Cora Gold begins test work programme with Hummingbird

West Africa-focussed gold company Cora Gold has started a test work programme in conjunction with Hummingbird Resources, relating to a bulk sample programme, it announced on Monday.

The AIM-traded firm said the objective of the programme was to explore the amenability of the oxide ore at its Sanankoro Gold Project to be concentrated to a level that would be viable for commercial trucking to Hummingbird's Yanfolila Gold Mine, located around 100 kilometres away.

It said the test work was targeting high grade truckable concentrate potential, with a 350 kilogram bulk sample currently being shipped to a laboratory in North America for testing.

“The recently-completed scoping study at Sanankoro showed the potential for a standalone mine with an 84% internal rate of return and less than 18 month payback period at a $1,400 gold price,” said chief executive officer Bert Monro.

“Whilst this is clearly a highly compelling standalone project, Cora's board is simultaneously assessing additional opportunities through which to potentially fast track development, including identifying synergies with operating mines in the vicinity.”

Monro said the company was pleased to be working with its largest shareholder Hummingbird to investigate the opportunity to potentially deliver a high-grade concentrate which could theoretically create a fast-track route to low capital expenditure and positive cash flow for the firm.

“We are committed to delivering the optimum route of development for the benefit of all stakeholders and will provide updates on this test work in due course.”

At 1126 GMT, shares in Cora Gold were up 2.69% at 5.16p.