Premier Gold Mines Limited (TSX-PG)
is pleased to provide an exploration update for the Company's 100% owned Trans-Canada Project in Northwestern Ontario. The current drill program is focused on delineating and expanding several high grade gold zones in advance of completing an updated resource (expected to be released in Q1 2012) and a Preliminary Economic Assessment (expected to be released in Q2 2012) that will consider a range of possible development options to optimize the multiple deposits that comprise Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits.
Four zones are currently being drilled including the HGN, F2, North Shear and Key Lake (West Extension). The HGN and F2 zones are located proximal to the historic mine workings and remain open both up and down plunge. The North Shear is a new discovery located between the Hardrock and Little Long Lac Mines and the West Extension target is a high grade target along strike from the Key Lake deposit that was acquired through Premier's acquisition of Goldstone Resources earlier in 2011. These zones have characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces produced at a grade of 31.5 g/t) Gold Mines that are located on the Trans-Canada Project.
A presentation on the high-grade target zones and a full table of results are available on the Company's website, www.premiergoldmines.com
. Highlights from recent drilling include:
- F2 Zone - up-dip drilling returns 147.01 grams per tonne gold (g/t Au) across 2.0 metres (m) or 4.29 ounces per ton (oz/t) across 6.6 feet (ft) and 54.26 g/t Au across 3.0 m (1.58 oz/t across 9.8 ft)
- HGN Zone - 28.78 g/t Au across 3.5 m (0.84 oz/t across 11.5 ft)
- North Shear - 53.67 g/t Au across 2.5 m (1.57 oz/t across 8.2 ft)
- Key Lake (West Extension) - 12.70 g/t Au across 1.0m (0.37 oz/t across 3.3 ft)
"As we begin to prepare a development scenario relating to the multiple deposits that comprise the Trans-Canada Project, drilling is delineating several different styles of mineralization that will be used in our PEA" stated Ewan Downie, President and CEO of Premier. "The high grade zone targets are returning strong results that have the potential to improve the economics of the project and increase resources".
Initial drilling in the F2 Zone was completed in 2009 to follow-up an un-mined discovery that was made on the bottom level of the historic Hardrock Mine just prior to closure in 1968. The F2 horizon is characterized by parallel narrow-vein zones with strong mineralization and frequent visible gold.
Initial drilling (2009) in this horizon returned intercepts of 7.21g/t Au across 3.0 m (0.21 oz/t across 9.8 ft) and 121.00 g/t Au across 1.5 m (3.53 oz/t across 4.9 ft) in hole MM051, and 17.70 g/t Au across 1.5 m (0.52 oz/t across 4.9 ft) in hole MM073. Drilling completed earlier in 2011 returned multiple high-grade intercepts up to 251.00 g/t Au across 1.0 m (7.32 oz/t across 3.3 ft) in MM204. Follow-up drilling has returned 147.01 g/t Au across 2.0 m (4.29 oz/t across 6.6 ft) in MM204A, a wedge hole approximately 30 metres up-dip of MM204, and and 54.26 g/t Au across 3.0 m (1.58 oz/t across 9.8 ft) in EP153. A long section view of results returned in drilling the F2 Zone is provided in Figure 1 below. The F2 Zone is open for expansion both up and down-plunge.
Figure 1 - Long Section of F2 Zone
North Shear Horizon
The North Shear Horizon was discovered while drilling a previously untested area between the Hardrock and Little Long Lac mines on the Property. The discovery holes, drilled approximately 250 metres apart, assayed 6.15 g/t Au across 2.8 m (0.18 oz/t across 9.2 ft) and 4.30 g/t Au across 2.3 m (0.13 oz/t across 7.5 ft). Follow-up drilling has intersected high-grade gold mineralization approximately 150 metres down-dip of a previously intersected mineralized shear structure that returned 3.01 g/t Au across 3.7 m. Drill hole HR086, the deepest hole drilled to test this structure, returned 53.67 g/t Au across 2.5 m (1.57 oz/t across 8.2 ft) as shown in Figure 2 below. This zone remains wide open for expansion and will be the subject of future drilling.
Figure 2 - Section of North Shear Target
Key Lake - West Extension
The Key Lake deposit is located 12 kilometres along strike to the west of the Hardrock Deposit and is being evaluated to form part of the NI43-101 mineral resource estimate update for the Trans-Canada Project that will be completed for release in Q1 of 2012. The current drill program has successfully extended mineralization approximately 600 metres along strike to the west of the core area at Key Lake, with the best results coming from the westernmost drilling where including 17.50 grams per tonne gold (g/t Au) across 1.4 metres (m) (0.51 oz/t across 4.6 feet), 21.77 g/t Au across 5.35 m (0.63 oz/t across 17.6 feet) in KL-11-157.
Ongoing drilling is testing the down-plunge potential of one of the interpreted higher-grade "shoots" within the West Extension area of the deposit. This drilling has consistently encountered the target horizon, an altered quartz-porphyry dike with quartz veining hosting minor pyrite, arsenopyrite and rare visible gold. Only assays for one of several step-out holes have been received with an intersection of 12.70 g/t Au across 1.0m (0.37 oz/t across 3.3 ft)
. Additional assays are pending. The Key Lake deposit will be evaluated for its potential to be included in the Company's future Preliminary Economic Assessment of the Trans-Canada Project.
The High Grade North Zone (HGN) is a new zone discovered by Premier in 2009 immediately north of the historic mine workings and below the proposed EP-Zone open pit. The discovery hole contained appreciable visible gold and returned one of the most impressive holes ever drilled at Hardrock - 1,141.50 g/t Au across 2.0 m (33.29 oz/t across 6.6 ft).
Drilling has now established gold mineralization in the HGN over a plunge length of more than 500 metres where it remains open
. In addition to the discovery hole, earlier results returned assays of 49.81 g/t Au across 6.0 m (1.45 oz/t across 19.7 ft) in EP118, 12.99 g/t Au across 1.5 m (0.38 oz/t across 4.9 ft) in OR005 and 28.78 g/t Au across 3.5 m (0.84 oz/t across 11.5 ft) in EP149. Assays for several mineralized intercepts are pending.
Additional drilling has intersected significant mineralization in other zones including: the Tenacity South (TNS) Zone where recent intercepts included 37.49 g/t Au across 2.1 m (1.09 oz/t across 6.9 ft) in HR053, 10.89 g/t Au across 10.0 m (0.32 oz/t across 32.8 ft) in HR054, 44.39 g/t Au across 5.3 m (1.29 oz/t across 17.4 ft) in HR058 and 10.90 g/t Au across 2.0 m (0.32 oz/t across 6.6 ft) in HR076; the Porphyry Zone (P Zone) with new intercepts of up to 29.10 g/t Au across 1.0 m (0.85 oz/t across 3.3 ft) in MM233A and 96.90 g/t Au across 1.0 m (2.83 oz/t across 3.3 ft) in MM204A; and the South Porphyry Zone (SP) with new intercepts of up to 8.28 g/t Au across 7.0 m (0.24 oz/t across 23.0 ft) in EP156.
The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968, and several deposits that are being explored by Premier including the Hardrock and Key Lake Deposits.
The Hardrock Deposit is host to a (NI) 43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011. An updated resource estimate will be completed following the completion of the 2011 drill program, and is expected to be released in Q1 2012. The Trans-Canada Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites. Significant services and a skilled labour pool exist with several communities located in close proximity.
More complete assay data and a presentation material relating to the high-grade zones discussed in this press release can be found on the Company's website, www.premiergoldmines.com
Table 1 provides a summary for several highlight intercepts recently received from several zones at the Trans-Canada Project.
Table 1 - Selected assay results from drilling at Trans-Canada
* - Previously released ** - True widths are estimated at 60-80% of intersection width
||Key Lake -
Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, or to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.
Premier Gold Mines Limited
is one of North America's leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.
For further information, please contact:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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