Coral drills through US Gold interest in Nevada

A day after the resignation of chairman Robert McEwan, Coral Gold Resources (CGR-V, CGREF-O) announced that Agnico-Eagle (AEM-T) has started drilling at some of Coral’s properties in Nevada.

Agnico Eagle got the drilling started as part of a deal signed in January of 2005, that allows it to earn-in on the Norma Sass, Blue Nugget and Lander Ranch properties.

Currently Coral holds a two thirds interest in Norma Sass with Levon Resources holding the other third — and a 100% interest in Lander Ranch and Blue Nugget.

Drilling is taking place at the Lander Ranch target area. Agnico plans to drill 15,000 ft. in 12 to 15 holes on the property.

McEwan had only served as chairman since Dec. 9 2005. The president and chief executive of US Gold (USGL-O) and founder of Goldcorp (G-T, GG-N) is a 20% share holder in Coral and is trying to consolidate the Cortez trend — where Coral is located — in Nevada.

Coral, along with three other junior gold exploration companies, have been targeted.

To date, US Gold has only made an official offer for White Knight Resources (WKR-V).

Nevada Pacific (NPG-V) and Tone Resources (TNS-V) are the remaining two companies targeted by US Gold.

In Toronto on May 19 the Vancouver-based Coral’s shares were off 5.6% or 24 to $4 on roughly 41,000 shares. Toronto-based US Gold’s shares were off 4.2% to US$7.05.