Edison Investment Research Report

PEA report for La India project
Wednesday, March 13, 2013

On 5 March 2013, Condor Gold reported the completion of an initial preliminary economic assessment (PEA) on its 100%-owned La India gold project in Nicaragua. This shows total production of 1.46Moz at an average grade of 3.8g/t over 13 years at an average operating cost of US$575/oz, with an initial output rate of 172,000oz pa. The study shows a pre-production capital cost of US$180.5m and an IRR of 33%. In September 2012, SRK Consulting reported a 2.4Moz at 4.6g/t compliant resource statement for the project. This excludes results from the current drill programme, which appears likely to support a substantial increase in resources.