| ||December 24, 2010|
CORAL PROVIDES YEAR END SUMMARY AND OUTLOOK FOR 2011
| ||Dear Shareholder,|
I am pleased to present a review of Coral's achievements in 2010 and outlook for 2011. With gold prices at all-time highs and continuing to climb, Coral is in prime position to capitalize on current market sentiments.
Management Remains Focused on the Following Key Objectives:
1. Move Robertson towards production
2. Upgrade the property's inferred gold resource
3. Produce a Preliminary Economic Assessment ("PEA")
4. Acquire permitting for further exploration on Robertson from the BLM
Focused On Moving Towards Production
With the price of gold holding above $1,000, we are focused on moving the Robertson project towards production. We have looked at the option of continuing to expand resources like we've done over the past several years, but we believe that greater value now lies in upgrading resources and laying the groundwork for an open pit/heap leach operation. Past feasibility studies were conducted by Amax Gold/MDRI (now AMEC) at Robertson in 1994, when gold was under $400 per ounce, and are greatly assisting Coral's work today.
In February 2010, the Company announced a US1.5 million plan and budget aimed at advancing the Robertson Property towards a Preliminary Economic Assessment Report. The program consists of 36 diamond core and 22 reverse circulation holes along with metallurgical test work. In addition, the plan is focused on upgrading near-surface oxide resources in the Gold Pan, Altenburg Hill and Porphyry zones to the measured and indicated categories. The metallurgical test work will help establish the suitability of the oxide mineralization in those zones for heap leaching
In April 2010, SRK Consulting (US) Inc., our environmental compliance and permitting consultants, submitted an amended Plan of Operation ("PoO") to the U.S. Bureau of Land Management ("BLM") and the Nevada Department of Environmental Protection ("NDEP") to allow us to carry out our work plan. A setback occurred when the BLM declined our drilling permit application because our existing Environmental Assessment (circa 1980's) was out of date. Realizing the importance to our company of the ability to keep drilling, the BLM suggested that we withdraw our Amended Plan of Operations ("APO") and revert back to a previous APO from 2007 that allowed us, without any amendments to drill on certain areas of the property.
In June 2010, we withdrew our original APO when the Bureau of Land Management determined that a new Environmental Assessment ("EA") of the Robertson property would be required. We immediately commissioned SRK to commence work on the new EA which will include archeological and endangered species studies, as well as addressing a number of other environmental issues. While the completion of the new comprehensive Environmental Assessment (EA) has delayed certain parts of the drill program, Coral stands by its on-going commitment to sound environmental management.
Despite the permitting setback, we completed 12 RC holes at Triplet Gulch that were previously permitted under the 2007 APO. Drilling began June 1 and was completed on June 22. (For results please see news releases dated June 09, July 07 and Sept 17, 2010)
Gold Pan, Altenburg Hill and Porphyry Deposits
A limited diamond drilling program at the Gold Pan and Altenburg Hill zones was also permitted under the 2007 APO. A program totaling 6,700 feet was conducted that represents the first phase of the diamond core drill program announced in the company's 2010 work plan and budget. The program was designed to verify the 2008 RC drilling assay results and provide material for metallurgical test work. The Gold Pan, Altenburg Hill and Porphyry zones represent near surface resources that could potentially be developed as an open pit/heap leach operation. Past metallurgical testing of Porphyry Zone mineralization returned favorable gold recoveries from the oxide material. Core drilling began on September 16 and was completed December 10. (For results from the first nine holes please see news releases dated (Nov 03, Nov 11 & Dec 08, 2010)
Plans for 2011
As gold prices and global exploration expenditures continue to rise, production levels are reported to be declining; illustrating the growing disparity between supply and demand for gold. With historically high gold prices many producers are looking at developing large bulk-tonnage deposits like the Robertson project to capitalize on current market conditions.
Sufficiently funded for 2011, Coral is determined to take an aggressive approach in the coming year to maximize growth through adding value to the Robertson Project. We feel that this is best achieved by moving the project towards production.
In January, after all assay results from the Gold Pan and Altenburg Hill core drilling have been received, selected samples will be sent to McClelland Labs for metallurgical testing, The results of the test work will be incorporated in a new PEA to be prepared by Beacon Hill Consultants. We expect the completed report late in the second or early in the third quarter. Concurrently, we will continue to conduct the mandated Environmental Assessment on the property that is part of our new Amended Plan of Operation. Once the new APO/EA are approved by BLM and NDEP, Coral will be permitted 80 acres of new surface disturbance, or about 500 new drill sites, While the permitting process continues in 2011, Coral plans to continue exploration on the property using various geophysical surveys, geological mapping and soil geochemistry.
Finally, I would like to thank our loyal shareholders for remaining patient through good and bad times as well as our staff for their continued excellent work in the office and in the field.
ON BEHALF OF THE BOARD
President & Chief Executive Officer
Safe Harbour Statement - This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including our belief as to the extent and timing of various studies including the PEA, and exploration results, the potential tonnage, grades and content of deposits, timing and establishment and extent of resources estimates. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements.
Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold and silver, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers, directors or promoters of with certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of the our common share price and volume; tax consequences to U.S. investors; and other risks and uncertainties. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
Cautionary Note to United States Investors - The information contained herein and incorporated by reference herein has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. In particular, the term "resource" does not equate to the term "reserve". The Securities Exchange Commission's (the "SEC") disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by SEC standards, unless such information is required to be disclosed by the law of the Company's jurisdiction of incorporation or of a jurisdiction in which its securities are traded. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Disclosure of "contained ounces" is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Wed Jan 18, 2012, Coral Gold Resources Receives Positive Preliminary Economic Assessment For Open Pits And Heap Leaching Operation At Its 100% Owned Robertson Gold Project In Nevada
You can view the Previous News Releases item: Wed Jul 7, 2010, CORAL DRILLS 5 FT OF 0.4891 OZ/T GOLD AT ROBERTSON PROPERTY, CRESCENT VALLEY, NEVADA
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