Corvus Gold Inc. announces that its LMS & West Pogo joint venture partner First Star Resources Inc. (“First Star”) –has not completed their full work commitment and pursuant to the earn-in agreement made on August 16, 2010 full and unencumbered ownership of the properties has been returned to Corvus Gold. During First Star’s operating periods on the properties, approximately $3.5 million of exploration and development work was completed which defined an important high-grade feeder structure in the LMS deposit and a high-grade gold vein target on the West Pogo project. Included in the completed work are pending assay results from the 2011 summer exploration drill program at the LMS project which Corvus expects to receive shortly.
LMS Gold Project
The LMS project is located 40 km’s South of the Pogo Gold Mine in the Goodpaster Mining District. As of the period ending September 30, 2011, First Star’s financials reported completion of $2,976,761 of work at the LMS project. Recent work on the project continues to confirm two basic styles of mineralization on the project: bulk tonnage gold within a thick, stratabound, shear hosted zone consisting of silicified graphitic quartzite breccia and high-grade quartz veins hosted within feeder structures. The 2011 winter drill program completed in early 2011 returned results of 21.2 metres of 5.8 g/t gold and 12.6 g/t silver and 5.2 metres of 21.4 g/t gold and 33.5 g/t silver from within the feeder zone target.
A 7 drill hole program totalling 2,332 metres was completed this summer and the results from these holes are expected shortly which will show the significant potential for expansion in the system. Highlights from the completed work include an extension of the main alteration and mineralization system in the favourable quartz breccia host zone along strike 500 metres to the west and an extension of the system to 700 metres down dip with the deposit remaining open in all directions. Further follow-up drilling is planned for the coming year with the goal to produce a 43-101 resource estimate.
West Pogo Gold Project
The West Pogo project is located approximately 5 km’s to the west of Sumitomo Metals Corp., Pogo Gold Mine which produces an average of 400,000 ounces of gold per year. Infrastructure at West Pogo includes an accessible mine road going through the property that leads to the Pogo Gold Mine. As of the period ending September 30, 2011, First Star’s financials reported completion of $526,640 of work at the West Pogo project. Completed work in 2011 at the project includes: 3D Induced Polarization (IP) Survey, geological mapping and surface sampling. This work has defined a kilometre long, high-grade, vein target with grades up to 118.5 g/t gold in quartz vein exposures. The Company is currently designing a discovery phase drill program for the project to begin next summer which will focus on the high-grade vein targets.
Qualified Person and Quality Control/Quality Assurance
The exploration work on the LMS & West Pogo properties was conducted by exploration contractor Pacific Rim Geological Consulting Inc. of Fairbanks, Alaska, under the supervision of Dr. Karsten Eden, Vice President - Exploration of First Star. All sample shipments are sealed and shipped to ALS Chemex in Fairbanks, Alaska, for preparation and then on to ALS Chemex in Reno, Nevada, or Vancouver, B.C., for assay. ALS Chemex’s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. First Star also had its own quality control/quality assurance programs in place. First Star advised that the technical information provided by First Star and contained in this news release was reviewed by Dr. Karsten Eden, a Qualified Person as defined in NI 43-101.
All of the foregoing information had been provided by First Star, which was the operator of the joint venture on the LMS & West Pogo Projects. Russell Myers (CPG 11433), a qualified person as defined by National Instrument 43-101, has reviewed but not independently verified the LMS information that forms the basis for this news release on behalf of Corvus and has approved the disclosure herein. Mr. Myers is not independent of the Company, as he is the President of Corvus and holds common shares and incentive stock options in Corvus.
About Corvus Gold Inc.
Corvus Gold Inc. is a resource exploration company focused in Alaska and Nevada which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects. Corvus is committed to building shareholder value through new discoveries and leveraging those discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with significant exposure to gold production.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chief Executive Officer
Contact Information: Ryan Ko – Investor Relations
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, business and financing plans and business trends, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, information with respect to First Star on the LMS & West Pogo properties had been provided by First Star (the operator of the LMS & West Pogo joint ventures) and, as such activities are not within the control of the Company, the Company takes no responsibility for the accuracy of such statements. 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 or any of its joint venture partners 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 or its joint venture partners may produce or plan to produce, the inability of the Company or any of its joint venture partners to obtain any necessary permits, consents or authorizations required for its or their activities, the inability of the Company or any of its joint venture partners to produce minerals from their properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement their respective 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.
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.
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