Financial insightsCoral Gold has two major foci. First, it has a defined gold resource from which they have already profitably extracted gold. Second, its large land package is well located and positioned in what is already a developing mining camp. Further, this area has the potential to become a major new mining district.
Coral’s Tenabo (Robertson) property is located within the Battle Mountain Trend in north-central Nevada. Their property adjoins Placer Dome’s Pipeline Mine which has proven and probable reserves of about 7.9 million ounces of gold. Further, In April, 2003, Placer announced a major new discovery at Cortex Hills. This is located about 12 miles south-east of their Pipeline Mine. The last public statement of its 4.5 million ounces of gold resource was released in June. Importantly, it is believed by industry insiders that this number will s significantly grow. Shortly after the announcement Jay Taylor, president of Placer Dome, stated that “Cortez will continue to be a cornerstone asset of Placer Dome for many years to come”. If you will recall, the early gold discoveries in the Carlin Trend in Nevada consisted of near surface deposits. After they had experienced much exploitation, substantially deeper exploration drilling led to a number of new discoveries. These were of far higher ore grade material, and the production of which led to the elevation of the Carlin Trend to that of the world’s second largest gold producing region.
Given the significance of Placer’s deeply rooted Cortez Hills deposit it has been postulated by some of the keenest minds in the mining community that the Battle Mountain Trend also possesses a number of yet to be discovered deep, gold-rich ore deposits. It is believed that the genesis of the Battle Mountain Trend is similar to that of the Carlin Trend. If this thesis is correct, the Battle Mountain Trend will ultimately develop a series of deep, high grade gold mines such as Cortez Hills. This is where Coral Gold’s strategic land position may greatly benefit it.
Coral’s Tenabo project consists of 14,000 acres. This is separated into two parts. First, they have a joint-venture agreement with Placer Dome over 6,500 acres that adjoin their Pipeline Deposit. Under the present terms Coral has a 39% carried interest to production. Coral also has 7,500 acres of 100% owned land that they have excluded from their contract with Placer. It is on these properties that Coral has a one million ounce near surface gold resource. It is likely that this resource is not yet economic. However, given my belief of the great gold Bull Market, it is only a matter of time before the rising gold price changes this condition. Further, this resource is open to expansion, and little work has yet been done on this property at depth. I view Coral as not only being a great speculation upon the possibility of the Battle Mountain Trend developing multiple gold deposits at depth, but also as an excellent call on the gold price due to their fully owned one million ounce gold resource.