VANCOUVER, Aug. 9, 2012 /PRNewswire via COMTEX/ -- Corvus Gold Inc. ("Corvus" or the "Company") -CA:KOR +5.15% (otcqx:CORVF) is pleased to announce that the Company's joint venture partner WestMountainWMTN -22.22% has indicated they will complete on-site installation of the bulk sample gold mill and will commence test production this summer. Under the Company's existing joint venture agreement, Corvus will receive 49% of the gold production plus a net smelter royalty (NSR) of 0.5% to 5% at no cost until WestMountain completes the required work commitments by the end of 2013.
The 2012 partner funded exploration and development program should significantly advance the Terra Project where the current inferred resource totals 168,000 ounces gold at an average grade of 12.2 g/t gold (Summary Report on the Terra Gold Project, McGrath District, Alaska, June 15, 2010). Planned work for the 2012 season as indicated by the Company's JV partner includes:
Complete installation of the bulk sample on-site gold mill and commence gold production
1,200 meters of core drilling to further extend the Ben Vein Gold structure
Gustavson & Associates to complete resource update and technical report expected in Q4 2012
Commence engineering work to support Scoping Study on an underground mining operation expected in Q2 2013
Initiate surface work program on the Camp Creek Midway porphyry target
Jeff Pontius, Corvus CEO, stated: "The potential to see initial gold production from the Terra Project is an exciting step for Corvus Gold in leveraging its non-core assets to support the development of our 100% wholly owned North Bullfrog, Nevada Project toward anticipated production. Corvus' Alaskan projects represent significant downstream growth potential for both major new gold discoveries and to augment our future anticipated production profile."
About the Terra Project
Terra Gold Corp. ("Terra Alaska"), a subsidiary of WestMountain, is Corvus' joint venture partner on the Terra project. Terra Alaska has the right to earn a 51% interest in the Terra Gold Project from Corvus by spending a total of USD 6.0M. Terra Alaska can further increase its ownership to 80% with an additional USD 3.05M investment bringing to a total of USD 9.05M capital investment over a four-year period until the end of 2013 with their 2012 work commitment being approximately USD 1M. Raven Gold is 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 a current NI 43-101 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. 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. Further information on the Terra Project can be found at http://www.corvusgold.com/projects/alaska/terra/ .
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.
August 9, 2012 (Source: Marketwatch)
Disclosure: Corvus Gold is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team are actively accumulating and may hold long positions in KOR.T or CORVF .