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JAY TAYLOR UPDATES COMMENTS ON CORAL GOLD RESOURCES (CLH.V)
(Traded TSX-CLH/Pink Sheets-CLHRF 25,091,771 Shares Outstanding Recent Price $0.55) - With its miniscule market cap of only around $25 million and with 1.5 million ounces of open-pit leachable gold, we think this stock may be one of our deepest sleepers.
Management is starting to consider the possibility of scaling up production plans from levels previously planned by Amax when they carried out a feasibility study during the 1990s.
Amax had talked about production levels of 17,000 tons per day. Currently, management is talking about prospects for a 25,000- to 30,000-ton-per-day project that would produce similar to the 145,000 ounces envisioned by Amax in their 1994 feasibility study. Also, while in Vancouver last weekend, I spoke to metallurgist Jasman Yee, P.
Eng., who suggested crushing the rock to a ⅜ mesh rather than the mesh previously envisioned by Amax should increase recovery rates.
Based on $850 gold, a 3.4 million ounce resource is the latest 43-101 stat to be published by the company of which 1.5 million ounces are open pit oxide ounces.
The average grade on this material is 0.017 oz.
per ton which is a sufficient grade in many instances to make for a profitable mine.
With gold now above $1,000, it is likely these resource numbers could be increased somewhat.
In fact, it is not difficult to envision a resource of over 4 million ounces already, though not sufficient work has been carried out to qualify as 43-101 ounces.
Corals property is entirely surrounded by Barrick Gold.
We think it is only a matter of time before Barrick decides to make an offer to Coral to buy its property.
At the same time, it may be in Coral Golds interest to begin planning to move its project forward on its own so that Barrick does not take the companys prospect for granted.
Simply on its existing gold resources and the seemingly economic viability of its main asset in Nevada, we think this stock is a buy for long-term holders of gold mining shares.
We would suggest adding to positions once it becomes clear gold shares are bottoming out during what we perceive to major down leg in stocks at this time.
Neither 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.
This release contains statements that are forward-looking statements and are
subject to various risks and uncertainties concerning the specific factors
disclosed under the heading Risk Factors and elsewhere in the Companys
periodic filings with Canadian securities regulators.
Such information
contained herein represents managements best judgment as of the date hereof
based on information currently available.
The Company does not assume the
obligation to update any forward-looking statement. |
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