PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that a third drill has been added at the company’s Hardrock Project in Northwestern Ontario. This program is expected to consist of more than 50,000 metres of drilling leading to NI43-101 compliant resources in 2009.
To date, multiple intervals of veining and mineralization have been intersected in the two initial targets, the EP and Oreo Zones. The third drill will begin testing a new style of target in the Geraldton District, the Tenacity Zone, where mineralization is closely associated with a folded ultramafic rock unit.
The EP-Zone is a near-surface, potential high-grade open pit, target consisting of mineralization up-dip and adjacent to the previously mined North Zone from which 2.97 Million tonnes of ore was mined at a grade of 7.54 g/t Au. The potential of the EP-Zone is highlighted by previous drill intercepts that include 4.06g/t Au across 25.6 metres and 7.34g/t Au across 15.2 metres. Initial drilling in the current drill program has intersected strong mineralization both north and south of the previously stoped out area.
Drilling at the Oreo Zone is testing a “gap” between the two main producing horizons at Hardrock, an area that has received little previous attention despite the fact that numerous interesting gold intersections have been returned from the limited underground drilling in this area. The first hole of the current program has intersected several vein and mineralized zones, in addition to strong mineralization adjacent to, and down-dip from, the North Zone.
The Hardrock 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 relatively shallow depths of approximately 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 will focus 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 (Although existing historical resources have been used as a basis for confirming target potential, there is been insufficient exploration data to define a mineral resource and it is not certain that further exploration will result in discovery of a mineral resource.) . The Project offers development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of 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.
The Hardrock Project is located in the heart of the Beardmore-Geraldton Greenstone Belt, a highly prospective high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers some of the most prospective geology in the region and is host to several past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold.
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 GH results 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. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and recently acquired mineral properties in Geraldton area from Barrick Gold.