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.
International Tower Hill (ITH) earned a 100% interest in the project from AngloGold Ashanti (USA) Exploration Inc. in late 2009 and subsequently optioned the property to First Star Resources Inc. in early 2010. Under the option agreement, First Star had the ability to earn an initial 55% interest by paying US$280,000 and spending US$3.5 million on exploration by December 31, 2013. As of the period ending September 30, 2011, First Star’s financials indicated that a total of $2,976,761 of work was completed at the project. However, on December 2, 2011 First Star Resources failed to complete their full work commitment and pursuant to the earn-in agreement, full and unencumbered ownership of the property was returned to Corvus Gold.
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.
Exploration of the LMS property is at a relatively early stage with discovery and identification of a silicified and vein zone extending from the surface to greater than 700 m down dip. AngloGold carried out an exploration program in 2006 consisting of drilling, sampling, and structural analysis, including 3,000 metres of diamond drilling and 150 deep auger samples. The aim of exploration was to test the extent of known gold mineralization through drilling, to characterize and explore newly discovered anomalous areas to the northwest, and to continue to conduct soil sampling throughout the property to better define the anomalous zone. Results from the follow-up program expanded the original Camp Zone area of mineralization along strike, at depth and laterally.
The project was spun out into Corvus Gold in August 2010. Exploration and development under the guidance of Corvus Gold was aimed at expanding both the high-grade vein-type zone and the large bulk tonnage target that was originally discovered by AngloGold in 2005. Following up on the encouraging results from the phase 1 drill program, the summer 2011 exploration program resulted in 7 drill holes totaling 2,332 metres. Results of the 11 total holes are seen below:
Significant Intercepts* from holes drilled at by First Star Resources Inc.
(reported widths are approximate true widths)
*Intercepts calculated using 0.2 g/t Gold cutoff and a maximum of 2 metres of internal waste.
** Previously reported using a 0.5g/t cutoff. Results from 2010 drilling are restated here because QA/QC review of the First Star data revealed minor inconsistencies and a revised cutoff of 0.2g/t gold has been used.
The lower cutoff reflects the evolving gold price.