Corvus Gold Announces Major Resource Expansion at North Bullfrog Project, Nevada 0.2 Million ounces Indicated in 15Mt at 0.37 g/t Gold1.4 Million ounces Inferred in 156Mt at 0.28 g/t Gold
0.2 Million ounces Indicated in 15Mt at 0.37 g/t Gold
1.4 Million ounces Inferred in 156Mt at 0.28 g/t Gold
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/03/11 -- Corvus Gold Inc. (TSX: KOR)(OTCQX: CORVF)(PINK SHEETS: CORVF) ('Corvus' or the 'Company') announces the results from its follow-up resource expansion program on its North Bullfrog project near Beatty, Nevada. The updated independent estimate has expanded the District wide Indicated gold resource to 182,000 contained ounces at an average grade of 0.37 g/t, plus an additional Inferred gold resource of 1,410,000 contained ounces at an average grade of 0.28 g/t, both at a cutoff grade of 0.20 g/t gold (see Table 1). This new, much larger resource reflects a major new discovery in the northern part of the Company's land area which is composed of three deposits separated by large undrilled areas. In addition, some of the resource areas contain higher grade resources as well as high-grade vein systems which could be targets for early mining (see Table 2). The Company has began acquiring the necessary information required for completion of a Preliminary Economic Assessment, as well as designing and permitting a major follow up grid drilling resource expansion program which will focus on both the bulk tonnage and high-grade vein potential of the area.
Table 1: North Bullfrog Estimated Indicated & Inferred Resource
(using a 0.20 g/t gold cut-off grade)(i)
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Grade
greater than Cutoff Contained
Tonnes greater ------------------- ----------------------
Resource than Cutoff Gold Silver Gold Silver
Category (tonnes) (g/t) (g/t) (Ozs) (Ozs)
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Indicated 15,230,000 0.37 0.44 182,577 215,187
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Inferred 155,630,000 0.28 0.84 1,410,096 4,212,532
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(i) Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, marketing,
or other relevant issues.
Jeff Pontius, CEO of Corvus, stated: 'We are extremely pleased with the very large expansion in the estimated resources at our North Bullfrog project and the potential that it indicates for further growth of this major new Nevada gold discovery. In addition to its increased size, the new resource is dominantly oxidized rock which has shown high gold recoveries in initial bottle roll tests. These early positive metallurgical results are currently being followed up with large diameter column tests which will help evaluate the potential for low cost Run of Mine, heap leach processing for gold extraction. The metallurgical results coupled with a geometry which may allow a very low strip ratio greatly enhance the project's development potential. The North Bullfrog project is truly emerging as a major catalyst for the future evolution of Corvus into a premier North American gold company.'
Bulk Tonnage Resource
The resource update is focused on 4 of several targets in the North Bullfrog District, all of which remain open with potential to grow significantly (Figure 1). The primary host unit for the majority of the resource is a thick, oxidized, shallowly dipping volcanic unit which is commonly exposed at surface, thereby offering the potential for very low strip ratio. The continuity of the mineralization within the primary host unit is considered to be very good, and there is a high probability that the resource will increase with future step-out and infill drilling around the current widely-spaced holes. In addition, the individually reported deposits are separated by undrilled areas which have projections of the favourable host unit between them, and which could therefore offer additional potential for resource expansion. Approximately 57% of the current estimated resource is oxide material occurring at surface, which has returned highly encouraging cyanide bottle roll test results suggesting potential for low cost heap leach recovery (Table 3). Ongoing metallurgical work is focusing on evaluating the potential of the bulk tonnage oxide deposits for heap leaching and, in particular, coarse 'run of mine' material. The North Bullfrog property has a large number of areas that the Company believes would be suitable for a large heap leach operation as well as ready access to key infrastructure and water.
To view Figure 1 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/kor103i.pdf
High-Grade Potential
Drilling at the North Bullfrog project has returned a number of high-grade drill intersections similar to the historic high-grade veins that were mined 7 kilometres to the south in the main Bullfrog district. Several high-grade gold and silver veins have been encountered in a number of areas, such as Yellowjacket (6.1m @ 11.9 g/t gold and 8.8 g/t silver), Mayflower (9.1m @ 7.18 g/t gold & 15.2m @ 2.87 g/t gold) and Connection (6.1m @ 2.67 g/t gold & 15.2m @ 2.44 g/t gold). As part of its follow-up grid drilling program, the Company will be targeting high-grade structural zones to evaluate this promising style of mineralization.
Table 2: Summary of Indicated and Inferred Resources at North Bullfrog by
Deposit
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Au Ag
Grade Grade
Tonnes (g/t) (g/t) Con- Con-
Au greater greater greater tained tained
Pros- Oxide Cutoff than than than Ounces Ounces
pect State Class (g/t) Cutoff Cutoff Cutoff Gold Silver
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Jolly Oxidized Indi- 0.2 10,090,000 0.29 0.49 94,000 159,000
Jane cated
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May- Oxidized Indi- 0.2 5,140,000 0.54 0.34 88,577 56,187
flower cated
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Total Indicated 0.2 15,230,000 0.37 0.44 182,577 215,187
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---------------------------------------------------------------------------
Au Ag
Grade Grade
Tonnes (g/t) (g/t) Con- Con-
Au greater greater greater tained tained
Pros- Oxide Cutoff than than than Ounces Ounces
pect State Class (g/t) Cutoff Cutoff Cutoff Gold Silver
---------------------------------------------------------------------------
Conne- Oxidized Inf- 0.2 550,000 0.49 9,000
ction erred
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Jolly Oxidized Inf- 0.2 15,900,000 0.25 0.38 129,000 194,000
Jane erred
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May- Oxidized Inf- 0.2 3,090,000 0.46 0.26 46,096 25,532
flower erred
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Sierra Oxidized Inf- 0.2 61,790,000 0.27 0.94 540,000 1,867,000
Blanca erred
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Sierra Un- Inf- 0.2 74,300,000 0.29 0.89 686,000 2,126,000
Blanca oxidized erred
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Total Inferred 0.2 155,630,000 0.28 0.84 1,410,096 4,212,532
Resource Estimate
The Company retained Mr. Gary Giroux, M.Sc., P.Eng., of Giroux Consultants Ltd., to prepare an updated mineral resource estimate for the North Bullfrog project. The updated mineral resource estimate for each area of North Bullfrog (see Table 2) is based on three dimensional geologic models developed by Corvus geologists using geology logs from the drill holes along with alteration and geochemical data. The grade distributions for gold and silver were evaluated using lognormal cumulative frequency plots for samples within both the mineralized solid and the surrounding waste. Drill holes were compared to the mineralized solids and the points each hole entered and left the solids were recorded. Uniform down hole composites, 5 /- 2.5 metres in length, were formed and made to honour the solid boundaries. Pairwise relative semivariograms were produced from composites within the mineralized solid for both gold and silver. For this resource estimate, the averages of the specific gravities for numerous samples were used to calculate the densities for the different geologic units in the models. A block model with blocks 10 x 10 x 5 metres in dimension was superimposed over the mineralized solids. At Mayflower the model was rotated 45 degrees to better fit the solid but other areas were not rotated. Grades for gold and silver were interpolated into all blocks, with some percentage within the mineralized solid, by ordinary Kriging.
Corvus will file the full NI 43-101 resource report on SEDAR by November 11th, 2011.
Table 3: Summary of 72 Hour Cyanide Bottle Roll Recovery Tests for North
Bullfrog Project
Gold 4 hour Total
Test ID Target Area (g/t) Oxidation Recovery Recovery
---------------------------------------------------------------------------
48436 B Sierra Blanca 0.51 Oxide 87% 94%
48436 C Sierra Blanca 0.45 Oxide 96% 93%
48434 B Sierra Blanca 0.29 Oxide 79% 90%
48433 C Sierra Blanca 0.47 Oxide 79% 77%
48433 A Sierra Blanca 0.71 Mostly Oxide 79% 87%
48433 D Sierra Blanca 0.37 Mostly Oxide 69% 70%
48434 D Sierra Blanca 0.35 Mixed Ox/Sulf 68% 72%
48433 B Sierra Blanca 0.36 Mixed Ox/Sulf 46% 47%
48436 A Sierra Blanca 0.35 Mixed Ox/Sulf 42% 40%
3165-6 Mayflower 1.10 Oxide 61% 90%
3165-5 Mayflower 1.70 Oxide 60% 83%
3165-4 Mayflower 0.60 Oxide 76%
3165-7 Mayflower 2.40 Oxide 56% 71%
3165-8 Mayflower 11.10 Mostly Oxide 41% 91%
3165-9 Mayflower 1.20 Mostly Oxide 33% 68%
48432 B Jolly Jane 0.55 Oxide 94% 95%
48432 A Jolly Jane 0.46 Oxide 93% 90%
48432 C Jolly Jane 0.37 Oxide 85% 89%
48432 D Jolly Jane 0.32 Oxide 87% 85%
48456 B Connection 4.23 Oxide 78% 91%
48456 A Connection 5.87 Mixed Ox/Sulf 32% 48%
The bottle roll tests were conducted on 75 micron material from oxidized and partially oxidized RC drill samples collected at various North Bullfrog prospects. The four hour recovery indicates the percentage of gold that went into solution in the first four hours. The total recovery indicates the total amount of gold that was dissolved in 72 hours.
About the North Bullfrog Project, Nevada
Corvus controls 100% of its North Bullfrog Project, which covers approximately 24 square kilometres in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick. The property package is made up of a number of private mineral leases of patented federal mining claims and 161 federal unpatented mining claims. The project has excellent infrastructure, being adjacent to a major highway and power corridor.
The project currently includes numerous prospective gold targets with four (Mayflower, Sierra Blanca, Jolly Jane and Connection) containing an NI 43-101 compliant estimated Indicated Resource of 15 Mt at an average grade of 0.37 g/t gold for 182,000 ounces of gold and an Inferred Resource of 156 Mt at 0.28 g/t gold for 1,410,000 ounces of gold (both at a 0.2 g/t cutoff), with appreciable silver credits. Mineralization occurs in two primary forms: (1) broad stratabound bulk-tonnage gold zones such as the Sierra Blanca and Jolly Jane systems; and (2) moderately thick zones of high-grade gold and silver mineralization hosted by structural zones with breccias and quartz-sulphide vein stockworks such as the Mayflower and Yellowjacket targets. The Company is actively pursuing both types of mineralization.
A video of the North Bullfrog project showing location, infrastructure access and 2010 winter drilling is available on the Company's website at http://www.corvusgold.com/investors/video/.
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 (other than the resource estimate) 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.
Mr. Gary Giroux, M.Sc., P.Eng. (B.C.), a consulting geological engineer employed by Giroux Consultants Ltd., has acted as the Qualified Person, as defined in NI 43-101, for the Giroux Consultants Ltd. mineral resource estimate. He has over 30 years of experience in all stages of mineral exploration, development and production. Mr. Giroux specializes in computer applications in ore reserve estimation, and has consulted both nationally and internationally in this field. He has authored many papers on geostatistics and ore reserve estimation and has practiced as a Geological Engineer since 1970 and provided geostatistical services to the industry since 1976. Both Mr. Giroux and Giroux Consultants Ltd. are 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. 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 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. 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 of early-stage to advanced gold projects. Corvus is committed to building shareholder value through new discoveries and leveraging those discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with 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 any mining or production at North Bullfrog, the potential for the identification of multiple deposits at North Bullfrog, the potential for a low-cost run-of-mine heap leach operation at North Bullfrog, the potential for there to be a low strip ratio in connection with any mine at North Bullfrog, the potential for the existence or location of additional high-grade veins, the proposed completion of a PEA for the North Bullfrog project, the potential for additional resources to be located between certain of the existing deposits, 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. 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.
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.
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.
Ryan Ko
Investor Relations
(604) 638-3246 or Toll Free: 1-888-770-7488
(604) 408-7499 (FAX)
info@corvusgold.com
www.corvusgold.com