Corvus Gold (TSE:KOR)(OTCQX:CORVF) unveiled Wednesday the latest results from diamond drilling in the Yellow Jacket Zone at the company's North Bullfrog project near Beatty, Nevada, opening up what it called "significant potential" for expanding the mineralization in the area.
The precious metals miner said that hole NB-12-138, which is outside
the current in-pit resource as reported in the preliminary economic
assessment in February, is the fifth core hole to be drilled in the
Yellow Jacket Zone that encountered high-grade gold mineralization.
This latest intersection returned three separate high-grade
intervals, with the best being 16.2 grams per tonne (g/t) gold and 1,218
g/t silver over 5.4 metres, including 2.1 metres of 33.0 g/t gold and
2,870 g/t silver within "quartz veined hydrothermal breccia", the
Corvus also said the high grade intervals found also have elevated
selenium and tellurium values - similar to those reported in the
silver-rich, gold mineralization found at the historic Bullfrog Mine,
which is roughly 10 kilometres to the south of the North Bullfrog
The results continue to show the continuity of the structurally
controlled, high-grade gold mineralization previously reported from this
area in March, the gold and silver miner said.
"The high-grade gold and silver mineralization encountered in
NB-12-138 continues to confirm our covered, feeder zone target concept,
opening up significant potential for expanding this very attractive zone
of mineralization," affirmed CEO Jeff Pontius.
"This style of high-grade mineralization has produced exceptional
deposits throughout Nevada and we are excited about further defining its
potential on the North Bullfrog project."
The Yellow Jacket target is in the northern part of the district, currently outside existing pit perimeters.
Five diamond drill holes along the Yellow Jacket structural corridor
have hit what the company calls "an extensive" structural zone with
multiple styles of gold mineralization, including both quartz veining
and pyrite replacement of iron-rich lithologies.
The company said that the style of quartz veining found in the latest
hole NB-12-138 is different from that found in the other holes, and
represents "a more dynamic and productive part" of the Yellow Jacket
feeder zone system.
This is because the new veins are associated with multi-stage
hydrothermal breccias, with the highest grades associated with visible
gold and acanthite, a high-grade silver mineral.
Prior to the latest intersection, most of the observed quartz veining
that hosted high-grade gold has been relatively uniform textured milky
grey quartz with pyrite, the company added.
"This current high-grade zone displays evidence of very active
boiling at depth and bodes well for discovery of more elevation
controlled high-grade mineralization at depth along this broad, +2
kilometre long structural target," Corvus said in a statement Wednesday.
The North Bullfrog project covers approximately 43 square kilometres
in southern Nevada just north of the historic Bullfrog gold mine
formerly operated by Barrick Gold (TSE:ABX).
The property package, which is adjacent to a major highway and power
corridor, is made up of a number of leased patented federal mining
claims and 461 federal unpatented mining claims.
The current drill program at North Bullfrog is focused on infill
drilling, and advancing metallurgical work as well as environmental
baseline characterization studies, with the aim of completing a
feasibility study by early 2013 on the Mayflower deposit.
In February, the company released a PEA on the property, which
produced an economic analysis for a conceptual, low capex, heap leach
project that generates average annual gold production of 57,700 ounces
over 12.8 years.
This indicated a pre-tax, pre-royalty net present value of $118.3
million and an internal rate of return of 28.8 percent at a $1,300 per
ounce gold price and a five percent discount rate.
The PEA also showed the project has a considerable leverage to gold
price, with a pre-tax, pre-royalty net present value of $338 million and
an internal rate of return of a whopping 70 percent at a $1,700 per
ounce gold price.
Total initial capital expenditure was estimated at $68.8 million with a 2.6-year payback period.
Bullfrog currently includes several prospective gold targets with four -
Mayflower, Sierra Blanca, Jolly Jane and Connection - containing an NI
43-101 compliant estimated indicated resource of 24 million tonnes at an
average grade of 0.29 grams per tonne (g/t) gold for 224,400 ounces of
These same four targets hold an additional inferred resource of 468
million tonnes at 0.19 g/t gold for 2.84 million ounces of gold (both
at a 0.1 g/t cut-off), with appreciable silver credits.
Last week, Corvus closed a $5.5 million non-brokered private
placement financing, providing the company with financing to rapidly
advance mine development of North Bullfrog, as well as to continually
explore the new high-grade Nevada gold discovery, it said.
The explorer sold 8.25 million common shares at a price of 67 cents,
with over 50 percent of the placement taken up by management and
insiders, with CEO Jeff Pontius purchasing one million shares - a major
show of confidence for the company.
In late March, the company reported initial results from the Yellow
Jacket higher grade feeder zone as part of a phase one feeder zone
exploration program. The Yellow Jacket target is one of several in the
North Bullfrog District that the company will be exploring this year.
These initial higher grade intervals were from holes about 400 metres
to the northeast of the proposed Sierra Blanca pit and resource, the
company noted at the time.
Highlights from the diamond drilling at Yellow Jacket in March
included 11.4 metres at 4.0 grams per tonne (g/t) of gold and 6.97 g/t
silver in hole NB-12-126 and 13.5 metres of 2.2 g/t gold in hole