Condor Resources - Worth a Punt?

shanemort

Wondering does anyone have any thoughts on Condor Resources

Someone mentioned them below
http://www.boards.ie/vbulletin/showpost.php?p=69494718&postcount=2090

http://www.boards.ie/vbulletin/showpost.php?p=69517760&postcount=2095

http://www.boards.ie/vbulletin/showpost.php?p=69536784&postcount=2096

Had a look and their SP has rocketed since last year increasing 10-12 fold.

Expecting news on Mining rights 31st Dec.

Can anyone else add any thoughts?

I’m thinking maybe of jumping in with 1k

poodles

I bought some of these a few weeks ago at 4.5p after doing a bit of reading on the company.

I've been in contact with the ceo of CNR and was told that the date of the 31st Dec 2010 still stands for a news update on their JORC for their La India project - there is a lot of data to process.
The results of which are expected to be good.

Condor also have 100% ownership of four licenses in two project areas in El Salvador however the country has a placed moratorium on mining since 2006.

Another report due out next week is in relation to El Salvador - a strategic environmental study - the report will concentrate on how to it would be possible to undertake mining in El Salvador under strict eco-friendly coniditons.

At the minute none of Condor's El Salvador play is factored into the SP.
A turn by the Government to allow mining coule mean big things for the company.

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Taken from another board...

Some parameters and references first:

Edison gold report - Jan 2010:
http://www.edisoninvestmentresearch.co.uk/sectorreports/GoldJan10.pdf

Edison's recent Gold Report provides global average values for Inferred, Indicated and Measured resources: $340 per measured ounce, $159 per indicated ounce and $34 per inferred ounce.

CIM definitions:
http://www.cim.org/committees/cimdefstds_dec11_05.pdf

CNR JORC

http://www.condorresourcesplc.com/CONDOR RESOURCES PLC.pdf

CNR comment:

"The initial trench and hand held drill results designed to further define the 2km Andrea vein of the El Rodeo concession are in line with expectations and confirm the model that the bulk of the ore zone is located between 200m and 500m altitude. The purpose of the program was to define the top of the system as the Andrea vein is located between 550m and 700m altitude, which then allows drilling from the Andrea vein down to the depth of the main ore zone. Condor has approximately 85% or 164 sq km of La India Mining District. Following the recent concession swap with B2Gold Corp, Condor's preliminary research indicates that 1.84 million ounces gold (Russian classification) are within the La India concession area, including 2.3 million tonnes at 9.5 grams per tonne gold for 709,000 ounces gold designated at the more robust C1+C2 category. We are in the final stages of appointing an independent geologist firm to visit La India Mining District and advise on the conversion of the Russian resource to JORC standards."

In issue:

492.261753m

Assumptions

In January 2010 gold stood at circa $1150. I'm therefore going to increase Edison's Jan 2010 calculations by 1400/1150 or 21%.

Thus:

Measured = $411
Indicated = $192
Inferred = $41


Let's have a go at La India:

I'm going to assume that the 709,000 oz of Russian C1/C2 equate to 'Indicated' and the rest 1,131, 000 (1.84m - 709k) are 'Inferred'.

Indicated: 709,000 X $192 = $136.128m X £0.635 = £86.441m
Inferred: 1,131,000 X $41 = $46.371m X £0.635 = £29.445M

Total £115.886m

Per share £115.886/492.26 = 23.5p

Now that of course assumes that we only have 1.84m oz and that we have no reserves in the 'measured' category. Add another 10% if gold moves up another $150 as predicted today.

So what would happen if El Salvador unlocked?

Add 788,000 oz of gold and 22.38m oz's of silver. Let's assume all the 788k is 'inferred' for calculation purposes. In other words:

788,000 X $41 = $32.308m

Add the silver:

I'm going to divide the inferred number by 48 (gold/silver ratio)
to value i.e. $41/48 = $0.85c per oz

22.38m x $0.85c = $19.023m

$51.325m x £0.625 /492.26 = 6.5p.

Add another 10% if gold moves up $150.


Bottom line is that unless the JORC review decides that all the C1/C2 are 'inferred' rather than 'indicated' then we have a share that should be chasing 20p in the not-too-distant future.

This is a definite BUY.

ddd

shanemort

NIce, Thanks for the reply, Yea i got 21000 for me and 11000 for a mate all for 7.3p so heres hoping. Im nearly thinking of grabbing another 10000 but is that being greedy and risky

Sure lets see what happens with the two reports on the way.

Thanks

poodles

shanemort wrote: »

NIce, Thanks for the reply, Yea i got 21000 for me and 11000 for a mate all for 7.3p so heres hoping. Im nearly thinking of grabbing another 10000 but is that being greedy and risky

Sure lets see what happens with the two reports on the way.

Thanks

Anything on El Salvador is a long way away yet.
It's hard to know what to do - the SP has risen quite a bit over the past couple of months alone - it's hard to know how much of what is priced in with regards to the JORC.

The price dipped today on news of a sell off of near 5% by Jim Mellon of Galloway Limited. It's hard to know what to make of these sells but it could just be as simple as profit taking.

http://www.investegate.co.uk/Article.aspx?id=201012171323142052Y



Completly O/T one share I would recommend anyone to take a look at is Range Resources. This recent interview with the CEO, Peter Landau goes well to explain where the company is now and where it's heading.
The bit I like the most about the company is that the current SP / Market Cap is already underpinned by producing oil assets in Texas, USA so the potential upside of Georgia, Trinidad, North Cotton Valley Texas and Puntland is huge as the market doesn't seem to have priced in yet.

http://rangeresources.com.au/MiningMaven-Interview-with-Peter-Landau.101.0.html

MrMatisse

shanemort wrote: »

NIce, Thanks for the reply, Yea i got 21000 for me and 11000 for a mate all for 7.3p so heres hoping. Im nearly thinking of grabbing another 10000 but is that being greedy and risky

Sure lets see what happens with the two reports on the way.

Thanks

Im nearly thinking of grabbing another 10000 but is that being greedy and risky


:rolleyes:

shanemort

MrMatisse wrote: »

Im nearly thinking of grabbing another 10000 but is that being greedy and risky


:rolleyes:

I did and glad i did! Up to 9.75 now 33% jump since i went in last friday.

Happy Xmas and may the CONDOR keep rising