PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update for the Company’s 100% owned Hardrock Project, located near Geraldton, Ontario. The current drill program at Hardrock consists of some 36,000 metres of drilling designed to upgrade the Inferred portion of the open pit mineral resource estimate to Indicated (See Table 1 for current Hardrock mineral resource estimate). As of Sept 16, 2014 some 9,100 metres and 26 drillholes, representing 25% of the planned program has been completed. Initial drilling has been successful in intersecting mineralization within multiple horizons. Results from this program will be incorporated in an updated mineral resource estimate for Hardrock that will be used in the Feasibility Study planned for release in H1 2015. Highlights from this current program include:
- High grade intercepts within the primary resource area include 10.15 grams per tonne gold (g/t Au) across 3.1 metres (m) in hole MM597, 25.93 g/t Au across 2.5 m in hole MM598, and 5.75 g/t Au across 9.9 m in hole MM599.
- Broad intercepts, inclusive of the high grade above, within the primary resource area include 3.25 g/t Au across 23.0 m in hole MM598, 3.01 g/t Au across 37.5 m in hole MM599, and 0.87 g/t Au across 16.0 m in hole MM604.
“Drilling is progressing with four drills, which will ensure all new data will be integrated into an updated mineral resource model early in 2015.” stated Stephen McGibbon, Executive Vice-President of Premier Gold.
Open Pit Infill Drilling
The current drill program is designed to confirm continuity of mineralization and to upgrade the remaining 501,000 ounces of “Inferred” mineral resources to “Indicated” within the open-pitable portion of the Hardrock deposit as reported by the Company on July 8, 2014 and presented in Table 1.
Table 1: 2014 Hardrock Deposit Mineral Resource Summary
|Cut-off Category||Resource Category||Tonnes (’000)||Gold (Au) Grade (g/t)||Au Ounces (’000)|
|Open Pit (O/P)||Indicated (I)||83,868||1.47||3,972|
|>0.5 g/t Au||Inferred||10,225||1.53||501|
|Underground (U/G)||Indicated (I)||5,169||5.40||898|
|>3 g/t Au||Inferred||12,922||5.40||2,242|
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 July 4, 2014.
* 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.
* See Technical Report Filed on Sedar August 22, 2014
Table 2 provides a summary of highlight results from the currently active drill program. No holes within the primary pit area returned “no significant values” (less than 0.50 g/t Au) only and one hole was abandoned. No individual assays in drillholes in Table 2 exceed assay capping thresholds established for the current Hardrock mineral resource estimate.
Table 2: Selected Assay Results from the Hardrock Open Pit Infill Program
* True widths estimated at 60-70% of intercept; Domain designations may be adjusted in future
Premier is encouraged by the results presented in Table 2, which are broadly comparable to previously released drill results in the same area. Premier cautions the reader that they represent only a portion of an overall program designed to upgrade confidence in the Hardrock deposit mineral resource estimate. As such, the final impact of these holes on the future mineral resource estimate cannot be reliably determined at this time.
The Hardrock Project is one of four gold deposits that make up the Trans-Canada Property, and was the subject of a Preliminary Economic Assessment (PEA) Study released by the Company on January 28, 2014. Hardrock has potential development advantages given the Trans-Canada Highway, the Trans-Canada Pipeline, and major power lines that run through or are in close proximity to the main deposit area. Significant services and a skilled labour pool also exist within several communities located in close proximity.
Overburden Stripping, Mapping & Channel Sampling
Premier Gold Mines is in the midst of conducting an overburden stripping, mapping and channel sampling program, in order to increase the precision of the geologic model and to demonstrate the nature of continuity of mineralization within the deposit. A total of 700 linear metres of north striking channels spaced along lines 5 metres apart and represented by 751 total samples, have been processed for the F and SP target areas, part of the Porphyry Domain region. No individual assays from the channel sampling program to date exceed assay capping thresholds established for the current Hardrock mineral resource estimate. It is estimated that 60% of the overall mapping and channel sampling program has been completed.
Overburden stripping at the F Zone target has exposed an outcrop area of 1,200 square metres. The outcrop has been mapped and had 128 total samples collected in 0.6 to 1.5 metre intervals along eight north-south oriented channels. The range of grades in the samples collected vary between 0.02g/t Au and 45.00 g/t Au. An average (uncapped) grade of 1.99 g/t Au over an area of 1,200 square metres occurs within the stripped area. Overburden stripping at the SP Zone target has exposed an outcrop area of 4,250 square metres. The outcrop has been mapped and had 623 total samples collected in 1.0 to 1.5 metre intervals along nine north-south oriented channels. The range of grades in the samples collected vary between 0.03 g/t Au and 38.90 g/t Au. An average grade of 0.50 g/t Au over the entire area of 4,200 square metres occurs at this site. Detailed mapping along with gold assay results support Premier’s litho-structural interpretation of the Hardrock deposit in these areas. Ongoing mapping and channel sampling at the Company’s 4,000 square metre Headframe East stripped area is progressing well.
Premier is encouraged by preliminary results of the outcrop mapping and sampling program to date, but cautions the reader that these results represent only a portion of an overall program designed to upgrade confidence in the Hardrock deposit mineral resource estimate. As such, the final impact of these sample results on the future mineral resource estimate cannot be reliably determined at this time.
The Hardrock PEA Study was prepared as an open-pit only mining project related solely to the mineral resources estimate reported by the Company on October 29, 2013 (press release “Premier Gold Releases Updated Mineral Resource Estimate on Hardrock Deposit”). The PEA Study demonstrates the potential for an open pit operation with a 15 year mine life and producing more than 200,000 ounces of gold per year (see Technical Report Filed on Sedar March13, 2014).
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, for preparation and analysis utilizing both fire assay and screen metallic methods.
Premier Gold Mines Limited is one of North America’s leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is well financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends in Nevada.
This Press Release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier Gold’s annual information form under the heading “Risk Factors”. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.