Corvus Gold Options its West Pogo Project in Alaska
Vancouver, B.C……..Corvus Gold Inc. (“Corvus” or the “Company”) - (TSX: KOR, OTCQX: CORVF) announces that its subsidiary, Raven Gold Alaska Inc. (“Raven”), has granted to Alix Resources Corp. (“Alix”) the right to earn an interest in the West Pogo (WP) project in Alaska. In order to earn a 60% interest in the project, Alix is required to incur USD 5M in work expenditures on the project, and pay USD 125,000 to Raven, all over 5 years. Raven will retain a 2 - 3% Net Smelter Return (NSR) royalty on the project, with Alix having the right to purchase 1% of the royalty for USD 1M. Alix holds the adjoining ground to the north of WP and has advised that it will be drilling targets on their ground as well as the Raven block this year. The target concept for the 2012 program is for low and high angle, high-grade gold vein systems similar to the Pogo deposit 5 kilometres to the east. Previous work at WP has identified two +1 km zones of gold mineralization which produced grab samples up to 118.5g/t gold.
Jeff Pontius, Corvus’ CEO, stated: “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. Corvus is keenly interested in having Alix apply their knowledge gained on recently completed work north of WP to define and drill targets on the Corvus ground in this win-win partnership.”
Key terms of the Raven/Alix West Pogo earn-in agreement are summarized below:
Option for Alix to earn 60% of the 24km2 State of Alaska land package
USD 5M work commitment earn-in over 5 years with year one being USD 250,000
Annual payments of USD 25,000 to Raven during the earn-in period
Raven reserves a sliding scale 2-3% NSR royalty with a USD $1,500/oz gold break point with Alix having the right to purchase 1% of the NSR at a cost of USD $1M
- Alix has the right to purchase Raven’s interest in project by converting each 10% of interest into an additional 1% NSR
West Pogo Gold Project
The West Pogo project is located approximately 5 km west of Sumitomo Metals Corp.’s Pogo Gold Mine. The Pogo Mine road and power line pass through the West Pogo claim block, thereby providing easy access to the property. At West Pogo there is the potential to discover high-grade gold mineralization in both steeply and shallowly dipping structural zones. Surface mapping and sampling in 2011 identified two more than 1 kilometre long East-West trending zones of alteration and mineralization on the property. Mineralization is associated with zones of sericite-dolomite alteration in the host quartz monzonite and with silica-flooded breccias which have produced grab samples with up to 118.5g/t gold. One N-S oriented hole drilled in 2003 encountered broad zones of gold mineralization in altered quartz monzonites but did not intersect the breccia-style mineralization. In 2011 a 3D induced polarization survey covering 5km2 over the main alteration zones highlighted a series of NW-trending cross structures which may be the control on the high-grade mineralization and explain why the original drilling missed the intended target. Exploration at West Pogo has always been hampered by the distribution of talus cover, however, systematic work has revealed a large mineralizing system of good lateral continuity that is ready for drill testing.
Qualified Person and Quality Control/Quality Assurance
The 2011 exploration work on the West Pogo properties was conducted by exploration contractor Pacific Rim Geological Consulting Inc. of Fairbanks, Alaska, and John Maddry, of Rutherford, North Carolina, under the supervision of Dr. Karsten Eden, Vice President - Exploration of First Star Resources Inc. (the then operator of the property) All sample shipments were sealed and shipped to ALS Chemex in Fairbanks, 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 the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. First Star also advised that it had its own quality control/quality assurance programs in place.
Russell Myers (CPG 11433), a qualified person as defined by National Instrument 43-101, has reviewed and independently verified the quality of the 2011 assay data and reviewed and interpreted the 2011 geophysical survey results. He has reviewed, but not independently verified, the geological report prepared by John Maddry. On the basis of this review Mr. Myers has approved the disclosure of the technical information in this news release on behalf of Corvus. Mr. Myers is not independent of the Company, as he is the President of Corvus and holds common shares and incentive stock options in Corvus.
About Corvus Gold Inc.
Corvus Gold Inc. is a resource exploration company focused in Nevada, Alaska and Canada which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects. Corvus is committed to building shareholder value through new discoveries and leveraging those discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with significant exposure to gold production.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chief Executive Officer