Corvus Gold Inc. [KOR-TSX; CORVF-OTCQX] on Thursday April 5 said it has received the results from three step-out holes in the northwest quadrant of its Mother Lode Project in southern Nevada. Assay results returned encouraging intercepts showing continued expansion of the Mother Lode deposit, the company said in a press release.
It said the new drill holes continue to show an expanding gold system to the north and west with thicknesses and grades continuing to improve to the west, as highlighted in hole ML18-052. It intersected 53.3 metres at 1.90 g/t gold and 41.2 metres of 1.52 g/t gold.
The stock reacted to the news, rising 2.3% or cents to $2.40 in early afternoon trading on Thursday.
Corvus Gold’s flagship assets are the North Bullfrog and Mother Lode projects, both in Nevada.
Corvus acquired a 100% interest in the Mother Lode open pit project in June, 2017. It is comprised of 65 federal unpatented mining claims covering an area of approximately 5.2 km2. The project was previously mined in the late 1980s, and produced 34,000 ounces of gold, averaging 1.8 g/t gold via heap leach recovery methods. However, fluctuating gold prices forced the mine to close.
Back in September, 2017, the company launched a 13,000-metre Phase 1 drill program (utilizing three rigs). The aim was to focus on confirmation of an existing 172-hole database and establish priority exploration targets in four main zones of historic mineralization.
The primary objectives were as follows:
- Confirm and expand an existing resource of 433,000 ounces gold, grading 1.6 g/t, which does not meet NI 43-101 standards of compliance.
- Acquire representative material for metallurgical testing.
- Define key ore controls on the high grade mineralization in the system.
The company said Holes ML18-050 to 052 are located at the Northwest quadrant of the main Mother Lode target area. The multiple broad intercepts in hole ML18-052 confirm previous results for holes ML18-042, 044, and 045, which indicate that the Mother Lode gold system is strengthening and expanding to the west.
Two thick oxide intercepts (22.9 metres at 0.67 g/t gold, and 41.2 metres at 1.52 g/t gold) in this hole are now forming a sizeable zone to the west, believed to be extending the potential heap leach component of the deposit.
Eight additional step-out holes to the west are in the process of being completed to address this expanding area.
Results from holes ML18-051 and 052 demonstrate that the Fluorspar Canyon Fault Zone, which controls mineralization on the north end of the Mother Lode deposit, is nearly flat as drilling progresses north and remains open.
An approximate 200-metre step-out hole to the north east of hole ML18-051 is scheduled to be drilled shortly to further define the northern extent of the main system and to chase the projection of the new high-grade zone intersected in hole ML18-049. It returned 7.5 metres of 21.77 g/t gold.