The LMS Project consists of 92 contiguous State of Alaska mining claims covering 61 km2 in the Goodpaster Mining District situated approximately 25 km north of Delta Junction, and 125 km southeast of Fairbanks, Alaska. Mineralization at LMS consists of stratiform siliceous breccias in high-grade metamorphic rocks with exceptionally high-grade stringer veins developed in the hanging wall and of the sequence. The project is accessed either by winter road or river boat providing year-round, non-helicopter support access. Several trails have been constructed for the various phases of drilling providing surface access across the property.
On January 13, 2016, Corvus Gold signed an agreement with Gold Reserve Inc. for the sale of the 100% interest in the project. The transaction at closing includes US$350,000 + a net smelter royalty (NSR) of 3% on precious metals and 1% on base metals with an option to buydown the precious metals royalty for 1% for US$4M.
The LMS area had seen no known previous exploration prior to regional reconnaissance surface sampling by AngloGold Ashanti in 2004, even though the region has attracted considerable interest following the discovery of the Pogo deposit, 40 km to the northeast*. The target was first drilled by AngloGold in 2005, resulting in the discovery of both broad stockwork and narrower high-grade zones at an area called the Camp zone. The discovery of the gold-bearing outcrop (6.2 g/t Au) led to further sampling and drilling in 2006 which delineated a shallow-dipping planar zone of mineralization that has been followed down-dip for over 300 metres. This feature is situated at the southeast end of a 6 km long, northwest-trending zone of aligned surface geochemical samples containing anomalous gold and arsenic and lesser silver and copper.
* This information is not indicative of the mineralization on the LMS property or the potential production from or any future mining of the LMS property.
Geology and Mineralization
The LMS project is located in the Yukon-Tanana Terrane, a large accretionary complex of igneous and sedimentary rocks that have been metamorphosed to greenschist and amphibolite facies. The terrane is bounded on the north by the Tintina fault system and on the south by the Denali fault system. These major faults trend west-northwest in the area and subsequent movement led to the development of numerous subsidiary faults that trend northeast, north-northwest and east-west that have been mineralized in the LMS deposit.
Host rocks at LMS consist of orthogneiss and mica schist and there are two styles of mineralization. The main resource is developed in stratiform siliceous breccias in the schist which contain abundant pyrite and minor galena, arsenopyrite and graphite. These mineralized low-angle zones are cut by a series of later extremely high-grade, possibly mesothermal, stockwork vein systems emplaced along a general east-west trend.