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EL CONDOR REPORTS DRILLING RESULTS AND ANNOUNCES INTENT TO EXERCISE OPTION ON ANCHACA PROPERTY

September 21, 2010

TSXV Symbol: LCO

VANCOUVER, Sept. 21 /PRNewswire-FirstCall/ – El Condor Minerals Inc. (“LCO” or the “Company”) is pleased to provide the results of its recently-completed drilling and trenching program on the Anchaca Au-Ag-Cu property in southern Peru, and to announce corporate plans to exercise its option to acquire the Anchaca Property and an associated financing.

Anchaca Results

The program and the results are separated into two east-north-east trending mineralized corridors:

    Basilia Zone: A total of four holes were drilled in the recent drill
    program. The two NE most holes both intersected important mineralization
    beneath surface trenches. These holes pierce the Basilia structural zone
    170 meters apart. The zone immediately disappears to the east-north-east
    under cover and reappears 600 meters further along strike and 300 meters
    higher in elevation as the Leon breccias on the top of a ridge.
    Specifically:

    -   Hole AN-002, -55 degrees, 155.3 meters long. At 54.0 to 56.8 meters
        intersected 2.8 m (true thickness 1.6 meters) 0.65 gpt Au, 2.35% Cu,
        52 gpt Ag. The drill intercept lies approximately 50 meters under a
        surface trench intercept of 3.45 meters of 1.45 gpt Au.
    -   Holes AN-004, -55 degrees, 79.9 meters long. At 39.5 to 40.8 meters
        intersects 1.3 m (true thickness 0.75 meters) 18.83 gpt Au, 0.11% Cu
        and 7 gpt Ag. This intercept lies approximately 30 meters under
        surface trench value of 0.8 meters of 7.70 gpt Au.
    -   These two drill holes and intercepts occur at approximately the same
        elevation.
    -   Surface trenching confirmed and expanded on earlier work.
    -   Holes AN-001 and AN-003 contain geochemically anomalous metal values.

    Condor Zone: Three drill holes by El Condor pierce the Condor structural
    zone, AN-007, AN-005 and AN-008 respectively 55, 130 and 450 meters off
    the end of the mineralization intersected in the Cedimin underground
    exploration adit.

    Hole AN-005 essentially tests the known center of the zone and pierces it
    at its deepest point, specifically:

    -   Hole An-005, -45 degrees, 281 meters long. At 152.05 to 158.05 meters
        intersects 6.0 meters (true thickness 4.2 meters) 1.43 gpt Au 1.2% Cu
        and 20 gpt Ag at an elevation of 4910 meters. Trenching was not
        possible due to colluvial cover.
    -   Hole AN-007, -63 degrees, 337.3 meters long. Intersects the main
        Condor structure as manifested by the mineral suite and alteration at
        4890 meter elevation and reports a few centimeters of mineralization
        identical in sulfide composition to the zone in AN-005 at 152 meters.
        This zone from 122.2 to 122.5 graded 0.63 gpt Au, 0.58% Cu, and
        .73% Zn. These two intercepts are separated by 80 meters.
    -   AN-008 intersects the main Condor structure 320 meters to the east-
        north-east and at an elevation of 5150 meters. It reports geochemical
        value of Au, Cu and Ag along with Pb and Zn, consistent with metal
        values expected as the near-surface expression of buried
        mineralization.
    -   In addition a second zone was encountered in hole AN-007. From 302.7
        to 304.7 meters intersects 2.0 meters of 4.0 gpt Au, nil Cu and
        nil Ag. This intercept is the deepest of the three drill holes
        testing the Condor mineralized corridor, at an elevation of
        4725 meters. Surface trenching in this area was not possible due to
        colluvial cover.
    -   Resampling of Cedimin drill hole SD3A from 8.3 to 24.7 m intersects
        16.4 meters (true thickness of approximately 8.7 meters) graded
        1.39 gpt Au. The surface expression of this mineralization as
        represented in a trench is 12 meters true thickness averaging
        0.56 gpt Au. The centre of the drill intercept lies 13 meters beneath
        this trench.
    -   Surface trenching confirmed and expanded on earlier work.
    -   Hole AN-08 contained geochemically anomalous metal values

    Each of the three holes drilled were collared to test the Condor zone as
    represented by the projection of the underground workings and its
    continuation as defined by geologic mapping and the geophysics anomaly
    mapped beneath alluvial cover. All three holes intersected the zone. All
    three holes continued in strongly altered rock with highly anomalous gold
    values and disseminated sulfides over lengths of 150 to 320 meters
    confirming that the vein systems are part of a much larger, disseminated
    mineralized event, the exploration for which will be a significant
    element of the Phase II work program.

These results are derived from the recently completed Phase I exploration program on the 2,200 hectare Anchaca property, located in the department of Arequipa in southwestern Peru. The Company commenced its Phase I trenching and drilling program as well as supporting geological mapping, remote sensing and rock geochemistry in May and completed it in late August, drilling eight holes for an aggregate of over 1,800 meters of drilling. Based on the strength of alteration, several drill holes were extended through the initial target of structurally controlled vein mineralization and are much longer (deeper) than originally planned. Also, the surface trenching program was expanded as it proved to be more effective than originally anticipated.

Of most critical importance, drilling successfully demonstrated continuity of mineralization consistent with other vein-type deposits in the district. In addition, the three best drill intercepts from the Phase I program are stronger than their shallower expressions (see details below). This continuity and increasing strength of mineralization is consistent with our initial interpretation that Anchaca is virtually the top of a much larger mineral system. And, it establishes the foundation for the design of our Phase II work program to outline a mineral resource and preliminary economics.

In addition, the Phase I program increased the aggregate strike length of the Basilia and Condor mineralized corridors by more than 50%. Both structural corridors remain unbounded in both directions.

Phase I work also validated an efficient tool to explore through the ubiquitous alluvial cover on the Anchaca property (80% to 95% cover for the Condor and Basilia mineralized corridors, respectively). Specifically, the best mineralization on the Condor zone is coincident with geophysics (induced polarization) chargeability highs indicating sulfide mineralization and resistivity highs indicating silicification. Induced polarization (“IP”) will be an important and efficient exploration tool in future exploration work on Anchaca.

The Basilia and Condor mineralized corridors are separated by 700 meters. They are hosted by Tertiary volcanic and volcaniclastic sediments as well as andesite and rhyolite. These structures, in turn locally host hydrothermal breccias and pebble dikes consistent with intrusive-type mineralization, as is the local presence of anomalous molybdenum values. Alteration includes phyllic, silicification, argillic, advanced argillic, propylitic, hornfels and skarn. The best mineralization is associated with silicification and appears to increase below a 4900 meter elevation, consistent with other mines in the district.

Samples were analyzed by ACME Labs, 1020 Cordova St, Vancouver, BC using their 1D aqua regia digestion, ICP-ES analysis and 7AR finish package. Samples with over-limit values used the G6 fire assay – AA finish package.

Independent geologists Gustavson & Associates completed their field visit and are preparing an update to the NI 43-101 compliant report on the Anchaca project as soon as possible.

Exercise of Anchaca Option and Next Steps

Based on the results of the Phase I exploration program, El Condor now intends to provide notice that it will exercise its option with Exploraciones Cori Condor SAC (“ECC”) to acquire the rights to 100% of the Anchaca property (subject to a 1.5% NSR) subject to financing. ECC, controlled by Merwin (Bernie) Bernstein, in turn has an option to acquire Anchaca from Cedimin, a wholly-owned subsidiary of BuenaVentura. Terms of the exercise are the payment of US$4 million to Cedimin and the issuance of $4 million in El Condor common shares to ECC. Upon completion of this transaction, Mr. Bernstein will become the largest shareholder of El Condor and will join the Company’s board of directors.

On his review of exploration program results, Mr. Bernstein offered the following statement. ‘I am pleased with the outcome of the first phase of work on Anchaca. This confirms Au, Cu and Ag values and widths consistent with operating mines in this important mining district with which I am intimately familiar. Also of great interest to me are the long intervals of highly anomalous gold mineralization and suite of hydrothermal alteration types, which supports our interpretation that the vein mineralization is the expression of a much larger, buried mineral system. I look forward to joining the El Condor team in the continued development work on the Anchaca project and other projects as well’.

Phase II Definition Drilling and Exploration

The initial phase of work on Anchaca was accomplished in five months with a budget of $1 million roughly split between the Basilia and Condor zones. The proposed next phase of work will be accomplished with approximately US$4 million. Specifically US$2.5 million for definition and exploration drilling and trenching on the two mineralized corridors, plus US$1.5 million for permitting, initial environmental and social assessment studies, and a preliminary economic assessment based on the results of definition drilling.

    Specifically, the program will include:

    -   'Grid drilling' to develop a resource model: 12,500 meters at $200/m
        for a total cost of $2.5 million. Systematically grid-drill vein
        intercepts with a fences of drill holes providing pierce points
        through the mineralization at 50 to 75 meters spacing to test
        continuity with the goal of developing a resource model. Extend the
        current mineralized intercepts with drill-hole fences approximately
        100 to 150 meters to look for additional mineral centers along the
        mineralized corridors.
    -   Supporting work permitting of exploration work and geology,
        geochemistry, remote sensing, geophysics, trenching and prospect
        drilling $1.0 million
    -   Preliminary view of potential production scenarios: initial
        environmental and social base line work, preliminary economic
        assessment. $500,000

    Timing: 12 months commencing fourth quarter of this year.

    Financing

The Company is currently finalizing plans for a projected US$ 8.5 million financing, and will provide details on specific terms as they become available. Use of the proceeds of the proposed financing will be as follows:

    -   Exercise the option to acquire 100% of Anchaca: US$ 4 million
    -   Phase II exploration at Anchaca: US$ 4 million (as above)
    -   General working capital and corporate purposes: US$ 500,000

The proposed financing and certain specific aspects of the Anchaca option exercise are subject to regulatory approval.

This news release has been reviewed by Leonard J. Karr, a Qualified Person under NI 43-101 criteria.

About El Condor Minerals Inc.

El Condor Minerals Inc. is a minerals exploration company focused on the discovery of large precious- and base-metal mineral systems in stable political jurisdictions. The Company’s first project is Anchaca, a 2,200 hectare gold-copper property in southern Peru, and its second is Millennium, an Au-Ag property located in western Arizona. For additional information please visit the Company’s website at www.elcondorminerals.com.

    ON BEHALF OF THE BOARD OF DIRECTORS

    "Leigh W. Freeman"

    President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE El Condor Minerals Inc.


Source: newswire



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