Non-Core Assets

Introduction

The Chisna Project covers an area of approximately 965 km2 in the Chistochina Mining District of south-central Alaska consisting of 1,106 State of Alaska claims and 65,900 acres of land leased from the Ahtna Corporation.  The project targets Cretaceous copper-gold porphyry-style mineralization of a similar age to the Pebble deposit located approximately 600 km to the southwest. The target area is a belt 65 km long and 15 km wide extending from Slate Creek, 30 km northeast of Paxson, to Slana on the Tok Cutoff Highway.  Access is via aircraft, or winter roads from the Tok Highway near the power corridor.

Ownership

Originally acquired from AngloGold Ashanti in August 2006,  a joint venture agreement was established in November 2009 between the Company's wholly owned Alaskan subsidiary - Raven Gold Alaska Inc. ("Raven") - and Ocean Park Ventures Corporation.  Under the joint venture agreement, Ocean Park had the right to earn a 51% interest by contributing US$20 million in exploration expenditures to March 15, 2014 (US$6.2 million budgeted in 2010).  Upon earning the initial 51% interest, Ocean Park may have earned an additional 19% by producing a bankable feasibility that delineates a mining project on the Chisna property that produces at least 300,000 gold equivalent ounces per year.  However, as of November 7, 2012 the project ownership was reverted back to the Company as the joint venture agreement was terminated.  Ocean Park expended approximately $11M in exploration at the project from late 2009 to mid 2012. 

On April 7, 2016, finalized an agreement with Millrock Resources Inc. for the sale of the 100% interest in the project.  The transaction at closing includes US$25,000 + a net smelter royalty (NSR) of 1% on precious metals and 1% on base metals.

Property Background

The area has been subject to extensive historical placer gold mining operations and modest historical bedrock exploration efforts.  The region has historically produced a total of approximately 200,000 ounces of placer gold, mostly from the Slate Creek area (a Chisna Block target)*.  A large number of gold and copper occurrences are known in the area.  However, little modern exploration has been done and the lode potential is considered high.  Partial historic data indicates that some work was done in the northeast part of the belt (POW target) during the 1980s and in the southeast part of the belt (Grubstake target) during the 1990s.

* This information is not indicative of the mineralization on the Chisna property or the potential production from or any future mining of the Chisna property.

Geology

Stream sediment surveying and geological mapping in the Chisna Project area have successfully identified several areas with alteration and mineralization styles that are typical of high level porphyry-type alteration including potassic alteration with biotite and magnetite veining.  Mineralization is generally hosted in Permian-Triassic volcanic rocks which have been intruded by Jurassic and Cretaceous mafic and felsic intrusions.  The Grubstake Prospect, in the Southeast Claim Block, has concentric zoned alteration with outer propylitic and inner potassic zones.  Surface assays at Grubstake returned values as high as 7.11% copper and 11.45 g/t gold.  Fault-hosted mineralization at the POW Prospect, in the northwest Chisna claim block, has returned surface samples with values as high as 12.0 g/t gold and 3% copper.

For more information, please click here for the Chisna June 2010 Technical Report.

Introduction

The LMS Project consists of 92 contiguous State of Alaska mining claims covering 61 km2 in the Goodpaster Mining District situated approximately 25 km north of Delta Junction, and 125 km southeast of Fairbanks, Alaska.  Mineralization at LMS consists of stratiform siliceous breccias in high-grade metamorphic rocks with exceptionally high-grade stringer veins developed in the hanging wall and of the sequence.  The project is accessed either by winter road or river boat providing year-round, non-helicopter support access.  Several trails have been constructed for the various phases of drilling providing surface access across the property.

Ownership

On January 13, 2016, Corvus Gold signed an agreement with Gold Reserve Inc. for the sale of the 100% interest in the project.  The transaction at closing includes US$350,000 + a net smelter royalty (NSR) of 3% on precious metals and 1% on base metals with an option to buydown the precious metals royalty for 1% for US$4M.  

Property Background

The LMS area had seen no known previous exploration prior to regional reconnaissance surface sampling by AngloGold Ashanti in 2004, even though the region has attracted considerable interest following the discovery of the Pogo deposit, 40 km to the northeast*.   The target was first drilled by AngloGold in 2005, resulting in the discovery of both broad stockwork and narrower high-grade zones at an area called the Camp zone.  The discovery of the gold-bearing outcrop (6.2 g/t Au) led to further sampling and drilling in 2006 which delineated a shallow-dipping planar zone of mineralization that has been followed down-dip for over 300 metres. This feature is situated at the southeast end of a 6 km long, northwest-trending zone of aligned surface geochemical samples containing anomalous gold and arsenic and lesser silver and copper.

* This information is not indicative of the mineralization on the LMS property or the potential production from or any future mining of the LMS property.

Geology and Mineralization

The LMS project is located in the Yukon-Tanana Terrane, a large accretionary complex of igneous and sedimentary rocks that have been metamorphosed to greenschist and amphibolite facies.  The terrane is bounded on the north by the Tintina fault system and on the south by the Denali fault system. These major faults trend west-northwest in the area and subsequent movement led to the development of numerous subsidiary faults that trend northeast, north-northwest and east-west that have been mineralized in the LMS deposit.

Host rocks at LMS consist of orthogneiss and mica schist and there are two styles of mineralization.  The main resource is developed in stratiform siliceous breccias in the schist which contain abundant pyrite and minor galena, arsenopyrite and graphite.  These mineralized low-angle zones are cut by a series of later extremely high-grade, possibly mesothermal, stockwork vein systems emplaced along a general east-west trend.

Introduction

The West Pogo property consists of 96 Alaska State mining claims covering approximately 17 km2 located 50 km north of Delta Junction, Alaska and lies on the western boundary of the Pogo Mine operated by Sumitomo Metal Mining Co., Ltd.  The project is a high-grade intrusion-related gold vein system target.

Ownership

International Tower Hill (ITH) earned a 100% interest in the project from AngloGold Ashanti (USA) Exploration Inc. in late 2009 and subsequently optioned the property to First Star Resources Inc. in early 2010.  Under the option agreement, First Star had the ability to earn an initial 55% interest by paying US$280,000 and spending US$3.5 million on exploration by December 31, 2013.  As of the period ending September 30, 2011, First Star’s financials indicated that a total of $526,640 of work was completed at the project.  However, on December 2, 2011 First Star Resources failed to complete their full work commitment and pursuant to the earn-in agreement, full and unencumbered ownership of the property was returned to Corvus Gold. 

In March of 2012, Corvus Gold entered into an agreement with Alix Resources Corp. who holds adjoining ground to the north of West Pogo. Alix had the option to earn 60% interest in the project by spending US$5.0M on the project and pay $125,000 to Corvus over a period of 5 years.  However, as of late 2013, the project was returned to Corvus 100%.  

On July 29, 2015, Corvus announced the 100% sale of the project to Millrock Resources Inc.  The total cash component for the sale of West Pogo along with the Goodpaster Mining District database of projects in Alaska was USD $120,000.  In addition, Corvus retained an NSR royalty of 3% on precious metals at West Pogo and 1% on base metals with 1% of the precious metal royalty buy down for USD $2M and a further 1% for an additional USD $5M.  

Property Background

Gold mineralization was first discovered in the area in 1998 with the property being acquired by AngloGold Ashanti (USA) Exploration Inc. in 2002.  In 2003, initial regional soil results highlighted an east-west trending gold and trace element anomaly that was tested with a single shallow drill hold that encountered wide zones of low-grade gold mineralization, which was never followed up.

Geology and Mineralization

The West Pogo property is underlain by Paleozoic metamorphic rocks intruded by younger granites, units similar to those found at the Pogo mine 3 km to the east and intruded by similar age intrusives.

Gold mineralization discovered to date is related to high-temperature quartz veins like those at Pogo with similar trace element values (best rock sample 118 g/t Au with elevated Bi & Te). The dominant structure on the property is east-west shearing and with related northwest and northeast faulting. New geochemical mapping conducted by ITH has focused on delineating the east-west structural zone that defines the margin of the large 100Ma granite that is central to the property.

Exploration Summary

A review of the exploration data on the project suggested that a favorable target environment existed at the project.  An exploration program focused on the eastern side of the property within a recently burned area which enhanced rock exposures.  The exploration program discovered a new area of high-grade gold mineralization to the east of earlier discoveries.  Six of the 24 rock samples taken from this new zone returned greater than 1 g/t gold, ranging in grade from 1.2 to 118.5 g/t gold from sericitically altered granite and quartz vein material. This zone falls within an overall east-west trend of high-grade gold occurrences extending for some 25 km within the Pogo Gold District.