PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”, “the Company”) is pleased to announce that drilling has confirmed the extension of high-grade mineralization between the Helen Zone and the historic Cove South Deep (CSD) underground deposit at the Company’s 100%-owned McCoy-Cove Gold Project, located along the Battle Mountain-Eureka Trend in Nevada.
The focus of the ongoing 10,000 metre, 15-hole drill program is to test for continuity and expansion of the high grade gold and silver system within the 400-metre gap between the two zones, as shown in Figures 1 and 2 below. Results from the first two holes (PG16-01 and PG16-02) confirms a 100m step-out on mineralization both down dip and along strike from hole PG-01, a 2014 exploration hole that intersected the “Carlin-style” mineralization beneath the Cove Pit. Hole PG16-02 is one of the best intercepts drilled on the property to-date and both holes returned thick intercepts of continuous lower grade mineralization. Most importantly, the mineralization remains open for expansion within the gap and drilling continues. Following completion of the drill program Premier anticipates calculating a mineral resource estimate for the Helen and CSD deposits.
Highlights of the recent results include:
- PG16-01:8.73 g/t Au and 11.82 g/t Ag over 6.3m (0.25 oz.t Au and 0.34 oz./t Ag over 20.6 ft.) beginning at 601.0m
- PG16-02: 7.08 g/t Au and 19.19 g/t Ag over 50.9m (0.21 oz.t Au and 0.56 oz./t Ag over 167 ft.) beginning at 598.0m
Table 1: All results to date - 2016 Helen/CSD exploration drill program
|Dip/Azimuth (Deg.)||Elevation (m)||Section||From (m)||To (m)||Core Length(2)
|Au (g/t)||Ag (g/t)|| Core Length(2)
|Au (oz.t)||Ag (oz./t)||Comment/Zone|
Figure 1: Schematic longitudinal section of the Cove Au/Ag deposits
“The continued success of the drill program demonstrates the potential to delineate significant high grade gold and silver mineralization at McCoy-Cove” stated Stephen McGibbon, Executive Vice-President for Premier. “Management continues to view the McCoy-Cove Property as a cornerstone asset within the Company’s portfolio and is aggressively pursuing several scenarios to develop operations on the project.”
A recent re-interpretation of the Cove geological model proposes that the best gold and silver grades in the Helen, CSD and 2201 Zone deposits are closely associated with the deep seated Cove thrust fault which acted as both primary structural control and fluid conduit for all known Cove deposits (Figure 2). Initial re-modelling efforts for the Helen and CSD zones support the thrust-hosted model and select infill drilling will further test the model and confirm whether greater continuity of mineralization, than was reflected in the 2013 Helen Zone resource estimate, exists. Additional northwest striking thrust faults have also been identified on the property, including the McCoy thrust which acted as a similar control for the mineralization of the McCoy deposit located 1.2 kilometres to the southwest. Future exploration will focus on testing known and previously untested thrust fault targets across the property.
Figure 2: Schematic 3700 level plan view of 2016 planned infill drilling program
To support mine development scenarios, Premier is also completing baseline environmental and metallurgical work on the Helen and CSD deposits. This work includes investigating the potential to reprocess the historic heap leach pad material.A sonic drill program was completed in May 2016 on three of the heap leach pads with results expected toward the end of Q2. The material and grades appear to justify advanced metallurgical work, including bottle roll and column leach tests, with initial results expected toward the end of Q3. Of interest, a similar reprocessing program has been successfully implemented by Newmont at its nearby Lone Tree operation.
The McCoy-Cove Property is located along the prolific Battle Mountain-Eureka 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).All permits are in place for an expanded surface drilling campaign and include access to underground. The McCoy-Cove gold mines produced 3.3 million ounces of gold and 110 million ounces of silver between 1986 and 2003, a 17-year period of relatively low to historically low gold and silver prices.The mines are believed to have a close genetic relationship and association with the same feeder-fault structures; however the ores mined did occur in different rock units. The feeder structures between the mines have been subjected to only limited exploration in the past and represent a priority target for future exploration.
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.Drill samples were sent to ALS Laboratories in Reno, Nevada for analysis with the 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. Over-limit samples receive an automatic gravimetric finish.
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.