Positive Metallurgical Test Work Results

Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining

25 June 2020

Cora Gold Limited ('Cora' or 'the Company')

Positive Metallurgical Test Work Results

Cora Gold Limited, the West African focused gold company, is pleased to announce positive results from the bulk sample programme it has completed in conjunction with Hummingbird Resources Plc (AIM: HUM or 'Hummingbird').  The test work explored the ability of the ore at Cora's Sanankoro Gold Project ('Sanankoro' or the 'Sanankoro Project') to be concentrated by gravity separation to a level that would be viable to transport distances more than 100km which could support a lower capex and faster route to cash flow for the Company. 

Highlights

●     Gravity concentration a viable route based on test work completed:

o  Approximately 57% of gold recovered from the -1.7mm size fraction to a concentrate representing less than 1% of the feed mass

o  +70 g/t Au grade of concentrate possible

●     The remaining coarse material (-37mm, +1.7mm) was subject to a kinetic cyanide bottle roll to simulate heap leaching conditions

o  Approximately 75% gold extraction in 96 hours with potential to improve if given further time

Bert Monro, CEO of Cora Gold, commented, "These results suggest that a streamlined process flow sheet incorporating gravity concentration and the trucking of a high grade concentrate to an existing mine in the region could be run in parallel with a smaller on-site heap leach project treating the residual coarser size fraction.  These initial results suggest this could be a viable alternative route for us, potentially providing a lower capex and faster route to cash flow for the Company. 

"In parallel, Cora commenced further metallurgical test work earlier this month to build on the work completed for the Sanankoro Scoping Study published in January 2020.  This is focused on taking the metallurgical results to a 'pre-feasibility study' standard.  As part of this programme, we are also continuing further test work on gravity concentration and we expect to report on these results during Q3 2020. 

"We remain focussed on delivering a stand-alone mining operation at Sanankoro and signed last week a project financing term sheet for US$21m to support this plan.  The Company will always aim to deliver the optimum return for all shareholders and will continue to remain open to all routes for the Sanankoro Project."

Further information on the completed Test Work programme

As announced on 2 March 2020, Cora commenced an oxide ore bulk sample test work programme in conjunction with Hummingbird.  The objective of this programme was to explore the amenability of the oxide ore at Cora's Sanankoro Gold Project to be concentrated to a level that could be viable for commercial trucking to Hummingbird's Yanfolila Gold Mine, located ~100km from Sanankoro.

Accordingly, Cora arranged for a 350kg oxide bulk sample from the Sanankoro Project to be shipped to North America for gravity and sizing based metallurgical test work at a facility independent of both Hummingbird and Cora.  The test work examined a simple, low cost route to produce this concentrate.

The bulk sample was screened at 37.5mm and 1.7mm, with the +37.5mm size fraction then crushed to just below 37.5mm and re screened at 1.7mm.  The total -1.7mm fraction, which accounted for about 80% of the bulk sample, was passed through a Knelson concentrator and a gravity concentrate extracted.

The results are encouraging with approximately 57% of the gold reporting to a gravity concentrate, which represented less than 1% of the feed mass.  The resulting gold concentrate, with a grade of over 70g/t Au, could be economic to transport long distances.  The programme focused on just a single pass through a centrifugal concentrator and it is expected that further work could optimise the crush size and result in further improved recovery to the concentrate and potentially higher grades.  The coarser size fraction (-37.5mm, +1.7mm), which accounts for about 20% of the bulk sample, was used for a kinetic cyanide bottle roll test carried out to simulate heap leach conditions.  This also produced encouraging results with gold extraction being approximately 75% after 96 hours, with the leach curve still rising suggesting gold recovery rates could increase with more time.

Update on existing Test Work programme

Metallurgical test work is focused on the oxide material across the three main deposits at Sanankoro, Zone A, Zone B and Selin.  The work is analysing Carbon in Leach ('CIL'), Heap Leach and Gravity gold recovery and is building on previous work programmes carried out in 2019 as part of the Sanankoro Scoping Study released in January 2020.  The Scoping Study compared both Heap Leach and CIL routes of processing with Heap Leach recoveries assumed to achieve 70% being the optimum route of production based on the existing resources.  This current test work is planned to build on the Scoping Study and help guide decisions on the optimum process route for the project as the Company moves towards the planned DFS during 2021.  The results are expected during Q3 2020.

Permitting

As stated in the RNSs released on 16 January 2020 and 25 February 2020, the Sanankoro Exploration Permit expired on 01 February 2020 in accordance with Mali's Mining Code.  Prior to expiry the Company submitted an application for the award of a new permit over the area covered by the Sanankoro Permit.  The Company looks forward to announcing the award of a new permit in due course once the necessary process set out in the Mining Code has occurred.  The Sanankoro Permit was one of five permits that together comprise the Sanankoro Gold Project Area, these include Bokoro (permit expires August 2022), Bokoro Est (permit expires September 2026), Dako II (permit expires December 2025) and Kodiou (permit expires May 2022).

Market Abuse Regulation ('MAR') Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

For further information, please visit http://www.coragold.com or contact:

Notes

Cora Gold is a gold exploration company focused on two world class gold regions in Mali and Senegal in West Africa.  Historical exploration has resulted in the highly prospective Sanankoro Gold Discovery, in addition to multiple, high potential, drill ready gold targets within its broader portfolio.  Cora's primary focus is on further developing Sanankoro in the Yanfolila Gold Belt (Southern Mali), which Cora believes has the potential for a standalone mine development.  Sanankoro has a positive Scoping Study published on it showing an 84% IRR and US$30.9m NPV at a US$1,400 gold price.  Cora's highly experienced management team has a proven track record in making multi-million-ounce gold discoveries, which have been developed into operating mines.