Terra

The Terra Gold Project consists of 240 State of Alaska unpatented lode mining claims plus an additional 5 unpatented lode mining claims held under lease (subject to a 3-4% NSR royalty to the lesser, dependent upon the gold price) covering approximately 155 km² in the McGrath Mining District of Western Alaska.  The property is centered on an 8-km-long trend of high-grade gold vein occurrences which have returned numerous surface rock samples and drill intersection in excess of 50 g/t gold.  The property lies approximately 200 km west-northwest of Anchorage and is accessible via helicopter or fixed-wing aircraft. 

The project hosts a current NI 43-101 compliant estimated Inferred resource of 428,000 tonnes at 12.2 g/t gold for resources of 168,000 ounces contained and 23.1 g/t silver for 318,000 ounces contained, at a cutoff grade of 5 g/t gold, in a vein system which remains open. 

International Tower Hill (ITH) earned a 100% interest in the project from AngloGold Ashanti (USA) Exploration Inc. in late 2009.  In early August 2010, ITH spun-off its Alaska and Nevada exploration projects into an independent company (Corvus Gold Inc.).  In a Joint Venture Agreement signed September 15, 2010, Corvus Gold optioned the project to WestMountain Index Advisors LLC (formerly Terra Gold Corporation) whereby WestMountain has the right to earn an initial 51% interest in the property by incurring total exploration expenditures of US$6.0 million over 3 years to Dec. 31, 2013.  An initial US$1 million is required to be spent prior to December 31, 2011.  After it has completed its initial contribution, WestMountain will have the option to increase its interest in the project to 80% by funding an additional US$3.05 million of development work.  To exercise such option, WestMountain will be required to pay Corvus an additional US$150,000 and deliver an additional 250,000 common shares of WestMountain. 

The joint venture agreement entitles Corvus to a NSR between 0.5% and 5% on all precious metal production and a 1% NSR royalty on all base metal production.  

Outcropping gold veins were first discovered at Terra in the late 1990s by Kennecott Exploration.  The claims were transferred to Mr. B Porterfield in 2000. AngloGold Ashanti (USA) Exploration Inc. optioned these claims in 2004 and staked additional claims in the vicinity.  Initial detailed soil and rock surveys were conducted at Terra that same year with results leading to the definition of an initial zone of high-grade gold veins over a 2.5 km strike length.  AngloGold followed up with a discovery drill program of 12 holes in 2005 and drilled three additional holes in 2006.  A total of 587 rock samples were collected on the property averaging 16.25 g/t gold and 192 soils collected over 2.6 km of strike averaging 903 ppb gold. The Terra project was joint-ventured to ITH in August of 2006. 

The high-grade gold veins at Terra are associated with a Cretaceous diorite intrusion similar in age to those at the Donlin Creek and Whistler deposits located to the northwest and east, respectively.  The surrounding host rock to the diorite intrusive and gold-bearing quartz veins is a thick sequence of carbonaceous shale. The Terra deposit is characterized by high-grade, 0.1 to 2 m wide, banded quartz veins that commonly contain visible gold.  These veins appear to be best developed along a north-trending structural zone near the margin of the diorite intrusive. The quartz generally has a banded colloform character but also commonly has intervals of sharp "toothy" or drusy "cockscomb".  Individual bands and cavities may contain sulfosalts, arsenopyrite, pyrite, pyrrhotite, sphalerite, and chalcopyrite as well as native gold and electrum. Alteration selvages around the veins grade from silica-rich near the veins to sericite-rich further away.  The selvages may also contain up to 10% pyrite and arsenopyrite, however they rarely extend more than a meter from the veins. Mineralization from the Terra veins has returned favorable gravity and cyanide recoveries from initial gold characterization studies.

For more information, please click here for the Terra June 2010 Summary Report. 

During a surface mapping and sampling program in 2006, ITH collected 136 rock and rock chip channel samples from the Terra project, which ranged in values from <2 ppb to 130 g/t Au (average value for all 136 rock samples is 6.8 g/t Au and 33.7 g/t Ag).  This work defined four main zones of veining in the core Terra target area, as well as a new zone of veining 4 km to the south in the Ice Vein area (13 samples averaging 24.8 g/t gold and 170 g/t silver with a high chip sample of 0.5 m @ 72.3 g/t gold and 453 g/t silver).   In addition, a new blind vein was discovered in the 2006 drilling (1.65 metres @ 13.9 g/t gold) which increases the tonnage potential of the system.

Ben Vein System - a 2007 drill program of 12 holes carried out by ITH as follow up to AngloGold Ashanti's 2006 drill results focused on defining continuity of the high-grade mineralization and developed the project's first resource in the Ben Vein zone, one of several vein systems identified at Terra.  All 12 drill holes intersected the main Ben Vein as planned. These results, together with previous drill holes, have defined the Bens Vein System as being open along strike and at depth, with a minimum strike length of 400 m and a depth of at least 350 m. The mineralized vein varies in true width (using a 3 g/t cutoff grade) from 0.2 to 3.0 m, averaging 1.0 m with 19.8 g/t gold. The high-grade zone averages 1.3 m in thickness with 23 g/t gold.

Ice Vein System - ITH drilled 3 additional holes in 2007 intersecting a new high-grade vein system at the Ice Vein Target approximately four kilometres on trend south of the Ben Vein resource area.  Like the Ice vein area, a number of targets and exploration areas along the overall 8+ km Terra vein system have yet to be explored.

The Terra project was spun out into Corvus Gold in August 2010.  Corvus and its joint venture partner, WestMountain Index Advisors, are focused on bringing the Terra project to small-scale production in the short-term due to the vein material's high gravity recovery potential.  Corvus's partner will pay all of the first $9 million to advance the project to production, significantly de-risking decisions on further investment or conversion to a carried royalty. 

WestMountain’s 2011 drill program totalled 4 holes and was successful in expanding the high-grade "Ben Vein" system an additional 200 metres to the north, as well as an additional vein zone outside the currently defined resource was intersected.  WestMountain intends to commence bulk sampling of the Ben Vein starting in the summer of 2012 as well as further define the gold veins along strike and at depth and expanding the gold resources at the project.  Given the high-grade nature of the gold veins, coupled with the favorable mining configuration and gravity recovery characteristics, the deposit may be amenable to near-term gold production for an anticipated 15,000-30000 ounce per year operation.

2011 summer drill results:

(Intervals calculated using a 1 g/t gold cutoff grade, “Including” intervals use a 5 g/t gold cutoff grade)

* Reported drill intercepts are not true widths.  At this time, there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

2012 Summer Drill Results:

(Intervals calculated using a 1 g/t gold cutoff grade and maximum 0.5 m of internal waste)

* Reported drill intercepts are not true widths. At this time, there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

Inferred Resources within the Ben Vein (within a 1.0 g/t Au Shell)

* Calculated as at June 15, 2010 by Mr. G. Giroux of Giroux Consultants Ltd in the Report titled "Summary Report On The Terra Gold Project, McGrath District , Alaska ".  The above resource table tabulates the resources to the limits of the 1.0 g/t Au shell or envelope around Ben's Vein.

Production Summary

During the 2012 Alaska summer mining season, WestMountain completed the installation of a two (2) tonne per hour onsite mill.  The mill ran a total of 23 tonnes of bulk sample material from the Ben and Fish Creek veins yielding a total of 75.1 ounces of gold and 28.2 ounces of silver.  The results indicate recoveries of 60% for gold and 15% for silver through a gravity recovery system.  As per the joint venture agreement and based on USD 1,700 per ounce gold price, Corvus is to receive 52% of the gold production at no cost until WestMountain has earned into the project.   WestMountain has indicated their intention to focus on a larger bulk sample during the next Alaska summer mining season.