Condor Gold has completed the three-year permitting process for its La India gold mine in Nicaragua and is committed to moving forward despite unrest in the country.
British miner Condor Gold (TSX:COG,LSE:CNR) has completed the three-year permitting process for its US$120-million La India gold project in Nicaragua
The company said Monday (August 6) that it is committed to building the mine despite ongoing political protests in the country.
According to a press release, Condor has been granted a permit for a mine and processing plant at La India. The plant will have the capacity to process up to 2,800 tonnes a day and will produce approximately 80,000 ounces of gold a year.
“I am delighted that the Ministry of the Environment and Natural Resources [MARENA] has granted Condor Gold the key environmental permit for the development, construction and operation of a processing plant,” said Mark Child, chairman and CEO of Condor.
“Gold production is expected to be approximately 80,000 ounces gold per annum from a single open pit, represents a US$120 million investment and creates 1,000 new jobs,” he added.
Child noted that with its permit now in hand, Condor will progress the redesigned mine site infrastructure for the La India open pit to the bankable feasibility study level.
Additionally, he noted, “under the conditions of the environmental permit, the company has to submit to MARENA final engineered designs for several key components of the mine prior to construction. For example, the final design and operations manual for the tailings storage facility.”
He continued, “[s]ubject to financing, completion of a BFS and completion of the final engineering designs, construction is expected to commence within 18 months of the grant of the environmental permit. The construction period is expected to take 18 to 24 months.”
The company sees the receipt of the permit as a tribute to the dedication of its team on the ground, which is made up of 100 percent Nicaraguan nationals. The permit is the culmination of 11 years of both scientific geological work and technical mining studies at La India.
Condor has approximately 70 employees in Nicaragua and says it will continue to focus on supporting its staff, despite the political situation in the Central American nation.
In an effort to keep the project positive and cordial in the face of ongoing political unrest that has claimed over 300 lives, Condor has held constructive meetings in recent months with key ministries.
The company noted that at a mid-July public consultation, nearly 500 people attended and overwhelming support was voiced for the new mine.
La India is located in an old mining area, adjacent to a former mining community. Condor has pointed out that in addition to the 1,000 jobs that the construction and operation of the mine will create, there will be three to five times more indirect jobs related to providing services to the mine.
As of 12:55 p.m. EST on Tuesday (August 7), Condor was up 8.33 percent, trading at US$0.78.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.