Corvus Gold (TSE:KOR) (OTCQX:CORVF) said Thursday it has inked a deal to acquire a majority interest in the Gerfaut property in northern Quebec from Les Resources Tectonic Inc (LRT).
The property is located along a major shear zone that has focused gold mineralization within favourable host units, said Corvus.
The mineralizing environment at Gerfaut has similarities to more classic Abitibi type gold systems, added the company, and represents what could be "an emerging new gold terrain in eastern Canada".
In 1996, when gold prices were sharply lower and averaged around $387 an ounce, two holes were drilled at Gerfaut by Falconbridge, during a large-scale nickel exploration program.
Both holes encountered gold mineralization, with the best intercept returning 5.8 metres of 4.3 grams per tonne (g/t) of gold. Other notable results included 2.0 metres at 10.88 g/t gold.
Other parts of the mineralized trend contain attractive copper mineralization up to 0.87% copper, said Corvus.
CEO of Corvus, Jeff Pontius, said: "The acquisition of the Gerfaut project in Quebec is a continuation of the Corvus strategy in which we focus our exploration efforts on quality, large scale, big ounce targets in which we can obtain a first mover position.
"In addition Quebec is one of the most favourable mining jurisdictions in the world and we are excited to be working there particularly in an area where the nickel mining industry has developed extensive infrastructure."
Corvus has signed a binding letter of intent for the property, covering an area of roughly 21 square kilometres.
Under the terms of the deal, Corvus will initially pay a signing and additional claim staking payment of $10,000, and has a five-year earn-in for a 60 percent interest, in exchange for $255,000 in payments and $565,000 in work commitments.
Corvus has given LRT a two percent net smelter return royalty, of which Corvus can buy back one percent for $1.5 million.
Corvus also has an option to earn an extra 20 percent stake in the property, by spending another $2 million in work commitments over three years.
Following the earn-in period, and the formation of a joint venture, if LRT dilutes its stake to 10 percent, its interest will be converted to a three percent net profit interest, Corvus added.
Gold mineralization at the property occurs as both quartz veins and disseminated in meta volcanic and meta sedimentary rocks. The deposit was discovered in 1995 by Falconbridge, while prospecting for nickel in the region.
Falconbridge optioned the property to Exploration BorÃ©ale Inc. in 1997. This company conducted ground geophysical surveys and collected mineralized rock samples over the asset, but did not do additional drilling, and the core claims reverted to Les Resources Tectonic Inc.
Corvus Gold is a mineral explorer focused in Alaska and Nevada, and controls a number of exploration projects from early-stage to advanced stage.
Earlier this week, the company unveiled drill results from 2011 on its LMS property in Alaska, with results confirming at least 800 metres of down dip continuity on the Camp Breccia, a well-mineralized black breccia body that dips gently to the west from the 300 metre long surface outcrops.