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(Alliance News) - Cora Gold Ltd on Monday said it has begun a test work programme looking at oxide ore from the Sanankoro project in Mali.
The work is being carried out alongside Hummingbird Resources PLC, which has an 18% stake in Cora.
A 350-kilogram bulk sample is being set to North America for testing, to see if would be commercially viable to send the oxide ore from Sanankoro to Hummingbird' producing Yanfolila gold mine, around 100 kilometres away.
"The recently completed scoping study at Sanankoro showed the potential for a standalone mine with an 84% internal rate of return and less than 18 month payback period at a USD1,400 gold price. Whilst this is clearly a highly compelling standalone project, Cora's board is simultaneously assessing additional opportunities through which to potentially fast track development, including identifying synergies with operating mines in the vicinity," said Cora Chief Executive Bert Monro.
"We are pleased to be working with our largest shareholder, Hummingbird, to investigate the opportunity to potentially deliver a high-grade concentrate which could, in principle, create a fast track route to low capex and positive cash flow for the company," he added.
Last week, Cora confirmed "significant" mineralisation away from the existing resource at Sanankoro.
Shares were 3.0% higher on Monday morning in London at 5.18 pence each.
By George Collard; georgecollard@alliancenews.com
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