Corvus Gold Announces Revised Preliminary Economic Assessment for North Bullfrog

Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) revised the Preliminary Economic Assessment (PEA) for the North Bullfrog Project in Nye County, Nevada to include estimates of taxation and royalties on the projected stand alone economic performance. The revised PEA states a positive economic analysis at a $1,300 gold price (base case) for a conceptual, low capex, heap leach project that generates average annual gold production of 76,500 ounces over 11 years with a NPV5% of $94.6M, IRR of 17% and 5.7 year payback (all post tax and royalty), at a life of mine strip ratio of 0.53 to 1 (overburden to process feed) and cash operating costs of $778 per ounce of gold.

As quoted in the press release:

The production plan is unchanged and is based on the existing resource estimate as of June 4, 2013.

The Company is planning to issue an updated resource estimate and revised PEA study early in 2014 following completion of the drill program currently underway. The updated resource estimate and PEA will include the drill results from the 2012 and 2013 North Area and Yellowjacket drilling, both of which have returned encouraging results.

North Bullfrog Project PEA Highlights:

• Large open pit mining operation with an estimated production of 1,067,400 ounces of gold (852,700 recoverable ounces) from 151.8 M tonnes at an average grade of 0.219 g/t Au (at an 0.1 g/t Au cutoff), of which 23% is from the current indicated resource and 77% is from the current inferred resource.
• High gold recovery with a low cost heap leach system averaging 80% gold recovery, life of mine.
• Average annual production of 76,500 ozs gold & 30,000 ozs silver at total cash cost of $778/oz gold.
• Low entry cost gold project with initial capex $101M inclusive of $36M of contingency and pre-production/indirect costs, and final engineering studies.
• Strong leverage to gold with NPV(5%) $192M, 28.4% IRR & 3.7 yr payback @ $1,500 gold.
• PEA resource does not include 2012-13 step-out exploration results which indicate significant expansion and project economic enhancement potential: high-grade Yellow Jacket results (4.3m of 20.0 g/t gold & 1,519 g/t silver) lower grade potential bulk tonnage 400 metre stepout drilling (52m of 0.8 g/t gold)
• Favourable low strip ratio of 0.53.
• Potential for a fast track development project with strong local, regional and Federal support that is within the scope of a junior producer.
• Favourable permitting environment with recent examples of timely approvals.
• Excellent infrastructure for mine development, highway and grid power a few kilometres from deposit and an existing, skilled mining workforce in the nearby communities.
• Recently expanded land package to 68 km² to cover potential gold system extension and to address potential for a larger future mining operation.

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