PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”, “the Company”) is pleased to announce initial 2018 drilling results at the McCoy-Cove Project, located along the Eureka-Battle Mountain Trend in Nevada. Highlights include the discovery of gold and poly-metallic mineralization (including semi-massive sulphides) to the east of the historic Cove gold/silver open-pit mine, Carlin-style mineralization intersected at Windy Point and gold mineralization intersected at a new “off-trend” target.
Highlight results from the initial program include:
- New discovery south of the Helen-Gap deposit assaying 12.69 g/t Au across 4.6 metres (m; 15 feet) in hole HE18-02
- Poly-metallic discovery east of the Cove pit assaying 5.00 g/t Au, 410.0 g/t Ag, 5.7% Zn & 5.0% Pb across 2.74 m (9.0 feet) in hole PB18-02
- Strong alteration and mineralization in the Windy Point target assaying 0.84 g/t Au & 0.33 g/t Ag across 46.0 m (151.0 feet) and 2.25 g/t Au & 0.99 g/t Ag across 17.1 m (56.0 feet) in hole PB18-07
Barrick is currently funding exploration on portions of the McCoy-Cove Project with the right to Earn-In to a 60% interest in those portions (the “Joint Venture Property”). The McCoy-Cove Project is located within the central Nevada portion of the Basin and Range Province. The current exploration program is testing several targets on-trend with the CSD-Helen-Gap deposit that is situated on Premier’s 100% owned lands, and new targets on the property. Highlight assay results and intercepts summarized on Figure 1 below and in Table 1.
Figure 1 - McCoy-Cove highlight drill intercept locations
Table 1 - Initial assay results from McCoy-Cove Project
|Au (g/t)||Ag (g/t)||Intercept(2)
|Au (oz/t)||Ag (oz/t)|
|1) UTM NAD83, Zone 11 2) True widths are estimated to be 80 to 90% of core length; * denotes “RC-hole”|
“Off-Trend” (Piezometre) Discovery
HE18-02, a piezometre hole drilled to support Premier’s hydrology modelling at Cove, intersected Carlin-style mineralization in the middle of the Favret rock unit above a mafic sill. The setting and host rock unit are similar to the main deposits located approximately 320 metres to the north. HE18-02 is the first hole drilled in this target area and returned an impressive 12.69 g/t Au across 4.6 metres (15 feet).
The “Off-Trend” discovery occurs some 125 metres west of the Gold Dome fault and 200 metres south of the NW Dike, an intrusion that demarcates the southern margin of the currently known Helen-Gap mineralization trend. The mineralization occurs within a poorly drill-tested location on the property. Importantly, this discovery occurs in proximity to the carve-out boundary and may trend onto the 100%-held Premier ground. Immediate planned follow-up on the Piezometre discovery includes completing four rotary holes on the earn-in property prior to the end of 2018.
PB18-02 intersected multiple zones of mineralization (see Figure 2) including 5.00 g/t Au, 410.0 g/t Ag, 5.7% Zn & 5.0% Pb across 2.74 metres (9.0 feet) that could represent a new poly-metallic zone and 717.0 g/t Ag & 0.1% Cu across 3.0 metres (10.0 feet).
Figure 2 - Section view of hole PB18-02
The poly-metallic discovery is characterized by semi-massive to massive pyrite-sphalerite-galena mineralization occurring along the hanging wall of the west-dipping Beacon fault. Though this fault was previously unmapped since its surface expression is covered by pediment, early results suggest it could be an important fluid conduit. As such, it is similar to the east-dipping Lighthouse fault that is associated with both the shallow poly-metallic mineralization in the Cove pit and deep poly-metallic mineralization (2201 Zone) under the pit. The mineralization in PB18-02 occurs 625 metres (~2050 feet) east of the 2201 Zone confirming Premier’s belief that the 2201 Zone is underexplored in several directions.
PB18-07 intersected both open-pit style mineralization and Carlin-style alteration and mineralization on strike to the west of the Helen Zone deposit including an upper zone that returned 0.84 g/t Au & 0.33 g/t Ag across 46.0 metres (151.0 feet) and a deeper zone on strike from the main deposit that assayed 2.25 g/t Au & 0.99 g/t Ag across 17.1 metres (56.0 feet).
The intercepts at the Windy Point target are 510 metres (1675 feet) to the west of the Helen Zone deposit (see Figure 1). The upper zone consists of an interval of mixed oxide/sulfide Carlin-style mineralization that could be amenable to open-pit mining if mineralization can be traced towards surface. The lower zone consists of Carlin-style mineralization hosted in the Favret Formation, proximal to mafic dikes and sills, and along the Cove anticline - all important controls in the Helen and Gap Zones to the east. Follow-up drilling is underway.
The McCoy-Cove Project property lies west of the central part of the Battle Mountain-Eureka Trend and hosts four distinct mineralization types including Carlin-style, polymetallic sheeted veins, carbonate replacement (Manto), and skarn. The McCoy and Cove 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 early success from drilling in this initial program demonstrates the potential of the area for additional gold and poly-metallic deposits” stated Charlie Ronkos, Executive Vice-President. “The new discoveries have potential to trend onto Premier’s wholly-owned property providing upside opportunities for future work.”
In January 2018, Premier entered into an Agreement with several wholly-owned subsidiaries of Barrick Gold Corporation (TSX:ABX) (“Barrick”) whereby Barrick holds an option to earn a 60% interest in the exploration portion of the McCoy-Cove Project (the “Joint Venture Property”) by spending US$22.5 million in exploration prior to June 30, 2022. The Joint Venture Property excludes the “Cove Deposit” portion of the McCoy-Cove Project which is retained solely by Premier.
The statements contained herein reflect the views of Premier Gold Mines Ltd and may not reflect the views of Barrick or its Affiliates.
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 samples were sent to ALS Laboratories prep facilities located in Elko, Nevada and Reno, Nevada and analysis was performed at their Vancouver, Canada analytical facility utilizing 30-gram fire assay with an AA finish for Au and ICP-MS 48 element scan from 4-acid digestion for RC and Core samples. For a complete description of Premier’s sample preparation, analytical methods and QA/QC procedures refer to the technical report dated June 29, 2018 (effective date March 31, 2018), entitled “Preliminary Economic Assessment for the Cove Project, Lander County, Nevada” located on Premier’s website and at www.sedar.com.
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. Premier’s team is focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; and two advanced multi-million ounce development projects where permitting and pre-construction initiatives are in progress.
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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 the completion of the Financing, 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.