Includes 84.7 m of stockwork grading 6.31 g/t Au & 23.19 g/t Ag at Diluvio West
Thunder Bay, June 3, 2020 - PREMIER GOLD MINES LIMITED (TSX:PG) (OTCPK: PIRGF) (“Premier”, “the Company”) is pleased to announce an update on its delineation core drilling program at the Company’s 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West (See Figure 1, Table 1). Highlights from Q1 2020 drilling include:
- Diluvio West returns multiple high-grade intercepts that include:
- 84.7 m of 6.31 g/t Au & 23.19 g/t Ag (UG-DI20-096)
- 73.5 m of 6.38 g/t Au & 13.65 g/t Ag (UG-DI20-095)
- Marianas delineation drilling expands high grade in multiple horizons with:
- 5.2 m of 11.67 g/t Au & 55.72 g/t Ag (UG-MR20-056)
- 11.3 m of 9.74 g/t Au & 16.07 g/t Ag (UG-MR20-059)
“Our recent drilling from Diluvio West and Marianas confirm that these zones are emerging as important contributors to the future of Mercedes,” commented Stephen McGibbon, Executive Vice-President. “The results of our Q1 program have provided some of the best intercepts realized over the past several years with grades well exceeding current reserves. We look forward to expanding on these now that drilling has been reactivated.”
Figure 1 – Mercedes Trend location map
Diluvio consists of a stockwork system that is divided into Diluvio Central, hosted in felsic volcanoclastic, and Diluvio West hosted in an andesite. The volcanoclastic host is more permeable than the andesite, allowing fluid to disperse whereas the andesites retain the gold-rich fluid longer, enhancing grade at Diluvio West versus Diluvio Central.
Because of the mineralization acting more as a broad envelope than discrete veins, bulk mining methods will be used at Diluvio West to recover the stockwork system, as was done at Diluvio Central. The underground delineation program is underway to increase confidence in the grade and convert the core of the deposit into a mineral reserve. This program has returned some large intercepts of high grade within the core of the zone and has helped outline the extent of mineralization (Figure 2).
Results from the Diluvio West underground delineation program contain a major interval in UG-DI20-096 of 84.7 m of 6.31 g/t Au & 23.19 g/t Ag that includes 10.5 m of 15.89 g/t Au & 31.43 g/t Ag and 14.2 m of 9.74 g/t Au & 30.63 g/t Ag. UG-DI20-095, higher in the zone, intercepted 73.5 m of 6.38 g/t Au & 13.65 g/t Ag. UG-DI20-085, located within the upper part of the zone, intersected a thick high-grade interval of 49.2 m of 3.13 g/t Au & 9.20 g/t Ag including 11.5 m of 5.80 g/t Au & 11.96 g/t Ag.
These intervals support confidence in the high-grade core of Diluvio West. Other drill holes tested the edge of the zone and still returned quality intercepts, including 13.5 m of 3.80 g/t Au and 10.89 g/t Ag (UG-DI19-077) and 5.9 m of 2.44 g/t Au and 19.62 g/t Ag (UG-DI19-089). The ongoing delineation program is designed to upgrade and possibly expand the mineral resource. Diluvio West is located immediately adjacent to existing mine workings and can be advanced quickly into development.
Figure 2 – Diluvio West delineation update
Marianas represents the down-plunge extension of the main Mercedes mine trend (Figure 1). A delineation program is currently getting drilled, with 3,000 m planned for the remainder of the year. This program is completed from a nearby ramp driven from the Lagunas mine workings, which will be used for future mine development (Figure 3).
Significant results were intercepted in the core of the mineral resource at Marianas. Locally, the grade and width of mineralization being intersected are significantly exceeding expectations (Table 2) with intercepts of up to 11.3 m of true width grading 9.74 g/t Au and 16.07 g/t Ag (UG-MR20-059). The drilling completed during Q1 upgrades the core of Marianas with expanding size and grade, with still more opportunities to augment.
Figure 3 – Marianas delineation update
Premier Gold Mines Limited is a gold-producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible, and safe mining jurisdictions in Canada, the United States and Mexico.
Julie-Anaïs Debreil, Ph.D., 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. Mercedes assay results are from core samples sent to ALS Chemex, an accredited mineral analysis laboratory in Lima (Peru) or Vancouver (Canada), for preparation and analysis utilizing both fire assay and ICP methods. For a complete description of Mercedes’s sample preparation, analytical methods and QA/QC procedures refer to the technical report for the Mercedes Mine dated April 18, 2018 (effective date December 31, 2017), entitled “Technical Report on the Mercedes Gold-Silver Mine, Sonora State, 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, mineral resource and mineral reserve estimates 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.