PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that ongoing drilling at the Hardrock Project in Geraldton, Northwestern Ontario continues to intersect high grade open pit style mineralization in the EP-Zone target. Intersections that include 4.56 grams per tonne gold (g/t Au) across 24.5 metres (m) in hole EP029, 3.04g/t Au across 31.3m in hole EP031, and 2.63g/t Au across 43.5m in hole EP032 suggest strong tonnage potential as drilling progresses into the heart of the EP-Zone. These intersections are located 50m and 100m west of a previously announced intersection of 2.37g/t Au across 62.7m in hole EP026. This drilling continues to identify significant near surface (open pit-style) mineralization contained within multiple zones and further supports management’s belief that high grade potential exists proximal to mine workings.
Recent highlights include:
- EP-Zone mineralization has been intersected over a minimum strike length of 400 metres and remains open in all directions.
- The above mentioned intersections are contained within the north limb of the EP-Zone. Drilling is ongoing in the South Limb (assays pending) along strike from a previously announced intersection of 11.83 g/t Au across 11.4 m.
“These drill results further demonstrate the potential of the EP-Zone and confirm the high-grade open pit resource potential of the Hardrock Project”, stated Ewan Downie, President of Premier. “We have now intersected gold mineralization in four target areas, with drilling yet to move into the confirmation phase of the sizeable historical resource”.
The EP-Zone is comprised of near-surface mineralization proximal to the historic North Zone mine workings from which nearly one million ounces of gold was produced to a depth of 2,000 feet. Drilling has identified multiple sub-zones within the iron formation-hosted South (SL) and North (NL) Limbs of the EP target. Significant mineralization has been intersected over a strike length of 400 metres, to depths of up to 150 metres, and remains open in all directions.
The following table of results demonstrates continuity and grade within the EP-Zone, supporting management’s belief that historic and new results will be utilized in a NI43-101 compliant resource calculation which is expected to be completed in Q4 2009.
|HOLE-ID||ZONE||FROM (m)||TO (m)||INTERVAL (m)||GRADE (g/tonne)||INTERVAL (ft)||GRADE (oz/t)|
|EP027||NL - B||5.0||6.0||1.0||5.84||3.3||0.17|
|EP028||NL - B||40.0||51.9||11.9||1.01||39.0||0.03|
|EP029||NL - C||34.5||39.0||4.5||3.46||14.8||0.10|
|NL - B||54.0||78.5||24.5||4.56||80.4||0.13|
|EP033||NL - B||10.0||24.0||14.0||0.55||45.9||0.02|
|EP034||NL - C||14.5||22.3||7.8||0.90||25.6||0.03|
|NL - B||38.7||43.8||5.1||3.19||16.7||0.09|
|EP035||NL - B||25.0||43.8||18.8||2.04||61.7||0.06|
|EP036||NL - B||13.7||15.0||1.3||27.82||4.3||0.81|
* True widths estimated at approximately 70% of intersection width ** previously announced intersection
The current program at Hardrock is expected to consist of more than 50,000 metres of definition and exploration drilling. The Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced more than 2.0 Million ounces of gold from the same deposits to shallow depths of some 2000 feet (600 metres) from 1938-1968. The mined zones remained open at depth at the time mining ceased and developed historical resources were left in place within the existing mine workings (a qualified person has not done sufficient work to verify the historical resource, the company is not treating the historical resource as a current resource and the historical resource should not be relied upon) . Importantly, the Hardrock Project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario’s major gold mines including:
- Open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo)
- Broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite)
- Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake)
Initial drilling is focusing on delineating both open pit and underground resources with the goal of defining a multi-million ounce gold resource that can be moved quickly towards development (See references to historical resources above.). The Project offers development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or located proximal to, the property. Significant potential exists for developing resources in several areas including: 1) Open pit-style mineralization at the site of the original discovery where a resource containing several hundred thousand ounces of gold was partially drilled off by previous operators; 2) Several newer high-grade discoveries have been made throughout this large property package that have received little to no follow-up; 3) Resource blocks reported to remain within the mine workings; and, 4) The main mined zones which remain open below the 600m level
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 assay results presented are from core samples sent to Activation 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 a well financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Red Lake Gold Mines and the Company has recently signed an Option Agreement to acquire a 100% interest in the strategic Lennie Red Lake Property. The company also owns a strategic project located on the main Musselwhite Gold Mine trend.