Corporate Presentation - November 2017

Transcription

1 Corporate Presentation - November 2017

2 Forward Looking Statement This presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, projected economics of the mine plan contained in the PEA, including mine development and operating costs and potential future production and estimates of mineral resource, the intent of the Company to become a non-operator gold producing company with royalty interests, the Company s business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results are likely to differ, and may differ materially, from those expressed or implied by forward-looking statements contained in this presentation. Such statements are based on a number of assumptions which may prove incorrect, including, but not limited to, assumptions about the level and volatility of the price of gold, the timing of the receipt of regulatory and governmental approvals, permits and authorizations necessary to implement and carry on the Company s planned exploration and potential development programs; the Company s ability to attract and retain key staff, the timing of the ability to commence and complete the planned work at the Company s projects, and the ongoing relations of the Company with its underlying property lessors and the applicable regulatory agencies. Accordingly, the Company cautions that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those set out in the forward-looking statements as a result of, among other factors, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company s inability to obtain any necessary permits, consents or authorizations required for its activities, material adverse changes in economic and market conditions, changes in the regulatory environment and other government actions, fluctuations in commodity prices and exchange rates, the inability of the Company to raise the necessary capital for its ongoing operations, and business and operational risks normal in the mineral exploration, development and mining industries, as well as the risks and uncertainties disclosed in the Company s most recent Management Discussion and Analysis filed with certain provincial securities commissions in Canada available at and the Company s most recent filings with the United States Securities and Exchange Commission (the SEC ) available at The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law. All subsequent written or oral forward-looking statements attributable to the Company or any person acting on its behalf are qualified by the cautionary statements herein. Scientific or technical information contained herein is derived from the independent NI technical reports which include more detailed information with respect to the Company s properties, including the dates of such reports and the estimates included therein, details of quality and grade of each resource, details of the key assumptions, methods and parameters used in the resource estimates, a general discussion of the extent to which the resource estimates and the other estimates and projections included in the reports may be materially affected by any known environmental, permitting, legal, taxation, socio-political, marketing, or other relevant issues and you are urged to review such reports in their entirety. Mineral resources that are not mineral reserves do not have any demonstrated economic viability. Cautionary Note to United States Investors Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this presentation have been prepared in accordance with National Instrument Standards of Disclosure for Mineral Projects ( NI ) and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the CIM ) Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the CIM Standards ) as they may be amended from time to time by the CIM. United States investors are cautioned that the requirements and terminology of NI and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC s Industry Guide 7 ( SEC Industry Guide 7 ). Accordingly, the Company s disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms mineral resources, inferred mineral resources, indicated mineral resources and measured mineral resources are recognized and required by NI and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant reserves as in-place tonnage and grade without reference to unit amounts. The term contained ounces is not permitted under the rules of SEC Industry Guide 7. The mine economics presented herein derived from the PEA are preliminary in nature and may not be realized. The PEA is not a feasibility study. U.S. investors are urged to consider closely the disclosure in our latest reports and registration statements filed with the SEC. You can review and obtain copies of these filings at U.S. Investors are cautioned not to assume that any defined resource will ever be converted into SEC Industry Guide 7 compliant reserves. Note: All monetary values are USDunless otherwise stated. 2 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

3 Corvus Experience Management Jeffrey Pontius - CEO & President Ex Anglo NA Expl. Mgr, Five discoveries Carl Brechtel - COO Ex Anglo Mgr. of New Project Development Mark Reischman - Nevada Exploration Mgr. Ex Anglo & Barrick Nevada Project Manager Ron Largent - Special Advisor Ex Anglo Ashanti International COO Directors Catherine Gignac - Chair of Board Ex Northland Capital, corp. financial & technical skills Steven Aaker - Ex Franco Nevada COO, strong technical & business experience Edward Yarrow - Ex Anglo American VP Expl., strong geological & mining experience 3 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

4 Share Structure ~Shareholder Distribution 28.1% 6.8% 25.2% Management & Employees Institutional Strategic 18.0% 26.5% Retail High Net Worth Long Term 99,569,582 shares I&O 106,475,582 shares fully diluted, No Warrants Working Capital ~$4.4M CDN (8/31/2017) Life of Company Ave Financing price: $0.85 Small float, ability to outperform Strong Long Shareholder Base Top Shareholders % Tocqueville Asset Management 17.4 Anglo Ashanti Limited 17.3 Corvus Mgmt. & Employees 6.8 Coeur Mining Inc 6.2 Resource Cap Fund 4.3 Van Eck Global 3.5 corp Inc Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

5 Nevada: A Go-To Mining Jurisdiction Called The State but accounts for 83% of U.S gold production 5.3M oz gold produced in 2015, 4 th largest globally produced: : ~60M oz : ~140M oz Walker Lane Trend includes: Comstock (35M Aueq oz) Round Mountain (20M Au oz) Bullfrog (2.5M Au oz) 5 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF Source: Nevada Mining Association

6 North Bullfrog & Mother Lode Districts Fluorspar Canyon Fault 6 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF * Endowment Source: Nevada Mining Association, Non Corvus Production

7 Mother Lode Addition to North Bullfrog Acquired from corp for 1,000,000 shares Historic non resource* of 433,000 ozs gold ( g/t) 172 existing drill holes in database Numerous +3 g/t structural zones Historic tests ~50% heap leach recovery, being evaluated for AAO and BioOx recovery enhancement 6 km s from North Bullfrog project Potential for high-grade epithermal & sediment hosted deposits 7 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF * Non NI historical resource

8 Mother Lode - Selected Historic Drill Intercepts* Location Drill Hole # From (m) To (m) Interval (m) Grade ML High-Grade Main Zone Target Western Expansion Targets Northern Extension Targets FCF Targets ML ML D D D ML ML ML ML ML D ML ML ML D Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF * Non Corvus Drill Results

9 Mother Lode Target Areas Phase I drill program evaluating area approximately 500m x 300m to a depth of 300m Further expansion Potential north, west and at depth. Plan map showing recent drill holes on new >0.5 g/t grade shell projected to surface which is the phase I exploration area with white dashed line showing approximate outline of historic >0.5 g/t resource Project has large sediment hosted deposit with N-S structural zone hosting high-grade, mineralization 9 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

10 Mother Lode - New Exploration Results (Reported intercepts are not true widths as there is currently insufficient data to calculate true orientation in space. Mineralized intervals are calculated using a 0.3 g/t and 1 g/t cutoff) Drill Hole # From (m) To (m) Interval (m) Location ML Upper Zone Incl g/t cutoff Incl ML Structural Zone Lower Zone ML Upper Zone ML structural zone Incl ML structural zone Incl Lower Zone Lost 262.8m ML Upper Zone Incl g/t cut Incl ML structural zone Lower Zone Incl g/t cut Lower Zone Incl g/t cut Bottom of lost hole ML Upper Zone Incl g/t cut Upper Zone Lower Zone Pending Incl ML structural zone Lower Zone Incl g/t cut New Deep Zone?

11 Mother Lode Exploration Upside North-South cross section showing recent select intercepts (0.3 g/t cut) on new grade shell model (>0.5 g/t green & >1 g/t brown) Historic drilling was vertical, mostly to depths less than 200m, many holes ending in ore with open ended mineralization Potential for major sediment and intrusive hosted orebodies below and out from historic resource area 11 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF (Reported intercepts are not true widths as there is currently insufficient data to calculate true orientation in space. Mineralized intervals are calculated using a 0.3 g/t and 1 g/t cutoff)

12 Mother Lode Exploration Upside Expansion to the northwest of historic pit along main intrusive trend High-grade core of the Upper Zone follows main dike trend to the west Potential for deeper repeated deposit in the Paleozoic, lower plate below Lower Zone East-West cross section showing recent select intercepts (0.3 g/t cut) on new grade shell model (>0.5 g/t green & >1 g/t brown) 12 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF (Reported intercepts are not true widths as there is currently insufficient data to calculate true orientation in space. Mineralized intervals are calculated using a 0.3 g/t and 1 g/t cutoff)

13 Mother Lode Upper Zone - Tertiary Host Rocks Tertiary sediments to a depth of about 200m hosting historical resource* of about 400,000 ounces of gold in volcanoclastic tuffs, with potential to more than double in size with northern and western expansion. 13 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF * Non NI compliant, historical resource, 1.6 g/t gold for 433,000 ounces

14 Mother Lode Lower Zone - Paleozoic Host Rocks 14 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF First holes through the FCF into lower plate Paleozoic sediment Deep oxidation of Pz seds Broad jasperoid development Crosscutting quartz veins Cut by dikes and sills Strong As & Hg geochem

15 North Bullfrog Project

16 NBP Heap Leach Pad, Mill Site and Tails Storage are conceptual locations and have not been currently built

17 North Bullfrog Two Phase Plan & Resource Update* Total mineral resource expanded to 1.76M ounces gold measured & indicated (M&I), 0.43M ounces gold inferred* Phase I, highlights: M&I mineral resource ~900k ounces at avg. grade of 0.8 g/t gold in 35Mt for mill* 94% of Phase I plan resource is in M&I category Initial sulfide mill mineral resource, M&I avg. grade of 1.46 g/t gold highlights potential to expand sulfide processing Phase II would be low-strip, run of mine, low-grade heap leach material for future production 17 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF * Please see pages for full breakdown of Mineral Resource Estimate

18 North Bullfrog - Near-Term Production Leach Pad Sierra Blanca- YellowJacket Deposit waste Jolly Jane Deposit Development De-Risking Water: Own 1,600 ac/ft water right (will allow expansion) Power: New 16 Mw power line (50% more than required) Access: Adjacent to major highway & extensive quality road access throughout the property Labor: Within 5 miles of mining town of Beatty Permitting Mayflower Deposit NBP Heap Leach Pad, Mill Site and Tails/Waste Storage are conceptual locations and have not been currently built 18 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF Exploration: 120 acre POO, capacity for +600 further drill holes Project: Completed +2yrs of baseline water quality, air & ARD studies as well as Cultural, T&E & environmental studies Mine: positioned for initial stage EA, followed by full EIS

19 Processing Plan NBP & MLP North Bullfrog Project includes an Oxide Mill for high-grade ore and a Run Of Mine heap leach for surrounding low-grade ore Mother Lode Project contains oxide and transitional heap leach material as well as sulfide mill mineralization Mill planned to convert to sulfide circuit at end of oxide resource for sulfide ore processing from both projects * Image of Kinross s Round Mountain Mine, a Non-Corvus Asset North Bullforg & Mother Lode sulfide material being tested for AAO, and BioOx heap leach potential, could significantly lower process costs 19 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

20 Project Workplan Phase I (July-Dec 2017) Completion of NBP resource Expand & characterize Mother Lode resource with initial 13,000m drill program Define metallurgical characteristic of high and low grade Mother Lode mineralization & initial processing plan Define conceptual multi-project permitting path Phase II (Jan-June 2018) Definitive metallurgy & process design Resource expansion, follow-up drill program at MLP Define water, power and transport infrastructure options Combined MLP & NBP NI resource & PEA study, mine design & production plan 20 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

21 Producers Production Profiles In Decline Projected Production Decline -2.6% corp -4.2% Kinross -4.9% Coeur Mining -5.2% Hecla -5.7% Newmont -6.8% IAMGOLD -10.4% Barrick -18.0% Anglo Ashanti -20% -15% -10% -5% 0% 21 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF *Source: Company Filings, FactSet, street research, BMO Capital Markets 2015

22 Corvus - Performance Leverage to exploration news Corvus up 275% on the heels of YellowJacket drill hole results For the same period GLD was down 6% 22 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

23 Corvus - Compelling Investment District potential for series of low strip, open pit, oxide/sulfide gold deposits in favorable permitting & operating area Infrastructure in-hand, permitting advanced to support potential commercial production in ~3 years Large resource expansion potential on 100% owned projects with complementary synergies with other regional targets Excellent institutional and strategic shareholder base Fully funded through next major, value-add, phase of work 23 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

24 CORVUS GOLD 700 West Pender Street, Suite 1750 Vancouver, British Columbia Canada, V6C 1G8 Telephone: (604) Toll Free:

25 Resource Estimate, Phase 1 & 2 Measured, Indicated, & Inferred Mineral Resource Estimate for the North Bullfrog Project Constrained by Whittle TM pit volumes, including both the YellowJacket Vein/Stockwork & Disseminated Oxide $1,250 Price Phase 1 Mill Resource (oxide & sulfide) Disseminated (Heap Leach) Total Resource Resources Category Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Measured , ,540 Indicated , ,919 Total M&I , , ,459 Inferred Phase 2 Resources Category Tonnes (Mt) Mill Resource (oxide & sulfide) Tonnes (Mt) Disseminated (Heap Leach) Total Resource * Breakeven grade derived from Whittle TM input parameters (on final page), Mineral Resources that are not mineral reserves do not have demonstrated economic viability Mr. Scott Wilson of Metal Mining Consultants, Inc has acted as the independent Qualified Persons as defined in NI and produced the updated mineral resource estimate effective as at October 31, The full NI Technical Report titled Technical Report for Combined Mill and Heap Leach Processing at the North Bullfrog Project, Bullfrog Mining District, Nye County, Nevada will be available on SEDAR or the Company s website on Dec. 14, The Whitte Pit input parameters and assumptions can be seen on the final page. See Cautionary Note to U.S. Investors Tonnes (Mt) Measured Indicated , ,227 Total M&I , ,565 Inferred Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

26 Resource Estimate, Total & Sulfides Measured, Indicated, & Inferred Mineral Resource Estimate for the North Bullfrog Project Constrained by Whittle TM pit volumes, including both the YellowJacket Vein/Stockwork & Disseminated Oxide $1,250 Price Phase 1 & 2 Mill Resource (oxide & sulfide) Disseminated (Heap Leach) Total Resource Resources Category Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Measured , ,878 Indicated , , ,314 5,146 Total M&I , ,029 3, ,760 8,024 Inferred , ,042 Sulfide Phase 1 Mill Resource Phase 2 Mill Resource Total Mill Resource (Phase 1 & 2) Resources Category Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Measured Indicated Total M&I Inferred * Breakeven grade derived from Whittle TM input parameters (on final page), Mineral Resources that are not mineral reserves do not have demonstrated economic viability Mr. Scott Wilson of Metal Mining Consultants, Inc has acted as the independent Qualified Persons as defined in NI and produced the updated mineral resource estimate effective as at October 31, The full NI Technical Report titled Technical Report for Combined Mill and Heap Leach Processing at the North Bullfrog Project, Bullfrog Mining District, Nye County, Nevada will be available on SEDAR or the Company s website on Dec. 14, The Whitte Pit input parameters and assumptions can be seen on the final page. See Cautionary Note to U.S. InvestorsSulfide Mineral Resources have been added to the NBP Mineral Resources based on previously identified materials that lie within the YellowJacket zone and 2017 drilling in the Swale and Liberator areas. The majority of the identified sulfide mineralization is along the YellowJacket zone and was previously identified as waste material. Metallurgical test work on sulfide mineralization from the Sierra Blanca, Pioneer Tuff, Rhyolite and Dacite rock types in the YellowJacket area indicate high gold and silver recoveries possible using flotation to produce a concentrate, fine grinding of the concentrate, oxidation of the concentrate using the AAO method followed by cyanide leaching of the resulting filter cake. recoveries with this processing approach ranged between 87% and 94%. Both Soda Ash and Trona were used in the tests as the neutralizing agent and the tests were conducted by Hazen Research Inc., of en, Colorado. 26 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF

27 Assumptions Whittle TM Input Parameters used for the 2017 North Bullfrog Mineral Resource Estimate Parameter Unit Mayflower* Jolly Jane* Sierra Blanca* YellowJacket** Sulfide*** Mining Cost US$/tonne Au Cut-Off*** g/tonne Processing Cost US$/tonne Au Recovery % Ag Recovery % Administrative Cost US$/tonne Refining & Sales US$/tonne Au Selling Price US$/oz 1,250 1,250 1,250 1,250 1,250 Slope Angle Degrees * - assumes heap leach processing of disseminated mineralization ** - assumes Gravity - CIL mill processing of Yellowjacket mineralization *** -assumes Ambient Atmospheric Oxidation mill processing of Sulfide mineralization **** - break-even grade derived from Whittle input parameters at US$1,250 per ounce gold & US$16.50 per ounce silver Corvus and its independent qualified persons (QP s) as defined by NI limits the estimated mineral resource to that portion of the geostatistically modeled mineralization inventory which is contained within a conceptual Whittle TM pit and scheduled to processing at a US $1,250 gold price. The Whittle TM optimization process considers three parameters simultaneously, which are: the value of recoverable metal in each block in the mineral inventory; the costs of mining, processing and administration for that block; and the realistic geometrical development of the open pit. If the value exceeds the costs and the integrity of the pit is maintained then each block within the pit shell is scheduled either to the process stream or to waste. The structurally controlled mineralization in the YellowJacket Zone was modelled separately in several geologically defined domains to prevent smearing of high-grade mineralization into the surrounding blocks. For the purposes of estimating the mineral resource, the different YellowJacket domains have been combined because of the geological similarities. Based on the current metallurgical data on YellowJacket mineralization, it has been assumed that this material will be processed through a separate milling circuit and thus carries different processing costs and recoveries resulting in cut-off grades different than the heap leach processing. These additional costs and recoveries have been accounted for in the Whittle TM pit analysis. The disseminated mineralization at Sierra Blanca was modeled in a series of discrete volumes to prevent grade smearing across certain important grade-controlling faults. The disseminated oxide mineralization has been modeled based on Corvus current metallurgy for heap leach processing with each block having an estimated heap leach recovery. The heap leach feed then carries the costs associated with heap leach processing as reflected by the cut-off grade. The Resource estimation is based on 766 drill holes with 27,729 gold composites. Geologic volumes were defined by geologic interpretations and used to constrain the estimation. Heap leach resources were estimated by Ordinary Kriging. The YellowJacket vein and stockworks were estimated using Inverse Distance estimations. To estimate the reasonable prospects of eventual economic extraction, Metal Mining Consultants Inc. confined the resources to mining volumes defined by Whittle TM analysis using the input parameters defined in Table 4. There are no known legal, political or environmental risks that could materially affect the potential development of the mineral resources. The Independent Qualified Person, Scott E. Wilson, visited the North Bullfrog site during 2014, 2015 and Mr. Wilson has performed data verification by examining core materials at the site, and has selected check samples to develop independent verifying assays of intervals by the Inspectorate laboratory in Reno, NV. Geologic data development processes were reviewed and observed during a site visit. All drilling geologic description, assaying data and geochemical data have been provided in a database format to Metal Mining Consultants Inc. for the purpose of estimating the resource. 27 Nov 2017 Corporate Presentation TSX: KOR OTCQX: CORVF