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Condor Gold Trench Results Identify Large Gold Footprint and Potential Feeder Pit

LONDON, ENGLAND -- (Marketwired) -- 08/19/14 -- Condor Gold plc ("Condor" or "the Company") - Results for 2646m Trenching at Real de La Cruz, La India Project, Nicaragua

Large Gold Footprint Suggests Top of a Gold System

Condor (AIM:CNR) has completed an initial trench sampling programme on the Real de La Cruz Prospect, La India Project, Nicaragua. Assay results delineate a broad low-grade gold mineralised stockwork zone of 1100m strike length and up to 100m width, which has potential to be a third feeder pit to the plant planned by the nearby La India Open Pit Resource. Real de La Cruz has high level geological characteristics that point to the potential for higher-grade mineralisation at depth, as is evidenced by a high-grade breccia within an incised portion of the prospect.

Highlights of Exploration Trenching:


--  13 trenches for 2,646m at Real de La Cruz demonstrate a wide zone of
    low-grade stockwork gold mineralisation along an 1100m strike length
    including: 
    --  A core zone of 200m strike length by 40m to 65m width averaging
        circa 1g/t gold 
    --  An inner zone of 500m strike length by 20 to 60m width averaging
        over 0.5g/t gold 
    --  An outer halo of at least 1100m strike length by up to 100m width at
        over 0.2g/t gold 
--  Artisanal miners recently excavated a small open pit to access a high-
    grade breccia that returned an intercept of 4m true width quartz breccia
    at 16.4g/t gold. 
--  Gold mineralisation open in all directions and at depth. 
--  Potential supplementary low-grade feeder pit located only 8km from plant
    planned for La India Open Pit Resource. 
--  Large gold footprint with high level vein textures suggests the top of
    the system. 

Mark Child, Chairman and CEO commented:

"It is highly encouraging that Condor's geologists have defined a large area of gold mineralisation through limited trenching on the Real de La Cruz Concession on La India Project. These trench results endorse Condor's strategy of continuing to explore the considerable upside potential of La India Gold District while fast tracking the main La India Open Pit Resource of 921,000 oz at 3.0g/t gold to production. Condor's geologists interpret the geological signatures as representing the top of a much larger gold mineralised system that, with further trenching and drilling, has the potential to develop into a supplementary lower-grade feeder pit to the La India process plant located 8km to the southwest."

Condor has completed 13 trenches for 2,646m using a mechanical excavator to test wide low-grade gold mineralised stockwork zones on the 100% owned Real de La Cruz Concession, part of the La India Project concession package. Gold mineralisation at Real de La Cruz covers a large surface area on the flank and summit of a hill that rises 100m above the surrounding plains. Previous explorer, Newmont Mining, mapped out a 1100m by 900m gold anomalous area through soil auger, rock chip and trench sampling in 2001-2002. Condor has validated and extended the Newmont trenching: Condor trenches are up to 600m long at 200m spacing along an 1100m strike length. The programme was designed to better establish the extent of in situ surface gold mineralisation and obtain a first pass broad view of the grade distribution. See trench results in Table 1 and maps in Figures 1 and 2.

Trench sampling and mapping has confirmed and extended the wide zones of low-grade gold mineralisation identified by the previous explorer. The gold is contained within wide zones of stockwork veins and veinlets, individual veins typically ranging from a few millimetres to tens of centimetres thick at 1-2m vein spacing, and also in wider quartz breccias up to 4m thick. The stockwork and breccia veins are hosted by a felsic lava dome. Three main structural vein orientations are recognised; 090 degrees, 110 degrees and 040 degrees. Vein textures such as banded and bladed quartz indicate at least one phase of mineralisation in the boiling zone. Boiling textures in quartz veins are found throughout the area, but are most abundant in the vicinity of the highest grade trenches in the centre of the area where erosion has incised the dome, possibly exposing lower levels of gold mineralisation. High level vein textures such as opaline quartz, recognised near the summit of the hill in the eastern area of the surface gold anomaly, suggests a high level gold mineralised hydrothermal system.

The width and grade of the gold mineralisation improves towards a central zone where artisanal miners recently excavated a small open pit to access a high-grade breccia, which returned an intercept of 4m true width quartz breccia at 16.4g/t gold (see RNS announcement dated 12th June 2014). Condor's wide spaced trench programme has defined three zones to the surface gold mineralisation (see Figure 2 below):


1.  a core zone over at least 200m strike length of approximately 40-65m
    width averaging approximately 1g/t gold and including a northeast-
    striking 4m true width quartz breccia grading at 16.4g/t gold exposed in
    an artisanal pit wall, 
2.  a broader inner halo over at least 500m strike length of 20-60m width
    averaging over 0.5g/t gold and 
3.  an outer halo averaging over 0.2g/t gold extends the strike to at least
    1,100m, with the width varying from 7m at the flanks to 100m at the
    core. 

The trenching completed to date is considered a first pass test only. Gold mineralisation remains open in all directions where steep slopes or alluvial cover over 2m deep made trench sampling impractical. Isolated gold mineralised outcrops outside of the trench-tested area suggest that there is more near surface gold mineralisation to be discovered. In addition, the 200m spacing employed across the area will require infill trenching to confidently define the variations in grade and width prior to drill testing.

Table 1. Assay results of wide-spaced trench sampling at Real de La Cruz


----------------------------------------------------------------------------
Prospect   Trench ID      From     To  Width     True     Au    Ag  Comments
                                             width(i)  (g/t) (g/t)          
----------------------------------------------------------------------------
                                                                      quartz
Pit Wall   RCTR003       26.00  34.00   8.00      4.0  16.36  6.84   breccia
----------------------------------------------------------------------------
Core Zone  RCTR004       13.40  77.00  63.60     63.6   1.01   0.4          
                       -----------------------------------------------------
                         89.00 103.00  14.00     14.0   0.58   0.7          
----------------------------------------------------------------------------
Core Zone  RCTR007       62.80 169.00 106.20    106.2   0.56   0.2          
                       -----------------------------------------------------
                        221.40 258.00   36.6     36.6   0.29   0.1          
----------------------------------------------------------------------------
                                                              less          
                                                              than          
Inner Zone RCTR008        0.00   8.00   8.00      8.0   0.66   0.1          
                       -----------------------------------------------------
                         34.00  55.00  21.00     21.0   0.28   0.2          
           -----------------------------------------------------------------
           RCTR008B      35.00  40.00   5.00      5.0   0.74   0.2          
           -----------------------------------------------------------------
           RCTR008C      36.25  54.00  18.80     18.8   0.54   0.3          
----------------------------------------------------------------------------
                                                                     Newmont
Inner Zone NDR6846-936  142.00 172.00  30.00     30.0   0.95     -      data
           -----------------------------------------------------------------
           RCTR009        0.00  24.40  24.40     24.4   0.62   0.8          
                       -----------------------------------------------------
                         65.00  75.00  10.00     10.0   0.55   0.4          
                       -----------------------------------------------------
                         81.40  87.50   6.10      6.1   0.37   2.6          
----------------------------------------------------------------------------
Outer Zone RCTR010       82.40  83.00   0.60      0.6   2.14   0.8          
                       -----------------------------------------------------
                        190.00 192.00   2.00      2.0   4.55   1.6          
                       -----------------------------------------------------
                        283.70 288.20   4.50      4.5   1.03   3.1          
----------------------------------------------------------------------------
Outer Zone RCTR011        3.00  15.00  12.00     12.0   0.13   0.1          
                       -----------------------------------------------------
                         32.00  53.00  21.00     21.0   0.18   0.3          
                       -----------------------------------------------------
                         70.00  82.00  12.00     12.0   0.20   0.4          
                       -----------------------------------------------------
                        154.00 156.40   2.40      2.4   0.98   3.2          
           -----------------------------------------------------------------
                                                                     Newmont
           NDR6330-84    38.00  70.00  32.00     32.0   0.60     -      data
----------------------------------------------------------------------------
                                                              less          
                                                              than          
Outer Zone RCTR013       87.50  97.20   9.70      6.9   0.24   0.1          
----------------------------------------------------------------------------
                                                              less          
                                                              than          
Outer Zone RCTR014       31.00  36.90   5.90      5.7   0.61   0.1          
----------------------------------------------------------------------------

In conclusion

The definition of broad zones of near-surface gold mineralisation at over 0.5g/t gold along a 500m strike length, referred to as the core and inner zones, has the potential to provide low-grade supplemental feed to the proposed La India Open Pit Mine plant located only 8km away. Pre-feasibility studies are at an advanced stage on La India Open Pit Resource, where the base case envisages production of circa 80,000 oz gold per annum.

The large footprint and localised zones of wide high-grade gold mineralisation is encouraging. The recognition of quartz vein textures indicative of both high level and boiling zone mineralisation suggests an extremely active system. The artisanal miner's small open pit has provided access to a high-grade breccia which returned an intercept of 4m true width quartz breccia at 16.4g/t gold is exciting and requires further geological investigation. Condor considers that the large low-grade footprint at Real de La Cruz could be the top of a large mineralised system.

Step-out soil sampling and further infill and extension trenching is planned to better define the surface mineralisation prior to drill testing for continuity to depth. Additional geological, geochemical and mineralogical studies will improve understanding of the system and guide further exploration of potential higher-grade mineralisation at deeper levels.

To view Figure 1 and Figure 2, please visit the following link: http://media3.marketwire.com/docs/Figures-CNR.pdf.

Competent Person's Declaration

The information in this announcement that relates to the mineral potential, geology, Exploration Results and database is based on information compiled by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with nineteen years of experience in the exploration and definition of precious and base metal mineral resources. Luc English is a full-time employee of Condor Gold plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Luc English 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.

For further information please visit www.condorgold.com.

About Condor Gold plc:

Condor Gold plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up CIM/JORC Resources in Nicaragua and El Salvador. Condor has eight 100% owned concessions in La India Mining District ("La India Project"); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.

Condor's La India Project in Nicaragua currently contains a total attributable mineral resource of 18.4Mt at 3.9g/t for 2.33M oz gold and 2.68M oz silver at 6.2g/t to the CIM Code. Total gold equivalent of 2.37M oz. Including: Indicated mineral resource of 9.6Mt at 3.5g/t for 1.08M oz gold, Inferred mineral resource of 8.8Mt at 4.4g/t for 1.25M oz gold. Total open pit mineral resources of 1.14M oz gold at 3.1g/t. In El Salvador, Condor has an attributable 1,004,000 oz gold equivalent at 2.6g/t JORC compliant resource. The resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua and Ravensgate and Geosure for El Salvador.

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.

Technical Glossary


----------------------------------------------------------------------------
Assay             The laboratory test conducted to determine the proportion 
                  of a mineral within a rock or other material. Usually     
                  reported as parts per million which is equivalent to grams
                  of the mineral (i.e. gold) per tonne of rock              
----------------------------------------------------------------------------
Auger             A devise used to collect unconsolidated soil or other     
                  subsurface material by drilling either with a screw thread
                  or with a hollow core tube with a blade bit.              
----------------------------------------------------------------------------
Breccia           A rock made up of angular rock fragments cemented together
                  by a finer grained matrix                                 
----------------------------------------------------------------------------
                  The reporting standard adopted for the reporting of the   
                  Mineral resources is that defined by the terms and        
                  definitions given in the terminology, definitions and     
                  guidelines given in the Canadian Institute of Mining,     
CIM Code          Metallurgy and Petroleum (CIM) Standards on Mineral       
                  resources and Mineral Reserves (December 2005) as required
                  by NI 43-101. The CIM Code is an internationally          
                  recognised reporting code as defined by the Combined      
                  Reserves International Reporting Standards Committee      
----------------------------------------------------------------------------
Cross-cutting     Cross-cutting refers to the orientation of a structural   
                  plane or lineament that intersects another plane or       
                  lineament at an obtuse or perpendicular angle.            
----------------------------------------------------------------------------
Dip               A line directed down the steepest axis of a planar        
                  structure including a planar ore body or zone of          
                  mineralisation. The dip has a measurable direction and    
                  inclination from horizontal.                              
----------------------------------------------------------------------------
Epithermal        Mineral veins and ore deposited from fluids at shallow    
                  depths at low pressure and temperatures ranging from 50-  
                  300 degrees C                                             
----------------------------------------------------------------------------
Feeder Pit        Smaller deposits that are physically separate from a main 
                  deposit that can be mined independently from the main     
                  area. These deposits typically simplify operational       
                  planning.                                                 
----------------------------------------------------------------------------
Gold Equivalent   Gold equivalent grade is calculated by dividing the silver
                  assay result by 60, adding it to the gold value and       
                  assuming 100% metallurgical recovery                      
----------------------------------------------------------------------------
Grade             The proportion of a mineral within a rock or other        
                  material. For gold mineralisation this is usually reported
                  as grams of gold per tonne of rock (g/t)                  
----------------------------------------------------------------------------
g/t               grams per tonne                                           
----------------------------------------------------------------------------
                  The rock adjacent to and above an ore or mineralised body 
                  or geological fault. Note that on steeply-dipping tabular 
Hanging wall      ore or mineralised bodies the hanging wall will be        
                  inclined nearer to the vertical than horizontal.          
----------------------------------------------------------------------------
Inferred Mineral  That part of a Mineral resource for which tonnage, grade  
Resource          and mineral content can be estimated with a low level of  
                  confidence. It is inferred from geological evidence and   
                  assumed but not verified geological and/or grade          
                  continuity. It is based on information gathered through   
                  appropriate techniques from locations such as outcrops,   
                  trenches, pits, workings and drill holes that may be      
                  limited, or of uncertain quality and reliability          
----------------------------------------------------------------------------
Indicated         That part of a Mineral resource for which tonnage,        
resource          densities, shape, physical characteristics, grade and     
                  mineral content can be estimated with a reasonable level  
                  of confidence. It is based on exploration, sampling and   
                  testing information gathered through appropriate          
                  techniques from locations such as outcrops, trenches,     
                  pits, workings and drill holes. The locations are too     
                  widely or inappropriately spaced to confirm geological    
                  and/or grade continuity but are spaced closely enough for 
                  continuity to be assumed                                  
----------------------------------------------------------------------------
Intercept         Refers to a sample or sequence of samples taken across the
                  entire width or an ore body or mineralized zone. The      
                  intercept is described by the entire thickness and the    
                  average grade of mineralisation                           
----------------------------------------------------------------------------
JORC              Australian Joint Ore Reserves Committee, common reference 
                  to the Australasian Code for reporting of identified      
                  mineral resources and ore reserves                        
----------------------------------------------------------------------------
koz               Thousand troy ounces                                      
----------------------------------------------------------------------------
kt                Thousand tonnes                                           
----------------------------------------------------------------------------
Mineral Resource  A concentration or occurrence of material of economic     
                  interest in or on the Earth's crust in such a form,       
                  quality, and quantity that there are reasonable and       
                  realistic prospects for eventual economic extraction. The 
                  location, quantity, grade, continuity and other geological
                  characteristics of a Mineral Resource are known, estimated
                  from specific geological knowledge, or interpreted from a 
                  well constrained and portrayed geological model           
----------------------------------------------------------------------------
Open pit mining   A method of extracting minerals from the earth by         
                  excavating downwards from the surface such that the ore is
                  extracted in the open air (as opposed to underground      
                  mining).                                                  
----------------------------------------------------------------------------
oz                Troy ounce, equivalent to 31.103477 grams                 
----------------------------------------------------------------------------
                  A common rock mineral composed of the elements silicon and
Quartz            oxygen.                                                   
----------------------------------------------------------------------------
Quartz breccia    Broken fragments of rock cemented together by a network of
                  quartz rock. The quartz is deposited from saturated       
                  geothermal liquids filling the space between the rock     
                  fragments.                                                
----------------------------------------------------------------------------
Quartz veins      Deposit of quartz rock that develop in fractures and      
                  fissures in the surrounding rock. They are deposited by   
                  saturated geothermal liquids rising to the surface through
                  the cracks in the rock and then cooling, taking on the    
                  shape of the cracks that they fill.                       
----------------------------------------------------------------------------
Rock chip         A sample of rock collected for analysis, from one or      
                  several close spaced sample points at a location. Unless  
                  otherwise stated, this type of sample is not              
                  representative of the variation in grade across the width 
                  of an ore or mineralised body and the assay results cannot
                  be used in a Mineral Resource Estimation                  
----------------------------------------------------------------------------
Stockwork         Multiple connected veins with more than one orientation,  
                  typically consisting of millimetre to centimetre thick    
                  fracture-fill veins and veinlets.                         
----------------------------------------------------------------------------
Strike length     The longest horizontal dimension of an ore body or zone of
                  mineralisation.                                           
----------------------------------------------------------------------------
                  The excavation of a horizontally elongate pit (trench),   
                  typically up to 2m deep and up to 1.5m wide in order to   
                  access fresh or weathered bedrock and take channel samples
Trench            across a mineralised structure. The trench is normally    
                  orientated such that samples taken along the longest wall 
                  are perpendicular to the mineralised structure.           
----------------------------------------------------------------------------
True width        The shortest axis of a body, usually perpendicular to the 
                  longest plane. This often has to be calculated for channel
                  or drill samples where the sampling was not exactly       
                  perpendicular to the long axis. The true width will always
                  be less than the apparent width of an obliquely intersect 
                  sample.                                                   
----------------------------------------------------------------------------
Mt                Million tonnes                                            
----------------------------------------------------------------------------
                  A sheet-like body of crystallised minerals within a rock, 
                  generally forming in a discontinuity or crack between two 
Vein              rock masses. Economic concentrations of gold are often    
                  contained within vein minerals.                           
----------------------------------------------------------------------------
Wallrock          The rock adjacent to an ore or mineralised body or        
                  geological fault.                                         
----------------------------------------------------------------------------

Contacts:
Condor Gold plc
Mark Child
Executive Chairman and CEO
+44 (0) 20 7408 1067

Condor Gold plc
Luc English
Country Manager Nicaragua
+505 8854 0753
www.condorgold.com

Beaumont Cornish Limited
Roland Cornish
+44 (0) 20 7628 3396

Numis Securities Limited
John Prior and James Black
+44 (0) 20 72601000

Farm Street Media
Simon Robinson
+44 (0) 7593 340107

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