Drilling cheer for Condor

08/11/2007 Robert Tyerman

Central America-focused Condor Resources claims encouraging results from drilling at its El Cacao gold prospect in Nicaragua.

The AIM-quoted company says the first phase of drilling has identified at least two mineralised zones containing high-grade shoots over a 330-metre strike length. Best results include 14.05 metres at 6.05 grammes of gold per tonne of ore and an exceptional 2.6 metres at 88.72 grammes a tonne.

Nigel Ferguson, London-based Condor's Australian chief executive officer, maintains the company 'is confident that further significant mineralisation will be encountered and a resource proved'. These El Cacao results come only a few days after the company announced high-grade trench results from its La Calera prospect in El Salvador, ranging from 12 metres with gold at 5.37 grammes and silver at 2.6 grammes a tonne to four metres with gold at 24.52 grammes and silver at 14.38 grammes a tonne.

Condor shares have been volatile performers since floating last year at 10p. After rising briskly to 14p, they fell all the way to 4.37p earlier this month.

These drilling results, coupled with the recent strength of gold, suggest this fall could have been overdone and the price has rallied to 6.38p. With the market now favouring producing or nearly producing mining companies over pure exploration plays, the shares' appeal remains speculative at this stage.

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