Cristal

Prospective for: Porphyry Copper-Molybdenum.

Location:

The 46 sq km Cristal property is located along the West Fissure in northern Chile, near the border with Peru. The West Fissure is host to the majority of Chile's large porphyry copper deposits, including the nearby Collahuasi, Ujina and Quebrada Blanca porphyry copper mines.

Update:

The exploration target at Cristal is a large disseminated Cu-Mo mineralized intrusive beneath the overlying cover comprised of barren ignimbrite.

In late 2012, BHP Billiton conducted an airborne geophysical survey that encompassed the Cristal project. Copies of the processed airborne geophysical data covering the property have been received from BHP Billiton, and include the Magnetics (RTP), Gravity (GDD) and EM (AdTau) interpretations.

Two diamond drillholes were completed by BHP Billiton at Cristal in March/April/May of 2013. Diamond drillhole INT003D was drilled vertically to a depth of 905m, and encountered volcanics from about 607m to 902m, or a 295m interval. Diamond drillhole INT005D, located approximately 5km north of INT003D, was drilled to a vertical depth of 721m, and encountered intrusive from about 430m to 718m, or a 288m interval.

BHP Billiton is currently completing an evaluation of all data obtained to date, and the reclamation of the initial two drillholes.

BHP Billiton have advised Condor the first year commitment of cumulative exploration expenditures of US$500,000 has been satisfied.

Ownership:

100% owned. In October 2012, Condor's Chilean subsidiary, Minera Condor Limitada, completed a definitive agreement (the "Agreement") with BHP Billiton regarding the Cristal project. Under the Agreement, BHP Billiton have an exclusive option to earn 65% ownership of a joint stock company created to hold the Cristal concessions by completing cumulative exploration expenditures of US$18.0 million over four years, with defined minimum annual work expenditures. The Agreement stipulates a mandatory first year work commitment of US$500,000, which includes an initial cash payment of US$60,000. BHP Billiton have the option to extend the initial earn-in period by one year by making a one time cash payment of US$300,000.

Upon earning their initial 65% interest, BHP Billiton have the additional option to increase their ownership in the joint stock company to 75%. In order to exercise the second option, BHP Billiton are required to complete a further US$7.0 million in exploration at Cristal (for a cumulative exploration expenditure of US$25.0 million) within two years of acquiring their 65% ownership.

BHP Billiton, at their option, may satisfy any or all of the US$25.0 million exploration expenditure commitments by making cash payments to Minera Condor Limitada in lieu thereof.

Geology/Mineralization:

The Cristal target is covered by young volcanics (ignimbrites) which have been eroded by two deeply incised N-S trending valleys (quebradas), interpreted to be strands of the West Fissure fault system. Immediately to the south of the property, on the east side of the eastern-most valley, the Quebrada Palmani, is an exposure of a classic Chilean porphyry copper outcrop comprising altered quartz feldspar porphyry (QFP) intrusive rock exhibiting abundant stockwork quartz veining, at least 3 phases of brecciation, and limonites after pyrite and copper minerals. A 'relict sulphide' study conducted in the early 1990's on this outcrop (nicknamed the Red Wall) revealed abundant bornite and chalcopyrite along with pyrite encapsulated within quartz grains in the QFP. Exposures of propylitic alteration in the surrounding andesites, and a silver-lead-zinc vein district with historical small scale production are located to the southwest of the Cristal claims and in the western-most quebrada. All of this information points to the existence of an extensive mineralized porphyry copper system at Cristal.

Past drilling by others in the 1990's to the south of the Cristal claims encountered abundant disseminated pyrite along with uneconomic copper values. This area has been interpreted to be the pyritic halo surrounding a potentially enriched porphyry copper system, the centre of which is postulated to be located to the north of the Red Wall, under the ignimbrite cover on the Cristal claims.

On the Cristal property, the West Fissure undergoes an abrupt change in direction from N-S to N45W, precisely where it is intersected by a NE-SW regional structure. Condor geologists believe that the intersection of these deep seated structures is the centre of the target at Cristal.

This region of the Chilean porphyry copper belt has been an area of increased activity recently. Anglo American is the holder of record on the concessions immediately south of Cristal, and were reported to be drilling there in late 2012. And Rio Tinto's Palmani project is located approximately 6km to the southwest of the Cristal concessions.

Unconfirmed verbal information was obtained in early 2010 concerning a drill program conducted by another major company in the mid-1990's in what is now within or very close to the southern boundary of the Cristal claims. This source reported drill intercepts of 40 to 50m grading 0.7% to 0.8%Cu in one drillhole and approximately 80m of 1%Cu in another, with mineralization remaining open to the north under the ignimbrite cover. If true, this would support Condor's interpretation that the main mineralized target lies to the north within our Cristal claims.