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The next big disovery? Cora Gold shares backed to double in value

Mining gold stocks have seen something of a newfound importance amid wider economic uncertainty of late. And investor interest is always piqued when a mining stock on AIM with a low m.cap is touted for success.

Cora Gold is one such company that some see significant upside to. With a m.cap of £17m at the moment, a 134% potential upside has been put on Cora Gold with a target price of of 19p.

Describing it is a low capex gold opportunity, joint broker finnCap mainly focuses on its Sanakoro project as a key driver for this.

Referring to the accelerated development at Sanankoro, the broker notes:

“Cora’s strategy is to build Sanankoro on a 6- year mine life, confident that once producing, drilling will extend this to 10 years or more. This accelerated approach was once common and is popular with certain investors – it shortens the gestation period and reduces the cost of getting to production.”

Regarding Sanankoro it refers to it being a large licence with more than 20km of known gold mineralisation – approximately 20 percent being drill tested above 80m. Independent consultants estimated that there is an exploration target of 1-2 million ounces.

finnCap’s m. cap projection of £39m for Coral also takes into account Sanankoro as well as the wider project project portfolio

However, Sanankoro is the key driver behind the upside – representing 90% of the expected valuation.

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