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Corvus Gold Inc. (“Corvus” or the “Company”) - (TSX: KOR, OTCQX: CORVF) is pleased to announce that it has signed an agreement with Les Resources Tectonic Inc. (LRT) to acquire a majority interest in the Gerfaut Property in Northern Quebec. The property is located in Northern Quebec along a major shear zone which has focused gold mineralization within favourable host units. The mineralizing environment at Gerfaut has similarities to more classic Abitibi type gold systems and represents what could be an emerging new gold terrain in eastern Canada. In 1996 – when gold prices averaged $387/oz - two holes were drilled on the property by Falconbridge during their large scale nickel exploration program. Both holes encountered encouraging gold mineralization with the best intercept being 5.8 metres of 4.3 g/t gold (Table 1). Other parts of the mineralized trend contain attractive copper m ineralization up to 0.87% copper.
Jeff Pontius, CEO of Corvus Gold Inc. states: “The acquisition of the Gerfaut project in Quebec is a continuation of the Corvus strategy in which we focus our exploration efforts on quality, large scale, big ounce targets in which we can obtain a first mover position. In addition Quebec is one of the most favourable mining jurisdictions in the world and we are excited to be working there particularly in an area where the nickel mining industry has developed extensive infrastructure.”
Terms of Acquisition
Corvus Gold Inc. has signed a binding letter of intent with Les Resources Tectonic Inc. (LRT) which covers an area of approximately 21 km2, with a final agreement to follow. Key terms of the agreement are as follows:
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• Signing and additional claim staking payment: $10,000
• 5 year earn-in for 60% interest of $255,000 in payments and $565,000 in work commitments
• Corvus grants LRT a 2% Net Smelter Return (NSR) royalty which Corvus can buy back 1% for $1.5M
• Corvus has an option to earn an extra 20% interest by spending an additional $2M work commitment over 3 years
• Following earn-in and formation of the joint venture, should LRT dilute to a 10% ownership position their interest would be converted to a 3% Net Profit Interest (NPI)
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Table 1: Significant Intercepts* from historical Falconbridge drilling
on the Gerfaut Project
HoleID From (m) To (m) Interval (m) Gold (g/t)
R96-01 82.4 85.0 2.6 1.69
PAR96-01 102.9 104.9 2.0 3.87
PAR96-01 107.6 113.4 5.8 4.27
including 110.0 112.0 2.0 10.88
PAR96-02 7.9 8.4 0.5 1.05
PAR96-02 63.4 64.0 0.6 0.87
*Intercepts calculated using a 0.5g/t gold cut off and no more that 2 meters of internal waste.
Intercepts are approximate true widths.
Gerfaut Property Geology and History
The Gerfaut property is located in the Paleoproterozoic trans-Hudsonian orogen of northern Quebec (Figure 1). Gold mineralization occurs as both quartz veins and disseminated in meta volcanic and meta sedimentary rocks associated of the Parent Group. The deposit was discovered in 1995 by Falconbridge while prospecting for nickel in the region. Surface rock samples with anomalous gold were found over a strike length of 5.6 kilometres in sparse outcrops due to a thin veneer of glacial till cover. In 1996 Falconbridge drilled two holes totalling 320 metres. The first hole encountered mostly basaltic volcanics and encountered several zones of significant mineralization (Table 1).
Falconbridge optioned the property to Exploration Boréale Inc. in 1997. They conducted ground geophysical surveys and collected a number of mineralized rock samples over the property but did not do additional drilling and the core claims reverted to Les Resources Tectonic Inc.
Qualified Person and Quality Control/Quality Assurance
Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has reviewed the information that forms 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.
All of the foregoing information is based on data retrieved from Quebec government archives. Russell Myers (CPG 11433), a qualified person as defined by National Instrument 43-101, has reviewed but not independently verified the geological information contained this news release. Mr. Myers is not independent of the Company, as he is the President of Corvus Gold and holds common shares and incentive stock options in Corvus.
