The new stand-alone gold company would include the company’s exploration assets in British Columbia, consisting of a 1,000 km2 claim position in the Cariboo gold district including the FG Gold and Gold Creek projects. The Cariboo region of British Columbia is an active mining jurisdiction that is host to Osisko Gold Royalties’ (TSX: OR) Cariboo gold project and several large operating copper-gold mines.
“The spin-out would directly expose KORE shareholders to the value creation potential of this impressive exploration story”
Scott Trebilcock, president and CEO
“With a dominant 1,000 km2 position in a highly prospective gold district, including the recent transformational high-grade discovery at FG Gold, KORE’s South Cariboo gold assets are an exceptional gold exploration story,” KORE president and CEO Scott Trebilcock commented in a press release.
“It is also a great time for the Cariboo gold district with Osisko’s aggressive exploration and development activity attracting attention and capital,” he added.
KORE recently intercepted 14.3 m of 6.4 g/t gold at 386 m downhole at FG Gold. This new discovery, which extends over 300 m downdip from the known resource, opens up underground potential and could have a profound impact of the size and grade of the FG Gold deposit.
Assays are pending for additional 14 holes over a 1,780 m of lateral strike with seven holes intersecting quartz veining with visible gold. Drilling continues with 2,000 m planned to expand Gold Creek through mid-December.
Following the spin-out, KORE would retain its pipeline of US gold development assets with the Imperial and Long Valley projects.
“KORE will retain the Imperial and Long Valley development assets; simple, low-cost gold heap leach projects in the US, each with their own robust returns and the potential to produce nearly 250,000 ounces of gold per year. KORE would remain attractive to investors looking for exposure to low-cost gold development and potential mergers and acquisitions that quality assets can generate as the gold cycle matures,” Trebilcock explained.
Shares of Kore Mining were down 5.8% by 1:30 p.m. Tuesday in Toronto. The company’s market capitalization is approximately C$115.1 million.
