PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”) is pleased to announce additional assay results from the Helen Zone on the Company’s Cove Gold Project, located in the Eureka-Battle Mountain Trend in Nevada. These results continue to expand mineralization with strong grades and widths within the Helen Zone.
The Helen Zone deposit represents a prospective, high-grade, Carlin-style, gold deposit and is the focus of an ongoing drill program to extend mineralization within both the Upper and Lower Helen Zone horizons. Drilling has now expanded well beyond the 2011 resource envelope and indicates favourable horizons remain wide open for expansion. Highlighted intervals from the most recent drill holes include:
- 34.52 grams per tonne gold (g/t Au) across 3.99 m (1.01 ounces per ton gold (oz/t Au) across 13.1 feet) in the Lower Helen Zone and 8.73 g/t Au across 3.05 m (0.26 oz/t Au across 10.0 feet) within the Upper Helen Zone from hole AX-22.
- Drilling has extended high-grade mineralization in the Helen target horizon by approximately 213 m (700 feet) southeast of the previously tested Helen deposit. Mineralization is open in multiple directions.
- 6.72 g/t Au across 4.57 m (0.20 oz/t Au across 15 feet) in hole AX-21 and 4.53 g/t Au across 1.74 m (0.13 oz/t Au across 5.7 feet) in hole AX-23. These holes tested the Gold Dome Fault Zone, an exploration target, located approximately 150 m (500 feet) southeast of the main deposit area, and includes a high concentration of realgar in hole AX-23.
Nevada is one of the world’s most favourable jurisdictions for mine development and the Cove Gold Project offers substantial upside in the existing resource areas in addition to opportunities for the discovery of new high-grade gold deposits within the district. The Cove deposit was mined (primarily by open pit) between 1986 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of gold, and more than 100 million ounces of silver. The Cove Gold Project is held under lease from Newmont Mining Corporation. Newmont has the option at any time to earn back 51% by paying 250% of all exploration expenditures on the project since March of 2006. If Premier submits a positive feasibility study containing 500,000 ounces gold or greater, Newmont has a window of 90 days in order to confirm its participation.
Premier’s management team believes that the Cove Gold Project represents one of the most under-explored projects in Nevada. It is located in the Eureka-Battle Mountain Trend 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 work has progressed such that permitting for an expanded surface drill campaign can be undertaken and underground access can be advanced.
Table 1 provides a summary of resent results at Cove and Image 1 provides a surface plan view of drilling into the Lower Helen Zone. All targets currently being drilled include both infill and step-out holes designed to expand the mineralized zones. It is encouraging to observe realgar in the Gold Dome Fault Zone since it was an important mineral associated with high-grade mineralization mined in the historic Cove underground operations. To-date, step-out drilling has expanded mineralization by approximately 213 metres (700 feet) to the southeast along strike from the Helen Zone towards the Cove pit. Drilling in 2013 has two primary objectives: infill delineation in order to complete a revised resource estimate that is expected to be released in H2 —2013 and step-out drilling to test the area between the Helen Zone and the Cove open pit. Reverse circulation drilling has commenced to also explore and extend the currently defined Helen Zone to the northwest. Holes AX-16 to AX-18 were previously released (see press release dated January 9, 2013).
Table 1 - Select assay results for Helen Zone drilling
- Gravimetric assays used when available - true widths estimated at approximately 80% - 95% of core intercept - * denotes previously unreleased drill hole
Image 1 - Surface plan view of current drilling results in the Lower Helen Zone
Premier holds several projects that will be subject to major exploration programs in 2013. Recently, underground drilling has commenced from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%). Several drills are active on the Company’s 100%-owned Hardrock deposit, part of the Trans-Canada Project where a recently completed revised mineral resource estimate identified gold in multiple deposits, with an aggregate of 4.12 million ounces in the Measured and Indicated categories and 3.65 million ounces in the Inferred category.
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 for RC drill samples were sent to American Assay Laboratories located in Elko, Nevada prep facility and analysis was performed at their Sparks, Nevada analytical facility utilizing 30 gram fire assay with an AA finish. Core samples were analyzed by Inspectorate laboratory facility located in Sparks, Nevada and analysis was done using 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion. .
Premier Gold Mines Limited is one of North America’s leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is fully financed and its property portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Battle Mountain and Carlin 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.