PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that potentially significant gold discoveries have been made at the Company’s 100%-owned PQ-North Project in Northwestern Ontario. Based on the early success of this initial drill program, Premier will expand the budget originally earmarked to the program such that drilling will continue throughout the summer.
The discoveries, based on assay results from only 7 holes, are located along strike from Goldcorp’s multi-million ounce Musselwhite Mine. Initial drilling at PQ-North has identified mineralization and visible gold in multiple structures including:
- Musselwhite-style mineralization grading up to 10.24 grams per tonne gold (g/t Au) across 5.1 metres (m) hosted in a structure not previously tested by diamond drilling and within 100 metres of surface.
- Numerous drill intercepts grading greater than 1.0 g/t Au and up to 28.64 g/t Au within structures up to 4.0 metres in width.
- Widespread anomalous mineralization, including 0.94 g/t Au across 24.9 m, with styles and intensity of alteration similar to those at Musselwhite.
- A mineralized shear zone proximal to the PQ-limb of the main iron formation. This unit hosts the primary gold zones at the adjacent Musselwhite Gold Mine - assays for this initial intersection are pending.
Ten holes have been drilled to date to test only three of the many target areas at PQ-North. Gold mineralization has been intersected at every target. The primary focus of the current program is to test major structures interpreted to cross the Property and confirm they contain the Musselwhite signature.
The first hole drilled to test a magnetic anomaly identified as a target from an airborne geophysical survey, is now interpreted to represent a previously unknown “upper” iron formation. Hole PQ09006 has intersected a broad biotite-garnet altered mineralized zone consisting of folded and laminated iron formation containing pyrrhotite, chalcopyrite and visible gold. This discovery hole returned an impressive 10.24g/t Au across 5.1m with a higher grade core grading 21.33g/t Au across 2.1m. This near-surface intersection is now being followed up by additional diamond drilling.
Drilling performed by a previous operator identified a zone of gold mineralization at the crest of the main PQ-Limb. This zone, which remains wide open for expansion, has now been tested at 100m and 200m step-outs with intersections of 2.42g/t Au across 4.5m in the 100m step-out and 28.64g/t Au across 1.0m and 15.00g/t Au across 1.0m in the 200m step-out section.
Deeper drilling is now underway to evaluate a 400m wide magnetic disrupted zone (interpreted as a major structural break) that is expected to intersect the main PQ-Limb at depth. This target is regarded as the primary target on the Property and is located along strike from, and within the same host rock as Goldcorp’s Musselwhite Gold Mine. The first hole has intersected a 3.0m wide mineralized shear zone that is strongly biotite-garnet altered and contains pyrrhotite, chalcopyrite and visible gold in addition to a mineralized zone contained within the PQ-Limb. Assays for these zones are pending. A presentation of the PQ-North Project can be viewed on Premier’s website www.premiergoldmines.com.
“The early success of this program confirms management’s belief that significant gold zones, similar to those at Musselwhite, could exist on the PQ-North Property,” stated Tim Twomey, Regional Exploration Manager for Premier. “The Upper discovery has a width similar to typical Musselwhite zones, but has a grade nearly twice the average mine grade”. “Given the tremendous continuity of mineralized zones along strike at Musselwhite, and our experience with similar mineralization at Premier’s Hardrock Project in Geraldton, these early results at PQ-North have to be regarded as significant,” Twomey concluded.
Drill holes PQ09001 and 002 were drilled for geological purposes to calibrate the down-dip orientation of the iron formation, PQ09003-005 tested the known mineralized zone, and PQ09006 tested the “Upper” iron formation target. The following table summarizes initial results obtained from drilling:
The PQ-North Project is located within Goldcorp’s Musselwhite Property holdings and is strategically located along the PQ-Limb of the key iron formation that is host to the majority of the ore zones at Musselwhite (in 2008, Musselwhite produced 210,500 ounces of gold at an average grade of 5.56g/t Au). The location of PQ-North, potentially down plunge from Musselwhite, is particularly important when considering the following facts:
- The apparent mine grade at the Musselwhite Mine is increasing as mineralized zones are mined down-plunge to the north (toward PQ-North).
- The frequency of new discoveries (some closer to surface than current mining) at Musselwhite is increasing as exploration migrates to the north (toward PQ-North).
- The 2007 Goldcorp Annual Report confirmed, “Drilling on the North Shore [in close proximity to PQ-North]…..indicate high potential for resource expansion. This strong potential has led to a study to test the economics of constructing a new shaft at Musselwhite.”
Premier previously announced that it had signed a Letter of Intent (LOI) with the North Caribou Lake First Nation (“NCLFN”) that paves the way for a major exploration program on the PQ-North Property in Northwestern Ontario. The LOI forms the basis of a cooperative relationship between Premier and NCLFN that will guide the early phase of exploration on the property, including line cutting, geophysics and diamond drilling, as well as lead to a Memorandum of Understanding (MOU).
In addition to PQ-North, Premier has three drills currently operating at the Hardrock Property and one at the Rahill Bonanza Project in Red Lake which is operated by Red Lake Gold Mines Limited, an affiliate of Goldcorp Inc.
Matt Long, 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 assay results presented are from split core samples sent to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods. Presentations detailing the Company’s activities on its active projects are available on the Premier Gold Mines Limited website www.premiergoldmines.com.
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 projects are operated in joint venture with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and is acquiring a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area.