Cora Gold Ltd (LON:CORA) have told the market that they have begun work in Mali.
The gold miner said today that a test work program has commenced looking at oxide ore from the Sanankoro project in Mali.
The work is being carried out with Hummingbird Resources (LON:HUM) which has an 18% stake in Cora.
Bert Monro, CEO of Cora Gold, commented, “The recently completed Scoping Study at Sanankoro showed the potential for a standalone mine with an 84% IRR and less than 18 month payback period at a US$1,400 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. 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.
“We are committed to delivering the optimum route of development for the benefit of all stakeholders and will provide updates on this test work in due course.”
A sample size of 350kg is being sent to North America for tests, to see whether commercial viability is possible to send the oxide ore from Sanankoro to Hummingbird’ producing Yanfolila gold mine.
Cora Gold give Mali update
Last week, the firm gave another update on its operations in Mali.
The gold miner said that drilling in Southern Mali had produced “significant” mineralisation away from the existing resource.
Cora has been targeting shallow oxide extensions beyond the existing work at the Sanankoro gold project.
The current resource stands at an estimated 5.0 million tonnes of ore, containing 265,000 ounces of gold from a grade of 1.6 grams of told per tonne of ore.
The company also said that they have seen a 1,500 metre-long gold structure as a continuation of Zone B North, as well as 500 metres of new mineralisation along strike to the west of Zone C.
Shares in Cora Gold trade at 5p (-0.50%). 2/3/20 13:37BST.
