TIDMCORA
Cora Gold Limited
29 March 2018
Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector:
Mining
29 March 2018
Cora Gold Limited ("Cora Gold", "Cora" or "the Company")
Highly Prospective Madina Fulbe Permit Renewed with Two Exciting
Targets
Cora Gold Limited, the West African focused gold exploration
company, is pleased to announce that the highly prospective Madina
Fulbe Permit ("Madina" or the "Permit"), which is located in
eastern Senegal within the prolific Kedougou-Kenieba-Inlier gold
region, has been renewed. The Permit has been awarded to the
Company's joint venture company, BB First Commodity Holding Ltd
(known previously as SN Mineral Mining Limited), following the
lapse of a previous permit covering the same area as referred to in
the Company's announcement of 9 October 2017. To view the press
release with the illustrative maps and diagrams, please click on
the following
link:http://www.rns-pdf.londonstockexchange.com/rns/3129J_-2018-3-28.pdf
Highlights
-- Highly prospective gold permit covering the previously
announced Madina Fulbe licence held through the Company's joint
venture partner BB First Commodity Holding Ltd ("BB") has been
renewed
-- Located in prolific Kedougou-Kenieba-Inlier between Mali and
Senegal which has seen over 50 million ounces of gold
discovered
-- Two exciting targets already identified and ready to drill
with large soil geochemical anomaly
-- Strong shallow reconnaissance drill results including:
o 3m @ 41.2g/t Au; and
o 3m @ 7.9g/t Au.
Dr Jonathan Forster, CEO of Cora Gold, said "Madina Fulbe is
located in one of the most prolific gold regions in Africa and
presents an exciting opportunity for Cora Gold. The permit has had
early stage exploration and shallow reconnaissance drilling
completed from which two prospects were identified, both of which
are overlain by large geochemical anomalies. We think it is clear
that the reconnaissance drilling, which showed the potential for
strong grades, has not properly tested either of the structures. We
look forward to completing the first stage of systematic
exploration drilling at both prospects in due course."
Madina Fulbe
Cora has received notification from its joint venture ("JV")
partner, BB First Commodity Holding Ltd regarding the award of the
Madina Fulbe gold exploration permit, which is located in eastern
Senegal (refer Figure 1), within the prolific Kedougou-Kenieba
Inlier ("KKI") gold belt. A permit covering the same area was
awarded to SN Mineral Mining Limited, the previous name of BB, in
2010 for an initial period of three years followed by two renewal
periods of three years each, and as such it was due to expire in
2019. Upon submission of the second renewal in 2016, the Ministry
of Mines and Energy asked the permit holder to, among other things,
reduce the permit area. SN Mineral did not respond to this request
but instead submitted an application to issue an entirely new
permit to BB (following the company's name change in December
2016). As such, an entirely new permit was awarded on 15 January
2018 and is valid for four years after which it may be renewed for
two further three-year periods. The Company was informed of the
award by its JV partner on 15 March 2018 and subsequently completed
the necessary checks, both internally and with the relevant
authorities in Senegal, to ensure that the permit is in good
standing. The Permit, which covers an area of 260 sq. km, adds to
the Company's three existing permits in the Diangounte Permit Area.
The KKI has been one of the most prolific gold belts in Africa with
12 substantial gold mines and more than 50 million ounces of gold
discovered in the past 30 years.
The Madina Fulbe permit has been subject to early stage
exploration by its former owners, including regional soil
geochemistry and about 1,750m of shallow, reconnaissance, rotary
airblast ("RAB") drilling using a lightweight drill. The results of
that work have been made available to the Company and has led to
the identification of two priority targets called the Tambor and
Madina Prospects.
Figure 1: Map showing Madina Fulbe and Diangounte Est Permits -
See PDF
Tambor Prospect
The Tambor prospect is underlain by a strongly altered granite
with intensely developed sheeted quartz veins, over which a large
soil geochemical anomaly extends 2,500m by 400m (threshold >50
ppb Au). The drilling, comprising 59 holes (mainly vertical)
identified structures with potential widths ranging up to 300m, was
completed to a vertical depth of only 12m to 15m due to the
hardness of the granite. Nonetheless, strongly anomalous gold
values (>100 ppb Au) were recorded from most of the holes, which
included 41.2 g/t Au over 3m and 7.9 g/t Au over 3m.
Madina Prospect
The Madina Prospect is underlain by a shear zone between
granites and volcanic rocks and is outlined by a soil geochemical
anomaly extending 2,000m by 400m (>50 ppb Au). 45 shallow,
vertical, reconnaissance drill holes, all with depths of less than
21m, were completed over the central 600m of the prospect on
broadly spaced fences. Similarly, broad zones of anomalous gold
values were returned (>100 ppb Au) which included 3m at 1.9 g/t
Au and 3m at 1.6 g/t Au.
The Company considers that the indication of broad zones of gold
mineralisation within a large soil geochemical anomaly is highly
significant. Cora believes that the shallow vertical drilling (into
vertical structures) failed to properly test the gold potential.
Both prospects are drill ready targets justifying a programme of
angled reverse circulation ("RC") holes to test the depth and
extent of the mineralised structures.
Joint Venture Structure
The joint venture agreement with BB is subject to receipt of
written confirmation and proof that the Minister of Mines in
Senegal has ratified it by way of acknowledgement of its existence.
The principal terms of the joint venture agreement provide
that:
-- Core Gold's interest in the JV is by way of a contractual
interest in the Permit and does not involve the establishment of a
partnership or corporate entity;
-- Cora Gold will have earned a 51% interest (pre-dilution by
any State interest) by solely funding US$200,000 of exploration
expenditure across the Permit;
-- Cora Gold will have earned a 75% interest (pre-dilution by
any State interest) by solely funding exploration expenditure
through to completion of a scoping study;
-- upon Cora Gold having earned a 75% interest (pre-dilution by
any State interest) then BB must elect either: to participate in
funding future exploration expenditure on a pro rata (25%) basis;
or to decline to participate in funding future exploration
expenditure in which case Cora Gold will have earned a 100%
interest (pre-dilution by any State interest); and
-- BB will retain a 2% net smelter return royalty over any
future commercial production from the Permit area with Cora Gold
having the right to buyout such royalty at any time during the
initial five years of commercial production for a cash sum of
US$2.0-US$2.5 million depending upon the gold price prevailing at
such time.
** ENDS **
For further information, please visit http://www.coragold.com or
contact:
+44 (0) 20 3239
Jon Forster Cora Gold 0010
John Depasquale/Nick Allenby Capital (Nominated +44 (0) 20 3328
Harriss/ Liz Kirchner Adviser) 5656
Peter Krens/Nick Mirabaud Securities +44 (0) 20 3167
Orgill (Broker) 7150
Lottie Wadham/Susie St Brides Partners +44 (0) 20 7236
Geliher (Financial PR) 1177
Notes to the Editors
Cora Gold is a gold exploration company focused on two world
class gold regions in Mali and Senegal in West Africa. Historical
exploration has resulted in the highly prospective Sanankoro Gold
Discovery, in addition to multiple, high potential, drill ready
gold targets within its broader portfolio. 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. Cora Gold's highly experienced and
successful management team has a proven track record in making
multi-million ounce gold discoveries which have been developed into
profitable mines.
Dr Forster has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration, and to the
activity which he is undertaking to qualify as a Qualified Person
in accordance with the guidance note for Mining, Oil & Gas
Companies issued by the London Stock Exchange in respect of AIM
Companies, which outlines standards of disclosure for mineral
projects. Dr Forster consents to the inclusion in this announcement
of the matters based on his information in the form and context in
which it appears.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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