Corvus Gold Inc. (“company”, “Corvus”) recently completed a successful Phase III program at its Mother Lode Project (“MLP”) in Nevada. We believe the program not only extended mineralization (primarily towards the north and west of the existing deposit), but also indicated potential for a deeper sedimentary hosted deposit.
The best hole in Phase III returned 126 m of 1.85 gpt, located 100m north west of the curenly identified reource.
We believe an updated resource estimate, expected by early 2020, will significantly improve the already robust economics displayed by a Preliminary Economic Assessment (“PEA”) completed in 2018.
Corvus’ neighboring properties, which are held by Coeur Mining (NYSE: CDE), AngloGold Ashanti (JSE: ANG), and Kinross Gold (NYSE: KGC) are undergoing active exploration.
We continue to believe that Corvus is a strong acquisition target not only because Corvus’ projects are the most advanced in the region, but also the fact that there are potential for significant synergies if all the properties are operated by a single entity.
Corvus is currently trading at an Enterprise Value (“EV”) to resource ratio of C$72 per oz. In April 2019, Americas Silver (TSX: USA) acquired Pershing Gold for C$81 per oz (based on 50% of inferred resources on Pershing’s Relief Canyon project in Pershing County, Nevada).
Corvus is in a strong cash position with C$4.4 million in the treasury.
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