Corvus Gold begins phase 2 mine development drill program and retains mine design firm for North bullfrog project, Nevada

Wednesday, Jul 18, 2012

Corvus Gold Inc. (TSX:KOR)(OTCQX:CORVF) ("Corvus" or the "Company") is pleased to announce the start of the Phase 2 mine development activities on the Mayflower deposit at the southern end of the Company's 100% controlled North Bullfrog Project, Nevada (to view Figure 1 click on: http://media3.marketwire.com/docs/kor717.pdf). The phase 2 program at the Mayflower deposit includes: (1) grid pattern drilling to complete the conversion of inferred to indicated resources; and (2) developing both engineering and baseline characterization data to support design of a surface mining operation with a heap leach recovery process. An updated resource summary and preliminary economic assessment (PEA) is expected in Q4. Subsequently, the completion of a feasibility study on the Mayflower deposit is scheduled for early 2013.

Drilling

The Mayflower 2012 phase 2 drill program is scheduled for approximately 5,000 meters and 37 holes. Road and drill pad construction started on July 11th, and the first of the two drills have begun drilling today. The program will include reverse circular (RC) drilling for resource definition and conversion, RC drilling for water monitoring and facilities condemnation, and PQ core drilling to generate mine geotechnical data and metallurgical samples. Phase 2 drilling to the North of the Mayflower deposit where recent exploration success outlined a potential high-grade feeder zone (NR 12-14, May 23, 2012) as well as resource expansion potential (NR 12-08, Feb. 29, 2012), is scheduled for late Q3 2012, subject to drill permit issuance.

Engineering Firm

Corvus has retained the services of Interralogic Inc. as the lead mine design engineering firm for the development of the Mayflower deposit at the North Bullfrog project. Interralogic's previous work includes the recent design of the Gold Hill Project near Round Mountain, Nevada.

Carl Brechtel, COO of Corvus, stated: "Interralogic's extensive success and experience in mine design and recovery optimization from projects throughout the world and in Nevada make them an excellent choice to undertake the Mayflower design. Corvus is highly encouraged with recent results and we look to continue to add the key elements necessary in order to achieve our accelerated gold production plan at North Bullfrog."

About the North Bullfrog Project, Nevada

Corvus controls 100% of its North Bullfrog Project, which covers approximately 24 square kilometres in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick. The property package is made up of a number of private mineral leases of patented federal mining claims and 161 federal unpatented mining claims. The project has excellent infrastructure, being adjacent to a major highway and power corridor.

The project currently includes numerous prospective gold targets with four (Mayflower, Sierra Blanca, Jolly Jane and Connection) containing an NI 43-101 compliant estimated Indicated Resource of 15 Mt at an average grade of 0.37 g/t gold for 182,000 ounces of gold and an Inferred Resource of 156 Mt at 0.28 g/t gold for 1,410,000 ounces of gold (both at a 0.2 g/t cutoff), with appreciable silver credits.

Mineralization occurs in two primary forms: (1) broad stratabound bulk-tonnage gold zones such as the Sierra Blanca and Jolly Jane systems; and (2) moderately thick zones of high-grade gold and silver mineralization hosted by structural zones with breccias and quartz-sulphide vein stockworks such as the Mayflower and Yellowjacket targets. The Company is actively pursuing both types of mineralization.

Source: Marketwire