Corvus Gold Provides Update on Exploration Projects and Announces Aggressive Exploration Programs for 2011
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/14/10 -- Corvus Gold Inc. ('Corvus' or the 'Company') (TSX: KOR) is pleased to provide a year-end corporate update of its projects in Nevada and Alaska and outline the aggressive exploration programs planned for 2011. Over $7 million (90% partner funded) was spent on exploration in 2010 and preliminary budgets for exploration programs in 2011 are expected to be nearly $11 million (90% partner funded).
North Bullfrog Project, Nevada
Bulk Tonnage, Heap Leach Gold-Silver Project with Excellent Exploration Potential
The North Bullfrog Project covers over 24 square kilometres in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick Gold Corporation. The project has excellent infrastructure, being adjacent to a major highway and power corridor, and is 100% controlled by the Company through mining leases on patented claims and additional unpatented claims held directly.
Currently, the project includes eight prospective gold targets with one prospect - the Mayflower target - containing an NI 43-101 compliant initial estimated indicated gold resource of 2.02 Mt at an average grade of 0.88 g/t gold (57,086 contained gold ounces) and 0.45 g/t silver and an inferred resource of 0.95 Mt at an average grade of 0.78 g/t gold (23,793 contained gold ounces) and 0.36 g/t silver, both at a cutoff grade of 0.5 g/t gold. Mineralization at this target is hosted in a broad structural zone with gold disseminated in the alteration and hosted in fault breccias.
A 10,000-metre drill program to explore for epithermal gold mineralization has been underway since October 2010, with the aim of developing new resources at several targets, including Mayflower, Pioneer, Connection, Jolly Jane and Sierra Blanca (see Figure 1: http://media3.marketwire.com/docs/korfig1.pdf). To date, approximately 3,200 metres of drilling has been completed with encouraging results (see NR10-08). Additional results from drilling will be released as available over the following weeks and will form the basis of an updated NI 43-101 resource estimate in the first half of 2011.
The Company's goal at the North Bullfrog project is to develop new resources at a number of targets which can eventually be processed at a central heap leach facility. Preliminary metallurgical testing has shown that the deeply oxidized mineralization is amenable to simple heap leach processing for gold recovery.
Terra Project, Alaska
High-Grade Gold-Silver System with Near-Term Production Potential
The Terra Project covers 130 square kilometres in the McGrath Mining District of Western Alaska, located approximately 200 kilometres west-northwest of Anchorage, Alaska. The project is a joint venture with Terra Mining Corporation whereby Terra has the right to earn an initial 51% interest in the property by incurring US$6 million of exploration expenditures to December 31, 2013.
The project targets high-grade epithermal quartz vein mineralization and hosts a current NI 43-101 compliant estimated inferred resource of 428,000 tonnes at a grade of 12.2 g/t gold (168,000 contained gold ounces) and 23.1 g/t silver (318,000 contained silver ounces), at a cutoff grade of 5.0 g/t gold, at the Ben Vein, one of several known veins on the property. Terra Mining has indicated to the Company that, due to the high gold grade, vein continuity, simple gravity gold recovery and excellent exploration potential of the Ben Vein, it plans to bring the vein into production through underground development.
In 2011, Terra Mining has indicated that it plans a program to consist of confirmation drilling, underground access and bulk sampling on the property. In addition to the Ben Vein, previous drilling by AngloGold Ashanti (USA) Exploration Inc. in 2005 and International Tower Hill Mines Ltd. in 2007 has identified additional high-grade mineralization over a strike length of 5 kilometres from the Fish Creek area in the north to the Ice area in the south (Figure 2: http://media3.marketwire.com/docs/korfig2.pdf; Table 2).
Table 1: Significant intercepts from drilling at the Fish Creek and Ice area
of the Terra Prospect.
(Intercepts based on 0.5g/t gold cutoff and a maximum of 2 metres of
internal waste.)
From Width Gold Grade
Hole ID (metres) To (metres) (metres) (g/t) Area
----------------------------------------------------------------------------
TR-05-07 61.4 61.7 0.3 128.5 Fish Creek
86.7 87.6 0.9 4.1
105.6 106.0 0.4 17.0
120.5 121.3 0.8 11.2
148.7 149.7 0.9 6.9
162.3 163.2 0.9 17.5
----------------------------------------------------------------------------
TR-05-08 34.3 34.8 0.5 74.1 Fish Creek
65.1 66.1 1.1 1.0
86.6 87.2 0.6 2.4
96.0 99.4 3.4 13.1
TR-05-08 103.8 104.2 0.4 37.7
114.3 115.5 1.2 7.8
118.6 119.3 0.7 8.4
----------------------------------------------------------------------------
TR-07-29 23.3 24.0 0.7 6.8 Ice
132.8 135.2 2.4 9.5
----------------------------------------------------------------------------
TR-07-30 4.0 4.5 0.5 4.5 Ice
8.5 8.9 0.4 9.5
10.7 15.7 5.1 3.9
LMS Project, Alaska
High-Grade Gold and Silver System with Shallow Bulk Tonnage Potential
The LMS project covers 61 square kilometres located approximately 25 kilometres north of Delta Junction and 125 kilometres southeast of Fairbanks, Alaska. The project is located 40 kilometres to the northeast of the Pogo Gold Mine currently operated by Sumitomo Metal Mining Pogo LLC. An old Pogo winter road passes directly through the LMS project area, making it logistically simple to access. The project is a joint venture with First Star Resources Inc., whose Alaskan subsidiary has the right to earn an initial 55% interest by incurring US$3.5 million in exploration expenditures by December, 2013.
Mineralization at LMS consists of disseminated stratiform mineralization in siliceous breccia horizons together with bonanza veins that crosscut the breccias and host stratigraphy. The mineralization is locally silver-rich. During the summer of 2010, First Star drilled three holes which returned highly encouraging results, including 12 metres of 3 g/t gold and 3.5 metres of 12.5 g/t gold (see NR10-07). First Star has informed Corvus that it is planning an aggressive drilling program at LMS in 2011.
To view 'Figure 3: Geochemical map of the LMS property showing major anomalies defined to date', please visit: http://media3.marketwire.com/docs/korfig3.pdf.
Table 2: Drill results representing the range of grades and multiple zones
of mineralization that characterize LMS.
(Intercepts based on a 0.5g/t gold cutoff and a maximum of 2 metres of
internal waste.)
From Length
Hole ID (metres) To (metres) (metres) Gold (g/t)
---------------------------------------------------------------------------
LM-06-26(1) 225.9 227.1 1.2 7.5
269.8 272.2 2.4 4.9
282.2 286.2 4.0 11.8
includes 282.2 283.7 1.4 27.7
includes 285.6 286.2 0.6 10.0
306.0 306.8 0.8 7.0
380.3 380.9 0.6 22.3
---------------------------------------------------------------------------
LM-06-29(1) 156.0 161.2 5.2 10.1
includes 156.0 157.3 1.3 32.8
185.0 186.8 1.8 713.1
---------------------------------------------------------------------------
LM-10-39(2) 221.6 224.8 3.2 3.8
227.8 239.4 11.6 3.0
including 227.8 229.2 1.4 6.0
including 233.6 238.1 4.4 4.9
267.2 268.7 1.5 1.7
271.3 274.8 3.5 12.5
including 271.3 272.0 0.8 43.9
---------------------------------------------------------------------------
(1) Holes drilled by International Tower Hill Mines Ltd.
(2) Hole drilled by First Star Resources Inc.
Chisna Project, Alaska
Multiple Copper-Gold Porphyry Systems with High-Grade Gold Potential in Large New Belt
The Chisna Project covers 914 square kilometres in south-central Alaska. The project areas are located approximately 30 kilometres northeast of Paxson, to Slana on the Tok Cutoff Highway. The property contains numerous copper-gold targets and is a joint venture with Ocean Park Ventures Corp., whose Alaskan subsidiary has the right to earn an initial 51% interest in the project by incurring US$20 million of exploration expenditures on the project.
Exploration in 2010 has defined a number of new and exciting targets including high-grade gold-lead veins in the southern part of the Grubstake Prospect and a broad area of gold mineralization at Indian Pass (Figure 4: http://media3.marketwire.com/docs/korfig4.pdf). Indian Pass was discovered by stream sediment sampling, where a 12 kilometre long area of anomalous gold was outlined. Preliminary soil sampling has only covered half this strike length but has confirmed an area of highly anomalous gold over the full 6 kilometres sampled to date. In addition, drilling results from 2010 at Grubstake and POW encountered promising copper gold mineralization which will be followed up in 2011.
Ocean Park has advised Corvus that it is designing an exploration program, budgeted at US$2.3 million, for 2011, which will likely include a combination of drilling and new target definition.
West Pogo Project, Alaska
High-Grade Gold Vein System
The West Pogo Project covers 17 square kilometres located 50 kilometres north of Delta Junction, Alaska. The project is located less than 2 miles west of the Pogo Mine, with the mine road passing through the claim block. The project is also a joint venture between Corvus and First Star Resources Inc., whereby an Alaskan subsidiary of First Star has the ability earn an initial 55% interest by incurring US$3.5 million in exploration expenditures before December 31, 2013.
Gold mineralization consists of siliceous breccias with bonanza grades similar to those of the adjacent Pogo Mine. To date, soil geochemistry has outlined an anomalous zone over 500 metres long trending to the northeast.
First Star has informed Corvus that it is planning an aggressive drilling program at West Pogo in 2011.
Qualified Person and Quality Control/Quality Assurance
Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has reviewed 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.
The work program at North Bullfrog was designed and supervised by Russell Myers, President, and Mark Reischman, Nevada Exploration Manager, of Corvus 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. All 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 assay. 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. Quality control is further assured by the use of international and in-house standards. 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 resource exploration company focused in Alaska and Nevada which controls a number of exploration projects representing a spectrum from early stage to the advanced gold projects. Corvus is committed to building shareholder value through new discoveries and leveraging those discoveries via partner funded exploration into carried and or royalty interests that provide shareholders with significant exposure to gold production.
On behalf of Corvus Gold Inc.
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 the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for the expansion of the estimated resources at North Bullfrog or Terra, the potential for the operation of a central processing facility to treat North Bullfrog mineralization, the potential for any production at the Terra project, the potential commencement of any development of a mine at Terra following a production decision, business and financing plans and business trends, 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 latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Caution Regarding Adjacent or Similar Mineral Properties
This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the mining guidelines of the US Securities and Exchange Commission (the 'SEC') set forth in the SEC's Industry Guide 7 ('SEC Industry Guide 7') strictly prohibit information of this type in documents filed with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's 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.
Contacts:
Corvus Gold Inc.
Shirley Zhou
Manager - Corporate Communications
1-888-770-7488 (toll free) or (604) 638-3246
(604) 408-7499 (FAX)
szhou@corvusgold.com
www.corvusgold.com