MC talked to some shareholders on Thursday and would like to ensure that his thoughts are broadcast to everyone. I received a (second hand) email this morning which outlined a number of things discussed. They are not really news as such or we would have had an RNS but they do act as reassurance that things are actually happening with the company; MC is pretty adamant that he has not been twiddling his thumbs and that he is very active in pursuing Condor’s interests.
My synopsis of the email content:
The permit delays have arisen because of the proximity of the village to the proposed activity area. The Government has repeatedly indicated that they will issue the required permits but it looks to me like a fear of doing the wrong thing has delayed the actual admin. MC has explored options avoiding resettlement and to lift a quote from the email:
‘It is technically feasible and economically viable to progress the mine without resettlement with an open pit approximately the same size as the PFS pit which has an economic reserve of 675,000 oz gold at 3.0g/t gold, with production of circa 80k oz gold per annum.’
‘Note that the reserve pit contains inferred material which is excluded. In other words, the recovered gold to the ROM pad is over 700,000 oz gold. We are studying how fast this can be mined.’
It looks like Condor is initially permitting 35% of the gold (1m oz) with a view to expand to 3m oz, ‘this would be 2M oz recovery gold over the life of mine or approximately 200,000 oz gold per annum production.’
Recent meetings relating to the project have included:
- Minster Mansell, the Minster of Energy and Mines
- President?s son
- Director General Department of Mines
- Director of Inward Investment Agency
- Governor of Department of Leon (the mine is in his department)
- Local Mayor
- Local Priest
- Head of Chamber of Mines
MC is adamant that this is a reflection of the fact that the mine will get permitted and that Condor is on its way to becoming a ‘substantial 200k gold producer’.
I believe him. The recent pull back could be a rare opportunity to buy at an attractive price, a price that clearly does not reflect the proximity of the permits being received.
His full email is doing the rounds at the moment. MC clearly wants it shared with everyone.