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1、 Company number:05587987 CONDOR GOLD PLC Report and Accounts Year ended 31 December 2017 -1-CONDOR GOLD PLC CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 TABLE OF CONTENTS Page Highlights 2 Chairmans Statement 3 4 Strategic Report 5 8 Project Overview 9 12 Review of Operat
2、ions 13 24 Statement of Forward-Looking Information and Technical Information 25-26 Report of the Directors 27-31 Report of the Independent Auditor 32-37 Consolidated Statement of Comprehensive Income 38 Consolidated Statement of Financial Position 39 Consolidated Statement of Changes in Equity 40 C
3、ompany Statement of Financial Position 41 Company Statement of Changes in Equity 42 Consolidated Statement of Cash Flows 43 Company Statement of Cash Flows 44 Notes to the Financial Statements 45 63 -2-CONDOR GOLD PLC HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2017 5.242M raised by way of a private p
4、lacement of new ordinary shares.Approximately 2,000 metres drilling on 3 scout targets completed on Real de la Cruz,Tatescame and Andrea.5,922 metre drill campaign completed at Mestiza.The objective of the drill campaign at Mestiza is to convert an historic Soviet-era resource to NI 43-101 standard.
5、The highlight of the drill results on Mestiza is a high-grade ore shoot in the Tatiana vein.This has a strike length of 450 m and an estimated average true width of 2.2 m.The shoot can be extrapolated approximately 200 m below surface;LIDC 344,which has a drill width 3.30 m at 28.3 g/t gold,is 60 m
6、vertically beneath surface.LIDC 358,drill width of 3.55 m at 23.3 g/t gold,is approximately 100 m vertically below LIDC 344.Soil geochemistry survey completed in August 2017 over the entire 313 km of La India Project,included several high grade rock chip samples of over 10g/t gold,highlighting sever
7、al new exploration target.Regional structural geological model updated,highlighting two major basement feeder zones,La India Corridor and the Andrea Corridor,together with a linking structure in the South.Significant progress made by the social team on gaining a social licence to operate.Secondary t
8、rading on the OTCQX Best Market in the U.S.commenced in April 2017.Conditional approval received to dual-list the Companys shares on the Toronto Stock Exchange.POST PERIOD HIGHLIGHTS Shares of the Company were dual-listed on the Toronto Stock Exchange on 15 January 2018 Roger Davey retired from the
9、Board after 6 years and was replaced by Andrew Cheatle,a Canadian resident and mining industry professional.La India Open pit was redesigned to avoid resettlement and a corresponding amendment to the Environmental and Social Impact Assessment,which forms a key part of the application for the Environ
10、mental Permit,was submitted to the Ministry of the Environment and Natural Resources.Redesigned open pit is not expected to materially alter Pre-Feasibility Study open pit gold mineral reserve in the Probable category of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold,producing 80,000 oz gold per annum f
11、or seven years.-3-CONDOR GOLD PLC CHAIRMANS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 Dear Shareholder,I am pleased to announce Condor Gold Plcs(“Condor”or“the Company”or“the Group”,)annual report for the 12-month financial year to 31 December 2017.Following the release in December 2014 of a NI
12、43-101 technical report detailing a Pre-Feasibility Study(“PFS”)and two Preliminary Economic Assessments(“PEAs”),the Company spent 2015,2016 and 2017 executing a twin strategy of permitting the construction and operation of a base case processing plant with capacity of up to 2,800 tonnes per day(“tp
13、d”)capable of producing approximately 100,000 oz gold per annum and proving a major Gold District at the 313km La India Project,Nicaragua.In November 2015,Condor formally submitted a 700-page Environmental and Social Impact Assessment(“ESIA”)document,applying for an Environmental Permit to the Minis
14、try of the Environment and Natural Resources,Nicaragua(“MARENA”)for the construction and operation of an open pit mine,a 2,800 tpd or 1 million tonnes per annum(“tpa”)CIL processing plant and associated infrastructure at La India Project.The application envisaged the resettlement of approximately 33
15、0 houses or 1,000 people.The community resettlement combined with Presidential and Mayoral elections has been the reason the permit has been delayed 18 months.Overall,the Government of Nicaragua has been supportive of Condor building a new mine at the historic Mina La India.On 26 February 2018,Condo
16、r announced that it had formally submitted a 130 page amendment to the ESIA to MARENA,to construct and operate a processing plant without the need to resettle approximately 330 houses or 1,000 people.This followed several months of discussions and collaborative meetings with MARENA and the Ministry
17、of Energy and Mines(“MEM”),such that the technical components within the amended ESIA required by both Ministries were agreed in advance and submitted in the final amended application.The general feedback from MEM,MARENA and local stakeholders has been that permitting will be much easier now that th
18、e mine has been redesigned to proceed without resettling 1,000 people.Condors technical team has redesigned La India open pit and believe it is both technically viable and economically attractive,should future funding be received,to proceed with a redesigned open pit that does not require community
19、resettlement.It includes the relocation of the processing plant approximately 1,200 metres from the village.A 5 metre high berm is planned between the redesigned open pit and the village to reduce noise and dust pollution.Mine scheduling studies are on-going,and further details will be provided in d
20、ue course.Condor does not anticipate a material change in the total ounces of gold expected to be recoverable from the redesigned open pit compared to the open pit disclosed in the PFS.The PFS details an open pit gold Mineral Reserve in the Probable category of 6.9 Mt at 3.0 g/t gold for 675,000 oz
21、gold,producing 80,000 oz gold per annum for seven years.The revised ESIA document considers the environmental and social impacts of gold production from the La India Open Pit mine plan,which is a single pit,detailed in the NI 43-101 compliant PFS released in December 2014 and the Whittle Enterprise
22、Optimisation study which was finalised on 22 January 2016.The ESIA draws on data from 15 different environmental and social baseline studies,some of which commenced in 2013.In addition to describing the potential impacts of a future commercial mine on the environment,the ESIA also contains detailed
23、environmental management plans and social management plans to monitor and control any such impacts.The ESIA describes a processing plant that will have a capacity of up to 2,800 tpd 1.0 million tpa with an upfront capital cost of approximately US$120M.All-in-sustaining-cash-costs are circa US$700 pe
24、r oz gold.The ESIA includes processing of an additional 10,000oz of gold p.a.from artisanal miners through the main processing plant,but the artisanal miners ore is excluded from the PFS,PEAs and Optimisation Studies.During 2017,SRK Consulting(UK)Lpleted two scoping level studies each aimed at exami
25、ning the likely production scenarios in the event that the mineral resource in the 3 main vein sets of La India,America and Mestiza is increased from 2.1M oz gold to 3M oz gold.The studies conclude that the 3 vein sets could be mined simultaneously from a combination of open pit and underground mini
26、ng methods and possibly double the annual production rate.Condor has been working on a land acquisition programme for over 4 years and plans to acquire approximately 600 hectares of rural land for the production scenario in the PFS.ProNicaragua is assisting with a clean up of land titles.During 2017
27、,the Company purchased 150 hectares of rural land.Two independent valuations have been conducted and a strategy is being implemented to secure the rural land by paying 10%of the purchase price of land to landowners,who grant Condor an option to purchase the rural land for a two-year period.Offers to
28、 purchase the land have been made to all landowners;at the time of writing 30%have accepted.Exploration activities during 2017 followed a dual approach of exploration or scout drilling which targeted new areas within the La India Project and regional exploration,primarily focussed on identifying tar
29、gets for hidden deep-seated gold mineralisation.On 31st March 2017,Condor commenced an initial 2,000m drilling programme on Mestiza to test the historic Soviet mineral resource and went on to complete almost 6,000m drilling on Mestiza by August 2017.The aim was to convert the upper portion of the So
30、viet mineral resource to a NI 43-101-standard Inferred Mineral Resource.This is significant for four reasons:1.Soviet-backed drilling in 1991 supported a Soviet-style mineral resource of 2,392kt at 10.2 g/t gold for 785,694oz gold at Mestiza.Note that the Company is not treating this historical esti
31、mate as current mineral resources or mineral reserves.It is superseded by the mineral resources reported herein.Condor has used the Soviet data,and subsequent drilling undertaken by Canadian companies,to plan a drill programme to convert the upper portion of the Soviet resource to Western standards.
32、2.Mestiza already hosts a NI 43-101-compliant Inferred Mineral Resource of 1,490kt at 7.47g/t for 333,000oz gold.However,this is excluded from the current PFS and PEA Studies at the La India Project.3.There is a high possibility of bringing additional high grade gold ore from Mestiza into a future m
33、ine plan,feeding a centralised processing plant.4.There is the possibility of a third feeder pit on Mestiza.-4-CONDOR GOLD PLC CHAIRMANS STATEMENT(CONTD.)FOR THE YEAR ENDED 31 DECEMBER 2017 The Mestiza Vein Set is excluded from the PFS.It is encouraging that Micon Internationals 1998 report on the E
34、spinito-Mendoza Concession concluded that the property has good potential to become a small(500 to 800tpd),low cost mine.In April 2017,Condor completed a regional soil geochemistry survey designed to look for high-level,epithermal pathfinder elements above hidden deep-seated epithermal gold minerali
35、sation.Following the 71km multi-element soil survey carried out in 2015 a further 109km was completed in 2016,with the balance of the entire 313km of the La India Project concession package completed by April 2017.The interpretation of the soil geochemistry,in conjunction with the field mapping,has
36、highlighted several areas for follow up exploration.The International Finance Corporation(“IFC”),the private sector investment body of the World Bank,was a 7.33%shareholder in the Company at 31st December 2017.Condor is committed to complying with IFC Performance Standards,which are an international
37、 benchmark for identifying and managing environmental and social risk.Condor has put considerable time and effort into fulfilling the requirements of an Environmental Social Action Plan(ESAP),which was agreed to with the IFC as part of their investment process.La India Project has now met the condit
38、ions of the agreed ESAP.The Companys fulfilment of the ESAP items,to the satisfaction of the IFC,is establishing the basis for the sustainability of a future mine at La India Project,whose development is subject to obtaining all required permits and compliance with IFC performance standards applicab
39、le to that stage.Implementation of IFC Performance Standards help Condor manage and improve our environmental and social performance through an outcomes-based approach and also provide a solid base from which the company may increase the sustainability of its business operations and provides benefit
40、s for all shareholders.In October 2017,Mr Aiser Sarria joined Condor Gold as General Manager,Mina La India.Mr Sarria joins Condor from B2Gold where he was Projects and Mine Superintendent at El Limon Mine,which is only 35 miles away from La India Project.He has the relevant experience of open pit an
41、d underground mining to progress Mina La India through permitting,additional technical studies and construction.In November 2017,Mr Jeffrey Karoly joined Condor Gold as Chief Financial Officer.Mr Karoly has extensive experience at CFO-level in listed companies,with a particular focus on South Americ
42、a since spending time there with Anglo American.He has first-hand experience of maintaining AIM/TSX dual listings and was instrumental in Condors dual listing on the TSX in January 2018.Turning to the financial results for the year 2017,the loss for the year was 3,023,615(2016:7,682,231).The Company
43、 raised 5.242 million during the financial period.The increase in cash and cash equivalents over the year was 362,651(2016:increase of 141,900).The net cash balance at 31st December 2017 was 946,261 In 2017,the Company announced it had raised 5.242 million by way of a private placement of 8,454,733
44、new ordinary shares at a placement price of 62 pence.A one-half warrant,which is unlisted,was attached to each placement share.A total of 4,227,364 warrants were issued with an exercise price of 93 pence and a 2 year life.If exercised in full,the warrants would raise gross proceeds of 3,931,449 The
45、twin strategy for 2018 remains to obtain the Environmental Permit for a base case of a 2,800tpd processing plant for a single open pit at La India,with the capacity to produce approximately 100,000oz gold per annum and to demonstrate a major Gold District at La India Project.On the grant of the perm
46、its,Condor envisages a 12 month study period followed by an 18 to 24 month construction period.During the 12 month study period,subject to funding,the Company has exploration drill plans targeted to add 1million ounces of gold to the global mineral resource through extensions to known mineralisation
47、 and determine whether feeder pits can be added to the PFS as well as progress the main La India open pit from PFS to FS.-5-CONDOR GOLD PLC STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2017 REVIEW OF DEVELOPMENTS AND FUTURE PROSPECTS The Groups financial performance for the year was in line with
48、Directors expectations.The Groups loss after taxation but before exceptional items for the year to 31 December 2017 amounted to 3,023,615(2016:3,617,145).The Group had exceptional items in 2016 relating to the cessation of El Salvadorian operations amounting to 4,065,086.The Groups total losses befo
49、re taxation and including exceptional items amounted to 3,023,615(2016:7,682,231).The amount noted above has been classified as an exceptional item as the Group expects this to be a onetime cost.By using this alternative performance measure,the Group believes that readers will have a more accurate v
50、iew of future expected operations.The Groups administrative expenses for the year were 3,023,953(2016:3,618,877).No dividends were paid during the year(2016:nil).The Company has reviewed the future budget and cashflows.Reconciliation to Group loss after taxation but before exceptional items:2017 201
51、6 Group loss before taxation:3,023,613 7,682,231 Exceptional item -4,065,086 Group loss after taxation but before exceptional items:3,023,613 7,682,231 The impairment of the El Salvador assets has been classified as an exceptional item as management does not consider it to be representative of the u
52、nderlying performance of the business.The Group,at the end of the financial period has 100%ownership of ten concessions in La India Mining District and a further four in three additional project areas in Nicaragua.During the current year,the Group capitalised a further 3,239,665 on exploration and e
53、valuation activities of the projects.During the year,the Group purchased options to acquire the land required to develop the mine in Nicaragua.These options have been included within the amount capitalised in exploration and evaluation activities during the year.The Company is currently investing in
54、 the La India Project,which is discussed in greater detail in the Chairmans Report,Operations Report and Projects Overview,and note 11 of the financial statements.Operations in El Salvador have ceased and are being wound up.KEY PERFORMANCE INDICATORS The key indicator of performance for the Group is
55、 its success in identifying,acquiring,developing and divesting investments of gold and silver mineral concessions so as to create shareholder value.Control of bank and cash balances is a priority for the Group and these are budgeted and monitored closely to ensure that it maintains adequate liquid r
56、esources to meet financial commitments as they arise.At this stage in its development,quantitative key performance indicators are not an effective way to measure the Groups performance.However,a qualitative summary of performance in the period in the Chairmans Statement and the Operations Report and
57、 Project Overview is an effective way of measuring the key performance of the Company.PRINCIPAL RISKS AND UNCERTAINTIES Set out below are the principal risks and uncertainties facing the Group:Exploration risks The exploration and mining business is controlled by a number of global factors,principal
58、ly supply and demand which in turn is a key driver in global metal prices;these factors are beyond the control of the Group.Exploration is a high-risk business and there can be no guarantee that any mineralisation discovered will result in Proven and Probable Mineral Reserves or go on to be an opera
59、ting mine.At every stage of the exploration process the projects are rigorously reviewed,both internally and by qualified third party consultants to determine if the results justify the next stage of exploration expenditure,ensuring that funds are only applied to high priority targets.The principal
60、assets of the Group,comprising the mineral exploration licences,are subject to certain financial and legal commitments.If these commitments are not fulfilled the licences could be revoked.To mitigate these risks,the Group closely monitors on an ongoing basis its commitments and the expiry terms of a
61、ll licenses in order to ensure good title is maintained.They are also subject to legislation defined by the government in Nicaragua;if this legislation is changed it could adversely affect the value of the Groups assets.-6-CONDOR GOLD PLC STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2017 Resource
62、 estimates The Groups reported mineral resources are only estimates.No assurance can be given that the estimated mineral resources will be recovered or that they will be recovered at the rates estimated.Mineral Resource and Mineral Reserve estimates are based on limited sampling and as a result are
63、uncertain because the samples may not be fully representative of the full mineral resource.Further,these mineral resource estimates may require revision(either up or down)in future periods based on additional drilling or actual production experience.Any future mineral resources will be estimates and
64、 there can be no assurance that the minerals are present,will be recovered or that they can be brought into profitable production.Furthermore,a decline in the market price for natural resources,particularly gold,could render reserves containing relatively lower grades of these resources uneconomic t
65、o recover.Country risk The Groups licences and operations are located in foreign jurisdictions.As a result,the Group is subject to political,economic and other uncertainties,including but not limited to,changes in policies or the personnel administering them,appropriation of property without fair co
66、mpensation,cancellation or modification of contract rights,royalty and tax increases and other risks arising out of foreign governmental sovereignty over the area in which these operations are conducted.Nicaragua is the current focus of the Groups activity and offers stable political frameworks and
67、actively supports foreign investment.It has a well-developed exploration and mining code with proactive support for foreign companies.The economy of Nicaragua grew in 2017 and the country has also been the recipient of major funds from the World Bank and these have been largely allocated to infrastr
68、ucture projects,some of which indirectly benefit the La India project.The Company continues to monitor the economic and political climate in the country.Volatility of commodity prices:Historically,commodity prices(including in particular the price of gold)have fluctuated and are affected by numerous
69、 factors beyond the Groups control.The aggregate effect of these factors is impossible to predict.Fluctuations in commodity prices in the long-term may adversely affect the returns of the Groups projects.A significant reduction in the global demand for gold,leading to a fall in gold prices,could lea
70、d to a significant fall in the cash flow of the Group in future periods and/or delay in exploration and production,which may have a material adverse impact on the operating results and financial position of the Group.The Group evaluates trends in the gold market in assessing the future viability of
71、the La India Project.Financing The successful exploration of natural resources on any project requires significant capital investment.The Group currently sources finance through the issue of additional equity capital.The Groups ability to raise further funds will depend on the success of its investm
72、ent strategy and acquired operations.The Group may not be successful in procuring the requisite funds on terms which are acceptable and,if such funding is unavailable,the Group may be required to reduce the scope of its investments or anticipated expansion.To date the Group has been successful in ra
73、ising capital and prepares expenditure budgets to ensure that its activities are consistent with its financial resources.Dependence on key personnel The Group is dependent upon its executive management team.Whilst it has entered into contractual agreements with the aim of securing the services of th
74、ese personnel,the retention of their services cannot be guaranteed.The development and success of the Group depends on the ability to recruit and retain high quality and experienced staff.The loss of service of key personnel or the inability to attract additional qualified personnel as the Group gro
75、ws could have an adverse effect on future business and financial conditions.Through offering competitive remuneration packages,to date the Group has been successful in recruiting and retaining high quality staff.Uninsured risk The Group,as a participant in exploration and development programmes,may
76、become subject to liability for hazards that cannot be insured against,or third party claims that exceed the insurance cover.The Group may also be disrupted by a variety of risks and hazards that are beyond its control,including geological,geotechnical and seismic factors,environmental hazards,indus
77、trial accidents,occupation and health hazards and weather conditions or other acts of God.In common with other companies operating in natural resources exploration,the Groups activities are speculative and involve a high degree of risk.The Groups exploration work involves participation in soil surve
78、ys,trenching and drilling.Interpretations of the results of these programmes are dependent on judgements and assessments of qualified geoscientists.These interpretations are applied in designing further exploration work programmes and mining studies to which the Company can commit significant fiscal
79、 resources.Work programmes often involve drilling and other geoscientific work that occasionally present unique engineering challenges that could result in unexpected operational problems.Furthermore,activities generally take place in remote locations that can be subject to unexpected climate events
80、,possible acts of terrorism,criminal threats,piracy and potential environmental risks.The Group operates in countries where political,economic,legal,regulatory and social uncertainties are potential risk factors.The company continues the process of winding up its El Salvador operations.The risk comm
81、ittee carefully monitor the project areas in Nicaragua,and actively work to mitigate any foreseen risks to the project.Furthermore,the Group seeks to minimise risk through purchasing of a variety of insurance policies.-7-CONDOR GOLD PLC STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2017 GOING CONC
82、ERN The Group reviews its going concern status,via comparisons to budgets,cash flow forecasts,and access to further financing.At the balance sheet date the group had 946,261 of cash.In common with many exploration companies,the Company raises finance for its exploration and appraisal activities in d
83、iscrete tranches to finance its activities for limited periods only.The directors have identified that further funding will be required to finance the Groups in-fill drilling and resources expansion programme in Nicaragua followed by a Feasibility Study.The Directors are confident that the Company w
84、ill be able to raise these funds however there is no binding agreement in place to date.These conditions indicate the existence of a material uncertainty and may cast doubt on the Group and Companys ability to continue as a going concern.Nevertheless,the financial statements have been prepared on a
85、going concern basis.Should sufficient funding not be obtained,the Company and the Group will be unable to continue trading and adjustments would have to be made to reduce the value of the assets to their recoverable amounts,to provide for further liabilities which might arise and to classify non-cur
86、rent assets as current assets.FINANCIAL RISK MANAGEMENT The Groups operations expose it to financial risks that include credit risk,liquidity risk,and market risks including fluctuations in the price of gold.The Group does not have any debt and is not therefore required to use derivative financial i
87、nstruments to manage interest rate costs nor is hedge accounting applied.1.Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Groups receivables from cust
88、omers and investment securities.The Group and the Companys financial assets comprise receivables and cash and cash equivalents.The credit risk on cash and cash equivalents is limited because the counterparties are banks with high credit-ratings assigned by international credit rating agencies.The cr
89、edit risk on trade and other receivables is limited to the Groups receivable of 320,974.The exposure of the Group and the Company to credit risk arises from default of its counterparty,with maximum exposure equal to the carrying amount of cash and cash equivalents in the Groups Statement of Financia
90、l Position.The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.The Group defines counterparties as having similar characteristics if they are connected entities.The Group does not hold any collateral as
91、 security.2.Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.The Groups approach to managing liquidity is to maintain sufficient cash and cash equivalents on demand to meet its obligations as and when they fall due.The Group
92、 actively manages its working finance to ensure that sufficient funds exist for operations and planned expansion.3.Market risks Market risk is the risk that changes in market prices,such as foreign exchange rates,interest rates,the price of gold and equity prices will affect the Groups income or the
93、 value of its holdings of financial instruments.The objective of market risk management is to manage and control market risk exposures within acceptable parameters,while optimising return on risk.(i)Pricing and risks The Directors consider there to be minimal price risk to the business.Price risk to
94、 the business relates to the international price of gold.(ii)Interest rate cash flow risk The Group does not have interest bearing liabilities.Interest bearing assets are only cash balances that earn interest at a floating rate.(iii)Foreign exchange risk The Group principally operates in US Dollars
95、for its operations in Central America.The Directors believe that the contracts for transfers of funds to Central America are so small,as funds are remitted monthly in advance,that there would be no benefit gained from hedging these contracts in the market.As such,currency is bought at the spot rates
96、 prevailing on the days transfers are to take place.This situation is monitored on a regular basis,and at present the Group does not have any formal policy for hedging against exchange exposure.The Group may,when necessary,enter into foreign currency forward contracts to hedge against exposure from
97、currency fluctuations,however,the Group has not entered into any currency forward contracts to date.-8-CONDOR GOLD PLC STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2017 FINANCIAL RISK MANAGEMENT continued 4.Capital risk management The Group manages its capital to ensure that entities within the G
98、roup will be able to continue individually as going concerns,while maximising the return to Shareholders through the optimisation of debt and equity balances.The Group manages its capital structure and makes adjustments to it,in the light of changes in economic conditions.To maintain or adjust its c
99、apital structure,the Group may adjust or issue new shares or raise debt.No changes were made in the objectives,policies or processes during the years ended 31 December 2017 and 31 December 2016.The capital structure of the Group consists of equity attributable to equity holders of the parent,compris
100、ing issued capital,reserves and retained losses as disclosed in the Consolidated Statement of Changes in Equity.ON BEHALF OF THE BOARD:M L Child Chairman Date:23 March 2018 -9-CONDOR GOLD PLC PROJECT OVERVIEW FOR THE YEAR ENDED 31 DECEMBER 2017 CURRENT CONCESSION HOLDINGS Nicaragua Projects Project
101、Concession Ownership Expiry Date Area(km)La India Project La India 100%Owned January 2027 68.50 Espinito Mendoza 100%Owned November 2026 2.00 Cacao 100%Owned January 2032 11.90 Santa Barbara 100%Owned April 2034 16.20 Real de la Cruz 100%Owned January 2035 7.66 Rodeo 100%Owned January 2035 60.40 La
102、Mojarra 100%Owned June 2029 27.00 La Cuchilla 100%Owned August 2035 86.39 El Zacatoso 100%Owned October 2039 1.00 Tierra Blanca 100%Owned June 2040 32.21 Subtotal 313.26 Boaco Rio Luna 100%Owned June 2035 43.00 RAAN Estrella 100%Owned April 2035 18.00 Nueva Segovia Potrerillos 100%Owned December 203
103、1 12.00 TOTAL 386.26 All concessions in Nicaragua are combined exploration and exploitation concessions.-10-CONDOR GOLD PLC PROJECT OVERVIEW FOR THE YEAR ENDED 31 DECEMBER 2017 CURRENT LA INDIA PROJECT CIM CODE MINERAL RESOURCE The following Mineral Resource estimations set out Condors Mineral Resou
104、rce Statement as at 30 September 2014 for the La India Project,as disclosed in the Technical Report.Table 1.CIM Compliant Mineral Resource Statement as at 30 September 2014 for the La India Project(SRK Consulting(UK)Ltd.).SRK MINERAL RESOURCE STATEMENT SPLIT PER VEIN as of 30 September 2014(4),(5),(
105、6),(7)Category Area Name Vein Name Cut-Off gold silver Tonnes(Kt)Au Grade(g/t)Au(Koz)Ag Grade(g/t)Ag(Koz)Indicated La India veinset La India/California(1)0.5 g/t(OP)8,267 3.1 832 5.5 1,462 La India/California(2)2.0 g/t(UG)706 4.9 111 10.6 240 America veinset America Mine 0.5 g/t(OP)114 8.1 30 4.9 18
106、 America Mine 2.0 g/t(UG)470 7.3 110 4.7 71 Inferred La India veinset La India/California(1)0.5 g/t(OP)895 2.4 70 4.3 122 Teresa(3)0.5 g/t(OP)4 6.6 1 La India/California(2)2.0 g/t(UG)1,107 5.1 182 11.3 401 Teresa(2)2.0 g/t(UG)82 11.0 29 Arizona(3)1.5 g/t 430 4.2 58 Agua Caliente(3)1.5 g/t 40 9.0 13
107、America veinset America Mine 0.5 g/t(OP)677 3.1 67 5.5 120 America Mine 2.0 g/t(UG)1,008 4.8 156 6.8 221 Guapinol(3)1.5 g/t 751 4.8 116 Mestiza veinset Tatiana(3)1.5 g/t 1,080 6.7 230 Buenos Aires(3)1.5 g/t 210 8.0 53 Espinito(3)1.5 g/t 200 7.7 50 Central Breccia Central Breccia(1)0.5 g/t(OP)922 1.9
108、 56 San Lucas San Lucas(3)1.5 g/t 330 5.6 59 Cristalito-Tatescame Cristalito-Tatescame(3)1.5 g/t 200 5.3 34 El Cacao El Cacao(3)1.5 g/t 590 3.0 58 Notes(1)The La India,America and Central Breccia pits are amenable to open pit mining and the Mineral Resource Estimates are constrained within Whittle o
109、ptimised pits,which SRK based on the following parameters:a gold price of U.S.$1,500 per ounce of gold with no adjustments;prices are based on experience gained from other SRK projects;metallurgical recovery assumptions of 91%for gold,based on assumptions provided by the Company,marginal costs of U.
110、S.$19.2/t for processing,U.S.$5.63/t G&A and U.S.$2.47/t for mining;and slope angles defined by the Company geotechnical study which range from angle 46-48.(2)Underground Mineral Resources beneath the open pit are reported at a cut-off grade of 2.0 g/t over a minimum width of 1.0 m.Cut-off grades ar
111、e based on a price of U.S.$1,500 per ounce of gold and gold recoveries of 91%for resources,costs of U.S.$19.00/t for processing,U.S.$10.0/t G&A and U.S.$50.0/t for mining,without considering revenues from other metals.(3)Mineral Resources as previously quoted by SRK(December 22,2011)are reported at
112、a cut-off grade of 1.5 g/t,and have not been updated as part of the current study due to no further detailed exploration.(4)Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.All figures are rounded to reflect the relative accuracy of the estimate and have bee
113、n used to derive sub-totals,totals and weighted averages.Such calculations inherently involve a degree of rounding and consequently introduce a margin of error.Where these occur,SRK does not consider them to be material.All composites have been capped where appropriate.The Concession is wholly owned
114、 by and exploration is operated by Condor Gold plc.(5)The reporting standard adopted for the reporting of the MRE uses the terminology,definitions and guidelines given in the Canadian Institute of Mining,Metallurgy and Petroleum(CIM)Standards on Mineral Resources and Mineral Reserves(May 2014)as req
115、uired by NI 43-101.(6)SRK completed a site inspection to the deposit by Mr.Benjamin Parsons,MSc(MAusIMM(CP),Membership Number 222568),an appropriate “independent qualified person”as this term is defined in NI 43-101.(7)The Mineral Resources are inclusive of the Mineral Reserves.-11-CONDOR GOLD PLC P
116、ROJECT OVERVIEW FOR THE YEAR ENDED 31 DECEMBER 2017 Table 2.Summary of La India Project Mineral Resource Statement as of 30 September 2014(SRK Consulting(UK)Ltd.).SRK MINERAL RESOURCE STATEMENT SPLIT PER VEINSET as of 30 September 2014 (4),(5),(6),(9)Category Area Name Vein Name Cut-Off gold silver
117、Tonnes(Kt)Au Grade(g/t)Au(Koz)Ag Grade(g/t)Ag(Koz)Indicated Subtotal Areas La India veinset 0.5 g/t(OP)(1)8,267 3.1 832 5.5 1,462 2.0 g/t(UG)(2)706 4.9 111 10.6 240 America veinset 0.5 g/t(OP)(1)114 8.1 30 4.9 18 2.0 g/t(UG)(2)470 7.3 110 4.7 71 Inferred Subtotal Areas La India veinset 0.5 g/t(OP)(1
118、)899 2.5 71 4.3 122 2.0 g/t(UG)(2)1,189 5.5 211 11.3 401 1.5 g/t(3)470 4.7 71 America veinset 0.5 g/t(OP)(1)677 3.1 67 5.5 120 2.0 g/t(UG)(2)1,008 4.8 156 6.8 221 1.5 g/t(3)751 4.8 116 Mestiza veinset 1.5 g/t(3)1,490 7.0 333 Central Breccia 0.5 g/t(OP)(1)922 1.9 56 Other veins 1.5 g/t(3)1,120 4.2 15
119、1 Notes(1)The La India,America and Central Breccia pits are amenable to open pit mining and the Mineral Resource Estimates are constrained within Whittle optimised pits,which SRK based on the following parameters:a gold price of U.S.$1,500 per ounce of gold with no adjustments;prices are based on ex
120、perience gained from other SRK projects;metallurgical recovery assumptions of 91%for gold,based on assumptions provided by the Company,marginal costs of U.S.$19.2/t for processing,U.S.$5.63/t G&A and U.S.$2.47/t for mining;and slope angles defined by the Company geotechnical study which range from a
121、ngle 46-48.(2)Underground Mineral Resources beneath the open pit are reported at a cut-off grade of 2.0 g/t over a minimum width of 1.0 m.Cut-off grades are based on a price of U.S.$1,500 per ounce of gold and gold recoveries of 93%for resources,costs of U.S.$19.0/t for processing,U.S.$10.0/t G&A an
122、d U.S.$50.0/t for mining,without considering revenues from other metals.(3)Mineral Resources as previously quoted by SRK(December 22,2011)are reported at a cut-off grade of 1.5 g/t,and have not been updated as part of the current study due to no further detailed exploration.(4)Mineral Resources are
123、not Mineral Reserves and do not have demonstrated economic viability.All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals,totals and weighted averages.Such calculations inherently involve a degree of rounding and consequently introduce a ma
124、rgin of error.Where these occur,SRK does not consider them to be material.All composites have been capped where appropriate.The Concession is wholly owned by and exploration is operated by Condor Gold plc.(5)The reporting standard adopted for the reporting of the MRE uses the terminology,definitions
125、 and guidelines given in the Canadian Institute of Mining,Metallurgy and Petroleum(CIM)Standards on Mineral Resources and Mineral Reserves(May 2014)as required by NI 43-101.(6)SRK completed a site inspection to the deposit by Mr.Benjamin Parsons,MSc(MAusIMM(CP),Membership Number 222568),an appropria
126、te“independent qualified person”as this term is defined in National Instrument 43-101.(7)Back calculated silver grade based on a total tonnage of 1,576 Kt as no silver estimates for Central Breccia(922 Kt).(8)Back calculated silver grade based on total tonnage of material estimated for silver of 3,7
127、731 Kt,for veins where silver assays have been recorded in the database.(9)The Mineral Resources are inclusive of the Mineral Reserves.-12-CONDOR GOLD PLC PROJECT OVERVIEW FOR THE YEAR ENDED 31 DECEMBER 2017 Table 3.Summary of La India Project Mineral Resource Statement as of 30 September 2014(SRK C
128、onsulting(UK)Ltd.)SRK MINERAL RESOURCE STATEMENT as of 30 September 2014 (4),(5),(6),(9)Category Area Name Vein Name Cut-Off gold silver Tonnes(Kt)Au Grade(g/t)Au(Koz)Ag Grade(g/t)Ag(Koz)Indicated Grand total All veins 0.5 g/t(OP)(1)8,382 3.2 862 5.5 1,480 2.0 g/t(UG)(2)1,176 5.9 221 8.2 312 Subtota
129、l Indicated 9,557 3.5 1,083 5.8 1,792 Inferred Grand total All veins 0.5 g/t(OP)(1)2,498 2.4 194 4.8(7)242 2.0 g/t(UG)(2)2,197 5.2 366 8.8 622 1.5 g/t(3)3,831 5.4 671 Subtotal Inferred 8,526 4.5 1,231 7.1(8)865 Notes(1)The La India,America and Central Breccia pits are amenable to open pit mining and
130、 the Mineral Resource Estimates are constrained within Whittle optimised pits,which SRK based on the following parameters:a gold price of U.S.$1,500 per ounce of gold with no adjustments;prices are based on experience gained from other SRK projects;metallurgical recovery assumptions of 91%for gold,b
131、ased on assumptions provided by the Company,marginal costs of U.S.$19.2/t for processing,U.S.$5.63/t G&A and U.S.$2.47/t for mining;and slope angles defined by the Company geotechnical study which range from angle 46-48.(2)Underground Mineral Resources beneath the open pit are reported at a cut-off
132、grade of 2.0 g/t over a minimum width of 1.0 m.Cut-off grades are based on a price of U.S.$1,500 per ounce of gold and gold recoveries of 93%for resources,costs of U.S.$19.0/t for processing,U.S.$10.0/t G&A and U.S.$50.0/t for mining,without considering revenues from other metals.(3)Mineral Resource
133、s as previously quoted by SRK(December 22,2011)are reported at a cut-off grade of 1.5 g/t,and have not been updated as part of the current study due to no further detailed exploration.(4)Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.All figures are rounde
134、d to reflect the relative accuracy of the estimate and have been used to derive sub-totals,totals and weighted averages.Such calculations inherently involve a degree of rounding and consequently introduce a margin of error.Where these occur,SRK does not consider them to be material.All composites ha
135、ve been capped where appropriate.The Concession is wholly owned by and exploration is operated by Condor Gold plc.(5)The reporting standard adopted for the reporting of the MRE uses the terminology,definitions and guidelines given in the Canadian Institute of Mining,Metallurgy and Petroleum(CIM)Stan
136、dards on Mineral Resources and Mineral Reserves(May 2014)as required by NI 43-101.(6)SRK completed a site inspection to the deposit by Mr.Benjamin Parsons,MSc(MAusIMM(CP),Membership Number 222568),an appropriate“independent qualified person”as this term is defined in National Instrument 43-101.(7)Ba
137、ck calculated silver grade based on a total tonnage of 1,576 Kt as no silver estimates for Central Breccia(922 Kt).(8)Back calculated silver grade based on total tonnage of material estimated for silver of 3,7731 Kt,for veins where silver assays have been recorded in the database.(9)The Mineral Reso
138、urces are inclusive of the Mineral Reserves.CURRENT LA INDIA PROJECT CIM CODE MINERAL RESERVE Table 4.La India Open Pit Mineral Reserve Estimate for La India Project Mineral Resource Statement as of 21 December 2014(SRK Consulting(UK)Ltd.).Mineral Reserve Class Diluted Tonnes Diluted Grade Contained
139、 Metal (Mt dry)(g/t Au)(g/t Ag)(Koz Au)(Koz Ag)Proven-Probable 6.9 3.0 5.3 675 1,185 Total 6.9 3.0 5.3 675 1,185 Note(1)Open pit mineral reserves are reported at a cut-off grade of 0.75 g/t Au assuming:metal price of U.S.$1,250 per ounce gold,processing cost of U.S.$20.42 per tonne milled,G&A cost o
140、f U.S.$5.63 per tonne milled,U.S.$10/oz Au selling cost,3%royalty on sales and a processing recovery of 91%.-13-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 NICARAGUA OPERATIONS REPORT La India,Espinito Mendoza,Cacao,Santa Barbara,Real de la Cruz,El Rodeo,La Cuchilla,La M
141、ojarra,El Zacatoso and Tierra Blanca Concessions(Condor 100%ownership).Introduction La India Project is a 313km concession package covering an estimated 98%of the historic La India Gold Mining District and comprises of 10 contiguous and adjacent concessions,see Figure 1.The District supported produc
142、tion of up to 41k oz gold per annum at over 11g/t head grade from underground mining between 1938 and 1956.An estimated total of 575,000 ounces of gold were mined during this period.A Pre-Feasibility Study(“PFS”)on open-pit mining at La India and two supplementary Expansion Scenarios which explored
143、the possibility of including two additional satellite open pits,and underground mining beneath the La India and America open pits,as summarised in the Technical Report,were released with an effective date of 21st December 2014.To comply with Canadian securities law requirements,the two Expansion Sce
144、narios were prepared to replace the original PEAs contained within the technical report prepared in 2014.The study defined the first mineral reserve on the Project since mining ceased in 1956,with an open pit Probable Mineral Reserve of 6.9Mt ore at 3.0g/t gold and 5.3g/t silver for a total of 675,0
145、00oz gold and 1,185,000oz silver on the principal La India Vein.The PFS demonstrates that the base case of mining La India open pit reserve only would support a 0.8Mtpa processing plant to produce 614,000oz gold over a 9 year mine life at an average annual gold production of 79,300oz pa.The Expansio
146、n Scenarios assessed the addition of satellite open pits at the nearby America Vein Set and Central Breccia gold mineralisation to support a 1.2Mtpa plant for a total production of 774,000oz gold over an 8 year mine life.The development of an underground mine from the La India and America open pits
147、would increase production to 1.6Mtpa for 1.2M oz gold production over a 12 year mine life.The PFS prepared in accordance with NI 43-101.Following-up on the release of a positive PFS on mining at the La India Project in Nicaragua,released at the end of 2014,the Company has sought to secure permits an
148、d land access for development of the core La India open pit gold mine while simultaneously proving a major Gold District.An Environmental Impact Assessment(“EIA”)in support of an Environmental Permit was submitted in November 2015 and preparations for permitting took up much of the work of the socia
149、l,admin and management time in 2016.Figure 1 Location of Condor Golds 313km concession package at La India Project-14-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Exploration activities continue to follow a dual approach during 2017:1.scout drilling to demonstrate unteste
150、d targets as well as expand known resources.2.regional exploration primarily focussed on identifying targets for hidden,deep-seated gold mineralisation via soil geochemistry,geological mapping,rock chip sampling,and a small amount of trenching.Concession Soil Samples Rock Chip Samples Trenches Compl
151、eted Trench(m)Trench Samples Drill holes Completed Drilling(m)Drilling Samples La India 32 175 10 133 132 12 1850 729 Cacao 35 15 19 El Rodeo 38 6 945 293 Real de La Cruz 31 5 La Cuchilla 810 52 Santa Barbara 175 39 El Zacatoso Tierra Blanca 437 4 Espinito/Mendoza 21 32 4470 1610 La Mojarra 205 22 T
152、otals 1725 371 10 133 132 50 7265 2651 Table 1 Summary of drilling,trenching,rock chip and soil geochemistry sampling completed in 2017.The scout drilling programme began in November 2016 on the Cacao,Real de la Cruz,Tatascame and Andrea targets,and continued into early 2017.Two drill holes(total 42
153、3.6 m)were completed at Tatascame and 6 holes(945 m)at Andrea.The 6 relatively shallow holes on the Andrea vein found abundant zeolite veinlets,minerals typical of the upper parts of epithermal systems(above the boiling zone,normally associated with economic gold grades).The northern holes cut barre
154、n quartz/carbonate veins,but the deepest,southernmost,hole encountered significant gold mineralization,with 5.1 m 1.9 g/t gold.This began at 186 m depth.Subsequent exploration along the Andrea Vein(mapping and rock sampling)focused on generating drill targets on the southeast extension of the final
155、drill hole.Drilling commenced at the Mestiza Vein Set(Mestiza)with one rig in March 2017.The program aimed to test and convert the upper part of an historic Soviet mineral resource(2,392 kt at 10.2 g/t gold for 785,694 oz gold)to Canadian NI 43-101 standard.This program concluded in August 2017,with
156、 a total of 43 drill holes(5,922 m)(Figure 1).Table 1 lists the best intercepts above 20 g*m(grade x thickness)gold(Au)for the entire program.Most drilling focused on the largest vein,Tatiana.Figure 2 Surface distribution of Mineral Resources on La India Project at La India Project-15-CONDOR GOLD PL
157、C REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Prospect Drill hole ID From*To*Drill Width(m)True Width(m)*Au(g/t)Ag(g/t)Grade Thick(m x g/t)Tatiana LIDC344 76.70 80.00 3.30 2.20 28.3 38.9 93.4 Tatiana LIDC358 160.50 164.05 3.55 2.30 23.3 66.6 82.7 Tatiana LIDC365 142.60 146.20 3.60 3.12
158、13.7 13.9 49.3 Tatiana LIDC360 40.30 43.40 3.10 2.70 14.4 29.2 44.6 Tatiana LIDC348 91.00 93.65 2.65 1.70 12.6 21.8 33.4 Tatiana LIDC346 83.80 86.85 3.05 2.30 6.79 14.1 20.7 Tatiana LIDC383 18.20 19.60 1.40 1.10 18.5 22.1 25.9 Tatiana LIDC345 129.60 133.00 3.40 2.20 6.06 21.4 20.6 Tatiana LIDC363 14
159、5.50 152.50 7.00 6.10 2.90 0.4 20.3 Table 2 Best Drill Results from the Tatiana vein *Intercepts calculated above a 0.5 g/t Au cut off.True width is an interpretation based on the current understanding of the veins and may be revised in the future.*Depth down hole from surface Drilling with large di
160、ameter(PQ)core was a priority because it provided high core recoveries and larger sample sizes.The drill rigs were only powerful enough to test the top 200 m of the veins(below ground surface).Deeper holes have proved more problematic,with narrower diameter HQ core and a smaller sample size.More pow
161、erful rigs are required to drill deeper and fully test the volume of the Soviet resource model,which extends to a depth of 500 m below surface.Figure 3 Map of Mestiza Vein Set Showing 4 Main Veins(see Figure 4 for cross section)-16-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER
162、2017 Figure 4 Cross section 2050 of Tatiana Vein Mineralisation occurs within a 4 to 6 m wide structure cutting a welded tuff.The structure consists of:An early-stage broad zone of jigsaw and crackle hydrothermal breccia with drusy and comb vein quartz in the matrix.These support angular clasts of w
163、eakly silicified wall rock.This phase normally has lower gold grade.A central high-grade quartz vein,typically 0.5-1.0 m wide,with comb and drusy quartz and minor chalcedony.Textures vary between holes,from massive quartz to locally colloform pale green chalcedony with fine streaks of sulphide,and c
164、oarse quartz with spongy moulds after calcite,now filled by smectite.Common post-mineral fault breccias with clasts of vein and hydrothermal breccia in a sooty,black,manganiferous gouge and brick red smectite.These can contain high grade gold.Gold mineralisation occurs in the quartz vein and fault b
165、reccia,with true widths up to 3 m.The chaotic nature of the fault breccia,with variable amounts of gold-mineralised vein clasts in a clayey gouge,leads to high grade variability across the deposit.However,the principal higher grade zone or oreshoot seems to show consistent high grades.The entire str
166、ucture is oxidised down to a depth of at least 200 m below surface.Sulphides,where seen,tend to be encapsulated in quartz.Possible supergene enrichment is suggested by higher silver grades in some deeper historic holes(e.g.0.7 m 356 g/t Ag from 198.1 m in LIDC030B).A long section of the Tatiana Vein
167、(Figure 5)plots the drill intercepts where they pierce the vein.It shows all historic and new drilling.Each point is coloured according to average grade and sized according to the grade x thickness factor,which is the downhole intercept length multiplied by gold grade.At the local scale,this shows t
168、he highly variable nature of mineralisation,with narrow low-grade intersections only metres away from wide high-grade intersections.At the larger scale,-17-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 the long section shows that the vein is broadly well mineralised and fo
169、rms high grade shoots separated by intervening areas of low grade where the mineralised zone is thinner.A geological model has been developed correlating high gold grade with bends in the vein(see Big Bend in Figure 1).These bends created more open space,allowing more hydrothermal fluid circulation,
170、resulting in higher grade.The Big Bend high grade shoot,which appears to pitch steeply to the west,has a strike length of about 450 m(Figure 5).The deepest drill holes,about 200 m below surface,intersected lower grades and/or narrower vein widths.This may reflect pinching of the vein or the base of
171、supergene enrichment.However,this has only been tested in two holes at the western end of Big Bend.LIDC361,which returned a disappointing 0.25 m 1.05 g/t Au,intersected a visually exciting 3.35 m wide(downhole)vein and fault breccia zone in HQ core.Further deeper drilling is required to test the pot
172、ential extension to depth or closure of the high-grade zone.Figure 5 Tatiana Vein.Long section Following the good drill results,detailed mapping and sampling was extended along strike to the northwest to better understand the geometry of the veins and identify new drill targets(Figure 6).-18-CONDOR
173、GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Figure 6 Distribution of quartz veins together with rock chip and channel assays A major geological mapping programme was conducted in the Mestiza area in 2018.The dominant rock is a welded tuff showing two facies:1)a glassy,pumice-ri
174、ch lithic lapilli tuff and 2)a glassy,dense pumice-poor crystal tuff unit.Both types are good competent hosts for vein development.The tuff is at least 200 m thick.It is underlain by a sequence of andesites and sediments.Mapping has traced quartz veins over a strike length of at least 3.5 km at Mest
175、iza.The Tatiana,Jicaro and Buenos Aires veins coalesce in the northwest,combining into a single,northwest-striking vein.There is also a newly discovered,parallel vein,the Tortuga Vein,which assayed up to 6.1 g/t Au in a mullock rock sample.Historic sampling of the northwestern extension of all these
176、 veins includes 47.7 g/t Au,about 450 m along strike from the westernmost Tatiana vein exposures(Figure 6).The Espinito Vein has been traced over a strike length of 2 km and shows a jog in the Chaparro area(Figure 6).It hosts numerous artisanal workings and previous sampling returned up to 41.5 g/t
177、Au over 0.5 m.A series of ENE-WSW linking structures,with a strike length of over 300 m,occur between the southernmost part of the Espinito vein and the Tatiana vein.These probably represent more dilational structures,exploited by mineralizing fluids.Historic sampling includes 17.3 g/t Au.Geology ma
178、pping continued along the northwest extension of the Espinito vein and possible extensions of the Tatiana structure to the northwest.Two veins,not previously identified on Company maps,were discovered to the northwest of El Chaparro vein,which is a NW strike extension of the Espinito vein of the Mes
179、tiza area.Both veins are approximately 1-2 m wide,and up to 3 m in some places,with strike lengths of approximately 800-1000 m.They consist of a post-mineral fault breccia with quartz fragments and abundant smectite gouge,drusy to vuggy quartz vein and hydrothermal breccias.These two veins are paral
180、lel to El Chaparro and taking in to account their similar composition to the Tatiana structure could represent an extension of the Tatiana and Buenos Aires structures to the northwest.-19-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Nine trenches(total length 150 m)were c
181、ompleted across the Mestiza area results showed anomalous gold values but were somewhat disappointing,with no samples above 0.3 g/t Au.Geology mapping was bolstered with the incorporation of Mr Don Allen and Mr Miguel Ponce into the geological team.Mr Allen(MSc Geological Engineering and Economic Ge
182、ology)has over 30 years of experience in Au/Cu exploration in mapping sedimentary and igneous terrains in Canada,the United States,Ecuador and Bolivia.Mr Ponce(MSc in Ore Deposits,Geochemistry and Petrology,University of Geneva)is an Ecuadorian geologist with considerable experience in various types
183、 of deposits,including:epithermal deposits,Cu-Au porphyry systems,VHMS Kuroko-type,Manto-type Cu deposits,Fe-skarn and geothermal exploration projects in Ecuador,Colombia,Mexico,Panama,Peru and Argentina.Exploration mapping and sampling in 2017 also focused on the promising Cacao target.Detailed map
184、ping of the lithostratigraphy and veins was carried out at the Cacao,Andrea southeast,Mestiza and Santa Barbara targets,to help identify drill targets.Mapping at Cacao and Andrea yielded some 20 areas of interest,with at least four warranting followup trenching and diamond drilling.Highlights of map
185、ping include the discovery of a likely concealed eastern extension of the Cacao Vein beneath alluvial gravels and new high-grade veins at Santa Barbara.The strike length of the CacaoSanta Barbara vein system is at least 4 km,of which less than 15%has been tested by drilling.Mapping and prospecting a
186、lso identified the continuation of the Andrea Vein to the southeast,where trenching is planned.To improve geological models of the La India and America resources,a complete relog of drill core from the different veins was begun.A total of 48 drill holes at America and 155 from La India were relogged
187、.Interpretation and modelling of structures(major faults and veins)and stratigraphy will be carried out in early 2018.As part of this activity,detailed mapping and prospecting was carried out at America,where numerous active artisanal workings have uncovered veins that allow for better structure and
188、 vein characterization.During 2017,371 rock chip samples were obtained from the regional district(Figure 7).Of interest,are a 3.1 g/t Au sample obtained from a stockwork of drusy quartz veinlets in the far northwest sector of the La Cuchilla concession(upper left of Figure 7).Most of the samples obt
189、ained during soil sampling at La Cuchilla concession have 5 g/t and up to 37 g/t Au.These results are within the historic norm.A new vein,probably a northern offshoot of eastern Guapinol vein came back at 9.2 g/t Au.Sampling of recent artisanal workings along the Alfonso Vega vein,located in the foo
190、twall of La India vein yielded a 27.2 g/t Au rock chip.-20-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Figure 7 Rock chip samples from 2017 Soil sampling of the entire La India Project was completed with a total of 7,997 samples collected since June 2016(1,725 in 2017),o
191、ut of which 6,685 samples were sent for assaying covering an area of approximately of 242m2(Figure 8).The total number of samples collected during 2015-2017 in the entire La India project concession package of 313 km2 is 13,114.-21-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER
192、2017 Figure 8 Soil sampling.Final Au results Several elements(e.g.Au,Te,Tl,As,Ag and Sb)define two significant trends.These are interpreted as two major basement feeder zones;La India and Andrea Corridors(Figure 9).There is a suggestion that some rich veins(Tatascame,Los Limones,thin east-northeast
193、striking veins branching from Andrea with visible gold)are conjugate and en echelon structures,at high angle to the Andrea Corridor.They may have provided localised dilations for fluids to rise.The two corridors seem to converge west of Los Limones in an area of broad geochemical soil anomalies(part
194、icularly Te).This area is a target for exploration.However,the target may be concealed since Au and Ag anomalies are weak.The vein at Los Limones may be an example of a mostly concealed target:the surface rocks here comprise lapilli tuffs and mudstones,poor for brittle fracture.Mapping shows that a
195、more brittle andesite flow can be expected at depth and this is a target for scout drilling.Figure 9 Gridded Sb values in soils.-22-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Land Acquisition Condor has been working on a land acquisition programme for over 3 years and p
196、lans to acquire approximately 600 hectares of rural land for the production scenario in the PFS.ProNicaragua is assisting with a clean up of the land titles.Two independent valuations have been conducted and a strategy is being implemented to secure the rural land by paying 10%of the purchase price
197、of the land to the landowners,who grant Condor an option to purchase the rural land for a 2year period.Offers to purchase the land have been made to all landowners;at the time of writing 30%have accepted.In 2017,Condor acquired 3,508 hectares of surface rights from B2Gold in return for transferring
198、to B2Gold,Condors 20%shareholding in the Cerro Quiroz concession,which is adjacent to La Libertad Mine.The surface rights cover the mine site infrastructure and the area of the mineral resource and reserves and removes an obstacle that allows the Project to progress and de-risks the Project.(see RNS
199、 dated 9th December 2016.)Environmental Permit Application An Environmental Impact Assessment(“EIA”)for an Environmental Permit was submitted to the Nicaraguan Governments Ministry of the Environment and Natural Resources(“MARENA”)in November 2015.The application is for permission to undertake open
200、pit mining at La India as envisaged in the PFS study released in December 2014 and updated for the Whittle optimised open pit,detailed in January 2016.A Public Consultation is required as part of the EIA process.Mineral concessions in Nicaragua are granted for a period of 25 years and are both explo
201、ration and exploitation concessions.However,in order to exploit(extract)minerals an Environmental Permit is required.This is viewed as the Master Permit in Nicaragua.Once granted,other permits for construction,electricity,water use,explosives etc are expected to follow.Post-period activity January a
202、nd February 2018 are being used to continue the relog at La India and America.This work aims to:1)further verify previous models of mine depletion;2)improve the correlation of individual veins;3)model the 3D lithostratigraphy(to determine if certain rock types make a better host for veining).Rock sa
203、mpling and trenching continues at Cacao and Andrea.Figure 10 Collection of soil samples at La India-23-CONDOR GOLD PLC REVIEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Other Project Areas Rio Luna Concession The Rio Luna Concession,which covers an area of 43 km in the Central Highlands of Ni
204、caragua,was granted to Condor in June 2010 and will expire in 2035.The previous explorer of the Rio Luna Concession,First Point Minerals,a Canadian company,completed an extensive programme of soil,auger,rockchip and trench sampling to define 18 km of epithermal quartz veining in three distinct north
205、west-southeast trending gold vein sets.This surface sampling defined seven principal prospects,five of which were drill-tested over several phases of drilling.The mineralisation of the Rio Luna Concession is medium-sulphidation epithermal vein gold-silver type,hosted by a Tertiary-aged volcanic sequ
206、ence of andesite flows intercalated with subordinate basalt.The Company has continued to carry out exploration activities at the Rio Luna Concession,including mapping and resurveying of previous drill holes.Figure 11 The location of Mineral Resources on the Rio Luna Concession-24-CONDOR GOLD PLC REV
207、IEW OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2017 Estrella Concession The Estrella Concession covers an 18 km area in Nicaraguas historic Mining Triangle in the northeast of the country.The concession is centred on the historic Estrella Gold Mine.No mine plans or production data are available fo
208、r the Estrella Mine(also referred to as the Estrella de Venus Mine in old reports),however it is believed that the mine exploited two or more sub-parallel epithermal veins on two or three levels along a strike length of at least a 250m and processed 20-50 tonnes per day.The mine was worked for only
209、a few years before being destroyed in 1935 during civil unrest:abandoned steel mine trolleys and rail tracks are testament to this period of mechanised mining.The old workings can be traced for approximately 100m where the mineralised structure runs close to the bank of a small river and continue fo
210、r an indeterminate distance beneath the crest of a ridge.The drift that runs next to the river has been reopened by artisanal miners.It is considered likely that the mining relied on gravity dewatering and did not extend below the level of the drainage adit at river level,no deeper than the 10-15m d
211、epth exploited by the artisanal miners.Trench and underground channel sampling by previous explorers and confirmed by Condor has returned high grade gold intercepts over a 400m strike length including the historic Estrella Gold Mine and extending along strike up the ridge to the northeast.Two to thr
212、ee parallel epithermal veins separated by short intervals of 5 to 10m of country rock are recognised in old mine workings and trenches.A best trench intercept of 9.0m at 5.44g/t gold reflects the full width of the mineralisation,whilst the channel sampling of the more selectively mined underground w
213、orkings,often only exploiting one of the two or three structures returned an average intercept of 0.9m at 8.53g/t gold.Exploration for gold mineralisation away from the historic mine area has only returned one positive assay result from quartz vein float located approximately 1200m along strike of t
214、he historic gold mine workings which suggests that gold mineralisation extends over a strike length of over 1.5km.The challenge on this concession is to extend the size of the mineralised zone beyond the 400m strike length positively defined to date.It is highly unlikely that the mineralised fluids
215、that deposited this ore body were restricted to an isolated structure and future exploration activity will aim to discover extensions to the known structure and/or other gold mineralised veins in the vicinity.Potrerillos Concession Condor maintains a strategic concession holding covering a 3.5km str
216、ike length continuation of the gold mineralised system that hosts the historic San Albino mine workings which contains a NI 43-101 compliant mineral resource of 348kt at 8.47g/t for 95,000oz gold equivalent at the Indicated category and 3.371kt at 7.43g/t for 805,000oz gold equivalent at the Inferre
217、d level of confidence(using a 1:60 Au:Ag ratio),as announced by concession holders TSX-listed Golden Reign Resources on 7th January 2013.The San Albino Resource is located less than 500m from the edge of the Potrerillos Concession.However the San Albino Resource may not be indicative of mineral depo
218、sits on the Companys property.Channel sampling of trenches and old mine adits on the Potrerillos Concession carried out by Condor between 2007 and 2009 returned intersections of up to 1m at 29.5g/t gold.EL SALVADOR OPERATIONS REPORT Condors assets in El Salvador have been on care and maintenance sin
219、ce 2008,with no exploration activity carried out for 10 years.Following the late 2016 ruling by the International Centre for the Settlement of Investment Disputes in favour of the Government of El Salvador,Condor is winding up all activities in El Salvador and withdrawing from the country.-25-CONDOR
220、 GOLD PLC STATEMENT REGARDING FORWARD-LOOKING AND TECHNICAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2017 STATEMENT REGARDING FORWARD-LOOKING INFORMATION Certain statements contained in this document constitute forward-looking information under applicable Canadian securities laws.These statements
221、relate to future events or future performance.All statements other than statements of historical fact may be forward-looking statements.Forward-looking statements are often,but not always,identified by the use of words such as“seek”,“anticipate”,“plan”,“continue”,“objectives”,“strategies”,“estimate”
222、,“expect”,“may”,“will”,“project”,“predict”,“potential”,“targeting”,“intend”,“could”,“might”,“should”,“believe”and similar expressions.These statements involve known and unknown risks,uncertainties and other factors that may cause actual results or events to differ materially from those anticipated i
223、n such forward-looking statements.The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in its document should not be unduly relied
224、 upon.In particular,this document contains forward-looking statements pertaining to the following:mineral resource estimates;targeting additional mineral resources and expansion of deposits;the impact of the redesigned La India open pit on the technical viability,economic attractiveness and anticipa
225、ted gold production of the La India Project;the Companys expectations,strategies and plans for the La India Project,including the Companys planned exploration and development activities;the results of future exploration and drilling and estimated completion dates for certain milestones;successfully
226、adding or upgrading mineral resources and successfully developing new deposits;the timing,receipt and maintenance of approvals,licences and permits from the Nicaraguan government and from any other applicable government,regulator or administrative body,including,but not limited to,the Environmental
227、Permit;production and processing estimates;future financial or operating performance and condition of the Company and its business,operations and properties;and any other statement that may predict,forecast,indicate or imply future plans,intentions,levels of activity,results,performance or achieveme
228、nts.The actual results could differ materially from those anticipated in these forward-looking statements or information as a result of the risk factors set forth below and elsewhere in this document:mineral exploration,development and operating risks;estimation of mineralisation,mineral resources a
229、nd mineral reserves;environmental,health and safety regulations of the resource industry;competitive conditions;permitting and licencing risks;operational risks;negative cash flow;liquidity and financing risks;funding risk;material contract risks;exploration costs;uninsurable risks;conflicts of inte
230、rest;exercise of statutory rights and remedies;risks of operating in Nicaragua;government policy changes;ownership risks;artisanal miners and community relations;difficulty in enforcement of judgments;the Companys staggered board of directors;market conditions;stress in the global economy;current gl
231、obal financial condition;exchange rate and currency risks;commodity prices;reliance on key personnel;-26-CONDOR GOLD PLC STATEMENT REGARDING FORWARD-LOOKING AND TECHNICAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2017 STATEMENT REGARDING FORWARD-LOOKING INFORMATION(CONTD.)dilution risk;and payment
232、of dividends;and other risks and uncertainties described under the heading“Risk Factors”in the Companys long form prospectus dated December 21,2017,available under the Companys profile at .Statements relating to“mineral reserves”or“mineral resources”are deemed to be forward-looking statements or inf
233、ormation,as they involve the implied assessment,based on certain estimates and assumptions,that the reserves and resources described can be profitably produced in the future.Readers are cautioned that the foregoing lists of factors are not exhaustive.The forward-looking statements contained in this
234、document are expressly qualified by this cautionary statement.Although the forward-looking statements contained in this document are based upon assumptions which the Company believes to be reasonable,the Company cannot assure holders of ordinary shares of the Company that actual results will be cons
235、istent with these forward-looking statements.With respect to forward-looking statements contained in this document,the Company has made assumptions regarding:future commodity prices and royalty regimes;availability of skilled labour;timing and amount of capital expenditures;future currency exchange
236、and interest rates;the impact of increasing competition;general conditions in economic and financial markets;availability of drilling and related equipment;effects of regulation by governmental agencies;the receipt of required permits;royalty rates;future tax rates;future operating costs;availabilit
237、y of future sources of funding;ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations.The Company has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide holders o
238、f ordinary shares of the Company with a more complete perspective on the Companys future operations and such information may not be appropriate for other purposes.The Companys actual results,performance or achievement could differ materially from those expressed in,or implied by,these forward-lookin
239、g statements and,accordingly,no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur,or if any of them do so,what benefits the Company will derive therefrom.These forward-looking statements are made as of the date of this document and th
240、e Company disclaims any intent or obligation to update publicly any forward-looking statements,whether as a result of new information,future events or results or otherwise,other than as required by applicable securities laws.TECHNICAL INFORMATION Certain disclosure contained in this document relatin
241、g to the La India Project of a scientific or technical nature has been summarized or extracted from the technical report entitled“Technical Report on the La India Gold Project,Nicaragua,December 2014”,dated November 13,2017 with an effective date of December 21,2014(the“Technical Report”),prepared i
242、n accordance with NI 43-101.The Technical Report was prepared by or under the supervision of Tim Lucks,Principal Consultant(Geology&Project Management),Gabor Bacsfalusi,Principal Consultant(Mining),Benjamin Parsons,Principal Consultant(Resource Geology),each of SRK Consulting(UK)Limited,and Neil Lin
243、coln of Lycopodium Minerals Canada Ltd.,each of whom is an independent Qualified Person as such term is defined in NI 43-101.David Crawford,Chief Technical Officer of the Company,and Peter Flindell,a non-executive director of the Company,each of whom is a Qualified Person as defined by NI 43-101,hav
244、e approved the written disclosure in this document.Qualified Person:Mr Peter Flindell has supervised the preparation of the geological technical information in this report.Mr Flindell has more than 32 years of relevant experience in gold/silver exploration,largely in Southeast Asia,but including the
245、 US,Africa,Central Asia and the UK.Mr Flindell is a Non-Executive Director of Condor Gold plc and Managing Director of Signal Delta Pte Ltd,a Singapore-based consultancy that offers exploration management services to exploration companies around the world.Mr Flindell is satisfied that the results ar
246、e verified,based on an inspection of the results from activities carried out in 2017,as set out in this document,including of drill core,a review of the sampling procedures,the credentials of the professionals completing the work and the visual nature of the geology within a district where he is fam
247、iliar with the style and type of mineralization.Quality Assurance and Control:Samples generated from soil sampling and drilling activities are shipped directly in security-sealed bags to Bureau Veritas preparation facility in Managua(ISO 9001).Samples shipped also include intermittent standards and
248、blanks.Pulp samples are subsequently shipped to Bureau Veritas Acme Laboratories in Vancouver,Canada for analysis.For the drilling assays used for Mineral Resource estimations,five percent of pulp samples are prepared and analyzed by ALS Minerals in Vancouver,Canada(ISO 17025:2017 and ISO 9001:2015)
249、and Bureau Veritas Laboratories(ISO 17025:2005 and ISO 9001:2015).Metallurgical tests were done on quartered core samples for La India,America and Central Breccia.No systematic mineralogy analysis has been carried out.-27-CONDOR GOLD PLC REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2017 DI
250、RECTORS REPORT The Directors present their report with the financial statements of the Company and the Group for the year ended 31 December 2017.DIRECTORS The Directors shown below have held office during the year:M Child J Mellon R Davey (resigned 18 January 2018)P Flindell K Harcourt The Director
251、shown below was appointed post year end:A Cheatle(appointed 18 January 2018)DIVIDENDS The Directors do not recommend payment of a dividend(2016:nil)SUBSTANTIAL SHAREHOLDERS On 23 March 2018 the Company was aware of the following interests in 3%or more of the Companys issued share capital:Shareholder
252、s Number of ordinary shares Holding%Mr R Beaty International Finance Corporation 5,362,903 4,500,000 8.74 7.33 Oracle Management Limited 4,054,645 6.61 Mr M Child 3,962,500 6.46 Canaccord Genuity Group 3,111,290 5.07 Mr J Mellon 3,169,330 5.16 DIRECTORS INTERESTS The Directors in office during the y
253、ear under review and their interests in ordinary shares and unlisted options of the Company at 31 December 2017 were:31 December 2017 31 December 2016 Directors Holding Number of shares Number of options Number of shares Number of options M Child Direct 3,873,750 3,200,000 3,942,500 2,650,000 Indire
254、ct 88,750-88,750-R Davey Direct 52,500 750,000 52,500 800,000 Indirect -J Mellon Direct 1,356,108 750,000 1,256,108 700,000 Indirect 1,813,222-1,601,932-P Flindell Direct -662,500-512,500 Indirect -K Harcourt Direct -350,000-200,000 Indirect -CONDOR GOLD PLC-28-REPORT OF THE DIRECTORS FOR THE YEAR E
255、NDED 31 DECEMBER 2017 The interests of the Directors in options to subscribe for ordinary shares of the Company were:Exercise price(p)Latest exercise date As at 1 January 2017 Granted during the year Exercised in the year Lapsed in the year As at 31 December 2017 DIRECTORS M L Child 100 100 100 67 8
256、0 62 24 June 2017 1 July 2018 23 July 2019 7 July 2020 26 Sept 2021 6 July 2022 250,000 600,000 600,000 600,000 600,000-800,000-(250,000)-600,000 600,000 600,000 600,000 800,000 J Mellon 100 100 100 67 80 62 24 June 2017 1 July 2018 23 July 2019 7 July 2020 26 Sept 2021 6 July 2022 100,000 150,000 1
257、50,000 150,000 150,000-150,000-(100,000)-150,000 150,000 150,000 150,000 150,000 R Davey 180 100 100 100 67 80 62 5 Jan 2017 24 June 2017 1 July 2018 23 July 2019 7 July 2020 26 Sept 2021 6 July 2022 100,000 100,000 150,000 150,000 150,000 150,000 -150,000-(100,000)(100,000)-150,000 150,000 150,000
258、150,000 150,000 P Flindell 160 100 67 80 62 1 July 2018 23 July 2019 7 Jul 2020 26 Sept 2021 6 July 2022 62,500 150,000 150,000 150,000 -150,000-62,500 150,000 150,000 150,000 150,000 K Harcourt 67 80 62 7 Jul 2020 26 Sept 2021 6 July 2022 50,000 150,000 -150,000-50,000 150,000 150,000 Directors hel
259、d 627,956 warrants as at 31 December 2017(2016:491,110),to subscribe for ordinary shares of the company.No warrants held by the directors expired during the year and 281,290 warrants were issued to or acquired by Directors during the year.CORPORATE GOVERNANCE Condor Golds Board of Directors and mana
260、gement strongly support the principles of good corporate governance,and are committed to building the Groups reputation for integrity.For the financial year ended 31 December 2017,due to the size of the Group the board did not consider it appropriate to follow the provisions of the Corporate Governa
261、nce Code for Small and Mid-size Quoted Companies(the“QCA code”)but followed governance procedures appropriate to the Groups size,having due regard to the principles of the QCA code.Corporate policies Condor takes its health,safety,environmental and community responsibilities seriously,and has develo
262、ped policies and systems to ensure that it explores in a safe,low impact and consultative manner,maximising the sustainability of its present and future operations for the benefit of all stakeholders.Health and safety Condor takes the health and safety of its employees and contractors seriously,and
263、strives to exceed statutory obligations and achieve best practice.To this end,a new safety management system has been implemented for its exploration operations.Environment Condor operates in strict adherence to local and Governmental standards with regard to environmental impact on the local commun
264、ity.This procedure includes pre-exploration checks and post-exploration remediation programs.Currently,no unfulfilled commitments exist to remediate land upon which the Company has conducted exploration work.-29-CONDOR GOLD PLC REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2017 Community Co
265、ndor is committed to working consultatively and co-operatively within the communities in which it operates,which include local subsistence farmers and pastoralists and firmly believes that future mining operations should be to the benefit of all.To this end,Condor personnel participate in cultural a
266、wareness programmes and have forged close ties with landholders and maintain a constructive dialogue with the Department of Environment and local community representatives.Condor is also a sponsor of many community development and aid programs currently in place including the provision of clean wate
267、r through drilling water wells,tree planting,the supply of school books and training of locals in both technical and non technical skills to assist their personal development.Financial Risk Management The Company is exposed through its operations to the following financial risks:Credit risk Liquidit
268、y risk Market risk Capital risk In common with all other businesses,the Group is exposed to risks that arise from its area of operation.These,along with managements policies surrounding risk management,are set out in the Strategic Report.Board of Directors The Board of directors at the year end incl
269、uded one executive chairman and four non-executive directors.The directors are of the opinion that the recommendations of the QCA code have been implemented to an appropriate level.The Board,through the chairman and non executive directors,maintains regular contact with its advisers and public relat
270、ions consultants in order to ensure that the Board develops an understanding of the views of major shareholders about the company.The board meets regularly throughout the year,for both committee board meetings and full operational Board meetings.During the year to 31 December 2017 the Board met for
271、a total of 7 meetings and passed resolutions in writing on two occasions.The Board is responsible for formulating,reviewing and approving the Groups strategy,financial activities and operating performance.Day-to-day management is devolved to the general manager who is charged with consulting with th
272、e board on all significant financial and operational matters.Consequently,decisions are made promptly and following consultation among directors concerned where necessary and appropriate.All necessary information is supplied to the directors on a timely basis to enable them to discharge their duties
273、 effectively,and all directors have access to independent professional advice,at the Companys expense,as and when required.The participation of both private and institutional investors at the Annual General Meeting is welcomed by the Board.Committees Each of the following committees has its own term
274、s of reference.Audit committee The Audit Committee comprises J Mellon(non-executive director)and A Cheatle (non-executive director,appointed on 18 January 2018),and K Harcourt(non-executive director).R Davey resigned from the audit committee on 18 January 2018.The committee meets at least once a yea
275、r.All directors received a copy of the respective audit committee reports prior to these meetings and had an opportunity to comment.The meetings were attended by the auditor.The chief financial officer and a representative of the external auditor are normally invited to attend meetings.Other directo
276、rs or staff may be invited to attend,as considered beneficial by the committee.The Audit Committees primary responsibilities are to review the effectiveness of the Companys systems of internal control,to review with the external auditor the nature and scope of their audit and the results of the audi
277、t,and to evaluate and select external auditors.Remuneration committee The Remuneration Committee plans to meet at least twice in each year.Its members are J Mellon(non-executive director)and A Cheatle(non-executive director),both of whom were in attendance at the meetings since their appointment dat
278、e.R Davey resigned from the remuneration committee on 18 January 2018.The Groups policy is to remunerate senior executives fairly in such a manner as to facilitate the recruitment,retention and motivation of staff.The Remuneration Committee agrees with the board a framework for the remuneration of t
279、he chairman,the executive directors and the senior management of the Group.The principal objective of the committee is to ensure that members of the executive management of -30-CONDOR GOLD PLC REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2017 the company are provided incentives to encourag
280、e enhanced performance and are,in a fair and responsible manner,rewarded for their individual contributions to the success of the company.Non-executive fees are considered and agreed by the board as a whole.Risk Committee The Risk Committee plans to meet at least twice in each year.Its members are A
281、 Cheatle(non-executive director)and K Harcourt(non-executive director).The Risk Committees primary responsibilities are to identify and review the risks the group faces and to review the safeguards in place to mitigate those risks.Service Contracts The Company has service contracts with its non-exec
282、utive directors.The service contracts also provide that the directors and parties related to the directors are entitled to participate in the share option arrangements operated by the Company as well as consultancy payments.Details of the contracts currently in place for directors and related partie
283、s are as follows:Annual salary 000 Consultancy payments 000 Date of Contract Unexpired term Notice period M L Child 100 75 13 July 2011-6 months J Mellon-25 6 April 2011-2 months A Cheatle 25-18 January 2018-2 months K Harcourt 25-2 March 2015-2 months P Flindell-25 28 August 2014-2 months As part o
284、f his duties as a director,P Flindell also provided ad hoc technical consultancy services to the company and in 2017 earned at total of 56,718.Subject to the notice requirements described above,there is no provision in the service agreements for compensation to be payable on early termination of the
285、 contract.Annual general meeting Details of the ordinary and special business to be conducted and the resolutions to be proposed at the 2018 Annual General Meeting to be held on 10 May 2018 will be sent to all shareholders and will be made available on the Companys website in due course.Directors In
286、surance During the year the Company paid 19,767(2016:11,393)in respect of Directors professional indemnity insurance.SUBSEQUENT EVENTS On 15 January 2018 the Companys shares were also listed on the Toronto Stock Exchange.On 18 January 2018 the company announced that Mr Roger Davey had retired as a d
287、irector of the company and Mr Andrew Cheatle was appointed as a director of the company as at the same date.FUTURE DEVELOPMENTS In 2018 the Group will be working on securing the Environmental Permit for the La India project and will be continuing with exploration activities,including rock sampling a
288、nd trenching.STATEMENT OF DIRECTORS RESPONSIBILITIES The directors are responsible for preparing the Directors Report and the financial statements in accordance with applicable law and regulations.Company law requires the directors to prepare financial statements for each financial year.Under that l
289、aw the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards(IFRSs)as adopted by the EU and applicable law.-31-CONDOR GOLD PLC REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2017 STATEMENT OF DIRECTORS RESPONSIBILITIES-conti
290、nued Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the group for that period.In preparing these financial statements,the directo
291、rs are required to:select suitable accounting policies and then apply them consistently;make judgments and accounting estimates that are reasonable and prudent;state whether applicable accounting standards have been followed,subject to any material departures disclosed and explained in the financial
292、 statements;prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the companys transactions and disclos
293、e with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and de
294、tection of fraud and other irregularities.They are further responsible for ensuring that the Report of the Directors and other information included in the Annual Report and Financial Statements is prepared in accordance with applicable law in the United Kingdom.The maintenance and integrity of the C
295、ondor Gold Plc web site,which includes compliance with AIM Rule 26,is the responsibility of the directors;the work carried out by the auditor does not involve the consideration of these matters and,accordingly,the auditor accepts no responsibility for any changes that may have occurred in the accoun
296、ts since they were initially presented on the website.Legislation in the United Kingdom governing the preparation and dissemination of the accounts and the other information included in annual reports may differ from legislation in other jurisdictions.STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUD
297、ITOR So far as the directors are aware,there is no relevant audit information of which the groups auditor is unaware,and each director has taken all steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Groups audit
298、or is aware of that information.AUDITOR The auditor,Crowe Clark Whitehill LLP,will be proposed for re-appointment at the Annual General Meeting to be held on 10 May 2018 in accordance with Section 489 of the Companies Act 2006.ON BEHALF OF THE BOARD:M L Child Chairman Date:23 March 2018-32-REPORT OF
299、 THE INDEPENDENT AUDITOR TO THE MEMBERS OF CONDOR GOLD PLC FOR THE YEAR ENDED 31 DECEMBER 2017 Opinion We have audited the financial statements of Condor Gold plc(the“Parent Company”)and its subsidiaries(the“Group”)for the year ended 31 December 2017,which comprise:the Group statement of comprehensi
300、ve income for the year ended 31 December 2017;the Group and parent company statements of financial position as at 31 December 2017;the Group and parent company statements of cash flows for the year then ended;the Group and parent company statements of changes in equity for the year then ended;and th
301、e notes to the financial statements,including a summary of significant accounting policies.The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and International Financial Reporting Standards(IFRSs)as adopted by the European Union.I
302、n our opinion:the financial statements give a true and fair view of the state of the Groups and of the Parent Companys affairs as at 31 December 2017 and of the Groups loss for the year then ended;the group financial statements have been properly prepared in accordance with IFRSs as adopted by the E
303、uropean Union;the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union as applied in accordance with the provisions of the Companies Act 2006;and the financial statements have been prepared in accordance with the requirements of th
304、e Companies Act 2006.Basis for opinion We conducted our audit in accordance with International Standards on Auditing(UK)(ISAs(UK)and applicable law.Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of o
305、ur report.We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,including the FRCs Ethical Standard,and we have fulfilled our other ethical responsibilities in accordance with these requirements.We believe tha
306、t the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Material uncertainty related to going concern We draw attention to Note 1 which indicates that further funding will be required to finance the Groups in-fill drilling and resources expansion progra
307、mme in Nicaragua followed by a Feasibility Study.The Directors are confident that the Company will be able to raise these funds however there is no binding agreement in place to date.These conditions indicate the existence of a material uncertainty and may cast doubt on the Group and Companys abilit
308、y to continue as a going concern.Our opinion is not modified in respect of this matter.The financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.Overview of our audit approach Materiality In planning and performing o
309、ur audit we applied the concept of materiality.An item is considered material if it could reasonably be expected to change the economic decisions of a user of the financial statements.We used the concept of materiality to both focus our testing and to evaluate the impact of misstatements identified.
310、Based on our professional judgement,we determined overall materiality for the Group financial statements as a whole to be 300,000,based on 1.5%of total assets.We use a different level of materiality(performance materiality)to determine the extent of our testing for the audit of the financial stateme
311、nts.Performance materiality is set based on the audit materiality as adjusted for the judgements made as to the entity risk and our evaluation of the specific risk of each audit area having regard to the internal control environment.Where considered appropriate performance materiality may be reduced
312、 to a lower level,such as,for related party transactions and directors remuneration.We agreed with the Audit Committee to report to it all identified errors in excess of 9,000.Errors below that threshold would also be reported to it if,in our opinion as auditor,disclosure was required on qualitative
313、 grounds.Overview of the scope of our audit Whilst the Parent Companys activity and accounting is in the United Kingdom,the main activity of the Group is accounted for from its operating location in Nicaragua.In establishing our overall approach to the Group audit,we determined the type of work that
314、 needed to be undertaken at each of the components by us,as the primary audit engagement team.For the full scope components in Nicaragua,where the work was performed by a local audit team,we determined the appropriate level of involvement to enable us to determine that sufficient audit evidence had
315、been obtained as a basis for our opinion on the Group as a whole.We discussed the risks of material misstatement with the subcontracting auditor.The primary team led by the Senior Statutory Auditor was ultimately responsible for the scope and direction of the audit process.The primary team interacte
316、d regularly with the local team where appropriate during various stages of the audit,reviewed relevant working papers and were responsible for the scope and direction of the audit process.This,together with the additional procedures performed at Group level,gave us appropriate evidence for our opini
317、on on the Group financial statements.Key Audit Matters Key audit matters are those matters that,in our professional judgement,were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement(whether or n
318、ot due to fraud)that we identified.These matters included those which had the greatest effect on:the overall audit strategy,the allocation of resources in the audit;and directing the efforts of the engagement team.These matters were addressed in the context of our audit of the financial statements a
319、s a whole,and in forming our opinion thereon,and we do not provide a separate opinion on these matters.This is not a complete list of all risks identified by our audit.-33-REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF CONDOR GOLD PLC FOR THE YEAR ENDED 31 DECEMBER 2017 Key audit matter How the
320、 scope of our audit addressed the key audit matter Carrying value of intangible assets relating to exploration expenditure The carrying value of exploration expenditure as at 31 December 2017 is 18.7million.We challenged the outcome of managements review of their E&E assets to assess if there were a
321、ny indicators of impairments for any of the Groups material mining locations by:participating in meetings with key operational and finance staff to understand the current status and future intention for each mining location;confirming that the Group continues to hold licences for each of its signifi
322、cant E&E assets;confirming that all assets which remain capitalised are included in future budgets and are considered to contain potentially commercial levels of gold;identifying any locations where the Groups right to explore is either at,or close to,expiry and assessing the appropriateness of reta
323、ining the associated costs as an asset;and where an asset has been impaired,obtaining supporting evidence for the events that led to the impairment.Our audit procedures in relation to these matters were designed in the context of our audit opinion as a whole.They were not designed to enable us to ex
324、press an opinion on these matters individually and we express no such opinion.Other information The directors are responsible for the other information.The other information comprises the information included in the annual report,other than the financial statements and our auditors report thereon.Ou
325、r opinion on the financial statements does not cover the other information and,except to the extent otherwise explicitly stated in our report,we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements,our responsibility is to read the other in
326、formation and,in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If we identify such material inconsistencies or apparent material misstatements,we are requ
327、ired to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information.If,based on the work we have performed,we conclude that there is a material misstatement of this other information,we are required to report that fact.We have no
328、thing to report in this regard.Opinion on other matter prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the strategic report and the directors report for the financial year for which the financial statements are prep
329、ared is consistent with the financial statements;and the directors report and strategic report have been prepared in accordance with applicable legal requirements.Matters on which we are required to report by exception In light of the knowledge and understanding of the group and the parent company a
330、nd their environment obtained in the course of the audit,we have not identified material misstatements in the strategic report or the directors report.We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,in our opinion:adequate ac
331、counting records have not been kept by the parent company,or returns adequate for our audit have not been received from branches not visited by us;or the parent company financial statements are not in agreement with the accounting records and returns;or certain disclosures of directors remuneration
332、specified by law are not made;or we have not received all the information and explanations we require for our audit.Responsibilities of the directors for the financial statements As explained more fully in the directors responsibilities statement set out on pages 30-31,the directors are responsible
333、for the preparation of the financial statements and for being satisfied that they give a true and fair view,and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error.In preparing the financial statements,the directors are responsible for assessing the groups and pare
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