Vancouver, B.C., June 9, 2006 - Condor Resources Inc. (TSX.V:CN) - (“Condor” or the “Company”), in continuing its corporate strategy of project generation in Latin America, announces that it has signed a binding letter agreement with Sr. Jose Luna, owner of the “El Dorado” gold project in Salta Province of Northwest Argentina. The agreement is subject to the approval of the TSX Venture Exchange.
Under the agreement, Condor holds the exclusive option to acquire a 100% interest in the El Dorado property by making staged cash payments totaling US$1,460,000 over 3 years, including a down payment of US$25,000. Upon exercise of the option, Condor shall have the right to purchase a 1.5% Net Smelter Return royalty at any time, in consideration of a cash payment of US$500,000. There is no work commitment required on the property, and Condor may terminate the agreement upon giving 30 days written notice to the owner.
The 10 sq. km. El Dorado property is located in the desert “Puna” region of northwest Argentina at an elevation of 3500 to 4000m above sea level and approximately 200 km. NW of the capital city of Salta, in the province of the same name. The property has year-round secondary road access.
Geologically, El Dorado is underlain by an Ordovician marine sedimentary sequence with intercalated dacite and rhyolite volcanics. These units have been intruded by a Tertiary quartz-eye dacite porphyry and older granodiorite intrusive rocks. The Tertiary intrusive event is thought to have introduced gold mineralization along with pervasive moderate to strong argillization and silicification of the host rocks, and associated stockwork quartz veins and local silica brecciation. At least two periods of quartz veining have been identified to date. The alteration zone covers an estimated surface area of 2 sq. km. and is open for extension under cover to the south. Abundant hematite, jarosite and goethite occur as disseminations and fracture coatings within both the altered sedimentary sequence and local dacite porphyry exposures, along with unidentified sulphide inclusions within the quartz veins.
A Canadian junior resource company originally discovered the area during a routine regional rock geochemical sampling program conducted in the late 1990’s. Follow-up work at the time comprised the collection, by several geologists, of close to 350 randomly-selected rock chip samples, of which 164 (47%) returned values in excess of 50 ppb Au, including 121 (35%) greater than 100 ppb Au. Several values exceeded 1g/t Au, with peak values of 1.59, 1.79, 1.87, 3.24, 3.77 and 11.52 g/t Au. Associated with the gold mineralization are anomalous As, Sb, Cu, Pb and Zn values. The property was abandoned in 2000 due to declining metal prices. While assays at that time were conducted by an internationally-recognized Canadian analytical laboratory, they do not meet with current National Instrument 43-101 analytical requirements and procedures and should not be relied upon.
Condor plans to conduct a Phase I exploration program on the El Dorado project to include prospecting, geological mapping, and rock and dry-wash gully sediment sampling. The anticipated target at El Dorado is a bulk-mineable disseminated gold deposit.
Condor Resources was incorporated in 2003 to capitalize on management’s broad in-country experience and extensive contact-base in Chile and elsewhere in Latin America. The Company’s philosophy is to continue generating attractive gold and copper projects in the region, and to test selected priority targets. Condor is specifically interested in joint venture participation to enhance the value of its property portfolio. We are confident that this well-defined focus improves the odds of Condor participating in the next exploration success story in the region.
For further information please contact:
Condor Resources Inc.
910-885 Dunsmuir Street
Vancouver, BC V6C 1N5
Tel: 604-484-2015
Patrick J. Burns, President
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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