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Junior exploration and development company Corvus Gold reported the first drill results from the 2014 Phase 2 drill program at its Nevada-based Yellowjack deposit on Tuesday, and the numbers are impressive, to say the least.
Junior exploration and development company Corvus Gold (TSX:KOR,OTCQX:CORVF) reported the first drill results from the 2014 Phase 2 drill program at its Nevada-based Yellowjack deposit on Tuesday, and the numbers are impressive, to say the least.
Two holes in particular returned broad gold intercepts, with grades ranking “5 to 15 times the average of the system overall and higher than the main Josh Vein” at Yellowjacket, according to a company release. Mick Carew of Haywood Securities gave similar praise to the numbers, commenting in a note that today’s intercepts are “amongst the most significant in terms of grade and width” drilled to date at Yellowjacket.
Specifically, hole NB-14-400 returned 35.9 meters grading a hefty 17.1 grams per tonne (g/t) gold and 19.5 g/t silver, including 6.7 meters at 73.4 g/t gold and 38.4 g/t silver. Hole NB-14-401 intersected 32 meters grading 4.9 g/t gold and 6.2 g/t silver.
That’s not too shabby, and investors certainly took notice — Corvus’ share price jumped 15 percent higher than yesterday’s close, touching $1.09 during morning trading hours before closing down at $0.93.
High-grade expansion
Corvus’ current drill program is aimed at expanding Yellowjacket, which is located at the North Bullfrog project, and at defining high-grade shoots in the stockwork zone surrounding the Josh vein.
Comments from CEO Jeff Pontius indicate that the company is seeing success with those goals. He explained in a release that “[t]hese new results from what appears to be a key shoot in the Yellowjacket vein system have significantly expanded the potential of the deposit. Hole NB-14-400 is the best high-grade broad intercept drilled to date on the North Bullfrog Project and has now clearly outlined our large Gap Area “Shoot Target”.”
In other words, the results are expanding a new high-grade zone in the vicinity of the Josh vein. Importantly, Carew notes in his report that the expanding high-grade zone is “grading significantly higher than typical grades from Yellowjacket” so far, and suggests that Tuesday’s results demonstrate that the new stockwork zone “has the potential to host gold mineralization of similar or higher grade than the Josh Vein itself.”
Next steps
To top if off, there are a lot more drill results to come from Corvus. Pontius said, “[w]ith only 3 of 18 completed holes reported in the ongoing Phase 2 drill program, the initial results are encouraging and continue to showcase the expansion potential as we unlock the high-grade shoot zones of the Yellowjacket Deposit.” For his part, Carew also expects the company to release an updated resource estimate for North Bullfrog in the first quarter of 2015.
Certainly, gold investors will be keeping an eye out for further drill results from the Yellowjacket deposit.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Corvus Gold is a client of the Investing News Network. This article is not paid-for content.
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