Corvus Announces Maiden Resource for Mother Lode DepositGlobeNewswire Highlights:
-- Total of 1.16Mozs of gold in the Measured and Indicated Mineral Resource categories, with 0.24Mozs gold in the Inferred Mineral Resource category. 83% of Mineral Resource is Measured and Indicated (M&I)
-- Total M&I Mill Mineral Resource of 733,000 ounces gold at avg. grade of 1.72 g/t gold in 13.2Mt & Inferred Mill Mineral Resource of 112,000 ounces gold at avg. grade of 1.6 g/t gold in 2.17Mt
-- Total M&I, oxide, Run of Mine, Heap Leach Mineral Resource of 427,000 ounces gold at avg. grade of 0.33 g/t gold in 40Mt & Inferred Mineral Resource of 129,000 ounces gold at avg. grade of 0.29 g/t gold in 14.1Mt
-- Pit constrained deposit has an overall strip ratio of 2.68-1
-- Ongoing exploration drilling continues to show potential to expand deposit to the west, north, east and at depth
Corvus Gold Inc. (TSX: KOR, OTCQX: CORVF) ("Corvus" or the "Company") announces the maiden Mineral Resource estimations incorporating all drill results from the Phase I & II drill programs at its 100% owned Mother Lode Project ("MLP"). This initial Mineral Resource remains open in several directions and Corvus is currently engaged in its Phase III drill program that is targeting Mineral Resource growth beyond this initial estimate. The Mineral Resources estimations (Measured, Indicated and Inferred) were based on economic constraints using Whittle software and assuming open pit mining and USD $1,250 per ounce gold price (Table 1). Figure 1 & 2 shows a plan view and a north-south long-section through the resource block model.
Table 2 illustrates the robustness of the current project at lower gold prices with a Mineral Resource estimate using a USD $1,000 per ounce gold price which still captures a measured and indicated Mineral Resource of over one million ounces.
Jeff Pontius, the Company's President & CEO states, "The Mother Lode Deposit has delivered a robust maiden Mineral Resource that exceeded our initial expectations and enlarges the overall Corvus Gold Nevada asset base. The grade and low strip ratio of this deposit makes it an excellent addition to the North Bullfrog project (NBP) and will add to the combined NBP & MLP initial PEA study expected next month. The Mother Lode deposit remains open and continues to grow with our ongoing Phase III drill campaign building toward the next multi-million-ounce Nevada discovery. Additionally, the critical mass provided by the Mother Lode deposit for a sulfide circuit opens the door for the large, high-grade sulfide potential at the North Bullfrog project which has yet to be explored."
Table 1
Mother Lode, Measured, Indicated, and Inferred Mineral Resource Estimations constrained by Whittle pit at a gold price of USD $1,250 per ounce
Resource Category Mill-Sulfide ROM Heap Leach Total @ 0.63 g/t COG @ 0.06 g/t COG Kt Au g/t Kozs Kt Au g/t Kozs Kt Au g/t Kozs Measured 3,292 1.41 149 20,035 0.29 185 23,327 0.45 334 Indicated 9,934 1.83 583 20,123 0.37 242 30,057 0.85 825 Total M & I 13,226 1.72 733 40,158 0.33 427 53,383 0.68 1,159 Inferred 2,168 1.60 112 14,073 0.29 129 16,241 0.46 241
-- See Cautionary Note to US Investors below
-- The Mineral Resources above are effective as of September 18, 2018
-- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
-- Silver resources have not been included in the initial Mother Lode estimate
-- There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources
Table 2
Sensitivity of Mother Lode, Measured, Indicated, and Inferred Mineralization Estimations constrained by Whittle pit at a gold price of USD $1,000 per ounce
Resource Category Mill-Sulfide ROM Heap Leach Total @ 0.78 g/t COG @ 0.07 g/t COG Kt Au g/t Kozs Kt Au g/t Kozs Kt Au g/t Kozs Measured 2,133 1.79 123 17,441 0.31 174 19,574 0.47 297 Indicated 8,650 1.96 545 14,702 0.45 213 23,352 1.01 758 Total M & I 10,783 1.93 668 32,143 0.37 387 42,926 0.76 1,054 Inferred 941 1.82 55 5,966 0.34 65 6,907 0.54 120
The Mineral Resource estimation is based on 267 drill holes with 8,296 gold composites. Geologic volumes were defined by geologic interpretations and used to define the estimation.
The resource was characterized by a high-grade core surrounded by lower grade mineralization. The high-grade core was estimated using Inverse Distance Squared. The surrounding mineralized portion of the deposit was estimated with Ordinary Kriging. To estimate the reasonable prospects of eventual economic extraction, Resource Development Associates Inc. confined the resources to mining volumes defined by Whittle analysis using the input parameters defined in Table 3. There are no known legal, political or environmental risks that could materially affect the potential development of the Mineral Resources.
Table 3
Whittle Input Parameters used for the MLP Mineral Resource Estimation (USD)
Parameter Unit MLP-Mill MLP-Heap Leach Mining Cost total tonne $1.40 $1.40 Au Cut-Off g/t 0.63 0.06 ProcessingCost process tonne $19.50 $1.20 Au Recovery % 80.0 74.0 Ag Recovery % 0.0 0.0 Admin Cost process tonne $0.50 $0.50 Refining & Sales $/Au oz $5.00 $5.00 Au Selling Price oz $1,250 $1,250 Slope Angle Degrees 60 60
-- assumes heap leach processing of disseminated oxidized mineralization
-- assumes Pressure Oxidation mill processing of MLP sulfide mineralization
-- Au Cut-Off - break-even grade derived from Whittle input parameters at USD $1,250 per ounce gold price
Figure 1 - Plan View of Mother Lode resource block model at 970 m elevation (UTm NAD27 Z11) is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/96c0f162-107f-46cd-a412-b2b8d5ad0603
Figure 2 - Long-section through Mother Lode resource block model at 531,055 m east, looking east (UTm NAD27 Z11) is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d121005a-7990-45dc-aca6-73e66a7436fe
New Resource Calculation
The Mineral Resource estimation is based on 189 validated historical drill holes combined with an additional 78 holes drilled by Corvus during the 2017 and 2018 drilling campaigns. Assays were composited to 8,296 5-meter composites. Gold assays were capped at 8 g/t Au prior to compositing. Mineralization is bimodal with a clear high-grade corridor. The high-grade corridor was constrained to control the impact of high grades on the Mineral Resource estimate.
This Mineral Resource has been estimated in accordance with the disclosure standards of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") using a gold price of USD $1,250 per ounce. Mineral Resources are pit constrained in order to demonstrate the reasonable prospects of eventual economic extraction. Mineralization has been classified according to NI 43-101 as Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources.
A technical report with respect to the Mineral Resource estimate disclosed herein will be filed within 45 days in accordance with NI 43-101.
About the Mother Lode Project, Nevada
Corvus controls 100% of its Mother Lode Project, which covers approximately 35 km(2) in southern Nevada. The property package is made up of 433 federal mining claims. The project has excellent infrastructure, being adjacent to a major highway, an electrical power corridor and water resources. In combination with the nearby North Bullfrog Project, the total Corvus Gold 100% land ownership now covers over 100 km, hosting two major new Nevada gold discoveries.
Qualified Person, Quality Control/Quality Assurance and Data Verification
Jeffrey A. Pontius (CPG 11044), a qualified person as defined by NI 43-101, has supervised the preparation of the scientific and technical information that form the basis for this news release and has reviewed and 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, (Nevada PE 008744 and Registered Member 353000 of SME), a qualified person as defined by NI 43-101, has coordinated execution of the work outlined in this news release and has reviewed and approved the disclosure herein. Mr. Brechtel is not independent of Corvus, as he is the COO and holds common shares and incentive stock options.
The work program at the MLP was designed and supervised by Mark Reischman, Corvus' Nevada Exploration Manager, who is 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 American Assay in Reno, Nevada, for preparation and assaying.
Assaying for the MLP holes has been performed American Assay Laboratories ("AAL") in Sparks, Nevada. Corvus has no business relationship with AAL beyond being a customer for analytical services. The Sparks laboratory is Standards Council of Canada, Ottawa, Ontario Accredited Laboratory No. 536 and conforms with requirements of CAN-P-1579, CAN-P-4E (ISO/IEC 17025:2005).
Check assaying has been performed by Bureau Veritas North America ("BV", formerly Inspectorate America Corporation), in Sparks, Nevada and Vancouver, Canada, and ALS Minerals Laboratories ("ALS Minerals"), in Sparks, Nevada. Corvus has no business relationship with BV or ALS Minerals beyond being a customer for analytical services. The BV laboratory is Accredited Laboratory No. 720 and conforms to requirements of CAN-P-1579, CAN-P-4E (ISO 9001:2008) and ALS is Accredited Laboratory No. 660 and conforms to requirements of CAN-P-1579, CAN-P-4E (ISO/IEC 17025:2005).
Mr. Scott E. Wilson, CPG (10965), Registered Member of SME (4025107) and President of Resource Development Associates Inc., is an independent consulting geologist specializing in Mineral Reserve and Resource calculation reporting, mining project analysis and due diligence evaluations. He is acting as the Qualified Person, as defined in NI 43-101, for the Mineral Resource estimate and has reviewed and approved the Mineral Resource estimate contained in this news release. Mr. Wilson has over 29 years of experience in surface mining, resource estimation and strategic mine planning. Mr. Wilson and Resource Development Associates Inc. are independent of the Company under NI 43-101.
Mr. Wilson, a qualified person, has verified the data underlying the information disclosed herein, including sampling, analytical and test data underlying the information by reviewing the reports of AAL, methodologies, results and all procedures undertaken for quality assurance and quality control in a manner consistent with industry practice, and all matters were consistent and accurate according to his professional judgement. There were no limitations on the verification process.
About Corvus Gold Inc.
Corvus Gold Inc. is a North American gold exploration and development company, focused on its near-term gold-silver mining projects at the Mother Lode property and the North Bullfrog property in Nevada. Corvus is committed to building shareholder value through new discoveries and the expansion of those discoveries to maximize share price leverage in a recovering gold and silver market.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chief Executive Officer