VANCOUVER (miningweekly.com) – Exploration company Corvus Gold has acquired the prospective Mother Lode property, in Nevada, located about 10 km from its flagship North Bullfrog project, adding the potential for a large satellite operation.
The company acquired the Mother Lode asset from Goldcorp by issuing one-million shares valued at C$0.81 apiece, or about C$810 000.
The property is subject to a sliding net smelter return (NSR) royalty in favour of Goldcorp, with the NSR paying 1% from production at the Mother Lode property when the price of gold is less than $1 400/oz or a 2% NSR when the gold price is greater than or equal to $1 400/oz.
The Mother Lode property covers about 101 ha and contains an historic, non-National-Instrument-43-101-compliant resource of 8.5-million tonnes, grading 1.6 g/t gold, for 430 000 oz of gold.
Corvus has also staked two further neighbouring claim blocks to Mother Lode totalling 420 ha, covering areas of exploration and development potential.
The Mother Lode hosts a series of thick, shallow dipping, stacked mineralised bodies averaging 1.6 g/t gold. These mineralised bodies are open for expansion along with a number of feeder structures averaging over 3 g/t gold.
The company intends to initiate a substantial exploration and resource development programme at Mother Lode this summer.
Corvus is also on track to complete its update of the North Bullfrog resource and preliminary economic assessment this fall.