Corvus Gold Inc. [KOR-TSX; CORVF-OTCQX] shares rallied Tuesday December 12 after the junior released impressive assay results from its Mother Lode Project near Beatty, southern Nevada. The stock was up 11.4% or 17 cents to $1.57 in early trading. Corvus Gold’s flagship assets are the North Bullfrog and Mother Lode projects. Both are located 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 do 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 the latest results include the first few holes drilled to define the Northern extension of the Mother Lode deposit, and continue to confirm and expand this new, large sediment hosted gold system.
Highlighted assays include mineralized intervals that are calculated using a 0.5 g/t gold cutoff, with high-grade Mother Lode Structure using a 2 g/t gold cutoff.
Drill hole ML-17-011 returned 38.4 metres, grading 2.67 g/t gold and 13.7 metres at 1.48 g/t gold (including 13.7 metres at 5.7 g/t gold in high-grade Mother Lode Structure).
Hole ML17-013 was drilled to the north beyond the historic resource area and produced a thick, high grade intercept of 94.5 metres grading 1.2 g/t gold (including 30.5 metres grading 1.62 g/t gold in the Lower Zone).
“The latest results continue to expand the Mother Lode gold deposit with multiple thick 30-50 metre intervals of +2 g/t gold, with the expansion to the north beyond our original exploration target,’’ said Corvus President and CEO Jeff Pontius.
“The thick mineralization being intersected at the north end of the deposit is now outlining a second centre of intrusive activity with associated, broad high-grade mineralization, which has led to Corvus expanding its planned 2018 drill program,” he said.
Pontius went on to say that the expanded 2018 program is fully funded after the closing of a $5.2 million private placement financing with flexibility for further expansion. The new discovery, he said, is showing great continuity and growth potential and could develop into a major new gold deposit in its own right