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KORE is Fixing to Surprise the Market

Bob Moriarty

Oct 30, 2020

I don’t know how many juniors there are between the Vancouver and Toronto markets. I’m not even sure anyone else knows other than perhaps some bean counter with the TSX. I do know there are far too many for me to keep up with. So when someone calls me up and wants to advertise, I will do some basic due diligence but frankly it’s very hard to keep up with so many companies and I miss a lot.

KORE contacted me and wanted to fill me in with an interest to advertise. I looked over what they have and it’s a pretty simple story, certainly easy for me to tell. They have two low cost heap leach projects in California. Each has a resource.

Their Long Valley property located in Mono county California due east of San Francisco in the Sierra Nevada Mountains very near the Nevada border was just subject of a PEA. The PEA shows a NPV of $390 million in USD with an IRR of 63% at $1900 gold after tax. Over a seven-year mine life they can produce 102,000 ounces a year for 717,000 ounces of gold total. Initial capital costs to construct the mine would be about $161 million.

But that is not the only stallion in the stable. They also have another heap leach project, this one located near the Mesquite Mine in Southern California. I’ve been to Mesquite and know exactly what the Imperial property looks like since it’s only nine miles from Mesquite. Again, it’s eastern California but near the Arizona border this time.

Imperial is well advanced and has a PEA as well calling for a $143 million pre-production Capex to produce 146,000 ounces of gold a year and a total of 1.2 million ounces after an eight-year mine life. At $1900 gold the PEA suggests a $660 million market cap with a 68% IRR. All those numbers are quite impressive. Together with Long Valley, the two projects allow for just short of 2 million ounces of gold production at a low to medium cost of capital in a safe jurisdiction. That’s about $91 million in USD or $45 an ounce.

Both projects are 100% owned. But the numbers are fairly deceiving. If you go to their MDA you find that instead of having just 2 million ounces, they have a total of 4.9 million ounces in a 43-101 across their total of four 100% owned projects. So they are selling ounces of gold in 100% owned, no NSR projects for $18.57 an ounce in USD. That’s pretty insane.

But even that is not the real story. There are a lot of pretty advanced gold projects out there with cheap ounces. They are going to rocket higher when the mob of investors now in Tesla and Hertz wake up.

But KORE is sort of sandbagging the market. As part of my diligence, I had to go back and reread their recent press releases. They have two important gold projects in the Cariboo district of BC. They just finished a 5,700-meter drill program at what they call the FG Gold project. In 8 out of 14 drill holes they had visible gold. The company plans on doing an additional 2,000 meters of drilling based on what they saw in the core.

KORE is probably worth $2 to $3 a share just based on their two California projects. They will be moved to production and soon just in time to catch the hyperinflation wave brought to you but the Federal Reserve.

But in the next ten days or so they will start releasing assays from the FG Gold property. Look for the price of the stock to be explosive. When you have VG in a lot of holes, you have a lot of gold.

KORE is an advertiser. I liked the story enough from the press releases that I went into the open market and bought some shares. Naturally I am biased so do your own due diligence.

KORE Mining Ltd
KORE-V $1.13 (Oct 29, 2020)
KOREF-OTCQX 104.5 million shares
KORE Mining website


Bob Moriarty
President: 321gold

321gold Ltd

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