Core Gold (CGLD.V) is in the final stages of a 1,700 meter drill program on the exciting Linderos gold project in Ecuador. Keith Piggott, the company’s CEO was very keen on getting a drill rig going at Linderos, as he calls it one of the most prospective undrilled gold targets in Ecuador.
And we don’t disagree. As we explained in our previous report on Core Gold (which you can read here), this gold target zone now has a strike length of in excess of one kilometer, but the newly discovered parallel structure could easily expand the total strike length of the gold oxide zone. The initial assay results from a trenching program were very encouraging as the company encountered several high-grade gold intervals, and the current drill program should tell us more about the thickness of the mineralized layer.
Core Gold’s share price might experience some weakness in the next few days and weeks as the first tranche of the company’s C$0.30 raise is coming out of lock-up today. As the units consisted of a common share and ½ warrant (with an exercise price of C$0.45), we can’t rule out seeing any warrant clippers and this could be an opportunity for investors looking for an entry point.