CORAL GOLD RESOURCES ARRANGES $2.75 MILLION FINANCING
A finder's fee of 6% of the funds raised and 6% of Broker's Warrants will be paid to agents for their assistance in the financing.
The Broker's Warrants will entitle the Broker to purchase one additional common share with a term of one (1) year at an exercise price of $0.75.
The net proceeds of this Offering will be used to advance the Company's Robertson gold project at Crescent Valley, Nevada towards the work program announced on February 2, 2010 and general working capital requirements.
The financing is Subject to approval of The TSX Venture Exchange and all regulatory authorities. The securities issued by Coral in connection with this financing are subject to a 4-month "hold period" as prescribed by the TSX Venture Exchange.
For more information on the Robertson Property and Coral Gold's other Nevada projects, visit the company's website at www.coralgold.com
ON BEHALF OF THE BOARD
"David Wolfin"
___________________________________
David Wolfin
President
CORAL GOLD RESOURCES ANNOUNCES $1.5 MILLION PROGRAM FOR ROBERTSON PROJECT
will focus on upgrading near-surface oxide resources in the Gold Pan, Altenburg Hill and Porphyry Deposits to the measured and indicated categories. All three deposits are located within the property's 100%-owned Core Claims area. Permit applications are underway, and the company expects to begin drilling in the second quarter.
The program will consist of three stages:
1) Reverse circulation drilling (22 holes - 3,962m/13,000') to fill in gaps between the Porphyry and Altenburg Hill zones and also redefine the high-grade areas at Triplet Gulch;
2) HQ diameter core drilling (30 holes - 3657m/12,000') to establish grade, specific gravity (density);
3) Metallurgical testwork to establish leachability for a heap leach mining operation.
With minimal overburden (0 to 10 metres), the Gold Pan, Altenburg Hill and Porphyry deposits would be mineable by open pit operations with low strip ratios. Leach tests were completed on the Porphyry Zone in the past and indicated favourable recoveries in the oxide material.
Project and Near-Surface Resources
On October 9, 2009, Coral Gold announced that Beacon Hill Consultants had recalculated the Robertson Inferred resource, using a gold price of US$850 per ounce and 0.0106 Au Opt (0.363 g/t cut-off), of 178,924,188 tons grading 0.0189 oz Au/ton (0.648 g/t), equating to 3,381,667 ounces. Within this overall resource, the near-surface inferred resource that will be targeted in this program totals 87,018,749 tons grading 0.017 oz Au/ton (0.583 g/t), or a total of 1,505,789 ounces.
Beacon Hill, using a database of 1,160 drill holes, 533,453 feet (162,638 m) of drilling and 101,757 gold assays, calculated the original resource (February 2008) using a gold price of $600 per ounce. Coral Gold's management and Beacon Hill believed the $850 per ounce figure represented a more realistic assessment based on the rolling average gold price for the preceding three years.
Focused On Moving Towards Production
With the price of gold holding above $1,000, the company is focused on moving the project towards production rather than exploration. "We looked at the option of continuing to expand resources, as we've done over the past several years," said Coral's President and CEO David Wolfin. "However, we believe the greater value now lies in upgrading resources and laying the groundwork for a heap
leaching operation."
Previous Feasibility Studies by Amax Gold/MDRI (now AMEC)
Wolfin also noted that feasibility studies conducted by Amax Gold/MDRI (now AMEC) at Robertson in 1994, when gold was under $400 per ounce, are greatly assisting Coral's work today. "Their bottle roll and column leach tests in the Porphyry Zone demonstrated the mineralized material was amenable to heap leaching with improved gold recoveries at a finer crush size," said Wolfin. "We have a lot of valuable data from their work, and it is saving us a significant amount of money with our present studies."
Located on Nevada's Battle Mountain-Cortez Gold Trend in north-central Nevada, Robertson is Coral Gold's primary asset. Robertson directly adjoins Barrick's large Pipeline Gold Mine complex. Infrastructure is in place, power lines run through the claims, paved roads adjacent to the property and ample skilled labour is available in the area.
For more information on the Robertson Property and Coral Gold's other Nevada projects, visit the company's website at www.coralgold.com
ON BEHALF OF THE BOARD
"David Wolfin"
___________________________________
David Wolfin
President
________________________________________
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. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
APPOINTMENT OF DIRECTOR
Mr. Andrews is the owner and operator of Andrews Orchards and sells and distributes agricultural chemicals and fertilizers. Mr. Andrews is on the boards of Bonner Mall, Berkley Resources and North Coast Life Insurance Co. He serves as the chairman of the audit committee on both North Coast Life and Berkley. He has served as labor foreman for Kennecott Mining Company, a division of Rio Tinto in the Arctic Circle. Mr. Andrews has a Bachelor of Science degree from Washington State University and a Masters in Political Science. He served as a helicopter pilot and is retired from the United States Army Reserves.
ON BEHALF OF THE BOARD
"David Wolfin"
___________________________________
David Wolfin
President
CORAL GOLD REPORTS DRILLING PROGRESS ON NORMA SASS
In 2008, Coral and its joint venture partner, Levon Resources Ltd. ("Levon") reached an agreement with Barrick for exploration of the Norma Sass claims. Coral owns 2/3 and Levon owns 1/3 of the Norma Sass property. (For details please see news release dated September 29, 2009)
The group examined the chips and core from Barrick's recently completed hole, NS 09-01 at Coral's Norma/Sass property. The group also visited the NS 09-01 drill site.
Barrick Cortez Gold Mines supplied information concerning the Norma Sass property in their 3rd Quarter report and also during the site visit. During the third quarter Barrick Gold staff did extensive geological mapping and geochemical soil and rock sampling across the property in order to define locations for drilling.
Hole NS 09-01 was started in early October and drilled North West at 70 degree dip across a SW-NE striking fault which trends into Barrick's Gold Acres pit one mile to the northeast and is thought to be related to mineralization at Gold Acres.
Hole NS 09-01 started as a reverse circulation hole but encountered recovery problems at 1,680 foot depth. Barrick brought in a core rig, wedged the RC hole and drilled HQ diameter core to a final depth of 2,586 ft.
The hole entered the lower plate Wenban limestone at 1,330 foot depth and was bottomed in the Roberts Mountain formation. These are the principal host rock formations for the gold deposits at the Pipeline, Gold Acres and Cortez Hills mines. Assay results are awaited.
ON BEHALF OF THE BOARD
"David Wolfin"
_____________________________
David Wolfin
President
Coral Gold Reports Robertson's Inferred Gold Resource Increases 47% to 3.4 Million Ounces to Reflect Long-term Gold Prices
Based on more reasonable gold prices that reflect the rolling average for the preceding three years, it was decided that of US$850 per ounce should be used at this time to more accurately represent the resources that may be reasonably expected to be extracted. Based on this lower gold cut-off value of 0.0106, the gold resource at Robertson increases to 3.4 million ounces, which is a 47% increase from the previously reported figure. It should be noted that changes in operating costs may change this figure. No work has been done to reflect and change in operating costs as estimated in the Beacon Hill study on which the cut-off grade calculation was based.
Robertson is located along the Cortez Gold trend of north-central Nevada near the town of Crescent Valley.
The zones included in the Beacon Hill estimate are located within the Robertson's Core claims only. The Company's other claim blocks, including Norma Sass, Lander Ranch, Ruf, Blue Nugget and the Excluded claims (joint ventured with Cortez Gold Mines), were not part of the estimate.
"It is encouraging that gold prices have increased, stayed steady and continue to hold which gives us comfort and assurance that our estimates continue to be reasonable. It is also important that Coral's loyal shareholders may benefit from the stability and movement in the gold prices." said David Wolfin, President.
Beacon Hill reported the following updated resource estimate using 0.0106 Au opt cut-off:
Zone |
Tons |
Ounces per Ton |
Ounces of Au |
Distal |
13,310,451 |
0.0287 |
382,010 |
39A |
38,945,698 |
0.0228 |
887,962 |
South Zone |
9,993,853 |
0.0209 |
208,872 |
Outside |
5,422,131 |
0.0156 |
84,585 |
Gold Pan Oxide |
12,566,599 |
0.02 |
251,332 |
Altenburg Hill Oxide |
12,873,976 |
0.0152 |
195,684 |
Porphyry Oxide |
39,049,182 |
0.0167 |
652,121 |
Gold Pan Sulphide |
32,524,592 |
0.0154 |
500,879 |
Altenburg Hill Sulphide |
1,701,844 |
0.014 |
23,826 |
Porphyry Sulphide |
12,535,861 |
0.0158 |
198,067 |
TOTAL |
178,924,188 |
0.0189 |
3,381,667 |
Resource estimate parameters:
- Gold ounces were calculated on the basis of US$850/oz Au and 70% Au recovery.
- The 0.0106 ozAu/ton cut-off grade utilized to report the resource was derived from a mining cost of US$1.02/ton, process cost of US$5.00/ton and waste cost of US$1.14/ton.
- The mineral resources in the table above were estimated using the CIM Standards on Mineral Resources and Reserves.
- The database comprised a total of 1,160 drill holes, 533,453 feet (162,638 metres) of drilling and 101,757 gold assays.
- The inferred resource covers 6 distinct and separate areas; Distal, 39A, Gold Pan, Porphyry, Altenburg Hill, Southern Area and then all remaining blocks outside these areas that warrant inclusion as an inferred resource. In addition, Gold Pan, Porphyry and Altenburg Hill were separated into oxide and sulphide zones for analysis and modeling.
- An interpreted mineralized envelope was modeled into a solid in MineSight 3DTM, with six area mineralized zones and then separated into oxide and sulphide zones.
- Block dimensions of 25 feet (7.6 m) North, 25 feet (7.6 m) East and 20 feet (6 m) vertically.
- Grade interpolation - 20 foot (6 m) composites.
- Composites greater than 0.075 ozAu/ton (2.33 gAu/tonne) limited in influence to 100 feet (30.5 m).
- Tonnage estimates are based on 200 bulk historic density measurements carried out by previous operators. These were assigned to each block by zone. The resources are categorized as inferred since the amount and distribution of bulk tonnage factor data is sparse.
All Zones |
Au Cut-off |
Au Price |
Tons |
Ounces per Ton |
Ounces of Au |
|
0.009 |
1000 |
259,786,897 |
0.016 |
4,156,590 |
|
0.0095 |
950 |
215,146,526 |
0.0174 |
3,743,550 |
|
0.0106 |
850 |
178,924,188 |
0.0189 |
3,381,667 |
|
0.012 |
750 |
149,133,203 |
0.0205 |
3,057,231 |
|
0.0129 |
700 |
125,174,186 |
0.0221 |
2,766,350 |
|
0.015 |
600 |
91,284,840 |
0.0253 |
2,309,506 |
For details on claim and gold zone locations, please see corresponding maps and diagrams at www.coralgold.com.
A program of additional in-fill drilling and metallurgical testing is on-going as was recommended by Beacon Hill in the 2007 Technical Report.
Mr. Garth D. Kirkham, P.Geo., and Mr. Peter Stokes, P.Eng., of Beacon Hill Consultants (1988) Ltd., are responsible for preparing the report and are Qualified Persons in accordance with NI 43-101. Messrs Kirkham and Stokes are independent of Coral as defined by NI 43-101.
The Company was incorporated in 1981 and is exploring claims on Nevada's Battle Mountain-Cortez gold trend alongside the Cortez/Pipeline gold mine. Aggressive exploration, aimed at expanding this resource, continues.
This press release contains "forward-looking statements. Forward-looking statements express, as at the time of this press release, the Company's plans, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements.
ON BEHALF OF THE BOARD
"David Wolfin"
David Wolfin
President
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the accuracy or adequacy of this release. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.