from todays proactive investor update..besides the iron ore...

from todays proactive investor update..

besides the iron ore business , which will give blanco immediate revenue , we have this...

The Duel Project

Condor is in a Heads of Agreement with Hong Kong company Signet Coking Coal Limited that grants it the right to acquire a majority stake of up to 50.3% in The Duel and Tshipise 2 projects

This is currently being reviewed by an independent third party though an initial Project Exploration Report stated that Tshipise could host multiple hard coking coal projects while The Duel project could easily supply the majority of South Africa’s imported hard coking coal quota of between 3 million and 4 million tonnes per annum.

Based on available data, The Duel project could produce two products, one a primary high-grade coking coal and the other a secondary high-grade thermal coal.

The ability to produce a high-grade thermal coal as a middling product heavily reduces operating costs and expenditure, increasing the primary product margin.

A drilling program is planned for The Duel to JORC the resource as well as a definitive feasibility study (DFS) program for The Duel is expected to be funded by Condor with costs expected to range from €10 million.

The drilling and resource definition program will be run in parallel and are expected to be completed by November 2014.

Condor will then be able to continue with acquisition of additional interest in Signet subject to the terms of the Definitive Agreement.

The tenements surround existing projects, and particularly the Makhado (including Telema & Gray) and Mount Stuart Projects owned by Coal of Africa Limited (ASX:CZA).

These projects have JORC compliant gross in situ tonnes of 879.74 million tonnes and 407.16 million tonnes respectively, for a total of over 1 billion tonnes of which 466.62 million tonnes is at the highest (measured) level of confidence.

Importantly, the position of the coal seams on the CoAL tenements suggests direct continuity through the south-western license of The Duel. This has been confirmed by drilling on The Duel in May 2012. The program consisted of two Reverse Circulation drill holes (500m apart) and one diamond core drill hole to a depth of almost 300 metres.


Analysis

Completion of the €10 million debt funding will allow Condor Blanco Mines to bring the Marianas Magnetite Tailings Project into production and complete acquisition of The Duel Hard Coking Coal Project.

It also allows the company to begin the drill-out and feasibility work at The Duel.

Cash flows from Marianas tailings will allow the company to tap further funding to ramp up production at the iron ore project.

The Duel Hard Coking Coal Project is also well advanced given that a full Bankable Feasibility Study is due to commence soon.

Proactive Investors had noted on 13 March 2014 that the company remains lightly rated at its then current share price of $0.006, (market cap of $2 million) if a line is taken through ASX-listed Universal Coal (ASX:UNV) which is now capped at circa $42 million and has commenced first sales from its South African coal project.

Since then, shares in CDB have nearly tripled to an intra-day high of $0.017 today.

So while early days, Condor's coal projects in South Africa look to have potential to put its current valuation to shame.