Premier Provides Mid-Year Update on Projects
Premier Gold Mines Limited (TSX-PG) is pleased to provide an update of ongoing exploration and development programs at multiple project sites. The 2017 programs include surface exploration, sustained drilling efforts and development initiatives at several operations.
Underground drilling along strike from the Corona de Oro mine workings has discovered additional high-grade mineralization with intercepts including 116.39 g/t Au & 120.7 g/t Ag across 1.5 metres and 19.84 g/t Au & 700.4 g/t Ag across 3.2 metres.
Development has now reached the Diluvio deposit, located along trend from the Lupita mine workings. Surface and underground drilling continues to define the mineralized horizon prior to mine planning. Step-out drilling has expanded the Diluvio deposit with intercepts up to 10.92 g/t Au & 84.8 g/t Ag across 3.05 metres and 5.17 g/t Au & 13.5 g/t Ag across 30.60 metres.
Underground development (drifting) is underway to access the Marianas Zone, located down-plunge of the Lagunas mine workings. Underground drilling to convert the Marianas Zone from resource to reserve will commence in late 2017.
Definition and expansion drilling continues at McCoy-Cove. Recent highlights include multiple intercepts including 29.52 g/t Au & 8.48 g/t Ag across 5.9 metres and 19.72 g/t Au & 7.29 g/t Ag across 14.3 metres in the Helen and Gap deposits, the identification of widespread alteration and gold mineralization at the Windy Point exploration target, and potentially significant gold mineralization in a target area approximately 1 km south of the main deposit.
“Production costs at our mines, as measured by Cash Cost and All-in-Sustaining-Cost (AISC) metrics, are among the best in the industry,” stated Ewan Downie in the Company’s c-suite blog (https://www.premiergoldmines.com/news/c-suite-blog/all ), “Actively advancing our pipeline of exploration and development projects will sustain the growth trajectory we have firmly established since becoming a producer.”
Mercedes Mine, Sonora State, Mexico
Mercedes reported solid first quarter production of 22,164 ounces of gold and 88,572 ounces of silver and remains on track with 2017 guidance.
Drilling is focused on defining and expanding mineralization in the existing gold horizons and exploring for new veins on the property. The 50,000 metre program is one of the most extensive exploration campaigns in the history of the mine with up to ten surface and underground drills to be active on the property.
Successful results to date include numerous high grade intercepts at Corona de Oro, and in definition and expansion drilling at Diluvio. Diluvio is expected to become part of the mine plan during the second half of the year. Underground crews have commenced access to two additional deposits (Marianas and Rey de Oro) for drilling and development purposes. Drilling at the prospective Marianas Zone is targeted to begin in Q4-2017.
Table 1 Highlights of Results from the Mercedes Mine 2017 Drill Program
|Hole ID||Target / Zone||From (m)||To (m)||Interval (m)||Au (g/t)||Ag (g/t)|
|UG-LG17-002||Lagunas LG 930||22.9||30.1||7.7||4.56||43.40|
|C017-910DL-022||Corona de Oro CDO-910||20.5||22.0||1.5||24.40||138.00|
|CO17-910DL-023||Corona de Oro CDO-910||19.0||20.5||1.5||116.39||120.70|
|CO17-910DL-024||Corona de Oro CDO-910||19.5||24.2||4.7||13.94||635.80|
Note: True widths are currently estimated at 60-80% of the core Interval
South Arturo Mine, Carlin Trend, Nevada
Mining at the Company’s 40%-owned South Arturo Mine resulted in a solid first quarter with production of 28,815 ounces of gold. The mine remains on track to meet 2017 guidance. The joint venture (with Barrick Gold) is assessing additional development initiatives including the potential El Nino underground mine and Phases 1 & 3 open pit opportunities.
Access permits have been submitted for an underground ramp from the bottom of the current Phase 2 pit to the El Nino deposit. Following the completion of mining, drilling is planned in H2-2017 from the pit to further define the deposit in advance of potential development. Barrick is performing multiple phases of work, including bulk sampling for metallurgical purposes, in order to refine the economics of additional open pit mining at South Arturo that have been previously permitted. Some drilling is planned for the additional pit areas during 2017 and exploration drilling will test a new area to the west of the current open pit mine.
McCoy-Cove Project, Battle Mountain Trend, Nevada
In March, Premier released an updated mineral resource estimate for the Company’s 100%-owned McCoy-Cove Property, located 32 miles south of Battle Mountain in Lander County, Nevada. The estimate, completed by RPA Inc. of Toronto, Ontario includes:
- Total Indicated Mineral Resources of 614,000 tonnes grading 11.57 g/t Au (228,000 ounces)
- Total Inferred Mineral Resources of 3,378,000 tonnes grading 12.17 g/t Au (1,322,000 ounces)
Drilling is focused on defining and expanding mineralization in the existing gold horizons and testing additional targets on the property. Highlights from the 2017 program are provided in Table 2 below.
Table 2 Highlight Results from the 2017 McCoy-Cove Drill Program
|Hole ID||Target / Zone||Az/Dip (Degrees)||From (m)||To (m)||Interval (m)||Au (g/t)||Ag (g/t)||Interval (ft)||Au (oz/t)||Ag (oz/t)|
|PG17-01||Helen||48/-48||Abandoned (Pre-collar deviation)|
|PG17-05||Helen||201/-86||No Significant Values|
|PG17-12||CSD Gap||203/-46||Abandoned (Pre-collar deviation)|
|PG17-15||CSD Gap||41/-70||Abandoned (Pre-collar deviation)|
|PG17-16||Deep IP||133/-85||No Significant Values|
|PG17-17||CSD Gap||Abandoned (Pre-collar deviation)|
|PG17-19||Windy Point||71/-45||No Significant Values|
Note: True widths are currently estimated at 60-90% of the core Interval
Drilling at the Windy Point exploration target (holes PG17-13 & 14), located 1 km northwest of the main deposit has identified a broad zone of alteration and gold mineralization. Locally, higher grade intervals may be indicative of a new area with the potential to host Helen/Gap style deposits. Drilling has also intersected gold mineralization within the same host rock unit as the main deposit approximately 1 km south of the Helen/Gap resource in a previously untested area midway between the historic Cove and McCoy pits (hole PG17-20).
Positive drill results to date support the next stages of development for the project including hydrological flow tests, a full suite of metallurgical test work, and the completion of a Preliminary Economic Assessment (‘PEA’) by year end.
Greenstone Gold Mines
At the Greenstone Gold Property work continues to advance the project toward submission of Federal and Provincial EA & EIS documentation required for the receipt of permits. It is expected that the EA and EIS documents will be submitted in early Q3-2017. Additionally, the Partnership continues to support the advancement of Long Term Relationship Agreements with local Aboriginal communities and optimize the mine plan.
Premier also remains active on its earlier stage exploration stage projects including:
- Goldbanks Property in Nevada that is under option from Kinross Gold (Premier earning 50%)
- Hasaga Property in the Red Lake camp (100% owned)
- Alto-Christina Property in Mexico that is under option from Goldcorp Inc. (Premier earning 100%)
At Goldbanks, Premier has focused on detailed re-logging of the historic drill holes to gain a better understanding of the structural controls in the Golden Devil area. Previous results includes up to 192.00 g/t Au and 10,850.00 g/t Ag over 1.1m (5.61 oz/t Au and 316.46 oz/t Ag over 3.7 ft). The first phase of drilling will test multiple structural intersections across the property in an effort to define the Golden Devil Zone and potentially identify additional high-grade targets along strike.
The Hasaga Property is host to the past-producing Hasaga and Gold Shore Mines and is strategically-located proximal to the Balmer-Confederation regional unconformity, an important geologic feature of the Red Lake mining camp. Earlier this year, Premier reported a potentially open-pitable mineral resource estimate for Hasaga of 1.124 million ounces (42.294 Mt @ 0.83 g/t Au ) Indicated and 0.631 million ounces (25.143 Mt @ 0.78g/t Au) Inferred resources (See January 11, 2017 press release[RL1] ) based on 109,000 metres of drilling conducted in 2015 and 2016. The 2017 22,500 metre exploration drill program is designed to test the potential for deeper higher grade extensions of this mineralization. Historic drilling completed by previous operators that returned high-grade gold mineralization has not been adequately followed up. These historic results, when combined with the March release of hole HMP151 (10.94 g/t Au across 54.0m), may represent mineralization that appears consistent with that of the C-Zone at the historic Hasaga Mine. Premier believes that establishing continuity and scale to this potential C-Zone extension at depth represents a highly attractive underground opportunity.
The Alto-Christina Property is under option from Goldcorp Inc. and is host to multiple poly-metallic horizons that were discovered in 2013 by Goldcorp and the subject of several drill campaigns prior to Premier’s involvement. Current drilling is designed to assess the continuity in the Guadalupe Vein where previous drilling returned elevated gold-silver-base metal mineralization over a strike length of some 1.1 km.
Premier AGM and Investor Update June 22, 2017
Premier Gold Mines Limited is pleased to invite its shareholders and investors to meet senior management and board of directors of the Company at its Annual and General Meeting to be held at 4:00pm EST on June 22, 2017 at the Board of Trade, 1 First Canadian Place, Toronto, Ontario. The AGM will be followed by a corporate presentation at 4:30pm EST and a reception.
For those that cannot attend in person the presentation can be viewed at 4:30pm EST via webcast from the company’s website www.premiergoldmines.com or via the link below.
The webcast replay will be available 9:00am EDT on June 23, 2017 until 11:59 pm EST on June 21, 2018 from the above link.
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 at Hasaga are from core samples sent to Activation Labs, an accredited mineral analysis laboratories in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods. Assay results for McCoy-Cove are from RC and core samples sent to ALS Laboratories in Reno, Nevada for analysis with the analytical facility utilizing 30 gram fire assay with an AA finish and ICP-MS 42 element scan from 4-acid digestion. Over-limit samples receive an automatic gravimetric finish. Assay results for Goldbanks are from RC and core samples sent to American Assay Laboratories in Reno, Nevada for analysis with the analytical facility utilizing 30 gram fire assay with an AA finish and ICP-MS 50 element scan from 4-acid digestion. Over-limit samples receive an automatic gravimetric finish. Mercedes and Alto Cristina samples are from core samples sent to ALS Chemex an accredited mineral analysis lab in Vancouver, Canada for preparation and analysis by fire assay and ICP methods.
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.
For further information, please contact:
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 production and exploration potential and the Mercedes mine, South Arturo, McCoy-Cove and Hasaga, 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, preliminary economic assessment 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.
[RL1] You need tonnes and grade here when reporting resources estiamtes or you will eventually get called out my the exchange. Otherwise, just leave the numbers our and call in a potential open pittable resource and refer to the previous release.