Mr. David Wolfin reports
CORAL GOLD PROVIDES OUTLOOK FOR 2018, INCLUDING BARRICK'S PLANS FOR ROBERTSON EXPLORATION
Coral Gold Resources Ltd. has concluded a watershed year, highlighted by the sale of the company's Robertson property to Barrick in June, 2017. The agreement included a cash payment to Coral of $15.75-million (U.S.) (approximately $21.2-million(Canadian) based on the exchange rate at the time) and a sliding scale 1-per-centto 2.25-per-cent net smelter returns royalty (NSR), payable quarterly, subject to potential advance royalty payments. The royalty increases if the price of gold moves higher. Barrick also returned 4.15 million common shares of Coral, representing approximately 8.7 per cent of the company's basic common shares outstanding for cancellation by the company.
Robertson work completed by Barrick in the fourth quarter of2017
Barrick recently reported on its work at Robertson during the fourth quarter of 2017. Its activities and progress included:
PFS engineering and permitting stage 1 budget approved; Completed first drilling program to verify historical data.Three core rigs assigned to the Robertson property drilled seven PQ holes and 10 HQ holes; Assay results currently being analyzed; data expected Q1 2018; Existing hydrology data reviewed; Geotechnical logging conducted on four 2017 drill holes with transducers installed; Engaged with metallurgical lab to conduct testing on the 2017 drilling samples; results expected in the second quarter of 2018; 2018 baseline studies programs developed.
Barrick's Q4 2017 work plan was designed to validate the acquisition resource and metallurgical database. The new data from 2017 and a resource model update are expected in the first quarter of 2018.Results of this analysis will determine the Q2 2018 to Q2 2019 project work plan for further drilling and engineering studies.
Barrick's multimine vision bodes well for Coral
"We are thrilled to see Barrick use its vast experience in the region which would make Coral's NSR a very valuable asset for shareholders with continued economic benefits for many years to come," said Coral Gold chief executive officer David Wolfin. "There is absolutely no better partner for us in this region than Barrick. Their track record, their investment in the region and the vast knowledge they have amassed about Cortez area geology represent one of the world's great success stories in mining."
Part of the extraordinary Cortez gold camp
The Cortez gold camp has produced nearly 20 million ounces of gold since 1994 from the Pipeline and Cortez Hills complexes. From 1997 forward, production has averaged nearly one million ounces per year.
Barrick's Nevada growth through Minex, technical innovations may help Robertson
Barrick recently outlined its growth outlook in Nevada during its investor day on Feb. 22, 2018. In addition to project updates on Goldrush and Deep South, Barrick highlighted the success through near mine exploration across the Cortez property.
As reported in the company's Sept. 18, 2017, news release, Barrick has begun its advanced work program at Robertson to validate the current resource and metallurgical database. Barrick also noted during its recent investor day that it will begin definition drilling and target delineation at Robertson this year.
Additionally, Barrick's continuing technical innovation and operational efforts in the region are aimed at productivity and cost improvements at the mines and process plants.
All of which could positively impact the future of the Robertson project. For Barrick, Robertson represents a favourable target for possibly adding ounces at Cortez should mineral reserves ultimately be established. The claims adjoin Barrick's pipeline complex (site of the pipeline processing plant).
Reducing issued and outstanding shares through the normal course issuer bid
As reported in June, 2017, the board of directors believes the underlying value of Coral Gold may not be reflected in the current market price of the company's common shares. In June, 2017, Coral launched a normal course issuer bid, whereby Coral may purchase up to 3,844,000 common shares representing approximately 10 per cent of the total current public float (being the total issued shares, less shares held by insiders, and their associates and affiliates). The NCIB provides an excellent opportunity to reduce the issued and outstanding share total and add considerable value to the company.
As of March 2, 2018, the company had purchased 1,515,000 common shares at an average cost of 36.82 cents per share under the current NCIB.
Over all, a major turning point for Coral
"This cash, the improved share structure and the potential for long-term royalty income collectively represent a major turning point for Coral shareholders," said Mr. Wolfin. "We are evolving, with a fresh business model and strategy, looking to capitalize on our experience, knowledge and relationships in Nevada, and particularly on the Cortez gold trend."
Looking ahead: 2018 and beyond
"Looking ahead to 2018, we will be evaluating our three gold properties in the Cortez region: the Norma Sass, JDN and Eagle," said Mr. Wolfin. "These properties are ideally located in the immediate vicinity of Robertson, and we now have the funds for proper and thorough exploration. We will also be investigating other opportunities, both in Nevada and beyond.
"I am grateful to everyone at Coral, including our board, for the persistence and vision to get us to this very advantageous point in the company's long history. I look forward to a very exciting year in 2018."
About Coral Gold Resources Ltd.
Coral Gold Resources is a precious metals exploration company, where it has explored one of the world's richest gold districts in Nevada for over 30 years. The company's primary asset is a sliding-scale net smelter returns production royalty on Barrick Gold's Robertson property in Nevada. The company also holds a portfolio of strategically located exploration projects near Barrick Gold's Pipeline/Cortez mine complex on Nevada's Battle Mountain/Cortez trend.
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