Condor Gold PLC on Wednesday saw shares drop after a feasibility study at its La India project produced disappointing results.

Condor Gold is an England-based, Nicaragua-focused gold exploration and development company. The La India project, which the company owns completely, is a 588 square-kilometre concession package covering 98% of the historic La India mining district.

The company’s recently-completed feasibility study at La India showed probable mineral reserves of 7.3 million tonnes at 2.56 grammes per tonne of gold, for 602,000 ounces of gold.

Production was seen at 81,545 ounces per annum for the first six years of an 8.4 year mine life.

Condor Gold shares were trading 4.9% lower at 24.50 pence each in London on Wednesday afternoon.

Condor Gold said it expects a low initial capital requirement of $105.5 million for the mine, with low average life of mine all-in sustaining cash costs at $1,039 per ounce.

It also said that, at a price of $1,600 per ounce of gold, the mine holds an internal rate of return of 23% and net present value of $86.9 million.

The company’s plan is to materially expand production with a stage two expansion. It is currently working to convert existing mineral resources into mineral reserves, and to develop an associated integrated mine plan.

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