Corvus Gold Reports Increased Gold Recovery Results, Mayflower Deposit, North Bullfrog Project, Nevada

Vancouver, B.C……..Corvus Gold Inc. (“Corvus” or the “Company”) – (TSX: KOR, OTCQX: CORVF) announces the results of a series of bottle roll and column leach tests on large diameter sample composites from the phase I Mayflower deposit and the Savage Zone in the phase II North Area (Figure 1).  These results from ongoing heap leaching studies are enhancing the overall gold recovery rates for both areas.

At the Mayflower deposit, column leach recoveries after 71 days ranged from 73% to 84% of the contained gold for the 80% -19mm (-3/4 inch) material (see Chart 1 and Tables 1 & 3), which is significantly higher than the overall 69% average recovery reported in the February 2012 Preliminary Economic Assessment (PEA, Technical Report and Preliminary Economic Assessment for the North Bullfrog Project, Bullfrog Mining District, Nye County, Nevada, February 28, 2012).  Bottle roll tests (Table 1) from the Mayflower indicate high recovery of the contained gold (92-99%) for particles ≤ 200 mesh (0.075 mm), indicating that the gold is highly soluble for leach extraction.  In addition, initial test results for the first 30 days on material from the Savage Valley zone of the larger North Area deposit has shown similar leaching characteristics to the Mayflower suggesting improving recoveries from this area as well.

In the Savage Valley zone, which is the southern extension of the Sierra Blanca deposit in the North Area, initial results have been very encouraging averaging above the recovery values used in the February 2012 PEA (Chart 1, Table 2 & 4).  The bulk of the zone has produced recoveries similar to those at Mayflower and from depths of over 150 metres.  Similar large diameter core composites have been prepared from the Sierra Blanca and Jolly Jane zones.  A group of 6 sets of columns were developed for Jolly Jane and have been under leach for 6 days.  At Sierra Blanca a similar series of columns are being prepared, with leaching scheduled to start in the next several weeks.  The results from the ongoing North Area metallurgical studies will be completed next year ahead of the planned North Area feasibility study scheduled for completion in early 2014.

Carl Brechtel, COO of Corvus, stated: “The current gold recovery results are very encouraging and fully support and enhance our Mayflower and North Area mining plans.  We will be finalizing our recovery studies for the Mayflower project later this year ahead of completion of our feasibility study due early next year.  With these highly encouraging results we see significant potential for the North Bullfrog project to evolve into a major new Nevada gold producing district.”


Figure 1: North Bullfrog Project areas showing the location of the different resource areas and the PQ core holes used for metallurgical sampling.

1
Chart 1 – Comparison of Mayflower PQ Bottle Roll Test Data (composite MF PQ3) to Ongoing Column Leach Tests for Mayflower (composites PQ3 and PQ5) and Savage Valley (samples PQ1 and PQ4).

 

Table 1: Mayflower PQ Core Composite Samples, Phase I Drilling, North Bullfrog Project
Preliminary Gold Recovery in Column Leach Tests at 71 days (1704 hrs) of Leach Time
Particle Size 80% -19 mm (-3/4 inch)

MF PQ 1
MF PQ 2
MF PQ 3
MF PQ 4
MF PQ 5
% Gold Recovery*
85%
74%
84%
82%
73%

*-based on Au head assay

Table 2: Savage Valley PQ Core Composite Samples, Phase I Drilling, North Bullfrog Project
Preliminary Gold Recovery in Column Leach Tests at 47 days (1128 hrs) of Leach Time
Particle Size 80% -19 mm (-3/4 inch)

SV PQ 1
SV PQ 2
SV PQ 3
SV PQ 4
SV PQ 5
SV PQ6
% Gold Recovery*
86%
84%
84%
68%
84%
63%

*-based on Au head assay

Table 3: Mayflower PQ Core Composite Samples , Phase I Drilling, North Bullfrog Project
Gold Recovery (%) in 96 hr Bottle Roll Tests at Varying Particle Sizes

Sample
80% – 0.075 mm
80% – 1.7 mm
80% – 6.3 mm
80% -19 mm
MF PQ 1
97.2%
83.9%
67.3%
61.9%
MF PQ 2
95.0%
93.1%
76.9%
66.9%
MF PQ 3
92.8%
80.7%
73.8%
73.2%
MF PQ 4
81.3%
90.1%
67.3%
80.9%
MF PQ 5
91.8%
88.1%
63.8%
73.5%
MF PQ 6
98.7%
87.2%
73.3%
60.9%

Table 4: Savage Valley PQ Core Composite Samples, Phase I Drilling, North Bullfrog Project
Gold Recovery (%) in 96 hr Bottle Roll Tests at Varying Particle Sizes

Sample
80% – 0.075 mm
80% – 1.7 mm
80% – 6.3 mm
80% -19 mm
SV PQ 1
89.7%
87.4%
87.9%
81.0%
SV PQ 2
93.4%
88.3%
82.4%
75.8%
SV PQ 3
95.5%
92.4%
68.8%
87.9%
SV PQ 4
79.1%
76.5%
64.2%
55.2%
SV PQ 5
86.7%
83.8%
77.5%
79.5%
SV PQ 6
81.6%
76.3%
63.3%
51.0%

About the North Bullfrog Project, Nevada

Corvus controls 100% of its North Bullfrog Project, which covers approximately 24 square kilometres in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick Gold Corporation.  The property package is made up of a number of private mineral leases of patented federal mining claims and 161 federal unpatented mining claims.  The project has excellent infrastructure, being adjacent to a major highway and power corridor.

The project currently includes numerous prospective gold targets, with four (Mayflower, Sierra Blanca, Jolly Jane and Connection) containing an estimated Indicated Resource of 15 Mt at an average grade of 0.37 g/t gold for 182,000 ounces of gold and an Inferred Resource of 156 Mt at 0.28 g/t gold for 1,410,000 ounces of gold (both at a 0.2 g/t cutoff), with appreciable silver credits.  Mineralization occurs in two primary forms: (1) broad stratabound bulk-tonnage gold zones such as the Sierra Blanca and Jolly Jane systems; and (2) moderately thick zones of high-grade gold and silver mineralization hosted by structural zones with breccias and quartz-sulphide vein stockworks such as the Mayflower and Yellowjacket targets.  The Company is actively pursuing both types of mineralization.

A video of the North Bullfrog project showing location, infrastructure access, and 2010 winter drilling is available on the Company’s website at http://www.corvusgold.com/investors/video/.

Qualified Person and Quality Control/Quality Assurance

Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information (other than the resource estimate) that form the basis for this news release and has approved the disclosure herein.  Mr. Pontius is not independent of Corvus, as he is the CEO and holds common shares and incentive stock options.

Carl E. Brechtel, PE, a qualified person as defined by National Instrument 43-101, is responsible for planning and execution of the technical and engineering studies at North Bullfrog, and has prepared this news release and approved the disclosure herein. He has over 30 years of experience in the mining industry, is a registered professional engineer in the States of Colorado and Nevada, and is a Registered Member of SME.  Mr. Brechtel is not independent of Corvus, as he is the COO and holds common shares and incentive stock options.

Mr. William J. Penstrom, Jr., a consulting process engineer and President of Pennstrom Consulting, Inc.  has acted as the Qualified Person, as defined by NI 43-101, for evaluation of the metallurgical testing data.  He has over 30 years of experience in mineral process design and operation, and has been an independent process and metallurgical consultant for the mining industry for the last 10 years.  He is a Registered Member of the Society of Mining, Metallurgy and Exploration (SME Member No. 2503900).  Mr. Pennstrom and Pennstrom Consulting Inc. are both independent of the Company under NI 43-101.

Mr. Gary Giroux, M.Sc., P. Eng (B.C.), a consulting geological engineer employed by Giroux Consultants Ltd., has acted as the Qualified Person, as defined in NI 43-101, for the Giroux Consultants Ltd. mineral resource estimate.  He has over 30 years of experience in all stages of mineral exploration, development and production.  Mr. Giroux specializes in computer applications in ore reserve estimation, and has consulted both nationally and internationally in this field.  He has authored many papers on geostatistics and ore reserve estimation and has practiced as a Geological Engineer since 1970 and provided geostatistical services to the industry since 1976.  Both Mr. Giroux and Giroux Consultants Ltd. are independent of the Company under NI 43-101.

The work program at North Bullfrog was designed and supervised by Russell Myers (CPG 11433), President of Corvus, a Qualified Person defined by NI 43-101, and by Mark Reischman, Corvus Nevada Exploration Manager, who are jointly responsible for all aspects of the work, including the quality control/quality assurance program.  On-site personnel at the project log and track all samples prior to sealing and shipping.  Quality control is monitored by the insertion of blind certified standard reference materials and blanks into each sample shipment.  All resource sample shipments are sealed and shipped to ALS Chemex in Reno, Nevada, for preparation and then on to ALS Chemex in Reno, Nevada, or Vancouver, B.C., for assaying.  ALS Chemex’s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999.  Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples.  Finally, representative blind duplicate samples are forwarded to ALS Chemex and an ISO compliant third party laboratory for additional quality control.  McClelland Laboratories Inc. prepared composites from duplicated RC sample splits collected during drilling.  Bulk samples were sealed on site and delivered to McClelland Laboratories Inc. by ALS Chemex or Corvus personnel.  All metallurgical testing reported here was conducted or managed by McClelland Laboratories Inc.
About Corvus Gold Inc.

Corvus Gold Inc. is a resource exploration company, focused in Alaska and Nevada, which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects.  Corvus is committed to building shareholder value through new discoveries and leveraging those discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with exposure to gold production.

On behalf of
Corvus Gold Inc.

(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chairman and Chief Executive Officer

Contact Information:   Ryan Ko
Investor Relations
Email: info@corvusgold.com
Phone: 1-888-770-7488 (toll free) or (604) 638-3246 / Fax: (604) 408-7499