Corvus Gold (TSX: KOR; US-OTC: CORVF) has announced a discovery at its Lynnda Strip target, 2.5 km north-northeast of its Mother Lode deposit in Nevada’s Greater Bullfrog gold district.
The company released assay results for hole CH20-011, which returned 197 metres of 0.44 gram gold per tonne, starting at 264 metres, and includes higher-grade intervals, such as 5 metres of 1.44 grams gold and 44 metres of 0.9 gram gold.
According to Corvus, the Lynnda Strip area features oxide gold mineralization underneath 150 metres of cover.
“The ongoing new discovery exploration work across the Bullfrog gold district continues to produce encouraging results, highlighting the potential of this re-emerging Nevada gold district,” Jeffrey Pontius, the company’s president and CEO, said in a news release.
“The initial results at the Lynnda Strip suggest that the system could be amenable to open pit mining and heap leach processing. Corvus is continuing with the evaluation of this exciting new discovery on its ground and the value that it can bring to our shareholders as well as continuing to pursue our other new discoveries across the district on our large, 130 sq. km, 100%-owned land package.”
Follow-up drilling is planned for the upper part of this new system.
The geophysical signature seen at Lynnda has also been traced 3 km to the west, at the Twisted Canyon target, where there is a coincident surface gold geochemical anomaly. Corvus has also developed two new gold targets – Hidden Valley and East Prospector – on its Snake claims, east of AngloGold Ashanti’s Silicon discovery.
Corvus Gold owns the adjoining Mother Lode and North Bullfrog projects in southern Nevada’s Greater Bullfrog district, host to epithermal gold systems, with an additional sediment-hosted gold discovery at Mother Lode.
Total measured and indicated resources at Mother Lode (including both sulphide and oxide material) stand at 53.4 million tonnes grading 0.68 gram gold for a total of 1.2 million oz., with a further 16.2 million inferred tonnes at 0.46 gram gold, containing 241,000 oz. gold. These are derived using cut-off grades between 0.06 gram gold and 0.63 gram gold.
In 2018, the company published a preliminary economic assessment on a combined heap leach and sulphide operation at Mother Lode and North Bullfrog. The nine-year open-pit operation would produce a total of 2.5 million oz. gold and 3.5 million oz. silver at total cash costs of US$680 per oz. gold-equivalent. With an initial capital cost estimate of US$424 million, the net present value estimate, at a 5% discount rate, is US$587 million.
— This article first appeared in the Canadian Mining Journal.
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