Vancouver, B.C., July 31, 2006. Condor Resources Inc. (TSX.V.CN) – (“Condor” or the “Company”), is pleased to announce that it has signed an option agreement with Peregrine Metals Limited (“Peregrine”) on Condor’s 100%-owned Cristal porphyry copper project in northern Chile. Peregrine is a private company, headquartered in Vancouver, and at arm’s length to Condor.
Under terms of the agreement, Peregrine has been granted a First Option to acquire a 51% interest in the property over a four year period by incurring expenditures of not less than US$2,500,000, making cash payments to Condor totaling US$1,500,000 and issuing 500,000 common shares of Peregrine Metals.
Upon exercise of the First Option, Peregrine may elect to increase its interest to 60% by completing a Feasibility Study on the property and incurring additional expenditures totalling US$1,250,000 over a five year period. The 28 sq km Cristal project covers a classic porphyry copper target in northern Chile near the border with Peru and 70 km northeast of the port city of Arica. It is located on the well-known West Fissure Fault System, a continental-scale structure which is host to the majority of Chile’s (and the world’s) largest supergene-enriched porphyry copper deposits.
At Cristal, the West Fissure undergoes an abrupt change in direction from N-S to N45W, precisely where it is intersected by a NE-SW regional structure. Condor geologists believe that the intersection of these deep-seated structures controls the emplacement of the majority of Chile’s Atacama Desert porphyry copper deposits (eg. Chuquicamata, Escondida, Collahuasi-Ujina). In the case of Escondida, exploitation commenced with an average grade of 3% Cu at the top of the supergene-enrichment zone.
Condor management, based upon more than 25 years of Chilean porphyry copper experience and discovery success, strongly believes that the Cristal property, as well as Condor’s 100%-owned Escudo property, represent two of the best untested targets in Chile for the potential discovery of a multi-billion tonne supergene-enriched high grade porphyry copper deposit.
Condor Resources Inc. was incorporated in 2003 by exploration specialists focused on the generation of copper and gold projects in South America, where management has extensive experience and a proven track record of discovery. The Company’s long-term business plan offers shareholders access to a growing portfolio of properties, including five 100% owned projects in Chile along with the recently-acquired El Dorado and Milagrito gold projects in Argentina, each providing a unique path to discovery.
The option agreement is subject to regulatory approval.
For further information please contact:
Condor Resources Inc.
910-885 Dunsmuir Street
Vancouver, BC V6C 1N5
Tel: 604-484-2015
Fax: 604-688-9895
Patrick J. Burns, President & CEO
Saf Dhillon, Investor Relations
saf@condorresources.com
www.condorresources.com
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading “Risk Factors” and elsewhere in the Company’s periodic filings with Canadian securities regulatory authorities. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement
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