Corvus Gold provides update on lower capex, quick to development scenario

Corvus Gold announces an update on its ongoing detailed mining studies in the Bullfrog Gold District, Nevada where Corvus controls two adjacent, 100% owned projects, Mother Lode and North Bullfrog. Corvus envisions a phased mining plan that will differ from the 2018 initial Preliminary Economic Assessment that saw the development of both projects at the same time. At the North Bullfrog project, the Company is evaluating an initial, lower capex, mining option that could have the potential to generate cash flow to fund the development and expansion of all of its other projects throughout the District. Preliminary metallurgical, mining and processing data for this Phase-1 option are outlining a project that could jump-start near-term production in this re-emerging Nevada gold District. Final detailed data for the Phase-1 starter project will be incorporated into an updated PEA scheduled for release this fall and will also include information on the North Bullfrog Phase-2 expansion and the Mother Lode deposit. In addition, the updated PEA will also incorporate an updated mineral resource estimation for all projects from Corvus' multiple drill programs that have occurred since 2018. Exploration drilling at Mother Lode is ongoing and will continue well into 2021. This drilling program will primarily focus on expanding the new Central Intrusive Zone discovery at Mother Lode as well as new discovery and resource expansion targets in both the Mother Lode and North Bullfrog gold belts. The currently envisioned processing flow sheet for the higher-grade YellowJacket portion of the North Bullfrog deposit will include a gravity gold circuit followed by final gold recovery on the leach pad. Test work shows high gravity gold liberation at a 48-mesh grind followed by heap leaching of the tails which has a projected overall recovery of ~84%. In addition, the simple two-stage crush and rod mill grinding circuit for gravity gold recovery results in a tailings product that can go directly to the leach pad for final gold recovery with no agglomeration. The surrounding Run of Mine, low-grade mineralization has had extensive column leach testing with an overall recovery of 74%. The current mine plan outlines a conventional open-pit surface mine utilizing an owner fleet. The project has a relatively low strip ratio and logistically favorable facility locations for overburden storage and the heap-leach pad. As reported in the 2018 PEA, effective as of September 18, 2018, the North Bullfrog Phase-1 project has a measured mineral resource estimate at $1,250/oz gold price of 10.4Mt @ 1.08 g/t Au & 7.59 g/t Ag containing 362Kozs gold & 2.54Mozs silver and an indicated mineral resource of 24.5Mt @ 0.69 g/t Au & 3.70 g/t Ag containing 542Kozs gold & 5.46Mozs silver. The North Bullfrog project site has well-established infrastructure that includes adequate power and water within two kilometres of the site. The project site is approximately 20 kilometres by road from the city of Beatty, NV which has essential workforce support services and a strong mining culture. The project site has moderate, low rolling topography favorable for mining and an optimal location for the leach pad facility. Corvus Gold has an extensive, well-established environmental baseline database that it has maintained for over 24 months and an existing Plan of Operation permit from the Bureau of Land Management. Following the positive completion of the ongoing mining studies, Corvus will look to advance the permitting of the Phase-1 project later this year.