THUNDER BAY, January 29, 2019 - Premier Gold Mines Limited (“Premier” or “the Company”) is pleased to provide an update on exploration drilling completed in 2018 at the Company’s South Arturo Property located in the Carlin Trend of Nevada.
The South Arturo Property is a Carlin-style gold deposit that hosts mineralization within the Silurian-aged Bootstrap Limestone at the contact with the Rodeo Creek Formation. The property is a joint venture between Premier (40% ownership) and operator Barrick Gold Exploration Inc. (“Barrick”), which processes ore at their Goldstrike facility located 5 km to the south.
Drilling was focused on near-surface mineralization, potentially amenable to heap leach processing (based on initial cyanide solubility or “AuCN” results) and higher-grade mineralization at depth. Highlights include:
- 25.9 m of 5.84 g/t Au (BD18-05C) in the East Dee Target including 10.7 m of 8.39 g/t Au
- 21.3 m of 4.50 g/t Au (BD18-06) in the East Dee Target including 10.7 m of 8.27 g/t Au
- 21.3 m of 6.52 g/t Au (BD18-08C) in the East Dee Target including 4.6 m of 12.78 g/t Au
- 153.6 m of 1.36 g/t Au (BD18-18C) in the Phase 3 Open Pit target area
In 2019, processing of ore stockpiled from the Phase 2 pit will continue with efforts now shifted towards developing two new mining initiatives on the property; the Phase 1 open-pit and the El Nino underground mine. Both operations are now under construction with initial production from El Nino expected late in the year.
Phase 1 Open Pit – East Dee Target
Several holes were also drilled to test East Dee, an attractive target located immediately east of the Phase 1 pit that has the potential to become a new mining centre on the property. An infill drill program is planned for 2019. Multiple intercepts are highlighted in Table 1 below.
(AuCN data suggest recoveries>70%, except * where AuCN recoveries are lower than 70%)
Phase 3 Project
Phase 3 is a future open-pit development opportunity at South Arturo with the 2018 drill program targeting primarily heap leach mineralization. The program suggests the potential to expand mineralization beyond the currently modeled pit shell (see Figure 1) and work in 2019 will focus on de-risking this potential future phase of mining including additional metallurgical characterization on heap leach material. Table 2 summarizes highlight results from the 2018 drill program at Phase 3. Highlights include:
- 1.36 g/t Au across 153.6 m in hole BD18-18C
- 1.34 g/t Au across 24.4 m in hole BD18-19C
- 1.32 g/t Au over 21.3 m in hole BD18-14C
- 0.95 g/t Au over 18.3 m in hole BD18-16C
(AuCN data suggest potential for>70% except ** not analyzed for AuCN. True width estimated at 85% of the intercept)
Exploration drilling in 2019 will be focused primarily on East Dee, El Nino, and high priority exploration targets proximal to the pits. Definition drilling at East Dee will be designed to establish mineral resources with a high level of confidence. Drilling at El Nino will focus on reserve definition and expansion. Additional drilling will test prospective structures proximal to existing and new mine infrastructure.
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. The primary assay laboratories for the South Arturo Mine are ALS Chemex Labs (ALS Chemex) and American Assay Labs (American Assay) in Reno, Nevada. For a complete description of sample preparation, analytical methods and QA/QC procedures, refer to the technical report for the South Arturo dated March 26, 2018 (effective date December 31, 2017), entitled “Technical Report on the South Arturo Mine, Elko County, State of Nevada, USA” located on Premier’s website and at www.sedar.com.
Premier Gold Mines Limited is a gold-producer with a respected exploration and development pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico.
For further information, please contact:
Ewan Downie, President & CEO
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’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 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.