Corvus Gold Begins Phase 2 Mine Development Drill Program and Retains Mine Design Firm for North Bullfrog Project, Nevada
July 17, 2012 10:47 PM EST
Corvus Gold Inc. (“Corvus” or the “Company”) - (TSX: KOR, OTCQX: CORVF) is pleased to announce the start of the Phase 2 mine development activities on the Mayflower deposit at the southern end of the Company’s 100% controlled North Bullfrog Project, Nevada. The phase 2 program at the Mayflower deposit includes: 1) grid pattern drilling to complete the conversion of inferred to indicated resources and 2) developing both engineering and baseline characterization data to support design of a surface mining operation with a heap leach recovery process. An updated resource summary and preliminary economic assessment (PEA) is expected in Q4. Subsequently, the completion of a feasibility study on the Mayflower deposit is scheduled for early 2013.
The Mayflower 2012 phase 2 drill program is scheduled for approximately 5,000 meters and 37 holes. Road and drill pad construction started on July 11th, and the first of the two drills have begun drilling today. The program will include reverse circular (RC) drilling for resource definition and conversion, RC drilling for water monitoring and facilities condemnation, and PQ core drilling to generate mine geotechnical data and metallurgical samples. Phase 2 drilling to the North of the Mayflower deposit where recent exploration success outlined a potential high-grade feeder zone (NR 12-14, May 23, 2012) as well as resource expansion potential (NR 12-08, Feb. 29, 2012), is scheduled for late Q3 2012, subject to drill permit issuance.
Corvus has retained the services of Interralogic Inc. as the lead mine design engineering firm for the development of the Mayflower deposit at the North Bullfrog project. Interralogic’s previous work includes the recent design of the Gold Hill Project near Round Mountain, Nevada.
Carl Brechtel, COO of Corvus, stated: “Interralogic’s extensive success and experience in mine design and recovery optimization from projects throughout the world and in Nevada make them an excellent choice to undertake the Mayflower design. Corvus is highly encouraged with recent results and we look to continue to add the key elements necessary in order to achieve our accelerated gold production plan at North Bullfrog.”
Drill collar locations are shown for reference.
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.
Carl E. Brechtel, PE, a qualified person as defined by National Instrument 43-101, is responsible for planning and execution of the technical and engineering studies at North Bullfrog, and has prepared this news release. He approves the disclosure herein. He has over 30 years of experience in the mining industry, is a registered professional engineer in the States of Colorado and Nevada, and is a Registered Member of SME. Mr. Brechtel is not independent of Corvus, as he is the COO 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.
Mr. William J. Pennstrom, Jr., a consulting process engineer and President of Pennstrom Consulting Inc. has acted as the Qualified Person, as defined by NI 43-101, for evaluation of the metallurgical testing data. He has over 30 years of experience in mineral process design and operation, and has been an independent process and metallurgical consultant for the mining industry for the last nine (10) years. He is a Registered Member of the Society of Mining, Metallurgy and Exploration (SME Member No. 2503900). Mr. Pennstrom and Pennstrom Consulting Inc. are both independent of the Company under NI 43-101 definitions.
The work program at North Bullfrog was designed and supervised by Russell Myers (CPG 11433), President of Corvus, a Qualified Person defined by NI 43-101, by 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 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 re plicate samples. Finally, representative blind duplicate samples are forwarded to ALS Chemex and an ISO compliant third party laboratory for additional quality control. McClelland Laboratories Inc. prepared composites from duplicated RC sample splits collected during drilling. Bulk samples were sealed on site and delivered to McClelland Laboratories Inc. by ALS Chemex or Corvus personnel. All metallurgical testing reported here was conducted or managed by McClelland Laboratories Inc.
About Corvus Gold Inc.
Corvus Gold Inc. is a North American focused gold exploration and development company with projects in Nevada, Alaska and Quebec. The Company’s projects represent a spectrum of early-stage to advanced exploration and development gold opportunities. Corvus is committed to building shareholder value through a rapidly advancing gold project in Nevada and new growth discoveries on its other assets. The Company looks to advance its earlier and more risky discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with exposure to low financial risk potential gold production.
On behalf of Corvus Gold Inc.
(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chairman and Chief Executive Officer
Contact Information: Ryan Ko
Phone: 1-888-770-7488 (toll free) or (604) 638-3246 / Fax: (604) 408-7499
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