The Hardrock deposit, located in the Beardmore - Geraldton Greenstone Belt of Northwestern Ontario, is consistent with all the hallmarks of Premier's business model and is a core holding in its exploration portfolio. Premier owns a 100% interest in the project. Many past-producing sites in Canada are undergoing a renaissance and today are being recognized for their exceptional potential to host future world class discoveries. Recent discoveries in Red Lake (Red Lake Gold Mines, Bruce Channel) and at Malartic underscore the importance of exploration in such historic camps.
The Hardrock deposit area comprises approximately a 15-kilometre long property package that overlies more than 3.0 million ounces of past gold production in a district that has historic production in excess of 4.0 million ounces. The property lies only a few kilometers south of the Town of Geraldton, which is serviced by the Trans-Canada Highway, Trans-Canada Pipeline, and Hydroline. Exploration is conducted year round.
NI43-101 Compliant Mineral Resources
On October 29, 2013 the Company announced that it had received an updated interim Mineral Resource Estimate on the Hardrock deposit, the largest of the four deposits on the Trans-Canada Property package. This update comes in the midst of a 140,000 metre drill campaign on the deposit of which approximately 50% of this drilling is included in this update.
Highlights of the 2013 Hardrock mineral resource estimate includes:
- Indicated resources of 3.24M ounces of gold
- Inferred resources of 3.78M ounces of gold
- New estimate includes a deeper pit when compared to previous estimates
- Drilling continues to suggest the potential for additional O/P and U/G resources offering further upside
Table 1 Hardrock Deposit Mineral Resource Summary (As at October 29, 2013)
|Cut-off Category||Resource Category||Tonnes (Mt)||Gold (Au) Grade (g/t)||Au Ounces (Mozs)|
|Open Pit (O/P)||Indicated (I)||50.228||1.46||2.352|
|Underground (U/G)||Indicated (I)||5.522||5.01||0.889|
The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by Regulation 43-101, are Carl Pelletier, B.Sc., P.Geo. and Karine Brousseau, P.Eng (InnovExplo Inc), and the effective date of the estimate is September 23, 2013.
* Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
* In-Pit Results are presented undiluted within a Whittle-optimized pit shell, designed with a 30-metre buffer around lakes.
* Underground Results are presented undiluted outside a Whittle-optimized pit shell, designed with a 30-metre buffer around lakes.
* The estimate includes 10 gold-bearing zones and a remaining undifferentiated envelope containing isolated gold intercepts.
* In-pit Resources were compiled at 0.30, 0.40, 0.50, 0.60, 0.70, 0.80 and 0.90 g/t Au cut-off grades. The official In-pit resource potential is reported at 0.50 g/t Au cut-off grade.
* Underground Resources were compiled at 2.00, 2.50, 3.00, 3.50, 4.00 and 4.50 g/t Au cut-off grades. The official Underground resource potential is reported at 3.00 g/t Au cut-off grade.
* Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
* Density (g/cm3) data used is on a per zone basis (envelope: 2.77, porphyry: 2.74, S4_1: 2.78, S4_2: 2.78, IF_N_1: 3.00, IF_N_2: 2.85, IF_N_3: 2.85, I0: 2.93, IF_HL: 2.81, IF_HU: 2.81, Tenacity: 2.77)
* A minimum true thickness of 3.0 m was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed.
* High grade capping (g/t Au) was applied on raw assay data and established on a per zone basis (envelope: 70, porphyry: 70, S4_1: 20, S4_2: 20, IF_N_1: 40, IF_N_2: 40, IF_N_3: 40, I0: 2.5, IF_HL: 50, IF_HU: 50, Tenacity: 70)
* Compositing was done on drill hole sections falling within the mineralized zones (composite = 1.5 metres).
* Resources were evaluated from drill hole using a 2-pass ID2 interpolation method in a block model (block size = 5 x 5 x 5 metres)
* The inferred category is only defined within the areas where blocks were interpolated during pass 1 or pass 2
* The indicated category is only defined in areas where the maximum distance to drillhole composites is less than 40m and where the drilling density was deemed sufficient
* Ounce (troy) = Metric Tonnes x Grade / 31.10348. Calculations used metric units (metres, tonnes and g/t).
* The number of metric tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Regulation 43-101.
* InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource Estimate.
* Whittle parameters used: Mining cost=2.50 CAD/t, milling cost=13.00 CAD/t, G&A=3.00 CAD/t, Gold price=1,140 CAD/oz, mining recovery=95%, mining dilution=5%, milling recovery=90%, pit slope 50°
The mineral resources estimated for the Trans-Canada project are set out in Table 2 below. They have been subdivided into potentially underground or open pit mineable resources and reported using different cutoff grades. Please refer to www.Sedar.com for the technical report dated February 1, 2013 for further information on this resource estimate.
On December 19, 2012 the Company announced that it had received an updated Mineral Resource Estimate on four gold deposits located on the Company's 100%-owned Trans-Canada Property including the Hardrock, Brookbank, Kailey and Key Lake Deposits.
The mineral resources estimated for the Kaliey Deposit is set out in Table 2 below. They have been subdivided into potentially underground or open pit mineable resources and reported using different cutoff grades.
Table 2 Kailey Deposit Resource Summary
|Kailey||Open Pit||Measured (M)
Subtotal M & I
Subtotal M & I
The estimations are based on samples composited to 3 metres.
The resource for the Hardrock deposit is based on dynamic modeling of composites defined on 0.5 g/t Au cut-off for the underground portion of the resource and on 0.1 g/t cut-off for the open pit resource. The composites defined on a 0.5 g/t cut-off comprise 9 distinct domains while the 0.1 g/t cut-off combines all of these domains into a single mass which was subjected to a Whittle Pit optimization analysis restricted to 200 m vertical depth.
Resources for the predominantly low grade Kailey deposit the mineralization wireframe is defined on a 0.1 g/t Au cut-off.
The Inverse Distance Cubed (ID3) method which gives a fairly high level of selectivity was utilized in the resource estimate to ensure that zones with internal waste remained distinct. The resource models were validated visually by sectioning, running a parallel estimate using Ordinary Kriging and by Swath plots.
The Micon staff with responsibility for these resource estimates are Messrs Alan J. San Martin, MAusIMM(CP) and Charley Murahwi, P.Geo, FAusIMM. All are Qualified Persons as defined in NI 43-101, and are independent of Premier Gold Mines.
The mineral resource estimates used the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by CIM Standing Committee on Reserve Definitions and adopted by CIM Council on November 27, 2010. The mineral resource estimates are classified as "measured", "indicated", or "inferred" as defined by CIM.
Historic Mine Photos