VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/03/13 -- Coral Gold Resources Ltd. (the "Company") (TSX VENTURE: CLH)(OTCBB: CLHRF)(FRANKFURT: GV8)(BERLIN: GV8) reports that as a result of a review by the British Columbia Securities Commission ("BCSC"), we are issuing the following news release to clarify our disclosure.
The BCSC has identified two principal areas of disclosure issues relating to the technical Report filed by the Company, and regarding technical disclosures made by the Company, as follows:
A. TECHNICAL REPORT ISSUES
A current NI 43-101 compliant technical report dated January 15, 2012 entitled, "Preliminary Economic Assessment on the Robertson Property, Lander County, Nevada, U.S.A." was filed on SEDAR on February 2, 2012. This technical report supports total inferred mineral resources of 2,741,673 oz. Au, contained in 191,725,418 tons, grading 0.0143 oz Au/t, with a 0.0067 oz Au/t cut-off grade, and were shown for each zone divided into oxide or sulphide deposits. The cut-off grade was determined based on the following key assumptions and criteria: a mining cost of US$1.02/t, processing cost of US$5.00/t, waste cost of US$1.14/t, and gold at US$1,350/oz with a 70% recovery. In addition, these economic parameters were used to calculate an optimized pit, which formed the basis for the pit design within the preliminary economic assessment ("PEA").
The January 15, 2012 report does not include tonnage and grade estimates for the Distal Zone and the main sulphide area of the 39A zone. This is because these areas of gold mineralization are not within the pit design areas. The two zones do, however, represent prime targets for further exploration. Coral has instructed Beacon Hill Consultants (1988) Ltd. to amend the January 15, 2012 report to include these zones in compliance with current NI 43-101 requirements.
The BCSC's review also identified a number of examples where the technical report does not comply with the requirements of NI 43-101. These include the following:
1. Failure to file NI 43-101 Compliant Certificates
The certificates are being amended to state the items for which each Qualified Person ("QP") is responsible.
Some certificates referred to the title of the report as "Preliminary Economic Assessment on the Robertson Property, Elko, Nevada, USA". These have been amended so that they match the title of the report.
B. ADDITIONAL TECHNICAL DISCLOSURE ISSUES1. Unsupported Disclosure
In its Management Discussion and Analysis ("MD&A"), news releases, website, fact sheet, corporate presentation, newsletters, analyst reports and video interviews, the Company referred to its 2009 inferred mineral resource estimate. This estimate is not supported by the Company's current technical report that discloses an updated inferred resource estimate of 2.7 million ounces of gold and has been removed from the Company's website.
In the corporate video, the Company also disclosed a mineral resource estimate that is not supported by the current technical report. This is not in compliance with NI 43-101, and the video has therefore been removed from the Company's website.
2. Non-Compliant Disclosure of Mineral Resources