PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”, “the Company”) is pleased to announce that drilling continues to define high-grade mineralization in multiple horizons at the Company’s Cove Gold Project, located along the Eureka-Battle Mountain Trend in Nevada. One highlight of the 2014 exploration program is the continued discovery of gold and poly-metallic mineralization, including massive sulphides, in the 2201 Zone discovery below the historic gold/silver open-pit Cove Mine.
New assay results from 9 holes completed demonstrate continuity in the Cove South Deep Zone and expand the mineralized envelope within the recently discovered 2201 Zone. Step-out drilling is being completed at 100-metre (m) increments, with mineralization having been intersected over an area approximately 350 m by 300 m and remains open in all directions. Highlights from recent drilling include:
2201 Zone Discovery highlight assay results
- PG14-08: 4.58 grams per tonne gold (g/t Au) or 0.13 ounces per ton (oz/t), 184.95 g/t Silver (Ag) (5.39 oz/t) and 4.26% combined lead-zinc (Pb-Zn) across 1.8 m or 6.0 feet (ft)
- PG14-10: 18.09 g/t Au (0.53 oz/t), 18.50 g/t Ag (0.54 oz/t) across 4.3 m (14.0 ft) and 12.36 g/t Au (0.36 oz/t) and 15.12 g/t Ag (0.44 oz/t) across 3.3 m (10.7 ft)
- PG14-15: 5.27 g/t Au (0.15 oz/t) and 22.73 g/t Ag (0.66 oz/t) across 21.9 m (72.0 ft) including 14.75 g/t Au (0.43 oz/t) and 51.36 g/t Ag (1.50 oz/t) across 2.4 m (8.0 ft)
- PG14-25A: 12.73 g/t Au (0.37 oz/t), 39.05 g/t Ag (1.14 oz/t) and 3.13% Pb-Zn across 7.5 m (24.7 ft)
CSD Zone highlight assay results
- PG14-22: 17.89 g/t Au (0.52 oz/t) and 13.06 g/t Ag (0.38 oz/t) across 3.4 m (11.0 ft)
- PG14-23: 15.09 g/t Au (0.44 oz/t) and 161.42 g/t Ag (4.71 oz/t) across 4.0 m (13.0 ft) and 6.17 g/t Au (0.18 oz/t) and 221.17 (6.45 oz/t) across 9.8 m (32.0 ft)
The highlight of the 2014 program is the exploration and development of the 2201 Zone, discovered in late 2013. The 2201 discovery, characterized by massive, semi-massive, sheeted veins and stringer mineralization was intersected in the deeper Dixie Valley formation, which was not previously known to be a significant ore host on the property. Mineralization within the 2201 Zone occurs approximately 225 metres (740 feet) below the historic Cove Pit, and in the vicinity of several “feeder” structures that were mined within the pit. An interpretation of thrust faulting deep within the 2201 Zone is emerging as new structural control that contributes to major ore zones, confirming Premier’s belief that these structures could also serve as conduits for mineralization in the rock units beneath the pit which have previously received little attention.
The Cove South Deep (‘CSD’) horizon is located approximately 50 metres (160 feet) below the limits of the historic Cove open pit mine and is similar to the Carlin-style mineralization in the Helen Zone. The CSD Zone was discovered near the end of mining at Cove in an area that had received very little previous exploration drilling.
Table 1 provides a summary of new results from follow-up drilling at Cove.
Table 1 - Select Assay Results for Cove Drilling in holes PG14-08 to PG14-25A with several holes abandoned or not yet drilled
|PG14-09A||4464876N/483362E||-45/311||No Significant Values|
Gravimetric assays used when available - true widths are unknown for this zone - assays provided are un-cut and rounded to nearest tenth
Image 1 - Satellite View of Cove Project
The Cove Gold Project forms part of Premier’s Cove-McCoy Property located along the Eureka-Battle Mountain Trend (See Image 1) that is host to numerous multi-million ounce producing and past-producing mines. The property is located in close proximity to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.
Premier recently announced that it has signed a binding Agreement with Newmont Mining Corporation (NYSE:NEM) (“Newmont”) to consolidate a 100% interest in the Cove-McCoy Gold Properties (See Press Release dated Aug. 5, 2014) by making staged payments to Newmont over 18 months (plus bonding) and will transfer to Newmont all land sections that comprise its South Carlin Project. Consolidating 100% interest in the combined Cove-McCoy property package (now totaling 31,000 acres or 48 square miles) provides Premier with a large core land package in the heart of one of the world’s most productive gold districts and the agreement includes the elimination of “back-in” rights previously held by Newmont as well as a revision of the royalty terms held by Newmont from a “potential” 5.0% Net Smelter Royalty (“NSR”) to a 1.5% NSR. Also, the agreement provides for a “good faith efforts” processing arrangement with Newmont over a 10-year period within a 12-year window for ores mined at Cove-McCoy. Premier will retain a 1.5% (NSR) in the South Carlin property interests.
“The continued success from drilling in our current program demonstrates the potential for the recently discovered 2201 Zone to become a significant high grade gold and silver deposit that could host appreciable future resources” stated Warren Thompson, U.S. Exploration Manager for Premier. “The addition of the upside available from controlling the entire district through the McCoy Property acquisition provides the Company with a trident of deposit types; skarn, distal disseminated poly-metallic sulfide and Carlin style to explore for.”
The Cove-McCoy Gold Mines have historic production of some 3.3 million ounces of gold and 110.0 million ounces of silver between 1986 and 2006, a 20-year period of relatively low to historically low gold and silver prices.The mines are believed to have a close genetic relationship, associated with the same fault/feeder structures; however the ores mined occurred in different rock units. The feeder structures between the mines have seen only limited previous exploration and represent a priority future exploration target.
Premier holds several projects that are subject to ongoing exploration and development programs in 2014. An updated Mineral Resource Estimate at the Hardrock Project which lies within the Company’s 100%-owned Trans-Canada Property was recently announced which will provide the basis of the preparation of a Feasibility Study, expected H1-2015. Underground drilling, testing priority target areas is also underway from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%).
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 were sent to Inspectorate America Laboratories prep facility located in Elko, Nevada and analysis was performed at their Sparks, Nevada analytical facility utilizing 30 gram fire assay with an AA finish for RC samples and 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion for Core samples.
Premier Gold Mines Limited is one of North America’s leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is well financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends in Nevada.
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.