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Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) announced the results of an independently prepared Preliminary Economic Assessment for the optimization of the North Bullfrog Project in Nye County, Nevada. The optimized plan is based on an updated resource estimate, which has not been updated to include the 2012 drill results in the north area step-out and Yellow Jacket areas. The Company aims to issue an updated resource estimate and updated preliminary economic assessment in late 2013, following the completion and interpretation of the aggressive drill program currently underway.
As quoted in the press release:
The optimized PEA produces a robust, positive economic analysis at a $1,300 gold price (all $ US) for a conceptual, low capex, heap leach project that generates average annual gold production of 76,500 ounces over 11 years with a 4.7 year payback (Table 1), at a life of mine (“LOM”) strip ratio of 0.53 to 1 (overburden to process feed) and cash operating costs of $778 per ounce of gold (Table 5). The project remains strongly positive at a gold price of $1,200 and exceptional at the three year trailing gold price average of $1,500 with a pre-tax, pre-royalty NPV(5%) of $276.0 M and an IRR of 37.9% (Table 2).
Corvus Gold CEO Jeffrey Pontius said:
The optimized North Bullfrog development plan has produced a strong and robust project, even at the recent lower gold prices, and should be further enhanced with our ongoing resource expansion and high-grade drilling program. These results continue to reinforce the potential for Corvus to emerge as a new near-term Nevada gold producer and to deliver step change value creation for our shareholders. The existing base case project, linked with recent successes in our “new discovery” stepout and high-grade drilling programs, highlight the dynamic potential for Corvus shareholders as we further expand and develop this new and exciting Nevada gold district discovery.
Click here to read the Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) press release
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