reported results are from diamond drilled core samples.  Intervals of core to be analysed are split into half using a mechanized core cutter, with one half sent to the Laboratory for geochemical analysis and the remaining half kept in storage for future reference and uses. Diamond drilled core has been a HQ size and recoveries are consistently 100% across all drill holes intercept reported.

2.   Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The QAQC program involves insertion of duplicate samples, blanks and certified reference materials in the sample stream. Gold analyses are performed by standard fire assaying protocols using a 50-gram charge with atomic absorption (AAS) finish and a gravimetric finish performed for assays greater than 10 grams per tonne.

3.   Sample preparation and analysis are performed by the independent Bureau Veritas Laboratories, Canada. Samples are crushed and prepared in Managua and pulp samples for fire assay are dispatched to Vancouver, Canada. The Laboratory meets the requirements of ISO/IEC 17025 & ISO 9001, and employs a Laboratory Information Management System for sample tracking, quality control and reporting.

About the Starter Pits

On 25 January 2019, SRK Consulting (UK) Limited completed an updated Mineral Resource Estimate (the "MRE"; see RNS dated 28 January 2019) on Condor's 100% owned La India Project in Nicaragua comprising 9.85 million tonnes ("M tonnes" or "Mt") at 3.6 g/t gold for 1,140,000 oz gold in the Indicated category and 8.48M tonnes at 4.3g/t gold for 1,179,000 oz gold in the Inferred category.

The La India Vein Set hosts an open pit Mineral Resource of 8,377 kt at 3.1 g/t gold for 837 Koz gold in the Indicated category and 887 kt at 2.4 g/t gold for 69,000 oz gold in the Inferred category. Beneath the La India open pit is an underground Mineral Resource estimate of 678 kt at 4.9 g/t gold for 107 Koz gold in the Indicated category and 1,718 kt at 5.6 g/t gold for 309,000 oz gold in the Inferred category.

The 25 January 2019 MRE update did not materially change the La India open pit Mineral Resource estimate and consequently the 2014 Pre-Feasibility Study ("PFS") remained unchanged. La India open pit has an existing Probable Mineral Reserve of 6.9 million tonnes ("Mt") at 3.01 g/t gold for 675,000 oz gold.

As announced on 4 March 2020 (see RNS), Condor completed internal studies on readily accessible high-grade material within the permitted La India open pit. The starter pits within La India open pit contain a diluted tonnage of 387 Kt at 4.29 g/t gold for 53,000 oz gold.  Condor has subsequently further advanced these studies. Within a designed pit shell, the starter pits have two scenarios. At 0.75 g/t gold cut-off grade, 635 Kt at 3.32 g/t gold for 67,800 oz gold with a 4.5 to 1 strip ratio. Using a 2.0 g/t cut-off grade, 445 Kt at 4.17 g/t gold for 59,700 oz gold with a 6.8 to 1 strip ratio. See table 3 below:

Table 3: Starter Pits within the Main Permitted La India Open Pit

About the replacement of Reverse Circulation (RC) drilling with Diamond Core Drilling

Following the recent completion of a 25 m-spaced infill and reverse circulation (RC) replacement drilling on the La India Starter Pits (see RNS dated 5^th July 2021), a programme of diamond core drilling to replace 90% of the remaining RC drill holes that fall within the main La India open pit shell was completed. A total of twenty-three RC drill holes (for 1632.05 m) were twinned by diamond core drilling, including both those that intercepted mineralisation within and adjacent to the high-grade starter pits, as well as holes drilled in lower grade zones further along strike and beneath the high-grade starter pits.

The current open-pit Mineral Resource partially relies upon chip samples from RC drilling. Whilst it is generally recognised that RC drilling provides reliable gold-grade data at regular metre-scale sample intervals suitable for inclusion in an open-pit Mineral Resource estimation, better and more detailed geological information on the structures that contain the gold mineralised veins and breccia is provided by diamond core drilling. This additional data will further enhance the current Mineral Resources and Mineral Reserves and be utilised in final mine schedules.

About the Drilling Techniques

Drilling was undertaken using heavy duty track-mounted drilling rigs. All of the drilling was undertaken using diamond core drilling techniques employing large diameter PQ core barrels and triple tube in the mineralised zones to ensure good sample recovery. Drilling close to surface and in proximity to historical and artisanal mine workings can present challenges to the driller, however, the drilling programme benefitted from employment of local geologists, field support staff and experienced drill contractors, all with a decade of experience of drilling at la India. Consequently, all target depths were met and good sample recovery was achieved.

About the Assaying

Drill core was cut, and half core samples collected and bagged by Condor staff on-site. Samples were transported to Bureau Veritas accredited sample preparation laboratory in Managua every week in batches of two or three drill holes, generally being submitted to the lab within 5-10 days of completing the drill hole. Sub-samples of the pulverised rock samples were forwarded for assay to Bureau Veritas accredited analytical laboratory in Vancouver, Canada.

- Ends -

For further information please visit www.condorgold.com or contact:

About Condor Gold plc:

Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in January 2018. The Company is a gold exploration and development company with a focus on Nicaragua.

In August 2018, the Company announced that the Ministry of the Environment in Nicaragua had granted the Environmental Permit ("EP") for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day at its wholly-owned La India gold project ("La India Project"). The EP is considered the master permit for mining operations in Nicaragua. Condor Gold published a Pre-Feasibility Study ("PFS") on the project in December 2014, summarised in the Technical Report, as defined below. The PFS details an open pit gold Mineral Reserve in the Probable category of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold, producing 80,000 oz gold per annum for 7 years. La India Project contains a Mineral Resource of 9,850 Kt at 3.6 g/t gold for 1.14 Moz gold in the Indicated category and 8,479 Kt at 4.3 g/t gold for 1.18 Moz gold in the Inferred category. The Indicated Mineral Resource is inclusive of the Mineral Reserve. A gold price of $1,500/oz and a cut-off grade of 0.5 g/t and 2.0 g/t gold were assumed for open pit and underground resources, respectively. A cut-off grade of 1.5 g/t gold was furthermore applied within a part of the Inferred Resource. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources will be converted to Mineral Reserves.

Environmental Permits were granted in April and May 2020 for the Mestiza and America open pits respectively, both located close to La India. The Mestiza open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the Inferred Mineral Resource category. The America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold (67,000 oz) in the Inferred Mineral Resource category. Following the permitting of the Mestiza and America open pits, together with the La India open pit Condor has 1.12 Moz gold open pit Mineral Resources permitted for extraction, inclusive of a Mineral Reserve of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Qualified Persons

The Mineral Resource Estimate has been completed by Ben Parsons, a Principal Consultant (Resource Geology) with SRK Consulting (U.S.), Inc, who is a Member of the Australian Institute of Mining and Metallurgy, MAusIMM(CP). He has some nineteen years' experience in the exploration, definition and mining of precious and base metals. Ben Parsons is a full-time employee of SRK Consulting (U.S.), Inc, an independent consultancy, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a "qualified person" as defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators and as required by the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Ben Parsons consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The technical and scientific information in this press release has been reviewed, verified and approved by Gerald D. Crawford, P.E., who is a "qualified person" as defined by NI 43-101 and is the Chief Technical Officer of Condor Gold plc.

The technical and scientific information in this press release has been reviewed, verified and approved by Andrew Cheatle, P.Geo., who is a "qualified person" as defined by NI 43-101.

Technical Information

Certain disclosure contained in this news release of a scientific or technical nature has been summarised or extracted from the technical report entitled "Technical Report on the La India Gold Project, Nicaragua, December 2014", dated November 13, 2017 with an effective date of December 21, 2014 (the "Technical Report"), prepared in accordance with NI 43-101. The Technical Report was prepared by or under the supervision of Tim Lucks, Principal Consultant (Geology & Project Management), Gabor Bacsfalusi, Principal Consultant (Mining), Benjamin Parsons, Principal Consultant (Resource Geology), each of SRK Consulting (UK) Limited, and Neil Lincoln of Lycopodium Minerals Canada Ltd., each of whom is an independent "qualified person" as defined by NI 43-101.

Forward Looking Statements

All statements in this press release, other than statements of historical fact, are 'forward-looking information' with respect to the Company within the meaning of applicable securities laws, including statements with respect to: the ongoing mining dilution and pit optimisation studies, and the incorporation of same into any mining production schedule, future development and production plans at La India Project. Forward-looking information is often, but not always, identified by the use of words such as: "seek", "anticipate", "plan", "continue", "strategies", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", "could", "might", "will" and similar expressions. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions regarding: future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; the receipt of required permits; royalty rates; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to: mineral exploration, development and operating risks; estimation of mineralisation, resources and reserves; environmental, health and safety regulations of the resource industry; competitive conditions; operational risks; liquidity and financing risks; funding risk; exploration costs; uninsurable risks; conflicts of interest; risks of operating in Nicaragua; government policy changes; ownership risks; permitting and licencing risks; artisanal miners and community relations; difficulty in enforcement of judgments; market conditions; stress in the global economy; current global financial condition; exchange rate and currency risks; commodity prices; reliance on key personnel; dilution risk; payment of dividends; as well as those factors discussed under the heading "Risk Factors" in the Company's annual information form for the fiscal year ended December 31, 2020 dated March 31, 2021 and available under the Company's SEDAR profile at www.sedar.com.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Technical Glossary