Corvus Gold - Initial North Bullfrog PEA Indicates Recovery of 747,000 ounces of Gold Producing a 28.8% IRR with Total Initial Capex of $68.8M and a 2.6 Year Payback

February 28, 2012

Vancouver, B.C……..Corvus Gold Inc. ("Corvus" or the "Company") - (TSX: KOR, OTCQX: CORVF) announces the results of an independently prepared Preliminary Economic Assessment ("PEA") for its North Bullfrog Project in Nevada.  This PEA is based on the Company's November 7, 2011 resource estimate and does not include data from the recent successes from the 2012 exploration program (NR12-06, February 13, 2012).  The PEA produced a robust positive economic analysis for a conceptual, low capex, heap leach project that generates an average annual gold production of 57,700 ounces over 12.8 years, at a life of mine strip ratio of 0.41 to 1 (overburden to process feed), indicating a pre-tax, pre-royalty NPV(5%) of $118.3M, and an IRR of 28.8% at $1,300 per ounce gold price (Table 1).  The PEA also shows the project has a considerable leverage to gold price, with a pre-tax, pre-royalty NPV(5%) of $338M and an IRR of 70% at $1,700 per ounce gold price (Table 2) (all currency USD).

North Bullfrog Project Highlights

  • Low entry cost gold project with total initial capex of $68.8M with contingency and pre-production/indirect costs included resulting in a 2.6 year payback at $1,300 gold
  • Strong leverage to gold price with NPV(5%) of $338M at $1,700 gold with a 1.2 year payback
  • Large in pit resource of 1.1M ounces contained, and 747,000 ounces recoverable, gold
  • Average annual production of 57,700 ounces of gold with an average of 70,000 ounces of gold per year over the first 3 years
  • Total cash operating cost of $815/oz gold with an average of $673/oz gold over the first 3 years
  • Potential for significant resource expansion with ongoing drill program as highlighted with recent success in a 400 metre step out hole that returned 52 metres of 0.8 g/t gold
  • Additional new discovery potential for high-grade gold and silver systems, currently being drilled
  • Favourable permitting environment with recent examples of timely approvals
  • Excellent infrastructure for mine development, highway and grid power a few kilometres from deposit
  • Favourable low strip ratio of 0.41 that is less than 0.3 in the first 3 years
  • Very good recovery of gold with low cost heap leach system
  • Existing, skilled mining workforce in the nearby communities
  • Potential for fast track development project that is within the scope of a junior producer
  • Recently expanded land package to 43 km² to cover potential gold system extension and to address potential future mining operation

Jeffrey Pontius, CEO of Corvus, stated: "These initial results are impressive and reinforce the potential for creating a new Nevada gold producer.  The low cost project linked with a low initial capex, attractive start-up phase, a favourable permitting environment, excellent infrastructure and available labour force, significantly de-risk this prospective project.  With recent successes in our step out and high-grade drilling project we see this initial positive PEA as a critical first step in developing what we believe will be one of Nevada's next gold mines."

PEA Description

The PEA assumes conventional drill and blast, surface mining using haul trucks and front end loaders.  Mineralized material would be delivered to a crushing plant, where it would be crushed to 80% passing minus 19 mm (¾ inch), then transported and stacked on a heap leach pad by conveyor.  Cyanide solution would be used to dissolve the gold and would be processed through a standard carbon-in-column leach plant, with a gold dore produced in an on-site refinery.  Physical data for the mine operation are summarized in Table 3.

Table 1
North Bullfrog Project - Heap Leach PEA Summary
(All values in 2012 USD based on a $1,300 Whittle shell, mining recoverable in-pit resources
above 0.1 g/t (0.003 oz/ton) gold cut off grade)

Summary Data
In-pit resource - Indicated
19.5 M tonnes @ 0.32 g/t for 199k Oz Au contained
In-pit resource - Inferred
123.3 M tonnes @ 0.23 g/t for 890k Oz Au contained
NPV(5%) ; IRR at USD 1,300 per Au Oz
USD 118.3M; 28.8%
Overall Strip Ratio
1 to 0.41 (mined mineral resource to overburden)
Average Annual Gold Production
57.7k Oz/year
Average Gold Recovery
Average Total Mining Rate
44 k tonne/day
Average Mineralized Material Mining Rate
31 k tonne/day

Table 2
Base Case Gold Price Sensitivity Analysis - North Bullfrog Project
(all values in constant 2012 US$)

Gold Price ($/Oz)
NPV5% ($M)
NPV7.5%  ($M)
IRR (%)
Payback (yrs)

Table 3
PEA Key Physical Data - North Bullfrog Heap Leach Project

Key Physical Data
Process Feed Mined
M tonnes
Overburden Mined
M tonnes
Total Material Mined
M tonnes
Mine Life
Contained Gold
M Oz
Recovered Gold
M Oz
Average Strip Ratio
Overburden/Process Feed
Average Gold Grade
Average Gold Recovery
Annual Process Feed Mined
M tonnes/yr
Annual Gold Produced
K Oz/yr

Estimated initial capital costs are listed in Table 4.  These estimated costs exclude the estimate of working capital, which is recovered at the end of the mine life, and sustaining capital.  The PEA initial capital cost estimate includes $12.5 M contingency, or 25% of applicable items.  Life of mine sustaining capital is estimated to be $89.2 M, and additional LOM contingency is estimated to be $15.4 M.

Table 4
PEA Initial Capital Cost Estimate- North Bullfrog Heap Leach Project

Capital Area
Estimated Capital Cost (USD $M)
Direct Capital Cost
Indirect Costs
Owner's Cost

*excludes working capital and sustaining capital

Operating costs included in the PEA were based on mining, processing, administration and reclamation, and are listed in Table 5, where they are normalized to process tonnage and recovered gold ounces.  Cash operating costs were projected to average $673/Oz for the first 3 years of mining, with total costs averaging $817/Oz during this period.  Total LOM cash operating costs are projected to be $815/Oz and LOM capital cost was estimated to be an additional $232/Oz.

Table 5
Operating Costs- North Bullfrog Heap Leach Project

Cost per Process tonne ($/tonne)
Cost/Recovered Gold Oz ($/Oz)
Total Operating Cost

The PEA utilized preliminary estimates of heap leach recovery, assuming a nominal recovery of 68.6% of fire assay grade, based on recently completed column leach tests and more extensive bottle roll test data at different particle sizes as reported in January 2012.

The Company cautions that the North Bullfrog PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in more advanced studies.  The PEA is based on the North Bullfrog in-situ resource model (November, 2011) which consists of material in both the indicated and inferred classifications.  Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them.  The current basis of project information is not sufficient to convert the in-situ mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability.  Accordingly, there can be no certainty that the results estimated in the PEA will be realized.  The PEA results are only intended as an initial, first-pass review of the potential project economics based on preliminary information.

This initial stage PEA does not include any of the additional geologic data produced in the current drilling program, which began in January, 2012.

The Company will file the final version of an NI 43-101 technical report, which will include the results of the PEA, (the "Report") on SEDAR within 45 days, and investors are urged to review the Report in its entirety.

Cash Flow Model Inputs and Assumptions

Resources - The analysis included both indicated and inferred resources in the mining and economic study.  Indicated resources make up approximately 18% of the ounces in the production plan.

Mining Method - A standard surface mine using a drill, blast, load and haul mining plan was used for the study, assuming a 50 degree slope.  The mine volume was defined by Lerchs-Grossman optimization methods and the resulting surfaces at $1,300/ounce gold price were used to schedule production.  No detail design has been performed at this stage.  The assumed nominal mining rate was 31,000 tonnes (34,100 tons) of mineralized material per day.

Processing Method - A heap leach design, operated at a placement rate of 31,000 tonnes (34,100 tons) of mineralized material per day was assumed for the PEA.  Heap leach feed would be crushed to a P80 of minus 19 mm (-3/4 inch) and conveyed and stacked on the pad.  A CIC process plant would recover the gold.  The process plant was assumed to have a nominal throughput of 40,000 litres (10,500 gallons) of leachate per minute.

Gold Recovery Model - Process recoveries were estimated based on the results of 305 mm (12 inches) diameter column leach tests performed on bulk sample materials crushed to 80% passing minus 51 mm (-2 inch).  Size versus leach recovery curves were developed from the column leach testing and bottle roll tests.  The leach recoveries consider both of the bulk samples used in the column tests and were also adjusted to consider spatial variability as indicated by bottle roll data developed from drill samples throughout the resources.  The LOM average recovery was 68.6 % of fire assay results.

Operating and Capital Cost Estimates - Preliminary capital and operating costs were developed using information available from other Nevada heap leach operations, a commercially available mining and development cost database, plus all available project technical data and metallurgical/process related test work.  Preliminary site infrastructure alternatives (heap leach pad, overburden storage facility, roads, shops, offices etc.) have been evaluated and an arrangement was defined as the basis of capital cost estimates.  Capital costs were developed based on a nominal mining rate of 31,000 tonnes (34,100  tons) of mineralized material per day (nominal total material mined per day of 44,000 tonnes ( 48,000 tons), processing a total of 143M tonnes, and includes sustaining capital and all facilities and equipment needed for all phases of the project over its projected 12.8 year life.  Major fixed equipment and all mobile equipment was assumed to be financed over the first 6 years of production.  All costs are in constant USD from Q1 2012.  No escalation was applied in the financial model.

Taxes and Royalties - Taxes and royalty charges were excluded from this preliminary analysis of the project.  Net smelter return royalty rates vary from 0-4% across the project and average approximately 0.7%, assuming exercise by the Company of all available royalty buy-out rights.

Revenue - Revenue was determined in the base case financial model assuming a constant, long term gold price of $1,300 per ounce. All sensitivities to gold price assumptions were assessed using a constant price.

November 2011 Resource Update - Mr. Gary Giroux of Giroux Consulting Ltd., of Vancouver BC, produced a mineral resource estimate, the results of which were included in the November 7, 2011 NI 43-101 report entitled "Resource Report for the North Bullfrog Project, Bullfrog Mining District, Nye County, Nevada".  This resource estimate was used as the basis for the PEA.

About the North Bullfrog Project, Nevada

Corvus controls 100% of its North Bullfrog Project, which covers approximately 43 km² in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick.  The property package, shown in Figure 1, 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 NI 43-101 compliant estimated Indicated Resource of 24 Mt at an average grade of 0.29 g/t gold for 224,400 ounces of gold and an Inferred Resource of 468 Mt at 0.19 g/t gold for 2,835,000 ounces of gold (both at a 0.1 g/t cutoff), with appreciable silver credits.

Figure 1: Corvus land position at North Bullfrog showing areas where resources have been estimated.

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

Qualified Person and Quality Control/Quality Assurance

Jeffrey A. Pontius (CPG 11044), a qualified person as defined by NI 43-101, has supervised the preparation of the scientific and technical information (other than the resource estimate) that forms 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.

Dr. Roger Steininger, PhD, CPG, an independent consulting geologist, has acted as the Qualified Person as defined in NI 43-101, for the description of the general site information, the  mineral exploration, and the  site geology.  He has 40+ years experience and has been involved in mineral exploration, mine site geology and operations, mineral resource and reserve estimations and feasibility studies on numerous underground and open pit base metal and gold deposits in Canada, the United States, and Mexico.  He is a Certified Professional Geologist (CPG 7417), certified by the American Institute of Professional Geologists.  Dr. Steininger is 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.

Mr. William J. Pennstrom, 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, process evaluation, operating cost estimation and process capital cost estimation for the PEA.  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 nine 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. Scott E. Wilson, CPG, President of Scott E. Wilson Consulting Inc., is a consulting geologist specializing in surface mine design, optimization and analysis, production scheduling, due diligence evaluations and Mineral Resource and Reserve reporting.  He is acting as Qualified Person, as defined in NI 43-101, for the for evaluation of the mining design, production schedule, operating costs, project capital costs, and financial evaluation for the PEA.  Mr. Wilson has over 23 years experience in surface mining and is a Registered Member of Society of Mining, Metallurgy and Exploration.  Mr. Wilson and Scott E. Wilson Consulting Inc. 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, and Mark Reischman, Corvus Nevada Exploration Manager, who are 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 Nevada, Alaska and Quebec, which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects.  Corvus is focused on advancing its advanced North Bullfrog project towards a potential development decision and continuing to explore for new major gold discoveries.  Corvus is committed to building shareholder value through new discoveries and leveraging noncore assets 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
Phone: 1-888-770-7488 (toll free) or (604) 638-3246 / Fax: (604) 408-7499

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation.  All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results and the timing thereof, the discovery and delineation of mineral deposits/resources/reserves, the potential for any mining or production at North Bullfrog, the potential for the identification of multiple deposits at North Bullfrog, the potential for a low-cost run-of-mine heap leach operation at North Bullfrog, the potential for there to be a low strip ratio in connection with any mine at North Bullfrog, the potential for the existence or location of additional high-grade veins, the potential for additional resources to be located between certain of the existing deposits, the potential for a production decision to be made, the potential commencement of any development of a mine at North Bullfrog following a production decision, the potential for the Company to secure or receive any royalties in the future, business and financing plans and business trends, are forward-looking statements.  Information concerning mineral resource estimates and the preliminary economic analysis thereof also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined.  Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events.  The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, significant increases in the cost of any materials and supplies required by the Company, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest Annual Information Form and interim Management Discussion and Analysis and filed with certain securities commissions in Canada.  All of the Company's Canadian public disclosure filings may be accessed via and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

Cautionary Note Regarding References to Resources and Reserves

National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.  Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM.

United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7").  Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7.  Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7.  Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves.  Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically.  It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases.  The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts.  The term "contained ounces" is not permitted under the rules of SEC Industry Guide 7.  In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7.  In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

Caution Regarding Adjacent or Similar Mineral Properties

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine.  The Company advises US investors that the mining guidelines of the US Securities and Exchange Commission (the "SEC") set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7") strictly prohibit information of this type in documents filed with the SEC.  Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.