The McCoy-Cove Property is located within the Eureka-Battle Mountain in north-central Nevada (one of the world's most favourable jurisdictions for mine development) and is host to numerous multi-million ounce gold deposits and mines. Several world class gold mining companies owe their success to operations that exist in the State's prolific gold trends.
The consolidation of McCoy-Cove in 2014 offers substantial upside in the existing mineral resource areas and opportunities for the discovery of new high-grade gold deposits.
Location and Land Tenure
The McCoy-Cove Property is located 22km south of Newmont Mining Corporation's Phoenix Mine, within the north-central Fish Creek Mountain Range, approximately 50 km south-west of the town of Battle Mountain. The 12,500 hectare (31,000 acres) property hosts the historic McCoy and Cove Gold/Silver Mines, The property is serviced by excellent infrastructure including paved roads to the mine site, power and access to services and people.
Gold was first discovered in the district in 1914. Significant production did not start until 1928 and continued until the early1930's from the Gold Dome Mine. Production came from shallow underground workings, with grades ranging from 8.6 g/t to 68.7 g/t Au (0.25 oz/t to 2.00 oz/t Au).
The district remained dormant until exploration activities began in the mid-1960's for copper and then later for gold. In September 1985, Tenneco Minerals Corp. decided to put the McCoy gold-skarn deposit into production. In October 1986, Echo Bay Mines acquired Tenneco and continued in district exploration which resulted in the discovery of the Cove deposit in January 1987. Production began from the Cove Mine in 1988 and continued until 2001 from open pit and some limited underground mining. Production totaled 2.6 million ounces of gold and 100 million ounces of silver.
On June 15, 2006, Victoria Gold Corp. entered into a "Minerals Lease and Agreement" to lease a portion of the McCoy-Cove Property from Newmont. That same year Victoria conducted a surface exploration drill program which lead to the discovery of the Helen Zone located approximately 500 metres northwest of the Cove pit. The Helen Zone is a Carlin-style stratiform deposit and is hosted in the deep Favret Formation limestones.
In June 2012, Premier purchased the Victoria claim position at Cove and continued surface exploration drilling utilizing a different exploration philosophy. The Company favoured a stratabound mineralization host over a structural intersection "plunge tube" host. In September 2014, Premier finalized an agreement with Newmont to purchase 100% of the entire McCoy-Cove land package.
Geology and Mineralization
Mineralization is hosted in the Triassic Star Peak Group, a 1,220 m thick section of marine platform limestone with lesser conglomerate, sandstone, and dolostone (Johnston 2008). Four formations comprise the Star Peak Group. In ascending order they are: the Dixie Valley, Favret, Augusta Mountain, and Cane Spring Formations. Most of the historic production came from the Augusta Mountain Formation.
Recent exploration drilling by Premier has led to discovery of the 2201 Zone, hosted within the Dixie Valley conglomerate beneath the Cove pit. The 2201 Zone is similar to the polymetallic sulfide veins that produced gold and silver from the Cove pit. The gold and silver within the 2201 Zone is hosted in both stratabound and high-grade quartz and polymetallic sulfide veins that appear to be smaller imbricate thrust faults refracting upward from the Cove thrust.
In November 2013, the Company tabled its initial Helen Zone Mineral Resource Estimate. The Helen Zone does not contain any mineral reserves at this time. Table 1 provides a deposit summary of this Mineral Resource Estimate.
Table 1 - Helen Zone Mineral Resource Estimate
|Indicated Resources||Inferred Resources|
|Cutoff Grade Au (g/t)||Tonnes (000's)||Gold (Au) Grade (g/t)||Au Ounces (000's)||Tonnes (000's)||Gold (Au) Grade (g/t)||Ounces (000's)|
*Please refer to the Company's technical report filed on Sedar (www.sedar.com), dated January 2, 2014 for further information on this Mineral Resource Estimate.
McCoy Cove Presentation
With the consolidation of McCoy-Cove, a trident of known deposit types exist on the property, including skarn, distal disseminated polymetallic sulfide, and distal Carlin-style carbonate replacement opportunities.
Shallow, potentially open pittable oxide mineralization at the McCoy pit and the Windy Point area, (located northwest of and along the Cove anticline) will be the initial targets evaluated.
Deeper high-grade gold/silver target areas exist between the McCoy and Cove open pits along known feeder fault structures. IP Resistivity geophysics is being used to aid in defining sulfide concentrations and rock alteration at depth. High-grade gold mineralization is also known to exist in the Panther Canyon conglomerate down-dip along the Gold Dome intrusive fault structure at the McCoy pit area. This high-grade mineralization is undrilled at depth and represents one of the highest quality deep targets.
Premier has identified many target areas for future exploration of shallow oxide, heap-leachable as well as deeper high-grade gold/silver opportunities. These targets include:
- McCoy East Wall shallow oxide mineralization
- Windy Point shallow oxide mineralization
- McCoy Gold Dome high-grade deep sulfide
- Cove Helen Zone
- Cove CSD Zone
- Cove 2201 Zone polymetallic sulfide
- CND Zone north of Cove pit
- The McCoy/Cove "between pit" structural feeder exploration zone