Junior gold companies must constantly push forward if they are to deliver outsize returns for shareholders.
The pressure to deliver a continuous stream of results, for a news hungry and competitive market, is intense.
Meeting this demand can be tricky.
While gold exploration can produce the fastest and most spectacular results, it is also the highest risk. If the staked land turns out to be barren, a firm can quickly burn through its working capital and be left with nothing to show for it.
Developing a proven gold project, on the other hand, can reduce the downside, but requires patience.
Project developers can certainly soar by many multiples when they complete positive technical studies, obtain permits, and secure funding packages. However, these processes take time. In the intervening gaps, companies often lose market momentum, as there isn’t the news flow to sustain investors’ interest.
It’s a fine line for any company to tread, but those companies that get it right can make their shareholders rich.
Some of the best investment opportunities in this space by far are those firms that bring together assets at different stages of development.
If you are fortunate enough to find a stock that blends significant exploration upside with periodic, transformational development milestones it could do wonders for your portfolio
What’s more – this Canadian gold firm with North American assets is only just getting started.
Based in Imperial County, California, this is a planned open-pit, heap-leach mine.
As well as boasting excellent infrastructure, Imperial sits just nine miles away from and shares similar geology to Equinox Gold’s Mesquite mine. This world-famous operation has produced over 4.6 million ounces of gold since it started operations.
KORE crossed a huge milestone in April when it posted a Preliminary Economic Assessment for Imperial. The work confirmed the project’s potential as a “robust mid-tier gold mine with compelling project economics” , expected to produce 1.2 million ounces of gold over an eight-year life of mine.
Among the technical highlights were a post-tax net present value of US$343 million and a 44% Internal Rate of Return calculated at a conservative US$1,450 per ounce of gold. With gold currently trading closer to US$1,800/oz., the true economic potential speaks for itself.
It’s hardly surprising that the project has caught the attention of Macquarie Bank. This leading financier of world-class resource projects has invested heavily into KORE following comprehensive due diligence of Imperial and its other advanced staged assets.
But pushing forward this development project isn’t all KORE has been up to in H1 2020.
Far from it.
READ OUR SPECIAL REPORT – For a look into the excellent exploration projects that attracted Eric Sprott to KORE Mining
In total KORE (TSX-V:KORE|OTC:KOREF) boasts a combined 2.5 million ounces of gold in the most valuable Measured and Indicated categories*, with a further 2.4 million of Inferred ounces across its entire portfolio.
This is already very large for a company of KORE’s size, but the company has an ambitious plan both to expand and improve its resource base.
KORE’s existing gold in the ground and its enormous additional exploration potential has been enough to win support from Eric Sprott – one of the world’s most successful mining investors.
Today, the billionaire is KORE’s single-largest cornerstone investor, having invested more than C$12.5 million over the last ten months.
The company has put these funds to extremely good use.
2020 has seen the firm enter into an aggressive exploration campaign across its assets, with three high-impact drills programs planned in 2020.
First, the company recently completed its first drilling program at FG Gold , its exciting project in British Columbia, Canada.
FG Gold is an enormous, 13,000-hectare ‘district-scale’ project, with the main gold resource extending over a 3km strike and containing 0.4Moz of Measured and Indicated and 0.6Moz Inferred gold.
With the project also boasting an additional 17km of under-explored strike length and another large gold-copper target, KORE is confident of much bigger things here.
Its campaign already shows signs of confirming this, returning 3.0 g/t gold over 32 meters near surface and a new discovery of 3.9 g/t gold over 10 meters.
Second, KORE launched into a work program to test its new exploration strategy at its second Californian asset – Long Valley.
This 2.5km long epithermal gold deposit already contains 1.2 million ounces of Indicated and 0.5Moz of Inferred gold.
However, strong upside potential exists, with large, near-surface oxide gold open in all directions and deeper “sulphide feeder targets” present.
KORE’s work not only generated new high priority targets at Long Valley , but also extended the length of its untested deep structures by more than 3.5km.
Third, and finally, this year has seen KORE begin the exploration of a huge, 28km trend it staked last September in the Imperial project area.
Given this trend runs from Mesquite to another historical mine called Picacho (see map below), KORE believes it has potential to host multiple multi-million-ounce deposits.
In April, the company identified the first three potential targets for these golden opportunities on strike from both Mesquite and its own Imperial deposit.
With KORE expected to deliver waves of development and exploration news over the second half of this year, it’s no surprise its share price has soared.
What’s most exciting, however, is that the results are still to come.
KORE has now entered the permitting process at Imperial . It is confident of moving forward thanks to encouraging initial signs of jurisdictional support.
Meanwhile, investors can look forward to further reports from the following exploration activities:
- More drilling at FG Gold to follow up on its strong initial results
- Getting the drill bit in the ground at Long Valley to follow up priority oxide and sulphide targets
- Work to generate district drill targets on the Imperial trend
If current market momentum continues as these updates are unleashed, who knows how high KORE Mining could rise?
It’s no wonder that the company’s management team own around 41% of its issued shares!
READ OUR SPECIAL REPORT – for an in-depth look at why KORE is primed for a re-rate
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