NEVADA IS 'GOLD-MINING' COUNTRY !
Peter Degraaf
One of the best spots on the planet, in a search for gold, is someplace where gold has already been discovered, and where the climate is favorable towards mining and exploration companies.
Combine the above criteria with excellent management, and with proven resources located next to active gold mines, and immediately Coral Gold Resources beckons, as a company worth considering for one's investment portfolio.
Coral Gold (CGR.V) is exploring in the heart of one of the historic Nevada gold districts: The Battle Mountain Eureka Gold Trend, where the company owns a number of projects, located close to currently producing gold mines. Coral has held claims in this gold-rich area since 1986, and remains one of the area's largest junior land holders.
The flagship property is 'Robertson', a 100% owned, advanced stage gold exploration project, where Coral has been drilling for several years. Since 2004 the company has been able to steadily increase the resources. The latest report, (Instrument 43-101 compliant), lists measured and indicated gold at 700,000 ounces, as well as 430,000 ounces inferred.
When investors contemplate buying shares in an exploration stock, they usually take into consideration the fact that a mine will have to be built, at great expense. In the case of Coral gold, there are two active mines nearby, thus the possibility of a deal is very real.
During 2006, a budget of 4 million dollars is earmarked for further drilling, aimed at adding to these resources. In order to increase shareholder value, this drilling program will continue into 2007.
The Robertson property adjoins Cortez Mines 'Pipeline Gold Mine', (where Barrick and Kennecott have established proven and probable reserves of 11 million ounces of gold).
Robertson features not just one, but four key gold zones, one of which (Distal), shows great potential, and it is open in all directions.
During December 2005 Mr. Robert McEwen, who founded and directed GoldCorp to become one of the world's most successful gold mines, bought a major stake in Coral, (one of four Nevada exploration companies in which he owns a portion of the shares).
This fact alone makes Coral a 'must own' stock.
Coral Gold is using a two-pronged approach at success. In addition to increasing the value of the Robertson property, the remaining projects: Norma Sass, Excluded Claims, and Ruff, are all currently joint ventured, and are being drilled. All three are located within a few miles of the Pipeline Mine. At the end of 2003, Placer Dome (now Barrick), reported proven and probable reserves at Pipeline to be 12.3 million ounces of gold.
Agnico-Eagle is actively drilling at Norma Sass, and Cortez Mining is exploring at Excluded Claims. Success at either of these projects will serve to enhance the value of Coral Gold Resources' shares.
The following chart courtesy of www.stockcharts.com
The stock price has corrected for the past 5 months, while 'down volume' has declined. The 200 day moving average is offering support while rising at a rate of 7% per month.
At present there are 6,600,000 shares outstanding for a market cap of $26,000,000 (Cdn). The company has no long-term debt, and working capital of $3,500,000.
For more information, the reader is advised to consult the website: www.coralgold.com E-mail, investor-relations@coralgold.com .
The company trades on the Venture side of the Toronto TSX under the symbol CGR.V and in the USA as CGREF (Pink sheets).
September 6, 2006
DISCLAIMER:
Please do your own diligence, I am not responsible for your trading decisions.
Peter Degraaf is a successful on-line trader who sends out occasional E-mail alerts. He offers a 60 day free trial. He also sends out a free E-mail message to people who are confused by some of the terms used. It is called: Explaining the terminology. Contact him at itiswell@cogeco.ca
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