NIA said on January 27th, "Coral Gold (TSXV: CLH)'s chart looks extremely bullish here at $0.52 per share and there's a potentially huge catalyst ahead for it on February 12th."
NIA explained that, "CLH owns a sliding-scale NSR royalty worth between 1% and 2.25% in the massive 8,480 acre Robertson gold project, which is part of the prolific Cortez Gold Trend of northern Nevada. On the morning of February 12th, Barrick Gold (GOLD) will release its 4Q and full-year 2019 results. In 2019, Barrick's 61.5% owned joint venture with Newmont Mining, Nevada Gold Mines ramped up exploration of Robertson by drilling 84 core holes for infill, metallurgical studies and geotechnical investigations. Nevada Gold Mines is currently preparing to announce its Robertson gold project resource update using data from its 2017, 2018, and 2019 drilling programs! From our experience following Barrick over many years, they typically like to announce resource updates for their new projects being explored and/or developed as part of their annual results press release. There's an excellent chance of their Robertson gold project resource update being announced on February 12th within their 4Q and year-end results press release, but no matter what we certainly expect to hear a very positive update about Robertson!"
Barrick Gold released its 4Q and year-end 2019 results this morning and in their annual results press release the company said, "Global attributable mineral resources also increased net of depletion with significant inferred mineral resource additions at Robertson and Fourmile in the Cortez district of Nevada, moving these new projects up the resource triangle. Goldrush, Robertson and Pueblo Viejo contain significant indicated and inferred mineral resources not currently in reserves and are the three growth projects from which further reserve growth can be expected in the near future upon completion of feasibility studies."
This means Barrick Gold's Robertson resource update is now complete and the gold contained at Robertson is now officially being added to Barrick's gold resources as part of the Cortez gold mine! Barrick has confirmed that a significant portion of Robertson's gold resource has been upgraded to the indicated category and will be eligible to become part of the Cortez gold mine's official gold reserves later this year when they finish Robertson's feasibility study!
At this point, it appears very likely that Barrick will be bringing Robertson into production, because the Cortez Hills Open Pit Mine has reached depletion causing total Cortez gold production to decline by 24% in 2019 to only 963,000 oz. In 2020, total Cortez gold production is forecast to decline another 21.39% to only 757,000 oz. Robertson is likely to add approximately 200,000 oz in annual gold production to Cortez! Based on the current gold price, CLH's Robertson royalty is worth 1.5% and 200,000 oz of annual gold production would earn CLH approximately USD$4.75 million in annual royalty income!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.
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