🕐03.02.10 - 14:31 Uhr

Coral Gold Resources Ltd - Jay Taylor Comments on Coral Gold



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CORAL GOLD RESOURCES LTD.

TSX Venture: CLH
US OTC: CLHRF
Frankfurt: GV8

52-week range: $0.285 - $1.00
Shares Outstanding: 24,989,771

Investor Relations: 604.682.3701

 

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.

 

Coral�s 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 Gold�s interest to begin planning to move its project forward on its own so that Barrick does not take the company�s 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 Company�s periodic filings with Canadian securities regulators.

Such information contained herein represents management�s 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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