Corvus Gold (KOR.T) stock is up 10% (at press time) after hitting high grade intercepts at the North Bullfrog project in Nevada. The company is hoping that a 19,000 meter drill program this year will expand the deposit and that they will find additional high grade ounces. If the deposit is large enough at a decent grade Corvus could be a potential takeover target, as Nevada is home to many of the large gold producers.
The new drill results are impressive and continue to substantiate the development of a new high grade zone at the project. 18 drill holes have been completed so far in 2014 with pending assays remaining on 15 of them. The phase 2 drill program is planning for another 10-12 holes in this area in 2014.
Recent drilling highlights from the Yellow Jacket zone include:
Jeff Pontius, CEO of Corvus, stated "These 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". With 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."
Corvus' share price has been extremely volatile this year. The stock doubled earlier in the year before falling all the way back to a 52 week low recently. A strong working capital position of ~$6 million (Sept 30th) will fund Corvus into 2015.
Management is well aligned, with shareholders owning a combined 6,469,720 shares (8%). Major AngloGold Ashanti owns 11,698,876 (15.5%) of Corvus and is also keeping a close eye on the company.
Key catalysts upcoming will be an updated resource estimate (early 2015) followed by a revised preliminary economic assessment (PEA).
Symbol: KOR.T
Share price: $1.06
Shares outstanding: 75.6 M
Market cap: $71.8 M
I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.