- Mining company Condor Gold swung to a profit in the first quarter thanks to proceeds from the sale of its Potrerillos exploration and exploitation concession to Nicoz Resources.

For the three months ending 31 March, the company reported a pre-tax profit of £92.5K from a loss of £352K on-year. The company had yet to generate revenue.

The net payment to Condor S.A. from the sale of the Potrerillos concession after deduction of taxes was approximately US$555K At 8:59am: [LON:CNR] Condor Gold PLC share price was -1.5p at 42p

'During the 1st quarter 2020, Condor continued to de-risk La India Project and demonstrate a clear route to production. The company has been working on the engineering and other technical studies required ahead of a construction decision and acquiring land for the mine site infrastructure,' the company said.

'A high-grade mining dilution scenario study was completed, which supports a smaller, 1,000tpd processing plant capable of producing approximately 50,000 oz gold per a year. Total diluted mill feed is 1,637Kt at a 4.65g/t gold diluted head grade containing 245,000 oz gold,' it added. 'A smaller mill would significantly reduce the capex required to construct a processing plant and allow for a much larger plant at a later stage.'

'The company held two successful public consultations for two high grade feeder pits; permits have subsequently been granted, increasing the open pit material to 1.12M oz gold Mineral Resources permitted for extraction, inclusive of a Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold. The objective is to commence site preparation in Q4 2020 and demonstrate a clear route to cashflow,' Condor added.

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