The updated Mineral Resource estimation is a two phase approach with "Phase 1" as an early stage, higher grade mix of predominantly oxide mill processing and oxide heap leach processing. "Phase 2" includes mainly heap leach mineralization. The Mineral Resources estimations (Measured, Indicated and Inferred) were based on economic constraints using Whittle software, assuming open pit mining and a gold price of USD $1,250 per ounce and a silver price of USD $16.50 per ounce. Figure 1 shows the locations of the projected open pits at the NBP and displays the mineralization in the defined Phase 1 & 2.
Jeff Pontius, the Company's President & CEO states, "The North Bullfrog Resource update has delivered an expansion of the Phase 1 project with an increase in mill ounces, Mineral Resource confidence and overall grade. This initial phase has approximately one-million Measured and Indicated Mineral Resources gold ounces and over five million silver ounces which outline potential for a future mining operation that we believe could be complemented by the Mother Lode project, which is located six kilometres to the southeast. Additionally, this study provides a first look at the viability of integrating higher grade sulfide mineralization into the mine plan which potentially opens the door for future resource expansion in this class of mineralization. We at Corvus Gold look forward to the integration of the Phase 1, North Bullfrog Project with the Mother Lode Project which we believe could deliver an exciting new, low cost, Nevada gold mining project."
New Resource Calculation
The new Mineral Resource estimation reflects the benefits of the drilling conducted during 2016 and 2017 which has expanded and improved the definition of the YellowJacket vein/stockwork zone, allowing the mine plan to deliver higher average grade mineralization from the YellowJacket zone in Phase 1 with high gold and silver recoveries. This new Mineral Resource has been estimated in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects using a gold price of USD $1,250 per ounce and silver price of USD $16.50 per ounce.
