PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”) is pleased to announce that initial drilling at the Company’s 100% owned Saddle Project located within the Rain sub-district of Nevada’s prolific Carlin Trend, has intersected high-grade gold mineralization. Premier is bringing in additional coring rigs due to initial results and an anticipated approval of a “Plan of Operation” permit in mid-April to accelerate drilling productivity.
The first hole that has intersected the Saddle Deposit, SA003 returned 0.25 ounce per ton gold (oz/t Au) across 40.0 feet (8.46 grams per tonne Au across 12.2 metres) including 0.31 oz/t Au across 22.9 feet (10.70 g/t Au across 6.98 m) confirming Premier’s belief that the Saddle Deposit represents one of the most prospective high-grade undeveloped gold deposits in North America.
Table 1 - Drilling Results at Saddle
|Hole-ID|| UTM Zone 11 Coordinates NAD27
|SA001||4497409 N 581432 E||-90||1801.0||1806.0||5.0||0.09||1.52||3.01||Rain Fault|
|SA002||4497340 N 581432 E||-90||hole yet to be completed with core||Not at zone yet|
|SA003||4497357 N 581278 E||-90||1988.2||2028.2||40.0||0.25||12.20||8.46||Saddle|
True heights are estimated at 100% of intersection lengths for flat-lying Saddle deposit.
Low coring productivities due to a number of factors, including small rig size, weather conditions and blocky ground, have slowed the early part of the drill program. The arrival of two larger diamond-drill rigs is expected to improve coring speed. Hole SA001 deviated away from and did not reach the anticipated target location of the flat-lying Saddle deposit. Hole SA002 was drilled by Reverse-Circulation rig (RC) to 1500 feet and is waiting on larger core drill to continue the hole to target depth. Hole SA004 to SA012 casings are being drilled by RC rigs and the core tails will be, or are in the process of being, completed with coring rigs.
Saddle forms a large portion of the Saddle/NW Tess Gold Deposit that is host to a high-grade historic (non-NI 43-101 compliant) mineral resource estimate. Two distinct styles of mineralization occur at Saddle; wider mineralized zones occurring at the Web-Devil’s Gate contact (Contact mineralization), and higher grade mineralization where this horizon intersects the Rain Fault (up to approximately 1 oz/ton Au in historic drilling). Contact mineralization was intersected in hole SA003. The Saddle Gold Deposit is one of several deposits discovered by Newmont Mining Corporation (“Newmont”) during the 1990’s to the northwest of, and down plunge from, its Rain Gold Mine (“Rain”). Saddle Deposit is not subject to any “NSR” royalty obligations. Rain was previously mined by open pit and underground methods, is host to the Tess Deposit and a portion of the Saddle Deposit, and has significant underground infrastructure (ramp) proximal to Saddle.
The Saddle acquisition provides Premier with a core land position within one of the most productive gold regions found anywhere in the world, the Carlin Trend. This is consistent with the Company’s strategy to build a significant presence in proven, accessible and low-risk jurisdictions that offer opportunities for the discovery of high grade gold deposits. Based on geophysical work completed, Premier believes that there are numerous prospective, and untested, structures that have high potential to host gold mineralization.
In addition to Saddle, Premier holds a 1.5% production royalty in Rain and in Newmont’s Emigrant Springs Deposit. Emigrant Springs is an advanced-stage project host to a significant undeveloped oxide gold reserve/resource that represents a portion of Newmont’s future production within its Carlin operations, and is located only 1.5 miles east of Saddle.
“The Saddle deposit is one of the highest grade undeveloped gold deposits in the US and yet remains one of the most undervalued projects in Premier’s portfolio” stated Ewan Downie, President and CEO of Premier Gold Mines Ltd. “We are in the process of accelerating our program at Saddle in order to advance this opportunity toward development”.
Premier holds several projects that are the subject of significant exploration programs. Three drills are active in Red Lake on joint venture projects with Goldcorp. First, the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%) located in close proximity to Goldcorp’s Red Lake Gold Mines infrastructure, and second, the East Bay Project (PG 35% and 50% - JV with RLGM) that is located on the East Bay ultramafic trend along strike and to the north of Rubicon’s F2 Zone discovery at its Phoenix Gold Project. Eight drills are active on Premier’s Hardrock Project (Premier holds a 70% interest). An updated NI 43-101 compliant mineral resource for Hardrock is expected in coming weeks. Finally, two drills are active at Premier’s 100% owned PQ North Project located along strike from Goldcorp’s Musselwhite Gold Mine.
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 are from core samples sent to ALS Laboratories, an accredited mineral analysis laboratory in Reno, Nevada, for preparation and analysis utilizing fire assay methods.
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 are operated in joint venture with Red Lake Gold Mines. The company also owns strategic projects located in the heart of the Carlin Trend, Nevada, on the main Musselwhite Gold Mine trend, and holds a 70% interest in the Hardrock Project.