TSX: KOR OTCQX: CORVF
VANCOUVER, July 29, 2015 /CNW/ - Corvus Gold Inc.
("Corvus" or the "Company") - (TSX: KOR, OTCQX: CORVF) announces
that its wholly owned Alaskan subsidiary, Raven Gold Alaska Inc.
("Raven"), has completed a transaction with Millrock Resources Inc.
("Millrock") on the Company's West Pogo and Goodpaster database
projects in Alaska, which were
considered to be non-core assets to Corvus. The ownership
position was sold for cash and Corvus retained net smelter return
("NSR") royalties, as further discussed below. Cash from the
transaction will be used to fund ongoing exploration of the North
Bullfrog project in Nevada.
The royalty interest will provide the initial assets for a new
portfolio developed to provide potential future gold production
interest to the Company.
A summary of the sale transactions are listed below:
- Two projects included are the West Pogo project and the
Goodpaster database.
- Total cash component for the two assets totals USD $120,000.
- For the West Pogo project, Corvus retained NSR royalty of 3% on
precious metals and 1% on base metals with 1% of the precious metal
royalty buy down for USD $2M and a
further 1% for an additional USD $5M.
- For the Goodpaster database, Corvus retained NSR royalty of 1%
on all new claims acquired within the defined Area Of Interest
(AOI) which totals some 1,500 square kilometres covering the
largest gold producing District in Alaska. One half of the royalty can be
purchased for USD $2M.
Additionally, Corvus has granted Millrock an exclusive right to
enter into an option agreement for the purchase of its LMS project
also in the Goodpaster Mining District of Alaska until September
1, 2015 (summary below):
- Total cash component for the asset will total USD $775,000 over 5 years.
- Corvus retained NSR royalty of 3% on precious metals and 1% on
base metals with 1% of the precious metal royalty buy down for USD
$4M.
Jeff Pontius, Corvus' CEO,
stated: "The creation of a Corvus royalty portfolio signals an
exciting value addition for our shareholders by not only providing
immediate cash to the Company but also adding the potential for
exposure to new discovery and production. A key aspect of this
strategy is to establish a partnership with quality exploration
groups like Millrock that have adequate funding and partnerships to
make discoveries and bring them to account. Although exciting
exploration opportunities, the Alaskan projects are non-core assets
for Corvus as we devote our full attention to the growing new
Nevada high-grade, gold-silver
discovery at North Bullfrog. Corvus will continue to look for
favorable opportunities to build its royalty portfolio while
monetizing its non-core assets thus minimize dilution and provide
long-term, low-risk discovery and production potential."
About the North Bullfrog Project, Nevada
Corvus controls 100% of its North Bullfrog Project, which covers
approximately 72 km² in southern Nevada. The property package is made up
of a number of private mineral leases of patented federal mining
claims and 865 federal unpatented mining claims. The project
has excellent infrastructure, being adjacent to a major highway and
power corridor as well as a large water right.
The North Bullfrog project includes numerous prospective gold
targets at various stages of exploration with four having NI 43-101
compliant mineral resources (Sierra
Blanca, Jolly Jane, Mayflower and YellowJacket).
The project contains a measured mineral resource of 3.86 Mt at an
average grade of 2.55 g/t gold and 19.70 g/t silver, containing
316.5k ounces of gold and 2,445k ounces of silver, an indicated
mineral resource of 1.81 Mt at an average grade of 1.53 g/t gold,
and 10.20 g/t silver, containing 89.1k ounces of gold and 593.6k
ounces of silver and an inferred resource of 1.48 Mt at an average
grade of 0.83 g/t gold and 4.26 g/t silver, containing 39.5k ounces
of gold and 202.7k ounces of silver for oxide mill
processing. The mineral resource for the mill process was
defined by WhittleTM optimization using all cost and
recovery data and a breakeven cut-off grade of 0.52 g/t gold. In
addition, the project contains a measured mineral resource of
0.3 Mt at an average grade of 0.25 g/t gold and 2.76 g/t
silver, containing 2.4k ounces of gold and 26.6k ounces of silver,
an indicated mineral resource of 22.86 Mt at an average grade of
0.30 g/t gold and 0.43 g/t silver, containing 220.5k ounces of gold
and 316.1k ounces of silver and an inferred mineral resource of
176.3 Mt at an average grade of 0.19 g/t gold and 0.67 g/t silver,
containing 1,077.4k ounces of gold and 3,799.2k ounces of silver
for oxide, heap leach processing. The mineral resource for heap
leach processing was defined by WhittleTM optimization
using all cost and recovery data and a breakeven cut-off grade of
0.15 g/t.
Qualified Person and Quality Control/Quality
Assurance
Jeffrey A. Pontius (CPG 11044), a
qualified person as defined by National Instrument 43-101, has
supervised the preparation of the scientific and technical
information that form the basis for this news release and has
approved the disclosure herein. Mr. Pontius is not
independent of Corvus, as he is the CEO and holds common shares and
incentive stock options.
Carl E. Brechtel, (Nevada PE
008744 and Registered Member 353000 of SME), a qualified person as
defined by National Instrument 43-101, has coordinated execution of
the work outlined in this news release and has approved the
disclosure herein. Mr. Brechtel is not independent of Corvus, as he
is the COO and holds common shares and incentive stock options.
The work program at North Bullfrog was designed and supervised
by Mark Reischman, Corvus Gold's
Nevada Exploration Manager, who is responsible for all aspects of
the work, including the quality control/quality assurance
program. On-site personnel at the project log and track all
samples prior to sealing and shipping. Quality control is
monitored by the insertion of blind certified standard reference
materials and blanks into each sample shipment. All resource
sample shipments are sealed and shipped to ALS Chemex in
Reno, Nevada, for preparation and
then on to ALS Chemex in Reno,
Nevada, or Vancouver, B.C.,
for assaying. ALS Chemex's quality system complies with the
requirements for the International Standards ISO 9001:2000 and ISO
17025:1999. Analytical accuracy and precision are monitored
by the analysis of reagent blanks, reference material and replicate
samples. Finally, representative blind duplicate samples are
forwarded to ALS Chemex and an ISO compliant third party laboratory
for additional quality control.
About Corvus Gold Inc.
Corvus Gold Inc. is a North American gold exploration and
development company, focused on its near-term gold-silver mining
project at North Bullfrog, Nevada. In addition the Company
controls a number of other North American exploration properties
representing a spectrum of gold, silver and copper projects.
Corvus is committed to building shareholder value through new
discoveries and the expansion of those discoveries to maximize
share price leverage in a recovering gold and silver market.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A.
Pontius
Jeffrey A.
Pontius,
Chairman and Chief Executive Officer
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements, other than statements
of historical fact, included herein including, without limitation,
statements regarding potential exposure to additional exploration
and production on the West Pogo and Goodpaster projects, Millrock
having adequate funding and partnerships to make discoveries and
bring them to account, Corvus' operating plans in the future,
including the focus on the North Bullfrog project, future building
of a royalty portfolio and monetizing non-core assets the potential
for any mining or production at North Bullfrog are forward-looking
statements. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking
statements are typically identified by words such as: believe,
expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral
products the Company may produce or plan to produce, the Company's
inability to obtain any necessary permits, consents or
authorizations required for its activities, the Company's inability
to produce minerals from its properties successfully or profitably,
to continue its projected growth, to raise the necessary capital or
to be fully able to implement its business strategies, and other
risks and uncertainties disclosed in the Company's 2014
Annual Information Form and latest interim Management Discussion
and Analysis filed with certain securities commissions in
Canada. All of the Company's Canadian public disclosure
filings may be accessed via www.sedar.com and the
Company's United States public
disclosure filings may be access via www.sec.gov and
readers are urged to review these materials, including the
technical reports filed with respect to the Company's mineral
properties.
This press release is not, and is not to be construed in any
way as, an offer to buy or sell securities in the United States.
SOURCE Corvus Gold Inc.