3 Further Reasons to add Cora Gold #CORA to your Watchlist
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3 Further Reasons to add Cora Gold #CORA to your Watchlist

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

CORA GOLD #CORA
Share Price: 15P
Market Capitalisation: £8.25M

Cora Gold is a new gold exploration company focused on two world class gold regions in Mali and Senegal in West Africa.

3 FURTHER REASONS TO ADD CORA GOLD #CORA TO YOUR WATCHLIST

MORE HIGH GRADE SHALLOW DISCOVERIES AND LARGE GOLD MINERALISED STRUCTURE AT FLAGSHIP SANANKORO

HIGH GRADE SHALLOW DISCOVERIES

On 4th June Cora Gold release further, “encouraging assay results from its Sanankoro Gold Discovery in southern
Mali.”

HIGHLIGHTS:

Broad zones of shallow gold mineralisation in the weathered zone including:
34m at 2.5 g/t Au including 23m at 3.3 g/t Au;
63m at 0.9 g/t Au including 18m at 1.3 g/t Au hole ending in mineralisation;
▪ 19m at 1.2 g/t Au; and
▪ 9m at 1.0 g/t Au including 3m at 2.5 g/t Au.

Dr Jonathan Forster, Cora’s CEO:

“The overall scale and quality of Sanankoro is remarkable. We have received consistently encouraging results from drilling at this project, with today’s assay results from core drilling confirming previous work at the Zone A area of the project.

LARGE GOLD MINERALISED STRUCTURE AT SANANKORO

On 24th April Cora released an annoucemnet entitled:

“Sanankoro Reconnaissance Drill Results Confirm Large Gold Mineralised Structure”

The results of this drilling campaign revealed 3 things:

1. The previously undrilled area between the drilled Zone’s A and B revealed decent mineralised intercepts of:

o 35.7 g/t Au over 1 m

o 1.89 g/t Au over 13m

o 1.19 g/t Au over 19m

o 1.26 g/t Au over 14m

o 4.88 g/t Au over 2m

 

2. This means Zone A and B are now a continuous gold zone (updated to 5.2km in 4th June’s release, with the potential for it to get a lot bigger)

3. A 900m gold strike confirmed from initial drilling on the Bokoro Structure.

Highlights of the assay results from the Bokoro Structure include high grades of:

o 4.92 g/t Au over 6m

o 1.56 g/t Au over 6m

o 1.48 g/t Au over 6m

o 1.01 g/t au over 13m

Dr Jonathan Forster, CEO:

“The demonstration of a 3,600m (now 5,200m) long continuous gold structure highlights Sanankoro’s position as a new gold discovery with the potential to become a significant development asset. We have also identified a 900m long zone of continuous gold mineralisation on the previously untested Bokoro Structure to the west.

“Bearing in mind that we have previously reported a new discovery to the north of Zone A-B, “Target 1”, and there remains every chance of identifying additional new zones on both the Sanankoro and Bokoro structures with future drilling, we are excited to see the inventory of targets is expanding for prioritisation at the resource drilling stage.

POTENTIAL FOR STAND ALONE MINE

Cora Gold’s primary focus is on further developing Sanankoro in the Yanfolila Gold Belt (South Mali), which Cora Gold believes has the potential for a standalone mine development.

This mine they believe would have resources of one millions ounces plus.

To understand the potential financial fundamentals of this project, we could take a look at their major shareholder and neighbouring gold miner, Hummingbird Resources (HUM).

Hummingbird Resources intend to have a production rate of 107,000 ounces of gold per year and their all in cost is $695.

If the price of gold is $1250 they would be generating $59.4m (£44.4m) of free cash flow a year.

As Cora’s Sanankoro project is located on 60km from Hummingbird’s Yanofolila mine then one could assume that the economics could be very similar.

Therefore one year of free cash flow, ie $59.4m (£44.4m) is currently more than 5 times the entire valuation of Cora Gold.

Hummingbird is valued, conservatively, at only £110m, which is less than 3 times expected free cash flow. One could reasonably expect this valuation to grow as they have only started producing in December 2017.

 

MAJOR SHAREHOLDER INCREASES HIS STAKE

On 17th May 2018 Lord Farmer purchased an additional 720,000 shares in the Cora Gold.

As a result, Lord Michael Farmer now owns 12.07% of the issued share capital.

Lord Farmer is also known known in the commodities world as “Mr Copper” for his long-term involvement with the world copper market, often responsible for shipping around 15pc to 20pc of China’s copper supplies.

This is a vote of confidence in the results Cora has been producing but also locks up what was already a fairly tightly held set of shares, as I outlined in my previous blog.

One of the biggest issues with any junior explorer hoping to become a miner is securing the debt finance in order to construct the mine. With Cora’s connections and shareholders (including Humminbird, who went from explorer to producer 60km south of their project) one would expect this funding not to present such an obstacle.

 

15 TARGETS

 

5 TARGETS IN THE YANOFILA GOLD BELT SOUTH MALI

Cora have multiple other drill targets to follow up in the Yanfolila Gold Belt South Mali, which include initial drill results carried out by Cora at Tekeledogou and also historical drilling by 3rd parties.

On 1st May Cora released the RNS:

“Exciting High-Grade Drill Results from Tekeledougou Gold Permit, Mali”

• Maiden drill programme at Tekeledougou Permit
• Two new gold zones discovered, with shallow, broad, high-grade gold intercepts including:

WOYONI
▪ 56m at 2.2 g/t Au including 22m at 4.86 g/t Au; and
▪ 60m at 0.7 g/t Au including 9m at 1.30 g/t Au.
▪ Drilling confirms minimum strike length of 250m
▪ Open in all directions

KOUROUDIAN
▪ 17m at 6.8 g/t Au including 1m at 102 g/t Au
▪ 15m at 1.17 g/t
▪ Drilling confirms minimum strike length of 500m and clear potential to extend over 1km
▪ Open in all directions

On a recent podcast Hayden Locke, Cora’s Business Development Manager said, “This initial result compares very favourably to what is one of the best gold discoveries in 10 years in Mali”.

 

HISTORICAL DRILL RESULTS AT YANFOLILA

Historical reconnaissance drilling within Yanfolilia at Tagan, Siranikele & Farassaba III included intercepts:

• Tagan: 30m @ 1.6 g/t Au
• Siranikele: 18m @ 4.3 g/t Au
• Farassaba III: 4m @ 2.6 g/t Au

 

4 TARGETS AT THE KENIEBA WINDOW

Over past two decades more than 50Moz Au has been discovered across 12 gold project areas in close proximity to Cora’s permits in the Kenieba Window.

Of the 4 target two that are early stage but the Diangounte Property and Madine Foulbe Property in Senegal are a little more advanced.

THE DIANGOUNTE PROPERTY

Consists of three contiguous permits (Diangounte Est, Satifara Ouest and Kakadian) that encompass a total area of 127 km2.

Historical and contemporary exploration activities have included soil, termite mound and rock-chip sampling and geological mapping. This resulted in the identification of two prospects that were drilled and returned intersections of 6 m @ 2.51 g/t Au and 2 m @ 6.94 g/t Au. The property also occurs approximately 6.5 km southwest of the Anglogold-Ashanti Sadiola gold mine, a 14 million ounce discovery.

 

THE MADINE FOULBE PROPERTY IN SENEGAL

Consists of a single permit that encompasses an area of 303.55 km2.

Historical exploration activities included soil and rock-chip sampling that resulted in the identification of several prospects. Two of the prospects were drilled and returned intersections that included 3 m @ 41.20 g/t Au and 3 m @ 7.86 g/t Au.

How does it fit in with my research model, C.C.A.S.S.H which you can read more about by clicking here

GREEN = POSITIVE

BLACK = NEUTRAL

RED = NEGATIVE

CAPITALISATION

At £8.25m Cora is a micro cap with the potential to be valued at multiples of where it is today.

CHART

It’s had a few rises and falls but it’s still below it listing price of 16p and had completed a lot of work revealing positive results.

ASSETS

Total assets of the Group as at 31 December 2017 were US$10.8m.

Cora Gold raised £3.45m at IPO and in their Q1 2018 Corporate Presentation they state they had £2.2m of cash.

SHAREHOLDERS

Over 60% of the shares are very held by institutions, high net worths and directors.

SIGNIFICANT MILESTONE

HEAD HONCHOS

The board and significant shareholders of Cora Gold have an impressive track records in mining globally. You can read their bio’s by CLICKING HERE

 

Cora Gold are a very experienced team, exploring in the highly prolific jurisdiction of Mali.

Within Keniba Window alone, in West Mali, over 50 million ounces of gold has been discovered in the last 20 years. South Mali even though less explored is equally exciting.

The initial drilled results from Cora’s Sanankoro and Tekeledogou project’s have hightened this excitement, underlining what could be significant cash generator’s for the company.

Tekeledougou, even though not their flagship project could be generating decent cashflow, due to it’s proximity to their largest shareholder, gold miner Hummingbird Resources, in the near term. Meanwhile, Sanankoro is shaping up to look like it could be an impressive stand alone mine where it’s resource could be at least one million ounces.

If this wasn’t enough, these are only two of 15 targets they’ve drilled. The other 13 have previously, via historical drilling, also shown some impressive results. It seems Dr Jonathan Forster the CEO is spoilt for choice, although he does have the neat problem of working out which project should be prioritised.

It’s no coincidence that there’s some big money and serious experience, either on the board and / or significant shareholders of Cora. We’re all aware of the term, follow the money, in this case, the money has been accumulated whilst mining in Africa. So you can be assured they know what they’re doing here.

To add CORA GOLD #CORA to your Vox Markets Watchlist, click here and tap the, “Follow”, button.

You can hear CEO, Dr Jonathan Forster on my recent podcast below:

To read my previous blog on Cora Gold #CORA click here

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

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THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

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