KORE Mining’s (KORE.V; KOREF.OTC) two gold projects have been valued at more than C$1 billion — and yet the company’s current market cap is a fraction of that number.

With gold pausing in what still promises to be a long bull run, now is the time to capitalize on this dramatic price-to-value mismatch.

Dear Fellow Investor,

The gold market is on pause — time to take advantage.

After a post-Covid-lockdown surge last year that saw gold prices soar past $2,000/oz., the yellow metal has retraced its steps of late.

With the broader market trading at or near record highs, investors have been distracted from the compelling long-term trends for gold.

But those trends are still very much in place.

Another $1.9 trillion in fiscal stimulus is barreling through Congress, and the Fed is on record as holding pat on near-zero interest rates for the foreseeable future.

A combination of negative real interest rates and higher inflation is baked into the cake, making gold the smart money play for 2021 and beyond.

For gold bugs, one bright spot of the current pause is it provides a chance to load up on those gold stories most likely to deliver powerful leverage when gold takes off again.

And one story that looks particularly compelling on that basis is KORE Mining (KORE.V; KOREF.OTC).

Simply put, the gold market correction is giving KORE investors another chance to ride this gold story to lucrative gains in 2021.

Two Projects, C$1 Billion In NPV

The current price-to-value mismatch underscores the potential to profit by investing in KORE at current levels.

The company has been trading at a market cap of around C$100 million.

And yet, PEAs on KORE’s two key projects — Imperial and Long Valley — have projected NPVs that, combined, total more than C$1 billion (at a US$1,600/oz gold price).

The table below lays out the details for each project.

As you can see, applying a discount rate of 5%, Imperial boasts an after-tax NPV of C$643 million and Long Valley has an after-tax NPV of C$389 million.

Granted, those numbers are projections based on future production, but they give you a sense of KORE’s value potential.

They also don’t take into account the fact that Imperial is actively being permitted in preparation for development.

Takeout Temptations

Breaking down the numbers further, it becomes easy to see why these two California projects could make for compelling takeout targets for the sector’s mid-tier producers.

Just like majors, mid-tier producers need to keep a close eye on their reserve bases and potential to build on (and replace) their currently productive resources.

In that respect, both Imperial and Long Valley are highly attractive.

Both host near-surface, oxide gold deposits that are amenable to the kind of inexpensive heap-leach processing that gold producers prefer.

Moreover, as you can see from the table, both projects have low all-in sustaining costs and, better still, very modest projected initial capital expenditures.

Those relatively low up-front costs for Imperial and Long Valley should grease the wheels for a takeout suitor who wants to secure financing for these projects.

And it’s worth noting: Equinox Gold’s (EQX.TO, EQX.NYSE-A) Mesquite mine next to KORE’s Imperial resource is, after more than three decades of operation, nearing the end of its mine life.

Buying Imperial could be the perfect solution to keeping Mesquite running.

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Exploration News Flow Throughout 2021

While we wait to see how this longer-term takeout story plays out for KORE’s two projects, it’s important to note that both have exceptional exploration potential in the short term.

At Long Valley, KORE expects to receive permits in the next month or so to drill 15,000 meters in search of other areas of near-surface, oxide gold mineralization, as well as higher-grade sulphide mineralization at depth.

As the map below shows, the project abounds in targets that could add to its existing 1.2 million ounces of indicated resources and 0.5 million ounces of inferred resources.

KORE expects to begin drilling Long Valley during the first half of this year, so news will start flowing soon.

Concurrently, it will be conducting surface work on Imperial to isolate new shallow resource areas to supplement its existing 0.9 million ounces of indicated resources and 1.3 million ounces of inferred resources.

This next map shows the large targets KORE has already identified between the Imperial resource and the 19 kilometers of strike it controls up to the edge of Mesquite.

As it awaits permits for up to 150 drill pads at Imperial, the company will conduct geophysical work, as well as soil sampling and mapping in H1 2021.

Assuming permits come through timely, KORE should have a drill program on Imperial picking up in the back half of the year, just as the Long Valley program winds down.

The Pure Gold Play Primed To Leverage Rising Prices

To sum up, in KORE you have a company with more than C$1 billion in potential value, with not one but two projects capable of growing substantially via upcoming drilling.

Again, at current trading levels, KORE is valued at just a small fraction of the combined NPVs for Imperial and Long Valley.

That fact alone argues for a significant re-rating in the company’s share price in the days ahead.

Then you factor in the attractiveness of KORE’s existing resources and exploration growth once the M&A market heats up, and you have a pure-play gold story that’s ripe for accumulation at or near current levels.

Tagline Contest

Also, KORE is looking for your help with a new company tagline. Click here to submit your suggested tagline and KORE will enter you in a drawing to win a 1-oz. gold coin! Hurry the contest ends March 12, 2021.

CLICK HERE
To Learn More about KORE Mining