Corvus Gold JV Partner Announces Initial 2012 Gold Production Results from Bulk Sample at the Terra Project, Alaska
23 ton, 5.5 opt gold and 10 opt silver, bulk sample yielded ~60% gravity gold recovery
TSX: KOR OTCQX: CORVF
VANCOUVER, Dec. 18, 2012 /PRNewswire/ - Corvus Gold Inc. ("Corvus" or the "Company") - (TSX: KOR, OTCQX: CORVF) announces that the Company's joint venture partner and operator of the Terra Project, WestMountain Gold, Inc. ("WestMountain") has provided metallurgical results from its initial production scale bulk sample test milling at Terra (Table 1). The results are from a 23 ton surface bulk sample of the Ben and Fish Creek veins (Figure 1). A total of 75.1 ounces of gold and 28.2 ounces of silver were produced using the onsite milling and gravity recovery system yielding recoveries of 60% for gold and 15% for silver (Figure 1).
These recovery numbers compare favourably to prior bench scale gravity recovery test work (the plant has yet to be optimized for silver recovery). Concentrates from the remaining 1.5 tons of bulk material will be processed before yearend and, when complete, all doré bars will be sent to Johnson Matthey refining in Salt Lake City, Utah for final reduction to saleable gold and silver. The joint venture agreement provides for Raven Gold Alaska Inc. (Corvus' subsidiary) to receive 52% of the gold production at no cost until WestMountain has earned into the project (revenue split based on a USD 1,700 gold price). WestMountain has indicated to Corvus it will focus on a larger bulk sample next summer, utilizing the full plant capacity, which is approximately 50 tonnes per day.
Table 1: WestMountain Analytical results from initial concentrate melt
|Doré Composite Sample||68.683% Gold||25.9% Silver|
Jeff Pontius, Corvus CEO, stated: "Corvus is extremely pleased with the gold production from the bulk sample at our Terra Project and we will seek to maximize this value and leverage for our shareholders while remaining focused on the development of our core, 100% wholly owned North Bullfrog, Nevada Project."
The gold concentrates from the Terra Project pilot mill are reported by WestMountain to be averaging 69% gold and 26% silver. In addition, WestMountain reports that approximately 95% of the gold and silver in the concentrate reported to the Doré bars. WestMountain has said these initially encouraging results will be used to improve the efficiency of the current onsite plant layout and in the design of the silver recovery circuit to be utilized next year.
About the Terra Project
Terra Gold Corp. ("Terra Alaska"), a subsidiary of WestMountain, is Raven Gold Alaska Inc.'s (Corvus' wholly owned Alaska subsidiary) ("Raven Gold") joint venture partner on the Terra project. Terra Alaska has the right to earn a 51% interest in the Terra Gold Project from Raven Gold by spending a total of USD 6.0M over a three-year period until the end of 2013, with Terra Alaska having the option to increase its ownership to 80% with an additional USD 3.05M investment in the 4th year of the agreement bringing the capital investment total to USD 9.05M. Terra Alaska's minimum 2013 work commitment is USD 2.5M. Raven Gold is also entitled to an NSR of between 0.5% and 5% on all precious metal production and a 1% NSR royalty on all base metal production.
The Terra Gold Project is a high-grade gold vein system with an Inferred resource of 428,000 tonnes at 12.2 g/t gold (using a cutoff grade of 5.0 g/t gold) for contained metal content of 168,000 ounces of gold (as at June 15, 2010). The project's primary focus is the Ben Vein, where 28 drill holes completed to date have returned 111 vein intersections of over 3 g/t gold. Initial metallurgical work has indicated a high recovery rate via gravity circuit, illustrating potential for near-term production. Given the high-grade nature of the gold veins, coupled with the favourable mining configuration and gravity recovery characteristics, the deposit may be amenable to near-term gold production.
Qualified Person and Quality Control/Quality Assurance
WestMountain has advised the Company that all exploration work on the Terra property has been carried out under their direct control and supervision. All sample shipments are sent to ALS Chemex in Anchorage, 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 requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. WestMountain has its own quality assurance/quality control programs in place. WestMountain has advised that the technical information provided by WestMountain and contained in this news release was reviewed by Greg Schifrin, CEO, a Qualified Person as defined in NI 43-101.
All of the foregoing information has been provided by WestMountain, the parent company of the operator, Terra Gold. Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has reviewed, but not independently verified, the WestMountain information that forms the basis for this news release and has approved the disclosure herein. Mr. Pontius is not independent of the Company, as he is the CEO and holds common shares and incentive stock options in Corvus.
About Corvus Gold Inc.
Corvus Gold Inc. is a North American focused gold exploration and development company with projects in Nevada, Alaska and Quebec. The Company's projects represent a spectrum of early-stage to advanced exploration and development gold opportunities. Corvus is committed to building shareholder value through a rapidly advancing gold project in Nevada and new growth discoveries on its other assets. The Company looks to advance its earlier and more risky discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with exposure to low financial risk potential gold production.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chairman and Chief Executive Officer
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 the identification of additional mineralization at Terra, the potential for any mining or production at Terra (where near-term or otherwise), the potential to optimize recoveries at Terra and to increase the recovery of silver or gold from Terra mineralization; the potential for the existence or location of additional high-grade veins at Terra, the potential for WestMountain to obtain a larger bulk sample in the summer of 2013, or at all, the potential for any additional recovery of gold or silver from future bulk samples at Terra, the potential for WestMountain to be able to utilize the full plant capacity of approximately 50 tonnes per day, 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 also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered 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. In addition, information with respect to the proposed activities of Terra Alaska and/or WestMountain on the Terra property, have been provided by WestMountain, who is the operator of the Terra Project 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 be able to raise the funds required to carry out its presently planned business activities; 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 Annual Information Form 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.
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.
SOURCE Corvus Gold Inc.
Image with caption: "Figure 1. Part of the gold/silver bars poured from the 2012 Terra bulk sample (CNW Group/Corvus Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20121218_C9884_PHOTO_EN_22032.jpg