Coral Gold Resources Ltd.
TSX VENTURE : CGR
OTC Bulletin Board : CGREF

Coral Gold Resources Ltd.

September 08, 2005 13:46 ET

Coral Gold Resources Ltd.: Encouraging Drill Results-Further Drilling Being Planned

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 8, 2005) - Coral Gold Resources Ltd. (the "Company") (TSX VENTURE:CGR)(OTCBB:CGREF)(BERLIN:WKN A0DJ0G)(FWB:WKN A0DJ0G) is pleased to announce results of the Company's latest drilling program at its 100% owned Robertson Property, located in eastern Lander County, NV. The purpose of the drilling was to expand the 39A Zone indicated mineral resource, test below the Gold Pan resource for deep 39A-type mineralization, and assess the "distal target" area to host possible new mineral resources.

The drilling program began June 15, 2005 and was completed August 10, 2005, and consisted of 12 vertical reverse-circulation drill holes, CR05-1 through CR05-12, totaling 10,540 ft. Depth of the holes ranged from 500-ft- to 1,200-ft-deep. All twelve holes returned ore-grade intervals (using a 0.01 oz Au/t cutoff grade) ranging in thickness from 10 ft to 150 ft. A summary of assay results is presented below in Table 1.

Two holes, CR05-1 and CR05-2, were aimed at assessing the potential westward extension of stratiform 39A-type mineralization in to the so-called "distal target" area, located approximately 1,500 ft northwest of the 39A Zone. Both holes were completed to a depth of 1,200 ft. This mineralized area is currently defined by six widely spaced RC holes covering an area roughly 2,000 ft in a northwesterly direction by 900 ft in a southwesterly direction. Within this zone, the best results were returned by hole AT-3, which cut 75 ft averaging 0.061 oz Au/t, from 845 ft, followed by 50 ft averaging 0.02 oz Au/t, from 940 ft, and 20 ft averaging 0.082 oz Au/t, from 1,120 ft. Hole CR05-1 was collared 200 ft west of and 50 ft above AT-3 and CR05-2 was collared 200 ft NNW of and 50 ft above AT-3. Beginning at a depth of 945 ft, CR05-1 intersected an 80-ft-thick interval that averaged 0.110 oz Au/t, including 25 ft averaging 0.262 oz Au/t, from 950 ft. Hole CR05-2 encountered a 150-ft-thick zone that averaged 0.059 oz Au/t, including 80 ft averaging 0.085 oz Au/t, from 905 ft. Within the higher grade portion of the intercept was 35 ft averaging 0.128 oz Au/t. Mineralization in both holes, as well as in AT-3, is hosted by retrograde-altered calc-silicate and quartz hornfels strata.

Six holes totaling 4,250 ft were drilled in the immediate vicinity of the current 39A Zone indicated mineral resource. Four of these holes, CR05-3 through CR05-6, were drilled in the southern portion of the zone and two holes, CR05-7 and CR05-8, were completed along the suspected northern projection of 39A mineralization. Two step-out holes, CR05-3 and CR05-8, expanded the zone about 100 ft to the southeast and at least 200 ft to the north, respectively. Hole CR05-3, which offset high-grade intercepts in existing holes 99413 and AT-64 to the east, encountered a 90-ft-thick zone that averaged 0.069 oz Au/t, starting at 375 ft. Within this interval, is a 60-ft-thick zone that averages 0.098 oz Au/t, from 385 ft. Hole CR05-8 was collared along the projected northward trend of the 39A Zone over 400 ft north of previous high-grade intercepts. Starting at 785 ft, the hole returned 75 ft that averaged 0.069 oz Au/t, including 20 ft averaging 0.181 oz Au/t, from 785 ft. Mineralization cut by these holes is hosted by strongly retrograde-altered biotite, calc-silicate and quartz hornfels and remains open for potentially significant expansion both to the southeast and north.



Table 1. Summary of assay results for drill holes CR05-1 through
CR05-12 using a 0.01 oz Au/t cutoff grade and a 10 ft
minimum thickness.


Total
Hole No. Depth From(ft) To(ft) Thickness(ft) Gold(oz/ton)

CR05-1 1,200 835 845 10 0.014
870 905 35 0.013
945 1,025 80 0.110
including 950 975 25 0.262
1,080 1,090 10 0.017
1,190 1,200(TD) 10 0.016

CR05-2 1,200 555 565 10 0.017
580 600 20 0.086
including 585 590 5 0.252
850 1,000 150 0.059
including 905 985 80 0.086
including 905 940 35 0.128
1,050 1,075 25 0.028

CR05-3 600 375 465 90 0.069
including 385 450 60 0.098

CR05-4 500 365 380 15 0.012
410 500 90 0.013

CR05-5 650 370 400 30 0.049
410 450 40 0.025

CR05-6 660 60 70 10 0.020
130 175 45 0.014
340 375 35 0.017
445 470 25 0.040
490 515 25 0.038
550 580 30 0.024

CR05-7 850 150 160 10 0.017
340 375 35 0.020
465 475 10 0.164
655 705 50 0.018

CR05-8 1,000 125 145 20 0.015
325 335 10 0.014
370 390 20 0.016
405 430 25 0.022
480 540 60 0.039
695 725 30 0.021
785 860 75 0.069
including 785 805 20 0.181
970 1,000(TD) 20 0.026

CR05-9 1,040 120 130 10 0.020
225 250 25 0.013
345 360 15 0.035
420 430 10 0.015
460 470 10 0.016
860 870 10 0.040
895 915 20 0.013
970 1,000 30 0.015

CR05-10 1,000 65 85 20 0.017
250 260 10 0.087
275 295 20 0.015
310 320 10 0.020
335 350 15 0.015
365 375 10 0.012
870 875 5 0.308

CR05-11 680 45 50 5 0.042
100 110 10 0.027
140 150 10 0.013
160 165 5 0.119
385 400 15 0.017
440 445 5 0.041

CR05-12 1,160 80 95 15 0.011
135 150 15 0.015
175 200 25 0.021
300 345 45 0.029
485 490 5 0.098
1,055 1,150 95 0.019
including 1,080 1,145 65 0.023


In the Gold Pan Zone, holes CR05-9 through CR05-12 were collared roughly 400 ft apart in an area 500-1,000 ft east of the 39A Zone, to test the potential for deep 39A-type mineralization beneath the near-surface mineral resource. These holes were located at possible structural intersections that appear to exert control on the distribution of near-surface gold. Three of the holes encountered strong retrograde alteration at the projected depth where the stratiform 39A-type mineralization was expected. Beginning at about 1,040 ft and continuing to 1,150 ft, hole CR05-12 encountered very strongly developed retrograde alteration containing 2 to 60 percent replacement and veinlet sulfides. Starting at 1,055 ft, the hole intersected 95 ft averaging 0.019 oz Au/t, including 65 ft averaging 0.023 oz Au/t. Gold values up to 0.083 oz/t are associated with semi-massive sulfide layers.

The 2005 drilling identified much stronger mineralization than previously encountered in the "distal target" area suggesting excellent potential for developing new mineral resources in this area with additional drilling. In the 39A Zone, drilling indicates that the southern portion remains open for limited expansion to the southeast. However, results from drilling at the extreme north end of the zone suggests good potential for discovering additional higher grade resources in that area with continued drilling. Results from three of the four wide spaced drill holes collared in the near surface Gold Pan mineral resource, identified a widespread zone of strongly developed retrograde alteration carrying local ore-grade gold values at depths (850-1,045 ft) where the 39A zone was projected to be. In addition, the zone of mineralization and/or alteration is coincident with a series of close-spaced sills that apparently fill a low-angle structural zone that dips gently northward. This may be the principal "feeder structure" for the 39A Zone. Drilling in the "deep" Gold Pan zone has provided clear evidence that 39A-type mineralization is present and remains an excellent exploration target for the discovery of new mineral resources. In view of these encouraging results, the Company is planning additional drilling.

The drilling contractor for the 2005 program was Lang Exploratory Drilling Co. of Elko, NV. Drill samples were prepared and assayed by ALS Chemex of Reno, NV. Down-the-hole gyroscopic surveys were conducted in holes CR05-1 and CR05-2 and CR05-8 through CR05-12 by IDS, Inc. of Elko, NV. Measured deviations in these holes ranged from 12 ft to 68 ft. The drilling program was directly supervised by R.T. McCusker, P.Geol., a qualified person pursuant to National Instrument 43-101, who has reviewed and verified the data disclosed in this news release.

ON BEHALF OF THE BOARD OF DIRECTORS

David Wolfin, Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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