Five step-out holes drilled as part of its phase three resource expansion programme have outlined potential for an expansion of the gold system to the north, with the company observing a thickening of the mineralised zone together with increasing grades.

This was highlighted by hole ML18-093, which returned 115.8m grading 1.83g/t gold, including 47m at 2.65g/t.

The company said the results indicated potential for a new mineralisation centre to the north of the currently defined resource, which was scheduled to be tested with an aggressive grid drilling programme this year.

Corvus reported the latest drill holes had defined a strong north-south vector along the Fluorspar Canyon Fault near the intersection with the Tertiary sediments, hosting both the upper sulphide zone and the lower oxide zone. The "highly broken, structural intersection" had also localised multiple dikes which along with the sediments were a major ore host for the higher-grade mineralisation it encountered, the company said.

The company stressed the results were encouraging for further resource expansion to the north.

Most of these northern step-out holes ended in thick zones of oxide mineralisation as highlighted by hole ML18-092 which returned 24.4m grading 1.22g/t and which ended in oxidised carbonates with a grade of 3.36g/t gold.

CEO Jeff Pontius said the thicknesses of both sulphide and oxide zones to the north were encouraging for an expansion of the Mother Lode deposit.

"We have been drilling the Mother Lode deposit for the past 18 months and have yet to find the edge of it in any direction. With the initial resource only including drilling through mid-July, these and earlier results point to continued expansion potential," he said.

"Our evolving understanding of the overall Mother Lode sediment hosted system is helping define other new targets throughout our large 122-square-kilometre land package."

The Mother Lode currently has an historical resource estimate of 8.5Mt at an average grade of 1.6g/t gold, for 433,000oz.

The company closed 2.99% or C8c lower in Toronto on Thursday at $2.60, having last peaked at $3.39. The company has gained 62.50% in the past 12 months, currently capitalising it at $277.7 million.