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 websitewww.corvusgold.com.