StockMarketWire.com - Condor Gold has revealed new figures which significantly enhance the economics of its La India project in Nicaragua. Traders pushed the company's shares higher on the news.

Condor said figures in Whittle Consulting's enterprise optimisation study show that the project has an average net present value of USD196.0m compared to Condor Gold's current market capitalisation of US$12m.

The company had been unable to publish the study results because it was in a offer period having put itself up for sale. One of the reasons that the formal sales process was terminated on 18 January was to provide shareholders with the full details of the optimisation study.

Highlights:

· NPV increases on average 56% across three production scenarios and 78% for the PFS case.

· Average NPV USD196m compared to the current market capitalisation USD12m highlights significant undervaluation with a price-to-book ratio 0.06 times

· IRR averages 30% across three production scenarios

· 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

· 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 recovered gold over life of mine ranges from 796,000 oz to 1,437,000 oz gold across the 3 production scenarios

· AlI in sustaining cash costs remain under USD700 per oz gold for all production scenarios Chief executive Mark Child said: "We are very pleased to now be able to release the materially improved NPV and IRR figures contained within the optimisation study. The NPV of the PFS case of Indicated ounces gold only, increased 78%. The average NPV increases 56% for three production scenarios compared to the production scenarios within the PFS and PEAs announced in December 2014.

"The average NPV is USD196m compared to the current market capitalisation of USD12M, valuing the Company at a price-to-book ratio of 0.06 times, highlighting the material undervaluation of the Company's shares.

"The IRRs increase to an average of 30%. Indicated ounces of gold within the main La India open pit increase by 29% to 866k oz gold and also by 29% for the main pit + feeder pits to 1,066k oz gold as the pit pushed deeper. 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. 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." At 9:22am: [LON:CNR] Condor Gold PLC share price was +4p at 24p



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