Corvus Gold

Primary ticker: TSX:KOR; OTCQX:CORVF
Stage of development: Exploration, Development
Commodity: Gold, Silver
Project to promote: Mother Lode and North Bullfrog
Project location: USA
Company video: Click here

Live financials

Cash: CAD$20M as of Feb 29, 2020
Debt: CAD$0.4M for asset retirement obligations

Major shareholders:
AngloGold Ashanti – 19.9%
Sprott Asset Mgmt USA – 19.7%
Van Eck Associates – 6.9%
Franklin Advisors – 2.1%
ASA Gold and Precious Metals – 1.6%
Management Ownership – 5.5%

Corvus Gold is a well-financed junior exploration and development gold company driven by an experienced management team. The Company’s main focus and efforts is in the advancement of its 100% owned Nevada, North Bullfrog and Mother Lode projects in the Bullfrog Mining District. Advantages of the growing gold projects include an adjacent major highway, power corridor, nearby skilled workforce, water right and large land packages in a mining friendly jurisdiction that includes adjoining ground held by AngloGold Ashanti, Kinross Gold and Coeur Mining.

H.C.Wainwright&CO. Research Report in April 2020 Roth Capital Partners Report in January 2020

Management Profile

Jeffrey Pontius, CEO & President

Jeff has worked in the mining industry for over 35 years primarily in the exploration sector. He has lead the discovery and development work of over 40Mozs of gold over five North American gold deposits including the world class discoveries at Cripple Creek in Colorado Livengood in Alaska, the Yankee & Elder Creek Mines in Nevada.

Jeff has held senior management positions with AngloGold, Minorco and Nerco as well as being the founder and CEO of International Tower Hill Mines until his retirement in 2011. He is currently the President and CEO of Corvus Gold Inc. a company he founded in 2010.

He holds a Masters Degree from the University of Idaho, School of Mines, in Economic Geology, a BSc from Huxley College in Environmental Science and a BSc from Western Washington University in Geology.

What is your rationale for attending 121 Mining Investment?

To raise awareness of a proven Nevada Gold exploration company currently embarked on a large scale drill program that will further unlock the value of an underexplored district in a premier world class mining jurisdiction.

What recent news would you like to highlight to investors attending?

Completed equity raise of $23M in Oct 2019 giving the company over 24 months of working capital and the ability to conduct a large scale exploration program that includes testing mineralization at depth below the known deposit at Mother Lode and conduct exploratory work at untested parts at the nearby North Bullfrog project.

First deep core hole at Mother Lode was completed in Q1/20 with results pending. This hole was drilled to a vertical depth of 675m to test a concept that gold mineralization is related to intrusives originating at depth.

The district is active with adjacent properties owned by AngloGold Ashanti, Coeur Mining and Kinross Gold all conducting large scale exploration programs.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Deep Drilling at Mother Lode Project to determine if there’s another deposit below the known deposit.

6 Months:

Updated mineral resource estimate.

12 Months:

Updated PEA and project optimization.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Funding is always a challenge for a junior exploration company but a recently completed large financing of $23M CDN elevates these concerns and allows the Company the flexibility to operate in a challenging economic period.

What do you think makes your company such a compelling investment?

Corvus Gold’s Nov 2018 PEA presented robust economics at a base case $1,250/oz gold price. With 80% of the mineral resource in M&I, the projects contained 3.6Moz Au & 8Moz Ag producing ~2.6Moz Aueq over 9 years. The base case generated a post tax NPV(5%) of USD $586M with a 38% IRR. At USD $1,450/oz Au, the project highlights the leverage and sensitivity to gold price with a post tax NPV(5%) of USD $914M with a 53% IRR.

Since the PEA, the Company has expanded the deposits laterally and at depth. Without including the expansions and using a conservative gold price, the Company currently trades at a significant discount to NPV at a market cap of ~$200M USD.

Analyst Insight – provided by Independent Investment Research

Corvus Gold is a TSX-listed Canadian-based exploration company, with a prime focus on its advanced North Bullfrog Gold Project in Nevada, USA.

The project covers 75 sq km and is situated  8km north of the Bullfrog Mine formerly operated by Barrick Gold Corporation. The project represents a large, low-sulphidation, epithermal bulk-tonnage gold system hosted in volcanic and sedimentary rocks. Gold was discovered in the Bullfrog district during 1904 resulting in an estimated production of approximately 112,000 ounces of gold and 869,000 ounces of silver through 1921 from high-grade vein systems that remained open along-strike and down-dip.

A Preliminary Economic Assessment (PEA) for Combined Mill and Heap Leach Processing at the North Bullfrog Project was completed during 2015 and revised during 2016, estimating Pre-Tax Total Cash Flow of US$ 479M, Post-Tax NPV (5%) of US$ 246M and IRR of 38%, based on a gold price of US$ 1,200 per oz. This was based on Average Annual Gold Production in Years 1-6 of 154 k Au oz/year and 69 k Au oz/year in Years 7-10. An Average Cash Cost was estimated at US$ 635/Au oz, whilst the initial capital is estimated to be US $175.4M. An updated PEA is expected in the early half of 2020.

The Measured Au and Ag Mineral resource comprises 4.04 Mt @ 2.43 g/t Au for 316.2koz & @ 18.89 g/t Ag for 2.46Moz, whilst the Indicated Au and Ag resource comprises 22.14 Mt @ 0.41 g/t Au for 289.6koz & @ 1.18 g/t Ag for 0.84Moz.

Not far from North Bulldog (20km) is the Mother Lode Project, which covers an area of 16 sq km. During 2018 the company announced a maiden Resource comprising 1.16Moz of gold in the Measured and Indicated Mineral Resource categories, with 0.24Moz of gold in the Inferred Mineral Resource category. The total M&I Mineral Resource comprises 733,000 ounces gold at 1.72 g/t gold from 13.2Mt, whilst the Inferred Mill Mineral Resource comprises 112,000 ounces gold at 1.6 g/t gold from 2.17Mt. The Mother Lode deposit remains open and continues to grow with the company’s ongoing drill campaign, towards becoming the next multi-million-ounce Nevada discovery.