VANCOUVER, Dec. 18, 2012 /PRNewswire/ - Corvus Gold Inc. ("Corvus" or the "Company") - (TSX: KOR, OTCQX: CORVF) announces that the Company's joint venture partner and operator of the Terra Project, WestMountain Gold, Inc. ("WestMountain") has provided metallurgical results from its initial production scale bulk sample test milling at Terra (Table 1). The results are from a 23 ton surface bulk sample of the Ben and Fish Creek veins (Figure 1). A total of 75.1 ounces of gold and 28.2 ounces of silver were produced using the onsite milling and gravity recovery system yielding recoveries of 60% for gold and 15% for silver (Figure 1).
These recovery numbers compare favourably to prior bench scale gravity recovery test work (the plant has yet to be optimized for silver recovery). Concentrates from the remaining 1.5 tons of bulk material will be processed before yearend and, when complete, all doré bars will be sent to Johnson Matthey refining in Salt Lake City, Utah for final reduction to saleable gold and silver. The joint venture agreement provides for Raven Gold Alaska Inc. (Corvus' subsidiary) to receive 52% of the gold production at no cost until WestMountain has earned into the project (revenue split based on a USD 1,700 gold price). WestMountain has indicated to Corvus it will focus on a larger bulk sample next summer, utilizing the full plant capacity, which is approximately 50 tonnes per day.
About the Terra Project
Terra Gold Corp. ("Terra Alaska"), a subsidiary of WestMountain, is Raven Gold Alaska Inc.'s (Corvus' wholly owned Alaska subsidiary) ("Raven Gold") joint venture partner on the Terra project. Terra Alaska has the right to earn a 51% interest in the Terra Gold Project from Raven Gold by spending a total of USD 6.0M over a three-year period until the end of 2013, with Terra Alaska having the option to increase its ownership to 80% with an additional USD 3.05M investment in the 4th year of the agreement bringing the capital investment total to USD 9.05M. Terra Alaska's minimum 2013 work commitment is USD 2.5M. Raven Gold is also 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 an 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 of gold (as at June 15, 2010). 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.
About Corvus Gold Inc.
Corvus Gold Inc. is a North American focused gold exploration and development company with projects in Nevada, Alaska and Quebec. The Company's projects represent a spectrum of early-stage to advanced exploration and development gold opportunities. Corvus is committed to building shareholder value through a rapidly advancing gold project in Nevada and new growth discoveries on its other assets. The Company looks to advance its earlier and more risky discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with exposure to low financial risk potential gold production.
SOURCE Corvus Gold Inc.