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Good point LW. Remember the initial exploration target of 1-2Moz based on a pit depth of 100m? There’s clear evidence in all 4 zones that mineralisation is consistent beyond 100m, it opens up the potential further.
I’d like to see them drill Grid 4 and Target 3 next. Whilst they open pit Selin/Zone A etc, they could create a 10-15km continuous Gokd strike by doing this from the Northern section of Zone A, to the south of Selin.
I’m also interested in an updated scoping study. The initial scoping study was for around 45,000 oz Pa, based on a 6 year mine life and a resource of 265,000 oz. If that resource more than doubles, we could potentially be targeting 60/70/80Koz per annum off the bat. (Capacity willing)With increased recovery rates from the last updated term sheet and processing mill. That’s an incredible amount of revenue for the company.
$24m free cash flow expected from the initial scoping study based on a $1500 Gold price. It’s now $300 more than that (This is based on the POG holding steady for a couple of years).
Seeing what the company did with Sanankoro this year with just a couple million £, just imagine the possibilities on our grounds with $10m+ being spent.
I don't think anything can be priced in at the moment. The guestimates for the upgraded MRE are simply too far wide ranging for the market to sensibly price anything in. I am happy to align my expectations with the broker's forecast of 700Koz. However, this has been such a "game changing" drilling programme with truly "world class" drilling results, that even guestimates of 1Moz cannot be dismissed as the product of fantasy and completely outside the upper range of reasonable possibilities here?
That all said, I actually think the figure to really keep an eye on here will be any revised or confirmed EXPLORATION/GROWTH TARGET - I'm assuming there will be one from these new consultants? If so, there is no reason why we won't read the words "million ounces" here? IMO, it will be this figure that will drive sentiment, more than it has at present, and more than the upgraded MRE itself. When your MRE is 'only' stated as 270Koz, there's quite a "gap" to bridge here in convincing the market and investors that your exploration upside could reach 2Moz. But with an upgraded MRE in the region of 700Koz, it puts Cora within touching distance of the exploration target. When you then factor into this: the strike length left to explore at Sanankoro, the nature of the results already achieved (for example, 15 holes of +100 gramme metres and countless holes of significant grade and thickness), and that some areas remain open at depth, that "gap" starts to disappear and the exploration target becomes more actual than aspirational in people's minds.
Just my personal opinion and hence why i'm hoping we get a revised or confirmed exploration/growth target with the upgraded MRE.
vivdal - in complete agreement with your thoughts
I put <1 million (as in less than) but if i had to hazard a guess (because no one knows what the market thinks) then i would say closer to 500,000.
the post was trying to express my thoughts that my hope is that we will be closer to 1.5 million based on grades etc. but i am not a geologist and this is based on looking at grades, widths etc in gold miners for around 10 years. i could be wrong
Woulld expect updated MRE in region of 750,000oz+
Clearly further exploration will push it above the 1Moz+
Don't see why he has to go with the quirks term sheet.
I'd then like to see Bert conduct a beauty parade of other funders.
Either to obtain better terms in the market place or get lionshead to 'Sharpen their pencil' on their proposed term sheet.
Also important to remember, a portion of these results are going to go towards upgrading the inferred status of the original Resource to “indicated”. The remainder has targeted extended mineralisation within the existing deposits.
For a junior company, to have a deposit that starts from surface up to 200m containing
Etc etc etc. It’s going to be extremely profitable. And that’s what we need to think about as shareholders moving forward. Our extraction and processing costs, and those quarterly updates moving forward.
The latest research note has
October resource: 700,000 oz with 400,000 indicated and 300,000 oz inferred
Anything 700,000 oz or above I would be delighted with. The results have been magnificent. Plenty of exploration upside for the future. Sanankoro will be 1Moz+ , whether we see that value on this upgrade, who knows. I just wouldn’t put your expectations in the millions, keep it measured and anything Extra is a bonus. Whatever the company release, they deserve every ounce. They’ve been fantastic.
We will visit $2,000-2,200 USD/oz levels soon with inflation prices currently continuously rising at least in the Western world.
Gas/energy prices rising going through the roof, construction material prices rising, supermarket prices rising, house prices going ballistic at some parts in Europe... big recession in the making, i.e. many returning to gold as safe haven over the next few years imo
zapsnap, I'm curious to see why you believe 1 million ounces is priced in the current share price, I'm not sure I see the logic in that.
Have a look at the research note from June this year and the diagram on page 11 : https://www.coragold.com/wp-content/uploads/Cora-Gold-June-2021-Initiating.pdf
"Considering the resource upside, we are valuing Sanankoro based on a six-year mine life, or 477 Koz in resource."
"Note that our models do not account for any upside from the company’s other projects. We are initiating coverage with a BUY rating, and a fair value estimate of £0.18 per share. Catalysts include stronger gold prices in H2-2021, drilling results, an updated resource estimate and DFS."
They put fair value at 18p based on a gold price of $1,400 assuming only 477k ounces, we're currently close to 1800$! 1 million ounces would be more than double 477k ounces!
Berenberg - “Sanankoro is shaping up to be one of the standout projects in West Africa”
In their daily dig column today
Yeah it’s an exciting couple of months ahead. The story writes itself. The Gold is all there and ready for the taking. Sticky hands will benefit
Great post/summary AG1989. In addition to the points you have made, I think poor sentiment in the sector has to be added to the list. If or once that improves, we might see more sticky and long term investment into the sector. But the beauty of Cora is that regardless of what happens at a macro level, we won't have to wait all that long for production to commence, and hence for the company to move through that Lassonde Curve and become a revenue generating mining company. And then there's the upside to come from growth at Sanankoro and continued exploration. As I've said before, the upgraded MRE from these new consultants will give a barometer/baseline to the market. Hopefully, we get a figure upwards of 700Koz, but equally important will be any revision to the current exploration target.
MRE weeks away. not long to go.
the market have priced in <1 million oz gold. I think there will be around 1.5million oz
Great post, AG
No problem mate. I’m a year and half into my investment life and I crave it. A lot of mistakes made along the way but it’s all about learning from those experiences and adapting them moving forward.
Every investor will tell you where to put money, what’s the best and what will grow. Always do your own research and follow it but never but afraid to ask questions along your journey.
A couple of pointers which will benefit Cora and it’s investors long term
- It’s deposit starts at surface (This isn’t always the case. You’ll find some deposits can start 200/300m underground, maybe even further. Which means when mining starts, you have a larger strip ratio of material until you hit pay dirt)
- it’s very good grade. These long intersections and high grades, all combine for when you start processing. Your g/t will increase which will compliment the AISC(All in sustainable costs), the cost per ounce to produce Gold
- it’s 100% owned (No large JV partners to split the Gold with)
-it’s mainly formed in oxide material. Meaning the material is far easier to process once out of the ground. Limited crushing.
-$25m term sheet. I haven’t seen this in the junior sector before. And it’s one the main reasons I was drawn to the company. The company signed an agreement with a Consortium (initially $21m), to construct a mine. This is dependable on a couple of factors which the company should meet no problem. This then leads onto production
-40,000m drilled in 6 months. That’s some pace and when the board set out actions, they make sure they deliver.
-regional permits. Cora have a number of Regional permits and projects outside of Sanankoro. Once they begin to mine, and have free cash flow, they can set out to explore their additional permits and build up resources.
A brilliant company like I said. I got in a 4-5 months ago at 7p. I have no doubts that it will grow handsomely from here.
Thanks for your informative response - I'm just starting out on my investment journey and appreciate the experience and knowledge you and others are willing to pass on. Good Luck
gogsthelogs - the AIM market has just become a traders wet dream. It’s all over.
I noticed it with LND yesterday. Reports of the Resource upgrade being delayed 4 weeks, it took a 10% hit. It takes a lot to get moving these days but I have no doubts in my mind, when I look at the junior sector, this is my number 1 pick for me.
When you have an upcoming resource upgrade which is estimated to be 100%+ (minimum), lock those shares in.
The Mail factor puts one or two investors off, I think it’s worked in their favour. In its “jurisdiction” the company have been able to operate flat out and delivered such strong results
Term sheet triggered
You’ll start to see this move. Frustrating for the short term share price but I’m just going to sit back and enjoy every second.
Just seen the Hunningbird Resources Q3 Report
$1,520 AISC/oz - Ouch. Market has taken it well.
I think there could be a slight reduction in AISC with our next scoping study around the $800 mark. Obviously overtime that will increase as grade diminishes as Shanta have also found out on recent Quarters.
Why do you think the continuously excellent results have so little impact on the SP, and will the imminent MRE do the trick?
Or are Gold shares in general a bit depressed and may well hold back the price even after the MRE?
Just seems a bit baffling given the quality of the drill results!
A beast in the making
Those are some fantastic results. Looking forward to the upgraded MRE.
Tony, no Wednesday RNS haha!!
Brilliant results again.
Super results again. Can’t wait for this upgraded MRE. It’s only weeks away. GLA
Excellent results continue, in football parlance Tony Currie ( didn't he play for the blades Cora has won the match hands down and just awaiting presentation of the trophy in the form of the MRE.
Come on Cora keep delivering
Onwards an upwards
Blue all day surely, the colour of The Owels, I think ? Lol
Good luck all
Excellent - MRE over coming weeks!
· 17m @ 17.13g/t Au from 89m in hole SC0561
· 19m @ 6.14 g/t Au from 59m in hole SC0565
· 22m @ 3.28 g/t Au from 88m in hole SC0559
· 28m @ 2.26 g/t Au from 71m in hole SC0560
· 73m @ 0.71 g/t Au from 95m in hole SC0557
· 54m @ 0.83 g/t Au from 120m in hole SC0558
· 32m @ 1.36 g/t Au from 16m in hole SC0563
· Oxide mineralisation has been defined continuously to +190m vertically in recent metallurgical core drilling and density determinations
· Zone B1 resource remains open in all directions
Bert Monro, CEO of Cora, commented, "This drill campaign has delivered consistently positive results and this last set of samples means that we finish on a high note, reporting some of our best drill hole results to date. 17m @ 17.13 g/t Au and 19m @ 6.14 g/t Au are not only two further excellent drill holes in isolation, but in the context of our full campaign we have had 15 holes of +100 gramme metre which is a fantastic achievement for the exploration team on the ground. Additionally, the additional depth of oxidisation, to greater than 190m, has potentially positive implications as we look towards mining in the future. There has been a lot of hard work gone into this drill campaign from our team and contractors and I would like to thank them publicly for all their hard work.
"The next steps for the Company is the delivery of an updated MRE over the coming weeks. There have also been a number of DFS site visits over the last month with numerous concurrent work streams ongoing and I look forward to sharing more on our DFS and development plans in due course."