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VvisibleGold in drill hole NB13-334 (Image: Corvus Gold)

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:

drillingtablecorvus

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 Gold chart

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

Read: Corvus Gold Drills 35.9 metres @ 17 g/t Gold and 20 g/t Silver Including 6.7 metres @ 73 g/t Gold (2.1 ounces per ton) and 38 g/t Silver in Shoot Target or the Yellowjacket deposit, North Bullfrog Project, Nevada

I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.