Corvus Gold (KOR.TO | CORVF) announced this morning latest deep core drill hole at Mother Lode, intersecting 125.5m @ 2.6 g/t Gold including 14.8m @ 8.9 g/t Gold & 24.7m @ 4.9 g/t Gold. This is their best hole ever drilled to date and just happened to be in the new discovery Oxide CIZ.
Prior CIZ holes were: 50.3m @ 1.50 g/t Au; 54m @ 0.77 g/t Au; 41.2m @ 1.60 g/t Au.
I now see a situation where Mother Lode could shift deposit more to Oxide than Sulfide. The hole was oxidized to 650m and there remains significant expansion potential. Jeffrey Pontius stated: “The potential of this new discovery could be greater in size than the existing Mother Lode deposit.” The existing ML deposit is already 1m plus ounces and growing (1.4Moz @ .63gpt), with nearly 2 years of drilling yet to be accounted for since last resource update. The next resource update should be in Q32020.
In preliminary pit modeling, Corvus stated that the “mineralization intercepted may be amenable to an open-pit design.”
Currently, a 2018 PEA is constituted for a combined North Bull Frog and Mother Lode project, which is a higher capex option targeted at the larger mining players. However, Corvus is exploring a phased approach option whereby North Bull Frog would start first, in essence the lower capital intensity option. Work is being done on a PFS for that option. An updated resource statement incorporating 2 years of drilling will be out later in the year as well as an updated PEA.
Snapshot of current PEA below:
@ $1650, NPV5 Post Tax $1,242M est
@ $1750, NPV5 Post Tax $1,406M est
Here is a snapshot of the cross section regarding today’s deep core update showing the breadth of the CIZ.
And here is another from the latest presentation dated May 2020.
Here’s today’s press release: http://www.corvusgold.com/news/releases/index.php?content_id=338
Here’s my prior write up for more information. https://economicalpha.blog/2019/10/20/552/
If there isn’t tension already in the district, this sure will amplify it. Will be interesting to see how this plays out.
Update: From the Northern Miner article dated May 14, 2020 “We are now looking at a potentially very sizeable expansion of the current resources at Mother Lode,” Pontius said. “The current resource is around 60% sulphide and 40% oxide material that sits below the sulphide body, the expansion will not only increase the resource estimate but will also likely end up reversing this ratio.”
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