Condor Gold says it has selected Hanlon Engineering & Associates to develop a feasibility study level design for a new processing plant built around its recently acquired SAG mill at the La India gold project in Nicaragua.

A wholly owned subsidiary company of GR Engineering Services Limited (GRES), Hanlon is based in Tucson, Arizona. As lead engineer for this study, Hanlon will be responsible for the engineering designs, the capital cost and operating costs of the processing plant to a FS level of design.

Condor, earlier this year, entered into an agreement to purchase a completely new Metso Outotec SAG mill package from First Majestic Silver to serve La India.

The feasibility study design will develop costs to a +/- 15% level of accuracy for the design, capital expenditure and operating expenditure of a fully engineered processing plant package, which is normally a mandatory requirement of debt financing. The processing plant will be designed to a nominal capacity of 2,300 t/d, but have the built-in capacity in several key areas to potentially upgrade throughput to 2,850 t/d. At the 2,300 t/d rate, initial production is expected to be 80,000-100,000 oz/y of gold.

Hanlon is due to deliver the FS level engineering designs for a new processing plant within 12 weeks, working in conjunction with its GRES and using their extensive global experience with the design, construction and expansion of gold processing plants.

Mark Child, Chairman and CEO, said Hanlon Engineering was previously engaged by First Majestic Silver, the vendor of the SAG mill, to help design the new SAG mill recently purchased by Condor.

“Their knowledge of the SAG mill and involvement with many similar process plant designs completed to date will help fast track the delivery of the feasibility study design,” he said.