Vancouver, B.C., July 6, 2016 – Condor Resources Inc. – (“Condor” or the “Company”) (TSXV:CN) is pleased to report the following update on the diamond drilling of the third and fourth holes at the Soledad project in Peru. Compañia Minera Casapalca S.A. (“Casapalca”) of Lima has the option to earn up to a 70 percent interest in Soledad and is the operator of the current drill program.
The Soledad Au-Cu-Ag project is located in the newly emerging Mio-Oligocene copper-gold belt of the Cordillera Negra, in north central Peru. Soledad features a semicircular cluster of mineralized quartz-tourmaline breccia pipes exposed at surface, with the exposed surface area ranging up to 80m diameter, within a one km diameter zone of interest. Results from the first two holes of the current drill program were released on June 2nd, and reported 2.1 g/t AuEq from surface to 119m in SDH-013, and 1.5g/t AuEq from surface to 164m in SDH-014.
The fourth hole, SDH-016, is a near vertical hole (80° dip), located on the surface exposure of Breccia 1. This hole confirmed the extent of the polymictic Breccia 1, both to depth and width, and also confirmed encouraging potassic porphyry style mineralization and alteration at depth. As summarized in the table below, the hole contains significant mineralization from surface to 490 metres depth where the drill hole ultimately exited the breccia, 85 metres north-west of the drill collar, and 45 metres beyond the surface extent of Breccia 1, suggesting the horizontal area encompassed by the breccia is increasing in size at depth. SDH-016 encountered an alteration zonation within the breccia vectoring to the northwest. The drill hole initiates in an interpreted 40 metre deep oxidized zone with elevated gold and low base metals (includes 4.96 g/t gold from surface to 24 metres) within phyllic sericitic alteration. The phyllic alteration is observed with decreasing sericite content at depth and increasing to pervasive potassic assemblages of quartz, secondary biotite-magnetite-pyrrhotite-pyrite-chalcopyrite down hole and to the northwest. The zonation is clearly evident, and near the bottom of the hole a transition to the siliceous potassic core is interpreted to commence associated with more intense stockwork and copper sulphides.
(http://www.condorresources.com/i/maps/SOLEDAD-JULY-2016-drill-hole-locations.pdf)
(http://www.condorresources.com/i/maps/SOLEDAD-JULY-2016-Breccia-1-Plan-View.pdf)
Results from SDH-016 indicate the nature of mineralization is complex, with the relative content of gold, silver and copper showing variance throughout the hole. Notable amounts of lead and zinc were also encountered at depth, including 200m of 0.5% zinc from 290m.
Table 1: Summary of Significant Intersections, Hole SDH-016
| Hole | from | to | Interval* | Au g/t | Ag g/t | Cu % | Pb % | Zn % | AuEq g/t** |
|---|---|---|---|---|---|---|---|---|---|
| SDH-016 | 0 | 490 | 490 | 0.74 | 30.3 | 0.39 | 0.17 | 0.33 | 1.6 |
| SDH-016 | 0 | 290 | 290 | 1.04 | 33.5 | 0.47 | 0.15 | 0.23 | 2.1 |
| Includes | 0 | 24 | 24 | 4.96 | 31.3 | 0.02 | 0.04 | 0.00 | 5.4 |
| Includes | 24 | 40 | 16 | 0.48 | 11.8 | 0.01 | 0.09 | 0.00 | 0.6 |
| Includes | 40 | 75 | 35 | 3.48 | 37.1 | 0.72 | 0.16 | 0.35 | 4.8 |
| Includes | 75 | 116 | 41 | 0.47 | 88.6 | 1.12 | 0.34 | 0.56 | 3.0 |
| Includes | 116 | 172 | 56 | 0.10 | 4.2 | .05 | 0.06 | 0.2 | |
| Includes | 172 | 223 | 51 | 0.18 | 45.5 | .79 | 0.21 | 0.32 | 1.7 |
| Includes | 223 | 255 | 32 | 0.06 | 4.0 | 0.09 | 0.05 | 0.09 | 0.2 |
| Includes | 255 | 290 | 35 | 0.56 | 35.4 | 0.53 | 0.21 | 0.27 | 1.7 |
| SDH-016 | 290 | 490 | 200 | 0.30 | 25.8 | 0.28 | 0.21 | 0.48 | 1.0 |
*True widths are unknown.
**AuEq assumes US $1200/oz gold, US $16.00/oz silver, US $2.10/lb copper, and 100% recovery. Lead and Zinc are not included in the AuEq calculation.
The third hole SDH-015, is located in the north-east area of the project, approximately 1km to the north of SDH-016 and 200m higher in elevation. The hole was designed to test an epithermal high sulphidation target. SDH-015 was completed to a depth of 443m and returned no significant results. In 2014, SDH-003, in same area as SDH-015, had returned a 5m interval of 3.9 g/t Au.
(http://www.condorresources.com/i/maps/SOLEDAD-JULY-2016-Cross-Section-Holes-15-and-16.pdf)
(http://www.condorresources.com/i/maps/SOLEDAD-JULY-2016-Model-Cross-Section-Holes-15-and-16.pdf)
Ever Marquez, VP Exploration, noted “The alteration system and significant mineralization of gold, copper, silver, and other polymetallic pathfinder elements with significantly elevated values in SDH-016, suggest that there have been multiple mineralizing events and confirms the presence of a breccia-porphyry complex. The drilling and regional setting confirms that this complex is centered at the Soledad project and the underground polymetallic ore bodies being mining on the adjacent concessions to the east of Soledad are related to this alteration zoning centered at Soledad”.
Condor is an explorer and project generator focused exclusively on Peru, and our objective is the discovery of a major new precious metals or base metals deposit. Project acquisition and development is managed by our Lima based exploration team.
ON BEHALF OF THE BOARD
Lyle Davis
President & Chief Executive Officer
For further information please contact the Company at 1-866-642-5707, or by email at info@condorresources.com
Mr. Brian D. Game, P.Geo, is the Qualified Person under NI 43-101 who has approved the technical content of this news release.
Quality Assurance/Quality Control: Drilling was performed by GeoDrill SAC of Peru. All technical information for the Soledad project is obtained and reported under a quality assurance and quality control program. Samples are shipped to and assayed by SGS del Peru S.A.C. in Lima, a laboratory whose quality control system complies with International Standards OHSAS 18001, ISO 14001 and ISO 9001. A four-acid digestion system with 51 element ICP-MS analysis is conducted on all samples, with silver, copper, lead and zinc being re-analyzed with atomic absorption spectrometry method when analyzing over the ICP-MS limits. Gold is assayed using a fire assay with an atomic absorption spectrometry finish. Systematic assaying of sample duplicates and commercially prepared blanks and standards is performed for analytical reliability. Screen fire assays for gold may be carried out on selected samples. A secure chain of custody is maintained in transporting and storing of all samples.
Cautionary Statement Regarding Forward-Looking Information: All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
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