Corvus Gold Inc. (“Corvus” or the “Company”) - (TSX: KOR, OTCQX: CORVF) announces the results of its phase I resource expansion drilling program at the Company’s 100% controlled North Bullfrog Project near Beatty, Nevada. Seven of the nine holes drilled to assess the resource expansion potential of the currently defined Sierra Blanca and Jolly Jane deposits have returned encouraging results (Figure 1). In the Sierra Blanca area, hole NB-12-118 intercepted 46 metres of 0.56 g/t gold, 250 metres north with a similar intercept 400 metres north in hole NB-12-119 (Table 1). These holes, in conjunction with hole NB-12-117 (NR12-06, February 13, 2012) drilled 400 metres to the west of Sierra Blanca, suggest significant resource expansion potential exists to the north and west of the current Sierra Blanca deposit with markedly higher grades. Additionally, significant intercepts were returned from holes NB-12-124 and 125 which targeted the north-eastern extension of mineralization toward the Jolly Jane deposit. The results from the 2012 phase I exploration step-out drill program have not been incorporated in the just announced initial preliminary economic assessment of the North Bullfrog Project (NR12-07, February 28, 2012).
At the Jolly Jane target, two holes were drilled: one hole 200 metres and another 400 meters to the north returned broad intercepts including hole NB-12-123, a 400 metre step out, which returned 138.7 meters of 0.27 g/t gold including 32 metres of 0.50 g/t gold. The intensity of the alteration and mineralization in this northern-most hole suggests the system is expanding in size and grade in this direction.
Jeff Pontius, Corvus CEO, stated: “The thick and higher grade intersections returned in this initial step-out drilling are encouraging for Corvus and strongly support our goal of doubling the existing estimated resource by year end. On the heels of our PEA released yesterday these results bode well for an enhanced project size and potentially improved financial performance in the future. It is exciting that some of our best holes have been drilled to the north and west of the existing deposits, under large expanses of shallow cover which could contain significant new deposit potential. We are also looking forward to results from our diamond core drilling program into the high-grade Yellowjacket feeder system that could hold significant potential. The Company is focused on rapidly advancing the project down the path to a potential production decision.”
Table 1: Significant Drill Intercepts, North Bullfrog Project*
*Intercepts calculated using 0.1g/t cutoff with a maximum of 3 metres of internal dilution. Reported drill intercepts are not true widths. At this time, there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.
The main focus of the Reverse Circulation drill program has been to assess the overall resource footprint size to better design a +30,000 metre - 300 hole, phase 2 drill program which is currently being permitted and scheduled to begin later in 2012. The results at Jolly Jane and Sierra Blanca indicate that the resource footprint is considerably larger than previously defined and further step out and infill drilling will be a priority in phase II. The two holes drilled on southern step-outs in Sierra Blanca along the Savage Valley (holes NB-12-120 and 121) found the favourable host unit (Crater Flat Tuff) cut out by a late intrusive and only anomalous gold was returned. Additional work will be required to assess if the mineralization continues to the south beyond the Company’s existing drill pattern.
The phase I diamond drilling program is progressing well, with three holes completed into the Yellowjacket feeder system to date and at least 2 more planned. The Yellowjacket target is in the northern part of the district and has returned encouraging results in earlier drilling (11.9 g/t gold over 6.1 metres, NR11-03, February 1, 2011). Oriented core is being drilled to better understand the trend of this important high-grade target. The Company expects initial results from this drilling in the next few weeks. In addition, large diameter core will be drilled in the key deposits so additional metallurgical testing can be conducted for use in a project development decision planned for later this year.
Corvus has increased its overall land holding at the North Bullfrog Project to 43 km² by staking 297 federal unpatented mining claims. The new staking covers potential extensions of the North Bullfrog gold system as well as ground that may be needed for any potential future mining operations.
About the North Bullfrog Project, Nevada
Corvus controls 100% of its North Bullfrog Project, which covers approximately 43 km² in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick Gold Corporation. The property package is made up of a number of leased patented federal mining claims and 461 federal unpatented mining claims. The project has excellent infrastructure, being adjacent to a major highway and power corridor. A Preliminary Economic Assessment on the existing resource (as at October 1, 2011) was announced in February 2012.
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 182,577 ounces of gold and an Inferred Resource of 156 Mt at 0.28 g/t gold for 1,410,096 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 in structural feeder 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/.
Figure 1: Corvus land position at North Bullfrog showing significant areas of mineralization. Collar locations for the winter drilling program are shown in red. All 2012 holes were vertical with the exception of NB-12-125 which has an azimuth of 270 and inclination of 52 degrees.
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. 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 replicate 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 resource exploration company, focused in Nevada, Alaska and Quebec, which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects. Corvus is focused on advancing its 100% owned Nevada, North Bullfrog project towards a potential development decision and continuing to explore for new major gold discoveries. Corvus is committed to building shareholder value through new discoveries and leveraging noncore assets 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.
(signed) Jeffrey A. Pontius Jeffrey A. Pontius, Chairman and Chief Executive Officer
Contact Information: Ryan Ko Investor Relations Email: email@example.com Phone: 1-888-770-7488 (toll free) or (604) 638-3246 / Fax: (604) 408-7499
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 potential for additional resources to be located between certain of the existing deposits, the potential for a production decision to be made, the potential commencement of any development of a mine at North Bullfrog following a production decision, 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. Information concerning mineral resource estimates and the preliminary economic analysis thereof also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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, significant increases in the cost of any materials and supplies required by the Company, 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.