Corvus Gold Announces Commencement of 2011 Drill Program at the Terra Project, Alaska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/12/11 -- Corvus Gold Inc. ('Corvus' or the 'Company') (TSX: KOR)(OTCQX: CORVF) announces the commencement of a 2011 drill program at its Terra Gold Project in western Alaska. The Company has been informed by its joint venture partner, WestMountain Index Advisor, Inc. ('WestMountain'), that drilling is now underway targeting the north extension of the high-grade Ben Vein system previously drilled by International Tower Hill Mines Ltd. ('ITH') in 2006 and 2007. In conjunction with the drill program, which is aimed at growing the current Terra gold resource, WestMountain has commenced bulk sampling of the Ben Vein which includes the construction of a pilot mill for the possibility of near-term, small-scale gold production.
In addition to the north extension of the Ben Vein system, WestMountain has advised that the 2011 drill program will target deeper extensions of the vein system discovered by ITH during 2006 and 2007 drilling. During the 2007 drill program, ITH drilled 12 holes to define the continuity of high-grade mineralization at the Ben Vein, one of several vein systems identified at the Terra Project. All 12 drill holes intersected the main Ben Vein as planned, including 0.6 metres of 43.20 g/t gold at 323 metres depth (drill hole 7-20) and 1.99 metres of 13.9 g/t gold at 324.61 metres depth (drill hole 6-16). WestMountain's drilling program will follow up on this previous work, which has demonstrated the Ben Vein System as being open along strike and at depth, with a minimum strike length of 400 metres and a depth of at least 350 metres. The mineralized vein has been found to vary in true width (at 3.0 g/t cut-off grade) from 0.2 to 3 metres with the high-grade zone averaging 1.3 metre in thickness at a grade of 23 g/t gold.
WestMountain's 2011 drilling program is focused on growing the gold resource at the Terra Project, which currently hosts an NI 43-101 compliant estimated inferred resource of 428,000 tonnes at 12.2 g/t gold for 168,000 ounces contained gold and 23.1 g/t silver for 318,000 ounces contained silver, at a cut-off grade of 5.0 g/t gold, in a vein system which remains open.
WestMountain has advised the Company that they have contracted CoreOne Drilling to provide drilling services for a 3,050-metre HQ drill program on the Terra Gold property. WestMountain has also contracted with Pollux Aviation Ltd. to provide personnel and cargo transportation services related to start-up and ongoing operations of the Terra Gold project.
About the Terra Project
The Terra Gold Project consists of 295 State of Alaska unpatented lode mining claims covering approximately 205 km2 in the McGrath Mining District of Western Alaska. The property is centered on an 8-km-long trend of high-grade vein occurrences which have returned numerous surface rock samples and drill intersection in excess of 50 g/t gold.
In a Joint Venture Agreement dated effective September 15, 2010, Raven Gold Alaska Inc., the wholly owned Alaska subsidiary of Corvus, optioned the project to Terra Gold Corporation ('TGC'), a wholly owned Alaska subsidiary of WestMountain (formerly Terra Mining Corporation) whereby WestMountain, through TGC, has the right to earn an initial 51% interest in the property by incurring total exploration expenditures of US$6 million over 3 years to December 31, 2013. An initial US$1 million is required to be spent prior to December 31, 2011. After earning its initial 51%, WestMountain can further increase its ownership by 29% (to 80% total) by funding an additional US$3.5 million in development work. In addition, Raven Gold is entitled to an NSR royalty of between 0.5% and 5% on all precious metal production and a 1% NSR royalty on all base metal production (See NR10-04).
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 possibility of any increase in the current estimated mineral resource at the Terra Project, the possibility for any production from the Terra Project, 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. In addition, information with respect to the proposed activities of WestMountain on the Terra property has been provided by WestMountain (the operator of the Terra joint venture) and, as such activities are not within the control of the Company, the Company takes no responsibility for the accuracy of such statements. 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 or any of its joint venture partners 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 or its joint venture partners may produce or plan to produce, the inability of the Company or any of its joint venture partners to obtain any necessary permits, consents or authorizations required for its or their activities, the inability of the Company or any of its joint venture partners to produce minerals from their properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement their respective 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.
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