Mar 3 2011
Corvus Gold Inc. (TSX:KOR) has provided an update from its joint venture partners on exploration work to be carried out at its LMS, West Pogo and Terra gold projects in Alaska.
In 2011, over 6,000 metres is expected to be drilled at LMS and a further 1,500 metres to be drilled at West Pogo. In addition, the high-grade Terra gold project is being advanced towards potential near-term gold production for an anticipated 30,000 ounce per year operation. The Company's joint ventures are operated through Raven Gold Alaska Inc., its wholly owned Alaska subsidiary ("Raven Gold").
LMS Gold Project
Starting in March, Raven Gold's joint venture partner at the LMS project – First Star USA Inc., an Alaskan subsidiary of First Star Resources Inc. ("First Star") – has advised that it intends to carry out a winter drilling program consisting of over 1,000 metres of oriented core, which it proposes will be followed up with an aggressive summer drilling program of 5,000 metres. First Star intends to use the results from these programs for a new resource estimate on the project by the end of 2011.
West Pogo Project
First Star has advised that it intends to carry out a 3D Induced Polarization (IP) Survey in May 2011 as well as geological mapping and geochemical surveys in June, with the aim of finding targets, testing areas presumed to be underlain by favorable geology, and expanding the geochemical expression of mineralized zones. In July, First Star plans to drill over 1,500 metres of oriented core to test an east-northeast striking gold and silver anomalous zone in order to better define the project.
Terra Project
On March 1, 2011, Terra Mining Corporation - whose wholly-owned Alaska subsidiary, Terra Gold Corporation ("Terra Alaska"), is Raven Gold's joint venture partner on the Terra project – was acquired by WestMountain Index Advisor, Inc. ("WestMountain"). With the acquisition, WestMountain has acquired, through its indirect ownership of Terra Alaska, the right to earn a 51% interest in the Terra Gold Project from Raven Gold by spending a total of $6.0 million. WestMountain can further increase its ownership to 80% with a $9.5 million capital investment over a four-year period.
The Terra Gold Project is a high-grade gold vein system with a current National Instrument 43-101 compliant Inferred Resource of 428,000 tonnes at 12.2 g/t Au (using a cutoff grade of 5.0 g/t Au) for contained metal content of 168,000 ounces. 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.
WestMountain has advised that it is currently developing its 2011 drilling program to further define the gold vein along strike and at depth. 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 for an anticipated 30,000 ounce per year operation.