PREMIER GOLD MINES LTD (TSX:PG) is pleased to release full assay results, including several new values, from the initial 23 holes drilled at the Santa Teresa Concession in Baja California, Mexico. These new results, with intercepts as high as 24.40 grams per tonne (g/t) or 0.71 ounces per ton (opt) gold across 2.0 metres (m), and 14.9g/t Au (0.44 opt) across 3.04m continue to demonstrate the potential of this underexplored district.
Results to date, highlighted in Table 1 below, confirm the following:
- Drilling has discovered multiple high-grade veins up to 260 metres along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton.
- Results include multiple intercepts in excess of 1.0 oz/ton gold and up to 13.98 oz/ton Au (479.31 g/tonne) along core widths of between one and three metres within the Princessa structure.
- Results from hole ST005, the highest grade to date, occur some 210 metres SE of Princess, and at more than twice the depth of the deepest known mining at Princessa (possibly the entire district) and remains open at depth.
- Gold-bearing structures remain open in all directions
The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district’s largest gold producer), which was mined to a maximum depth of only 110 metres, and whose orebody was known to extend close to the northern boundary of the Santa Teresa Property. Gold production at El Alamo, a 16-kilometre long district, was halted at its peak owing to technological and political circumstances early in the 20th century. Since then, only minimal exploration has taken place, presenting a unique opportunity for Premier and it’s joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM).
Table 1 includes all assay results greater than 2.00 gpt gold for holes ST001 to ST023, with assay results greater than 10.0 gpt highlighted in yellow. New results are shown in the comment column to the right. Samples for a further 9 holes, primarily following up earlier intercepts, are pending. Several of these contained visible gold upon visual inspection of the core.
|HOLE-ID||ZONE||SECTION||FROM||TO||LENGTH||GRADE (GPT)||GRADE (OPT)||COMMENTS|
|ST001||HW BORRACHA||150 SE||112.0||113.0||1.0||2.31||0.07||NEW|
|ST004||150 SE||ALL ASSAYS < 2.00 GPT||NEW|
|ST005||HW PRINCESSA||210 SE||206.7||207.7||1.0||5.92||0.17||NEW|
|ST006||NEW||490 SE||173.8||175.3||1.5||64.42||1.88||PREVIOUSLY RELEASED|
|ST007||HW BORRACHA||100 SE||47.5||48.5||1.0||14.55||0.42||PREVIOUSLY RELEASED|
|ST007||FW BORRACHA||88.8||90.0||1.2||16.46||0.48||PREVIOUSLY RELEASED|
|ST007||FW PRINCESSA||163.0||164.0||1.0||17.04||0.50||PREVIOUSLY RELEASED|
|ST008||BORRACHA||100 SE||55.0||56.0||1.0||33.87||0.99||PREVIOUSLY RELEASED|
|ST008||FW PRINCESSA||121.1||122.1||1.0||39.41||1.15||PREVIOUSLY RELEASED|
|ST009||100 SE||ALL ASSAYS < 2.00 GPT||PREVIOUSLY RELEASED|
|ST010||BORRACHA||100 SE||142.1||143.0||0.9||2.46||0.07||PREVIOUSLY RELEASED|
|ST011||50 SE||ALL ASSAYS < 2.00 GPT||PREVIOUSLY RELEASED|
|ST012||QUINOTA||50 SE||52.6||53.6||1.0||2.01||0.06||PREVIOUSLY RELEASED|
|ST012||FW PRINCESSA||203.0||204.0||1.0||2.34||0.07||PREVIOUSLY RELEASED|
|ST013||BORRACHA||50 SE||25.0||26.4||1.4||6.37||0.19||PREVIOUSLY RELEASED|
|ST013||FW PRINCESSA||110.5||113.7||3.2||6.04||0.17||PREVIOUSLY RELEASED|
|ST014||00 SE||ALL ASSAYS < 2.00 GPT||PREVIOUSLY RELEASED|
|ST015||490 SE||ALL ASSAYS < 2.00 GPT||NEW|
|ST016||00 SE||ALL ASSAYS < 2.00 GPT||NEW|
|ST020||310 SE||ALL ASSAYS < 2.00 GPT||NEW|
|ST023||ALL ASSAYS < 2.00 GPT||NEW|
|ALL SIGNIFICANT ASSAYS GREATER THAN 2.00 GPT|
|INTERCEPTS GREATER THAN 10.00 GPT|
|PREVIOUSLY RELEASED HOLES MAY BE ADJUSTED DUE TO REPLICATE ASSAYING|
|* True widths estimated between 50-75% of intersection width|
The Santa Teresa Project is accessible by road, and is located approximately 100 kms southeast of Ensenada and about 250 kms south of San Diego, California, USA. A total of some 7,000 metres (22,800 feet) in 32 holes were drilled on Santa Teresa in 2008 up to the end of October.
Premier is attracted to the El Alamo District because of a unique history of high mined grades, but little modern exploration. The properties being explored by Premier and Sutter are:
- Located within a proven (some 220,000 ounces of past production) gold district.
- Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces per ton (opt).
- The majority of district production occurred within 120 metres of surface, but remains open at depth.
- Geologically similar to the historic Mother Lode District of California.
“We are seeing the Princessa structure emerge as a significant mineralized horizon several hundred metres southeast of the original mine.” commented Ewan Downie, President & CEO of Premier,
“Recent drilling included more tightly patterned holes in order to better understand the nature and distribution of gold within this system.”
Premier has secured the right to earn up to a 65% interest in the joint venture with SGMI at Santa Teresa. Recently, Premier announced that it had signed a Memorandum of Understanding (“MOU”) with Compania Minera Quasaro SA DE CV (“Quasaro”), a private, arms-length company, to purchase the “La Victoria Concession” located within the Santa Teresa Concession for the joint venture. Veins currently being explored in the Phase One program may extend along strike into La Victoria.
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, 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. A stringent QAQC program utilizing blanks, standards and replicates has been developed by Mark Payne, Consulting Geologist, for the STC joint venture. All sample prep and analysis is being conducted by American Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton fire assay and 500-gram 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. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and recently signed an agreement to acquire mineral properties in the Geraldton area from Barrick Gold.