West Mountain Continues Operations At Terra Project

 

VANCOUVER - Corvus Gold Inc. reported that the Company's joint venture partner WestMountain (OTCBB: WMTN) has indicated they will complete on-site installation of the bulk sample gold mill and will commence test production this summer.  Under the Company's existing joint venture agreement, Corvus will receive 49% of the gold production plus a net smelter royalty of 0.5% to 5% at no cost until WestMountain completes the required work commitments by the end of 2013.  The 2012 partner funded exploration and development program should significantly advance the Terra Project where the current inferred resource totals 168,000 ounces gold at an average grade of 12.2 g/t gold. Planned work for the 2012 season as indicated by the Company's JV partner includes; Complete installation of the bulk sample on-site gold mill and commence gold production

1,200 meters of core drilling to further extend the Ben Vein Gold structure; Gustavson & Associates to complete resource update and technical report expected in Q4 2012; Commence engineering work to support Scoping Study on an underground mining operation expected in Q2 2013 and Initiate surface work program on the Camp Creek Midway porphyry target.

Jeff Pontius, Corvus CEO, said, "The potential to see initial gold production from the Terra Project is an exciting step for Corvus Gold in leveraging its non-core assets to support the development of our 100% wholly owned North Bullfrog, Nevada Project toward anticipated production.  Corvus' Alaskan projects represent significant downstream growth potential for both major new gold discoveries and to augment our future anticipated production profile."

Terra Gold Corp., a subsidiary of WestMountain, is Corvus' joint venture partner on the Terra project. Terra Alaska has the right to earn a 51% interest in the Terra Gold Project from Corvus by spending a total of USD 6.0M.  Terra Alaska can further increase its ownership to 80% with an additional USD 3.05M investment bringing to a total of USD 9.05M capital investment over a four-year period until the end of 2013 with their 2012 work commitment being approximately USD 1M. Raven Gold is entitled to an NSR of between 0.5% and 5% on all precious metal production and a 1% NSR royalty on all base metal production.

The Terra Gold Project is a high-grade gold vein system with a current NI 43-101 Inferred resource of 428,000 tonnes at 12.2 g/t gold (using a cutoff grade of 5.0 g/t gold) for contained metal content of 168,000 ounces. The project's primary focus is the Ben Vein, where 28 drill holes completed to date have returned 111 vein intersections of over 3 g/t gold.