CONDOR BLANCO MINES LTD 
By March 4, 2014
Condor & Lacerta Complete Successful Iron Ore Commercial Scale TrialASX Release Stock Code: CDB
Processing of the 200 tonne commercial scale trial collected from the Marianas Magnetite
Tailings Project has been completed in La Serena, Chile It is estimated from initial analyses that the recovered ore material grades 60-63% Fe. A full laboratory analysis is underway to confirm the overall grade of the final concentrate and other chemical impurities
Processing of the 200t sample confirmed a 12% recovery as estimated from past laboratory testing and used in the previously completed scoping study
On the basis of the results of the 200t sample, Condor has given notice of its intention to complete the definitive joint venture agreement with Lacerta
Condor Blanco Mines Limited (ASX:CDB) has completed the collection and processing of the 200 tonnes of iron ore trial mined at its Maranias Iron Ore Project in northern Chile. The 200t sample was collected under a Heads of Agreement (HOA) for the production and processing of Iron Ore at Marianas that Condor entered into with Lacerta Finance and Mining SpA (Lacerta), a mining contractor that has operated magnetite mining and upgrading projects in Chile from a base in La Serena, 300km south of Copiapo. The 200t bulk sample was trial mined following two earlier 40 tonne bulk samples from Marianas processed by Lacerta at its plant in La Serena and a period of onsite pilot production previously announced in 2013.
The Marianas Magnetite Tailings Project covers the mining and upgrading of a known supply of magnetite and hematite tailings located just outside the mining city of Copiapo. Condor holds 50% of the project and has the right to acquire 100% of this project prior to June 30, 2014.
The 200t sample was sent to Lacerta in La Serena following the operation of a mobile demonstration plant on the Copiapo tailings site. This mobile plant provided an effective validation of material handling. Condor's site team has learnt much from the mobile pilot plant that was established at Marianas as part of proving production and refinement of concentration technology. In particular the work also confirmed that the Marianas ore is relatively easy to process due to very low moisture and consistent particle size and density. Further the recent bulk sample processing has confirmed the product is of shipping quality, being provisionally assayed on site and locally assayed to be of 60-63% in grade.
The demonstration plant provided useful inputs that guided the processing of the 200t bulk sample at the Lacerta facility in La Serena. Material handling on collection of the 200t trial is shown in Figure 2, this was easily completed with material parameters positive in terms of grind size and moisture. Representative samples of the input feed and the recovered output and tailings streams have been sent to an internationally certified laboratory in Santiago for full assay testing.
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Figure 2: Material Handling during Trial Mining at Marianas
Dr Paul Crosio, Chairman of Condor, was present for 200t trial, and commented: "The material is even better than expected with no material handling problems experienced and dryness being even better than imagined. The dryness makes the tailings very easy to process through the preferred magnetic separation method. Dryness is a key operating parameter for us, and this is at the extreme of the scale."
Now that the 200t sample has proven the viability of the tailings, and the ability to produce high grade concentrate (such as the material shown in Figure 3 that was recently produced) at a commercial scale, Condor will now pursue the long-awaited definitive agreement. Once the final joint venture agreement is signed and final permitting completed, large scale operations will begin.
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Figure 3: Shippable Magnetite Produced From Marianas
The definitive agreement will be subject to final permitting for the commencement of production. As previously announced, under the terms of the HOA mining would commence processing 60,000t/month and within three months of permitting, 100,000t/month to be reached before the expiry of one year. Under the HOA terms, Lacerta will relocate its recently purchased magnetite plant and all necessary mining equipment (including trucks, excavators and dozers) to Marianas on receipt of final mine permits.
Condor Technical Director, Mr Carl Swenson, commented: "the recent bulk sample run by Lacerta in La Serena confirms our predicted recovery rate of 12-13%. Processing was smooth and no operational issues were reported. A detailed analysis of the final concentrated ore is being performed by an independent testing laboratory and will be released this week."
In addition to the Marianas project, Condor is in discussion to partner on other near-term production assets. This relates to the finalisation of a five year limited recourse loan of €10m. This loan will be secured by the cash flow
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from Marianas and allow for the full production at Marianas, as well as investment in the South African Hard
Coking Coal projects Condor is pursuing. An update announcement on this loan facility will follow shortly.
Enquiries:
Mr Glen Darby
Managing Director
Condor Blanco Mines Limited
Office: +61 (22) 9225 4070
Email: glen.darby@condormines.com
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Carl Swensson, who is a Member of the Australasian Institute of Mining & Metallurgy. Carl Swensson is a director of Condor Blanco Mines Limited and has sufficient experience relevant to the style of mineralisation and type of de posit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 20 12 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Carl Swensson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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