Thunder Bay, October 2, 2019 - Premier Gold Mines Limited (TSX: PG) (OTCPK: PIRGF) (“Premier”, “the Company”) is pleased to announce an update on its 42,000 m core drilling program at the Company’s 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The 2019 drilling campaign is currently focused on delineating new mineral resources in the Lupita Extension, while exploration is still testing potential at Neo (Figure 1). Highlights from August and September include, in true thickness:
- 3.6 m of 7.18 g/t Au & 54.38 g/t Ag (L19-441D)
- 1.8 m of 24.24 g/t Au & 1.79.43 g/t Ag (L19-445D)
- 3.4 m of 10.47 g/t Au & 63.60 g/t Ag (L19-448D)
- 4.4 m of 8.86 g/t Au & 66.69 g/t Ag (L19-451D)
- 3.1 m of 13.65 g/t Au & 80.01 Ag g/t (L19-429D) at Neo, within a stockwork system similar to Diluvio
“Our Lupita Extension drilling is returning intercepts well in excess of average production grades,” commented Stephen McGibbon, Executive Vice-President. “Early results from the San Martin/Neo target area suggest that our 2020 campaign will confirm the potential for significant resource expansion as well”.
The Phase 2 infill program at Lupita Extension continues to increase potential resource mineralization by demonstrating the continuity of the vein to the west. Figure 1 presents the evolution of the grade thickness map from the beginning of 2019 to today. New results are enlarging the high-grade zones, as well as defining its limit, which will guide the focus of future drilling.
Drilling will delineate the mineralized footprint discovered in 2019 with a 30 m x 30 m grid over the area. In August and September, a total of 34 drill holes, representing 5,855 m of drilling, were completed. An additional 12 drill holes assay results are pending.
Neo represents a potentially new discovery at Mercedes, located 400 m north of San Martin. It was identified as a possible extension to the Diluvio system due to geological similarity. The first hole followed up an historical drill hole, L15-258D that contained 1.53 m @ 6.95 g/t Au & 4.00 g/t Ag. L19-429D, located 110 m to the east, successfully returned 3.1 m of 13.65 g/t Au & 80.01 g/t Ag. Two additional holes drilled to the east had low-grade results, one of which was hosted within 30 m of the same host rock as Diluvio. Drilling in 2020 will further test the potential to expand the mineralization up to 900 m east to Diluvio.
Figure 1 – Grade x Thickness Map of Lupita Area
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.”
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. Premier remains focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; South Arturo and Mercedes, and through future mine development opportunities at Hardrock in Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing and McCoy-Cove in Nevada.
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.