Vancouver, British Columbia-based Coral Gold Resources Ltd. (OTCBB:CLHRF) (TSX-Venture:CLH) is a 30-year old company engaged in exploration and development of mineral resources in Nevada and California.
The Company’s primary focus is in a series of strategic claims along the Cortez Gold trend known as the Robertson Project. The project consists of over 700 patented and unpatented load mining claims in the Bullion Mining District, Lander County, Nevada.
Having a large project near a proven mine is a valuable asset in the mining industry and this project of Coral certainly qualifies. The Cortez gold trend in north-central Nevada also contains the Cortez Mine of the world’s largest gold producer, Barrick Gold Corp. (NYSE:ABX) (TSX: ABX).
Located just to the south, the open pit mine of Barrick adjoins the Robertson Project. Recent reports from the industry giant have shown proven and probable reserves at Cortex that total 13.4 million ounces of gold.
Recent reports from a 3-D block model from Coral Gold on the Robertson Project have shown an inferred gold resource of 3.4 million ounces. It is noteworthy that these assay results, while significant on their own, do not include gold assays from drilling completed in 2008 and 2010, which will increase totals.
Coral Gold announced today that it is currently working on the last hole in a fifteen-hole drill program, which was started on September 16, 2010, on the Robertson property in Crescent Valley, Nevada. Results were released from holes CC10-7 through CC10-9 which are vertical and range from 400 to 600 feet in depth and focus on the Altenburg Hill zone.
This drill program is designed to twin 2008 reverse circulation holes in order to provide material for metallurgical test work which will consist of column leach tests by McLelland Labs in Reno, Nevada. The samples were collected by Robert McCusker, a qualified person as defined by NI 43-101 and were fire assayed by ALS Minerals Labs using an AA finish.
The latest results from the three diamond holes, in similar fashion to earlier results, were very encouraging. Highlights from the drilling included intercepts at 24.4 metres of 1.37 g/t gold including six metres of 3.74 g/t gold on CC10-7. Hole CC10-8 drilled 1.5 metres of 3.77 g/t gold and 24.4 metres of .65 g/t gold. Hole CC10-9 drilled 29 metres of .48 g/t gold and 6.1 metres 0.93 g/t gold.
This data is being input into a new resource estimate. All the latest drilling and new metallurgical work will be used in a new NI 43-101-compliant independent Preliminary Economic Assessment anticipated for mid-2011. A PEA is designed to illustrate the project viability in the current cost environment.
With a low float of less than 30 million shares, the CLHRF chart has seen a nice climb over the last four months and has been driven with smaller levels of volume that can commonly move low float plays with ease. The chart has moved through the heavy resistance that was evident at 58 cents.
While in a bit of a retrace the last couple days, as gold prices continue to soar and developments on the Robertson property continue to near production, traders and investors alike may soon be turning a spotlight on Coral Gold Resources and the opportunity it presents.
