PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”) is pleased to announce that recent drilling at the Company’s 100%-owned Saddle Project, located within the Rain sub-district of Nevada’s prolific Carlin Trend, has returned the best intercept drilled into the Saddle deposit.
In 2011, drilling has intersected high-grade gold mineralization over substantial core intervals that will be used in conjunction with historic drilling to prepare a NI43-101 compliant gold resource for the Saddle deposit (see Figure 1) following the completion of the current program.
Highlight intercepts from recent drilling at Saddle include:
- 0.57 ounce per ton gold (oz/t Au) across 48.4 feet (19.36 grams per tonne (g/t) Au across 14.75 metres) including 2.35 oz/t Au across 9.5 feet (80.50 g/t Au across 2.9 m) in SA008A
- 0.24 oz/t across 25.6 feet (8.37 g/t Au across 7.8 m) within 0.07 oz/t Au across 292.0 feet (2.34 g/t Au across 89.0 m) in SA022
These drill intercepts continue to confirm the potential to define a significant gold resource on the existing land position held by Premier. Recent step-out drilling along strike to the northwest has also intersected significant intervals of mineralized breccia (assays pending) and confirm Premier’s belief that the Saddle Deposit represents one of the most prospective undeveloped high-grade gold deposits in North America.
“The ongoing drilling successes are exciting but not surprising for this prolific district; Saddle is a disseminated high-grade deposit in the heart of the Carlin Trend in close proximity to good neighbors.” stated Paul Huet, Chief Operating Officer of Premier. “The continuity of these deposits is well established and we are confident that we will continue to achieve strong results as we delineate this deposit. The recent assay results continue to allow us to understand and unlock the value of our Project.”
Table 1: Summary of New Assay Results From Saddle
|Hole-ID||UTM Zone 11
|From (ft)||To (ft)||Interval (ft)||Grade (oz/ton)||Interval (m)||Grade
|-90||ABANDONED - Failed to Reach Target||Saddle|
|-90||ABANDONED - Failed to Reach Target||Saddle|
|Intersected Dyke at Projected Target Depth||Saddle|
True vertical thicknesses are estimated at 100% of intersection lengths for flat-lying Saddle deposit.
Figure 1: Plan view illustrating the location of drilling at Saddle (New drilling and historic assays included)
Assay results provided in the plan view are from current drill program, re-assaying and historic results
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 in the Webb Formation within the plane of the Rain Fault. 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, it’s Rain Gold Mine (“Rain”). Premier holds a 1.5% Production Royalty in Rain that was previously mined by open pit and underground methods, and is host to the Tess Deposit and a portion of the Saddle Deposit. The Saddle Deposit is not subject to any “NSR” royalty obligations.
Premier also holds several kilometres of the “Rain Trend” in the Blue Sage area that is located to the northwest of Sections that comprise Premier’s Saddle Gold Project. Based on geophysical work completed, Premier believes that there are numerous prospective and untested structures that have high potential to host gold mineralization. To date, the Rain Fault up to and beyond the Blue Sage prospect from the Saddle Deposit remains completely untested.
The Saddle and Blue Sage acquisitions provide Premier with a core land position within one of the most productive gold regions found anywhere in the world; the Carlin Trend. Premier is currently focused on growing its US-based land holdings as numerous high-quality project opportunities have recently been identified. This focus 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.
Premier also holds a 1.5% NSR production royalty in the past-producing and adjacent Rain Mine, and in Newmont’s Emigrant Springs Deposit. Emigrant Springs, currently in construction, is an advanced-stage project that is located only 1.5 miles east of Saddle, and is host to a significant undeveloped oxide gold reserve/resource that represents a portion of Newmont’s future production within its Carlin operations.
OTHER US ANNOUNCEMENTS
On November 2, 2011 Premier signed a Letter of Intent (LOI) with Ashburton Ventures Inc. (TSX-V:ABR) in which Ashburton will have the right to purchase a 50% interest in the Golden Edge Project, located 50 kilometres east of Winnemucca, Nevada. The agreement requires Ashburton to make total payments of $130,000 to Premier and spend $3 million over a 3-year period. Premier has retained the right to buy back an additional 1% interest in the project. The Golden Edge property resides 26 km SSE of Barrick’s Turquoise Ridge Mine and 8 km NNE of Newmont Gold Lone Tree Gold mine, along the prolific Battle Mountain — Eureka Trend. The Lone Tree Mine is associated with a north-south fracture zone called the Valmy Fault Zone, which is about 90 metres wide, can be identified in regional aeromagnetic surveys and is believed to pass through the western portions of the Golden Edge Property.
Also on November 2nd, Premier signed an LOI to jointly conduct exploration at the Golden Wonder Mine, located near Lake City, Colorado and owned by at LKA International, Inc. (OTCQB:LKAI). Under the terms of the arrangement, Premier will design and manage a $2 million, LKA funded, Phase I exploration program over a period not to exceed two years from commencement of field operations. Upon completion of Phase I, Premier will be entitled, but not obligated, to enter into a joint venture agreement with LKA and earn up to a 60% interest in the Golden Wonder by spending $15 million in mine exploration and development over an additional six-year period. Between 1998 and 2006, the Golden Wonder mine produced over 133,000 ounces of gold with an average grade of 16.01 oz/ton. “Essentially, Premier gets a two-year, $2 million free look at Golden Wonder and the surrounding area.” commented Ewan Downie President & CEO of Premier. “If you believe, like us, that significantly enriched mineralization may be more widespread regionally, then this represents an unprecedented opportunity for our shareholders.”
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 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, and include significant assets in world class districts such as Red Lake in Ontario and the Carlin Trend in Nevada.