Cora Gold (LON:CORA) continues to shine in the West African gold sector, following the release of an updated Mineral Resource Estimate (MRE) for its flagship Sanankoro Gold Project in Mali. According to Cavendish, this update marks a significant milestone, with Cora increasing its contained gold resource by 13% to a total of 1.044 million ounces.
The update comes on the back of 2,669 metres of additional drilling, leading to a refined geological model, particularly at the Zone A and Selin prospects. Importantly, this was modelled at a lower cut-off grade and a higher gold price, allowing for a more extensive reporting pit and increasing confidence in the resource base.
Cavendish’s Director of Research, Will Dymott, highlighted the significance of this progress: “The drilling de-risked the MRE and converted near surface Inferred Mineral Resource material to higher confidence Indicated. Cora intends to update the project’s Ore Reserves and the DFS, and – based on the updated MRE – we expect this to show an extended life-of-mine and be run at a higher gold price, so should show an increase in NPV and be ready for project financing.”
The potential upside is notable. Cora’s 2022 Definitive Feasibility Study (DFS) showed a post-tax NPV of US$95 million using a gold price of US$1,750/oz. With current gold prices exceeding US$2,600/oz, the economics are now even more compelling. Cavendish’s rerun of the financial model at US$2,200/oz estimates a project NPV10 of US$138 million.
Further upside may come from the exploration front, with the company identifying multiple targets for shallow oxide mineralisation. Drilling at Zone B West has already revealed new zones of mineralisation, with further work planned to test additional areas.
Cora Gold is also navigating the evolving regulatory environment in Mali. While the government’s moratorium on mining permits remains in place, recent agreements with other mining companies suggest progress is being made. Once the moratorium is lifted, the pathway to mine development could open rapidly for Cora.
On the funding side, Cora has appointed Atlantique Finance to advise on a proposed US$70 million loan for project construction, aligning with the company’s objective of reaching production quickly once permitted.
In Summary
Cora Gold stands on solid ground as it advances the Sanankoro project, demonstrating resilience and steady progress amid complex conditions. With a robust resource update, promising economics, and a clear development plan, the company is well-positioned to capitalise on the current strong gold price environment. As Will Dymott puts it, “Cora is continuing to make positive steps forward in the areas in which it can.”
