PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update for the Company’s 100% owned Hardrock Project and to announce its plan to drill test the recently identified Bankfield West open pit target located just 10 km west of the Hardrock Project.
The current drill program at Hardrock consists of some 60,000 metres of infill drilling designed to upgrade the Inferred portion of the open pit mineral resource estimate to Indicated (See Table 1 for current Hardrock mineral resource estimate). The program, which is near completion, has been very successful in intersecting mineralization within multiple horizons and has identified a potential higher grade core within the recently discovered North Wall Zone. Results from this program will be incorporated in an updated mineral resource estimate for Hardrock planned for release in Q2 2014.
Highlights from this current program include:
- High grade intercepts within the primary resource area include 15.13 grams per tonne gold (g/t Au) across 6.0 metres (m) in hole MM534, 12.40 g/t Au across 7.0 m in hole MM544, and 18.54 g/t Au across 25.5 m in hole MM552.
- Broad intercepts within the primary resource area include 2.90 g/t Au across 27.3 m in hole MM538, 1.56 g/t Au across 35.8 m in hole MM545, and 1.67 g/t Au across 29.5 m in hole MM556.
- Results from the North Wall Zone situated to the north of the primary resource area include 1.30 g/t Au across 57.0 m and 29.20 g/t Au across 11.0 m in hole MM571, 80.57 g/t Au across 4.5 m in hole MM573, and 16.73 g/t Au across 3.0 m and 2.13 g/t across 15.0 m in hole HR180.
“Drilling at Hardrock continues to demonstrate strong continuity within the open pit resource and suggests the existence of potential higher-grade mineralization within several lenses including the recently identified North Wall Zone” stated Stephen McGibbon, Executive Vice-President of Premier.
Open Pit Drilling
The 2014 drill program is designed to demonstrate continuity and to upgrade mineral resources primarily within the open portion of the Hardrock deposit as reported on October 29, 2013 and presented in Table 1 below. This drilling has consistently intersected mineralization within the target horizons and has identified areas for potential resource expansion.
Table 1: 2013 Hardrock Mineral Resource Estimate
|Cut-off Category||Resource Category||Tonnes (Mt)||Gold (Au) Grade (g/t)||Au Ounces (M ozs)|
|Open Pit (O/P)||Indicated (I)||50.228||1.46||2.352|
|Underground (U/G)||Indicated (I)||5.522||5.01||0.889|
(Cut-off grade 0,5 g.t Au - See Press Release dated October 29, 2013)
Table 2 provides a summary of highlight results from the 2014 portion of the open pit delineation drilling program and Appendix 1 provides a full table of results from the current program. No holes within the primary pit area returned no significant values (less than 0.5 g/t Au) and one hole was abandoned.
Table 2: Highlight New Assay Results from the Hardrock pit area - delineation drilling
|Hole-ID||UTM Coordinates (m)||Dip/Az (degrees)||From (m)||To (m)||Interval (m)||Grade (g/t)||Interval (ft)||Grade (oz/ton)||Zone|
True widths estimated at 60-70% of intercept * Assays as presented are un-cut
North Wall Zone Drilling
The North Wall Zone was discovered when condemnation drilling intersected mineralization in an area to the north of the primary zones that had previously received little to no drilling. Previous results from the North Wall Zone include intercepts of 132.32 g/t Au across 3.9 m (3.86 oz/t gold across 12.8 feet) in hole HR155; 13.96 g/t Au across 6.0 m and 1.52 g/t across 17.0 m in hole HR157, 3.70 g/t Au across 22.0 m in hole HR161, and 2.30 g/t Au across 21.0 m in hole HR180. The North Wall Zone remains open for expansion and is currently being tested by additional drilling.
Table 3 provides a summary of highlight drill results from new drilling in the North Wall Zone.
Table 3: New Assay Results from the Hardrock pit area - North Wall Zone
True widths estimated at 60-70% of intercept * Assays as presented are un-cut
Hardrock, which is one of four gold deposits that make up the Trans-Canada Property, is the subject of a recently completed Preliminary Economic Assessment (PEA) Study released by the Company on January 28. The Hardrock Project has potential development advantages given the Trans-Canada Highway, the Trans-Canada Pipeline, and major power lines run through or in close proximity to the main deposit area. Significant services and a skilled labour pool also exist within several communities located in close proximity.
The Hardrock PEA Study was prepared as an open-pit only mining project related solely to the mineral resources estimate reported by the Company on October 29, 2013 (press release “Premier Gold Releases Updated Mineral Resource Estimate on Hardrock Deposit”). The PEA Study demonstrates the potential for an open pit operation with a 15 year mine life and producing more than 200,000 ounces of gold per year (see press release dated January 28, 2014).
The Bankfield West target, which lies within the boundary of the Company’s Trans Canada Property’s, is of significant interest given its close proximity the Hardrock Project. The target was identified through a review of historic drill data where several holes drilled by Placer Dome in the 1990’s suggested the potential for widespread gold mineralization within a porphyry host rock unit. The program, which will consist of several holes designed to confirm the existence of mineralization with the potential to host significant gold resources, will commence at the conclusion of the current confirmation program at Hardrock.
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 Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.
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 Gold’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 Gold 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.