KORE Will Gain a Lot from Higher Gold
I wrote about KORE Gold (KORE-V) at the end of October of last year and predicted KORE would surprise the market. Well, I don’t know about the market but they did surprise me with their January announcement that they were spinning off their BC gold assets. It was a pretty accurate call with the stock going from $1.13 when I wrote to $2.01 seven weeks later. Much of that was on the strength of the assays at the FG property in BC.
The company made an interesting strategic move in January when they announced completion of the spin-out of their Canadian projects into a new company. It will be called Karus. Shareholders as of January 22, get shares in the new company so the price of KORE dropped to reflect the change in assets.
One of the very first projects I went to see when I started 321gold some twenty years ago was the Mesquite Gold Mine located near KORE’s Imperial property. You could walk the ground around Mesquite and pick up small pieces of quartz and see tiny bits of gold. There is a lot of gold still in the area. Imperial is nearby and has exactly the same sort of mineralization.
KORE still has two company making projects, Imperial and Long Valley. Both are relatively high-grade oxide gold projects that will be cheap to put into production. The price of KORE is lower than when I wrote about them six months ago but shareholders have already been rewarded with the Karus shares. KORE is a gimmie at higher prices for gold. The company has done an excellent job on their presentation and all investors should read it and see just how cheap they are to other similar companies.
KORE did advertise. They may be back but when gold goes up as it just did, you want to find the near-term projection cheap gold stories. KORE has it. Do your own due diligence.