Tuesday, 6 March 2012

Corvus Gold options West Pogo project to Alix Resources

Corvus Gold (TSE:KOR) said Monday it has optioned off its West Pogo project to Alix Resources Corp. (CVE:AIX).

The acreage consists of 96 Alaska State claims that cover 14 square kilometres just 50 km north of the Delta Junction. No mineral resources have been defined yet.

Alix can earn a 60 percent stake in the Alaskan project, if it spends $5 million in work expenditures, and pay $125,000 to Raven over five years.

Raven, Corvus Gold’s subsidiary, will keep a two to three percent net smelter return royalty on the project, with Alix able to buy one percent of the royalty for $1 million.

The junior miner Alix holds the adjoining ground to the north of West Pogo and said it intends to drill targets this year.

The target concept for the 2012 program is for low and high angle, high-grade gold vein systems akin to the West Pogo deposit five km east. 

Prior work at West Pogo has found two one kilometre zones of gold mineralization which produced grab samples up to 118.5 grams per tonne.

Corvus Gold’s chief executive, Jeff Pontius, said: "The West Pogo option agreement with Alix follows the Corvus strategy of partner funded exploration in its non-core assets while retaining an attractive royalty position."

Last week, the gold producer disclosed results from a phase one resource expansion drill program at the North Bullfrog project near Beatty, Nevada.

Corvus said seven of the nine holes drilled to test the expansion potential of the defined Sierra Blanca and Jolly Jane deposits have returned "encouraging results."

In the Sierra Blanca area, hole NB-12-118 intercepted 46 metres of 0.56 grams per tonne (g/t) gold, 250 metres north with a similar intercept 400 metres north in hole NB-12-119.

These holes, together with hole NB-12-117, drilled 400 metres to the west of Sierra Blanca, suggest a major resource expansion potential exists to the north and west of the current Sierra Blanca deposit with "markedly higher grades," the company said.

Notable intercepts were also returned from holes NB-12-124 and 125, which targeted the north-eastern extension of mineralization toward the Jolly Jane deposit.

Hole NB-12-124 returned 39.6 metres of 0.24 g/t gold and 0.50 g/t silver, including 13.7 metres of 0.50 g/t gold and 0.60 g/t
silver, while hole NB-12-125 hit 54.9 metres of 0.21 g/t gold and 0.64 g/t silver, including 13.7 metres of 0.38 g/t gold and 1.10 g/t silver.

Corvus Gold is a mineral explorer focused in Alaska and Nevada, and controls a number of exploration projects from early-stage to advanced stage.

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