Junior mineral explorer Corvus Gold (TSE:KOR) and First Star Resources (CVE:FS) reported Tuesday that a phase two drilling program at their joint venture LMS property in Alaska has been completed, extending the known mineral deposit by 250 metres.
Corvus said the 250 metre extension confirms at least 700 metres of down dip continuity, with the deposit remaining open.
The LMS property, which consists of 92 claims and covers 61 kilometres, rests in the Goodpaster mining district of Alaska. The property is under joint venture with First Star, which is fully funding all expenditures and is the operator of the project.
Corvus, a spin-off of International Tower Hill Mines (CVE: ITH), said its joint venture partner has drilled seven diamond core holes in the phase two program, for a total of 2,332 meters, since June 1.
First Star re-entered drill hole LM-10-39, which was extended by 76 meters to a depth of 368 meters, to further drill test the NE-striking structural corridor within the lower gneiss zone that is known to contain high grade gold mineralization.
Meanwhile, drill holes LM-11-42, LM-11-43, LM-11-44, LM-1145, LM-11-46 and LM-11-47 were all drilled to extend the gold-bearing mineralization.
Assays are still pending and will be released once they become available, the companies said.
The drill campaign also extended the main alteration and mineralized system 500 metres to the west.
First Star plans to start phase three drilling in September, which it says will extend into the winter. Its aim is to follow up on existing drilling and a recently completed survey that identified a number of anomalies and structural targets.
Under the terms of the joint venture, First Star can earn a 55% stake in the LMS property if it spends US$3.5 million in exploration costs by December 31, 2013, and shells out US$280,000 to International Tower Hill Mines.
After earning its 55%, First Star can earn a 100% stake if it pays another US$3 million in exploration costs, or carries out a resource estimate report that shows a minimum inferred resource of two million troy ounces of recoverable gold prior to December 31, 2015.
Vancouver-based Corvus Gold controls a number of exploration projects, with four prospective properties in Alaska, and one project in Nevada.