TORONTO, ONTARIO, Canada, March 26, 2003 (PRIMEZONE) -- Condor Gold Corp. (Pink Sheets: CDRGF) (the "Corporation") announces that its Jackrabbit Project in Chester, Yeo and Benneweis Townships has now been identified as a major gold depository with (1) significant concentrations of gold (with potential economic concentrations of silver plus copper) as high grade, interfingering veins extending from surface; and (2) a potentially multi-million ounce, geologically inferred, low grade, large tonnage open pittable gold resource (with economic credits from industrial minerals and rare earth elements).
Please note: The full version of this release, with charts illustrating drill intersections and borehole results, can be found in its entirety at the following link:
http://media.primezone.com/cache/1709/file/701.pdf
DRILLING RESULTS/JACKRABBIT PROJECT/CHESTER TOWNSHIP
Condor Gold Corp. is pleased to announce the results from its recently completed Borehole E-03-27 drilled on its 100% owned property in its Jackrabbit Project in Chester Township, Ontario, Canada. The Jackrabbit Project is located on Highway No. 144 near the town of Gogama about 147 kilometres north of Sudbury.
Previous engineering studies on the property have identified a resource of approximately 273,840 ounces of gold (comprised of a measured mineral resource of 68,000 ounces and an indicated mineral resource of 41,400 ounces and an inferred resource of 164,400 ounces) on Condor's 100% owned properties and approximately 200,000 ounces of gold (comprised of an indicated resource of 77,880 ounces and an inferred resource of 122,120 ounces) on its joint venture property with Young-Shannon Gold Mines, Limited.
Condor has earned a 7.5% interest in the joint venture property to date by incurring expenditures and cash payments of $1,000,000. Condor can earn a total of 60% by committing a further $3,000,000 in expenditures and cash payments by July 31, 2005, to earn an additional 32.5% interest in the property and by putting the property into production by January 31, 2006, to earn the final 20% interest.
The approximately 500,000 ounces of gold (includes 286,520 ounces inferred) resource identified above is within approximately 1.4 million tons grading approximately 0.4 ounces per ton (excluding the silver and copper credits equivalent to 0.1 ounce gold). The resource extends from surface to an arbitrary termination depth of exploration of 550 to 600 feet in three, presently identified, deposits. The bulk of the approximately 600 diamond drill holes, and decline with drifting, were focussed on these deposits.
The free milling gold mineralization is hosted by quartz-iron carbonate dominated "growth" veins which matrix breccias of varying distension intensities and whose surface expressions, where exposed, were found to vary from mineable widths of 5 to 110 feet. The high-grade gold vein mineralization represents but one of the two settings of mineralization identified in association with the newly recognized composite porphyry emplacement measuring approximately three miles by six miles (east-west). The high-grade gold is hosted by the early stage emplacements of quartz diorite porphyry and feldspar-quartz porphyry (formerly trondhjemite/granodiorite).
Because less than 10% of the favourable, spatially peripheral porphyry contact zone has been explored, Condor Gold Corp. considers the prospect of adding significant tonnages of high-grade gold to be achievable. It should be mentioned that large sections of these favourable contacts have associated VLF/IP anomalies and represent future targets. Additional tonnages of high-grade gold are anticipated following additional drilling and the extension of the known bodies of mineralization beyond (a) the shallow depths (see table) so as to incorporate as many of the laterally removed gold intersections (refer to the incomplete listing as tabled) and beyond (b) the arbitrary termination depth of exploration of 550 to 600 feet.
The early stage emplacements and mineralization occur spatially peripheral, as an outer shell, to the newly identified (second) setting of disseminated gold hosted by quartz "eye" - muscovite "greisen" porphyry. The disseminated gold represents an open pittable, potentially multi-million ounce, geologically inferred, low-grade resource of immense importance and potential, particularly when the additional host rock credits from silica flux (already confirmed by Lakefield Research Limited) and plastic filler and rare earth elements are factored in to the total open pit evaluation.
A further drilling program of approximately 11,800 feet was completed in January 2003. Work on collating and logging all of the core is currently being undertaken for assay submission. Completion of all assays is expected over the period of April and May 2003. Partial assay results from a drill program of approximately 9,200 feet carried out in the summer of 2002 on the Young-Shannon joint venture, have given encouragement for the continuation of mineralization with depth below the arbitrary termination level of 550 to 600 feet. Ongoing detail core examination supports the presence of host porphyries.
CLOSURE PLAN FILED FOR ADVANCED EXPLORATION/PRODUCTION
In February 2003, the Corporation filed a Notice of Project Status Form 6, i.e., an operating plan for advance exploration/production in respect of its proposed open pit and muck pile operations located on the company's wholly owned properties in Areas 1 and 3 of the Jackrabbit Project in Chester Township. The Notice of Project includes provisions for necessary rehabilitation work and financial assurance required to commence operations. Necessary consultations with local communities and Mattagami First Nation have been successfully concluded. Acceptance of the closure plan is expected in April 2003 at which time operations are scheduled to commence. Initial operations will focus on the Area 3 open pit project containing 38,000 indicated ounces of recoverable gold within 35 feet of surface.
FLOW THROUGH PRIVATE PLACEMENT
Pursuant to private placement subscription agreements, the Corporation has raised $470,000 by the issuance of 3,760,000 units at $0.125 per unit. Each unit is composed of one common share and a half warrant to purchase an additional common share at $0.25 for twelve (12) months. The Corporation is utilizing the funds to continue with its exploration and development program on its Chester Township Jackrabbit Project located near Gogama in northern Ontario.
CONDOR GOLD CORP.
The Corporation is a public company incorporated under the laws of Ontario and is traded on the U.S. Pink Sheets under the quotation symbol: CDRGF. The Corporation, through its subsidiaries, owns or controls interests in gold properties in the townships of Chester, Benneweis and Yeo, with a total strike length of eighteen miles. The properties are located adjacent to a paved main Highway No. 144 just south of the town of Gogama, Ontario, or about 147 kilometers north of Sudbury. Frank P. Puskas, B.Sc., M.Sc., a qualified person under National Instrument 43-101 has reviewed and verified the data, including the analytical and test data referred to in this press release. The Corporation's Qualifying Report can be viewed at www.sedar.com. Further information can be obtained from the Corporation's website.
For further information, contact:
Alexander Stewart: Chairman and Chief Executive Officer,
Condor Gold Corp.
Telephone: (416) 368-6161
Facsimile: (416) 368-7805
Address: 390 Bay Street, Suite 2020
Toronto, Ontario
M5H 2Y2
Website: www.condorgold.com
The Corporation currently has 72,337,200 common shares outstanding.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities of the Corporation in any jurisdiction. The purchase warrants and the underlying common shares described above were not registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirement.