2015 Project Development Highlights Expected to
Include:
- Updated resource estimate incorporating all 2014 drill
results
- Preliminary Economic Assessment to include the newly
discovered Yellowjacket Deposit
- Work & exploration programs
TSX: KOR OTCQX: CORVF
VANCOUVER, Jan. 27, 2015 /CNW/ - Corvus Gold
Inc. ("Corvus" or the "Company") - (TSX: KOR, OTCQX: CORVF)
announces the expansion of its land position at the North Bullfrog
Project (NBP) in Nevada, to
include an additional 56 Federal mining claims and two patented
mining claims. This expands the NBP property boundary in the
southeast and south where recent surface mapping has identified
extensive alteration that has a close association with the main
gold-silver mineralization event at the project. In addition
new age date data confirms that the alteration is of the same age
as the main gold event in the region (10M years) with one lone
historic hole (BGS-02) in the area having highly anomalous gold
mineralization. This new large area of alteration and gold
mineralization is over 4 kilometres from the Company's nearest gold
deposit (Mayflower) and opens up a large new area of prospective
gold mineralization. The expansion of the land position is
shown in Figure 1 with red outline of the patented claims and blue
for the unpatented claims.
NBP Property Expansion
Geological mapping in the summer of 2014 revealed that opal and
kaolinite alteration is developed in favourable host rocks over an
area almost 7km2 (Figure 1). This type of alteration is
typical of the upper levels of epithermal gold systems like the
recently discovered Yellowjacket high-grade gold-silver system. The
fact that such a widespread area has been affected by a main gold
stage age intensive alteration event suggests the hydrothermal
system was large with potential to host extensive gold-silver
mineralization. Exploration programs are currently being planned to
explore the new zones on the North Bullfrog property.
Metallurgy
The 2014 drill program included several PQ core holes that are
being used to develop further metallurgical testing data.
This new data will be used to define a mining project that includes
both a gravity/cyanide leach mill operation for the high-grade and
a run-of-mine (ROM) heap leach for the lower grade disseminated
mineralization. The existing metallurgical data for the
Yellowjacket mineralization indicate high milling recoveries
projected to average 91% of gold, which is higher than the
previously assumed gold recovery rate of 84% used in the Whittle
Pit input parameters for the previous North Bullfrog Resource
Estimation published April 1, 2014
(Technical Report - The North Bullfrog Project, Bullfrog Mining
District, Nye County, Nevada).
Additionally, heap leach gold recoveries are projected to range
from 74% to 69% for disseminated mineralization from Mayflower and
Sierra Blanca (phase 1 starter pit area) assuming a Run of Mine
(ROM) particle size gradation produced by blasting fragmentation of
80% passing 152 mm (6 inch) after 1000 days leach. Previous heap
leach gold recovery estimates assumed that all mineralization would
be crushed to 80% passing 19 mm (3/4 inch) which would have
increased the projected operating costs.
Project Development
A number of major project development advancements have been
made during 2014 and work in 2015 is expected to position the
project to initiate major mine permitting activities. Key
elements are listed below:
- Resource Update: The 2014 drilling was exclusive to the
Yellowjacket Deposit and expanded the known mineralization to over
1km along strike and to 200 metres at depth. Highlights of the
drill campaign include holes NB-14-378 (9.2m @ 18.0 g/t gold &
260 g/t silver, NR14-11, April 3,
2014), NB-14-391 (17.6m @ 9 g/t gold & 34 g/t silver,
NR14-17, September 4, 2014) &
NB-14-400 (35.9m @ 17 g/t gold & 20 g/t silver, NR14-22,
October 28, 2014). Data is currently
being modeled and an updated resource is being calculated with
completion expected in March of this year.
- Preliminary Economic Assessment (PEA): An updated PEA
and mine plan incorporating the new resource and improve
metallurgical recoveries is expected in mid Q2 of this year.
This will be the first study to include the newly discovered
high-grade Yellowjacket Deposit.
- Permitting: Baseline characterization activities to
support mine permitting will continue in 2015, adding to the
information collected since 2012 and positioning the project for
major permit applications. Reports on cultural resource surveys on
public lands were revised in 2014 and resubmitted to BLM for
clearance.
- Water: Water quality sampling has been ongoing and has
now collected the minimum of five quarters of sample data on the
installed monitoring wells and springs in, and around the project
area forming the baseline required for mine permitting. Water
quality from these tests has been good. In addition, the
recent purchase of a water right in the project area will provide
adequate water for any of the Company's currently envisioned mining
and processing scenarios.
- Mining Studies: A geochemical model of the Sierra Blanca
and Yellowjacket deposits was developed in 2014 and used to define
drilled intervals of overburden for Acid-Base-Accounting (ABA)
studies needed for mining permits. The samples will be tested in Q1
for 2015, and will be used in defining additional tests to fully
characterize the material for permitting purposes.
- Exploration Program: The 2015 exploration program will
focus on initial testing of priority vein targets within the newly
defined high potential structural zones which have similar
characteristics to the newly discovered high-grade gold-silver
Yellowjacket Deposit and historic Bullfrog Mine 10kms to the south
of the project. Additional follow-up drilling at Yellowjacket
is planned for later in the year as the deposit remains open along
strike and at depth.
About the North Bullfrog Project, Nevada
Corvus controls 100% of its North Bullfrog Project, which covers
approximately 75 km² in southern Nevada. The property package
is made up of a number of private mineral leases of patented
federal mining claims and 864 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.
Based upon a USD 1300 gold price
and silver to gold price ratio of 59:1, the North Bullfrog project
currently has estimated mineral resources defined in six deposits:
the structurally controlled Yellowjacket milling deposit and the
oxidized disseminated heap leach Sierra Blanca, Jolly Jane, Air
Track West, Connection and Mayflower deposits. The
Yellowjacket vein-style deposit has an Indicated Mineral Resource
of 3.69 Mt at an average grade of 1.03 g/t gold and 5.52 g/t silver
for 122,000 contained ounces of gold and 654,000 ounces of silver
and an Inferred Mineral Resource of 18.40 Mt with an average grade
of 0.94 g/t gold and 6.16 g/t silver for 555,000 contained ounces
of gold and 3.64M ounces of silver, both at a 0.29 g/t gold
cutoff.
The five oxidized disseminated heap leach deposits contain an
Indicated Mineral Resource of 25.72 Mt at an average grade of 0.29
g/t gold for 240,000 contained ounces of gold and an Inferred
Mineral Resource of 185.99 Mt at 0.19 g/t gold for 1,136,000
contained ounces of gold (both at a 0.13 g/t gold cut-off), with
appreciable silver credits.
For full details with respect to the assumptions underlying the
current resource estimate detailed herein, and listing of all of
the metallurgical testing data please review the Company's latest
NI 43-101 technical report entitled "Technical Report - The North
Bullfrog Project, Bullfrog Mining District, Nye County, Nevada" dated April 1, 2014 and available on SEDAR or at the
Company's website www.corvusgold.com.
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 forms 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 supervised 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.
Mr. Herbert Osborne, SME, a
consulting metallurgist, has acted as the Qualified Person, as
defined by NI 43-101, for evaluation of the metallurgical testing
data. He has over 50 years of experience in mineral process design
and operations. He is a Registered Member of the Society of Mining,
Metallurgy and Exploration (SME Member No. 2430050 RM). Mr Osborne
is independent of the Company under NI 43-101.
The work program at North Bullfrog was designed and supervised
by Russell Myers (CPG 11433),
President of Corvus, and Mark
Reischman, Corvus Nevada Exploration Manager, who are
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 Minerals in Reno,
Nevada, for preparation and then on to ALS Minerals in
Reno, Nevada, or Vancouver, B.C., for assaying. ALS
Minerals'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 company,
which is focused on advancing its 100% controlled Nevada, North Bullfrog project towards a
potential development decision. In addition, the Company
controls a number of other North American exploration properties
representing a spectrum of gold, silver and copper
projects.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A.
Pontius
Jeffrey A.
Pontius,
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 the anticipated content, commencement and cost
of exploration programs, anticipated exploration program results,
use of data to define new mining project, anticipated milling
recoveries, anticipated heap leach gold recoveries, mine permitting
activities, timing for updated resource calculations, timing for
updated a preliminary economic assessment, sufficiency of water
rights to support mining and processing the discovery and
delineation of mineral deposits/resources/reserves, the potential
to develop multiple Yellowjacket style high-grade zones, the
Company's belief that the parameters used in the
WhittleTM pit optimization process are realistic and
reasonable, the potential to discover additional high grade veins
or additional deposits, the potential to expand the existing
estimated resource at the North Bullfrog project, the potential for
any mining or production at North Bullfrog, the potential for the
Company to secure or receive any royalties in the future, business
and financing plans and business trends, are forward-looking
statements. Information concerning mineral resource estimates
may be deemed to be forward-looking statements in that it reflects
a prediction of the mineralization that would be encountered if a
mineral deposit were developed and mined. 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 2013 Annual
Information Form and latest interim Management Discussion and
Analysis filed with certain securities commissions in Canada and the Company's most recent filings
with the United States Securities and Exchange Commission (the
"SEC"). All of the Company's Canadian public disclosure
filings may be accessed via www.sedar.com and filings
with the SEC may be accessed 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.
Cautionary Note Regarding References to Resources and
Reserves
National Instrument 43 101 - Standards of Disclosure for
Mineral Projects ("NI 43-101") is a rule developed by the Canadian
Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") Standards on
Mineral Resource and Mineral Reserves, adopted by the CIM Council
on November 14, 2004 (the "CIM
Standards") as they may be amended from time to time by the
CIM.
United States shareholders
are cautioned that the requirements and terminology of NI 43-101
and the CIM Standards differ significantly from the requirements
and terminology of the SEC set forth in the SEC's Industry Guide 7
("SEC Industry Guide 7"). Accordingly, the Company's
disclosures regarding mineralization may not be comparable to
similar information disclosed by companies subject to SEC Industry
Guide 7. Without limiting the foregoing, while the terms
"mineral resources", "inferred mineral resources", "indicated
mineral resources" and "measured mineral resources" are recognized
and required by NI 43-101 and the CIM Standards, they are not
recognized by the SEC and are not permitted to be used in documents
filed with the SEC by companies subject to SEC Industry Guide
7. Mineral resources which are not mineral reserves do not
have demonstrated economic viability, and US investors are
cautioned not to assume that all or any part of a mineral resource
will ever be converted into reserves. Further, inferred
resources have a great amount of uncertainty as to their existence
and as to whether they can be mined legally or economically.
It cannot be assumed that all or any part of the inferred resources
will ever be upgraded to a higher resource category. Under
Canadian rules, estimates of inferred mineral resources may not
form the basis of a feasibility study or prefeasibility study,
except in rare cases. The SEC normally only permits issuers
to report mineralization that does not constitute SEC Industry
Guide 7 compliant "reserves" as in-place tonnage and grade without
reference to unit amounts. The term "contained ounces" is not
permitted under the rules of SEC Industry Guide 7. In
addition, the NI 43-101 and CIM Standards definition of a "reserve"
differs from the definition in SEC Industry Guide 7. In SEC
Industry Guide 7, a mineral reserve is defined as a part of a
mineral deposit which could be economically and legally extracted
or produced at the time the mineral reserve determination is made,
and a "final" or "bankable" feasibility study is required to report
reserves, the three-year historical price is used in any reserve or
cash flow analysis of designated reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority.
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.