PREMIER GOLD MINES LIMITED (PG:TSX) is pleased to announce that it has signed a joint venture agreement (the “Agreement”) with Red Lake Gold Mines (“Red Lake”), an affiliate of GOLDCORP INC. (G:TSX, GG:NYSE) to explore a strategic land package located in the prolific Red Lake Greenstone Belt in Northwestern Ontario.
Under the terms of the Agreement, and pursuant to the Asset Exchange Agreement, both parties are contributing mining properties held in this area and will jointly fund the exploration and development of this property package. The new property package, referred to as the “Rahill-Bonanza Project” (the “Project”), covers several kilometres of the key geological unconformity that spans from Goldcorp’s Red Lake gold mines to the formerly producing Cochenour gold mine. These mines have produced more than 17.2 million ounces of gold, currently have more than 9.5 million ounces in additional reserves and resources, and the Red Lake area is host to one of the highest grade gold deposits in the world. The Rahill-Bonanza Project is host to several gold deposits and mineralized zones including the Follansbee, Bonanza and North Contact Zones, and the Wilmar and Granodiorite gold deposits. Additionally, the Project properties are host to numerous ultramafic horizons, key markers for high-grade gold in the Red Lake area such as Goldcorp’s High Grade Zone. A good portion of the properties have seen only limited and sporadic near-surface exploration.
The Partners are currently carrying out a major exploration program that includes deep drilling in several areas. Premier has funded the initial CAD$1 Million in exploration on the Project, and all future exploration will be funded on a 50:50 basis. Premier is the operator during the initial period of CAD$5 Million in exploration, and Red Lake will be operator thereafter. At any time during the first eighteen (18) months following the formation of the joint venture, Red Lake will have the option to increase its interest in the joint venture by 1% to 51% by paying Premier CAD$440,000. The Agreement also allows access to the Wilmar Mine workings through its Cochenour Gold Mine in the event that it is re-opened.
The current exploration program includes a major diamond drilling program that will target several of the key horizons on the Project. This exploration will focus on:
- defining and expanding the Bonanza and North Contact Zone discoveries (previous drill results include 13.27g/t over 19.0m and 8.66g/t over 22.0m) and the western Bonanza extension where recent drilling by Goldcorp returned high-grade intersections;
- testing the Wilmar deposit that was mined in the 1960’s;
- the West Granodiorite deposit which has the potential to represent a significant bulk tonnage resource;
- the main regional geologic contact that hosts the Gold Eagle Property discovery; and
- targets related to and proximal to Goldcorp’s Red Lake Gold Mines located immediately east of the Rahill-Bonanza Project.
The Red Lake area is a major shear and alteration corridor. The Red Lake area is world renowned for high grade gold, with Goldcorp’s Red Lake gold mines being one of the highest grade gold mines in the world. All of the geological attributes that have contributed to the creation of this world class deposit also exist within the Rahill-Bonanza Project area. Mr. Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer, 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.
Premier Gold Mines Limited is a Canadian-based mineral exploration and development company with diverse property holdings that include several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Goldcorp Inc. (TSX:G). A strategic project is also located on the main Musselwhite Gold Mine trend (Goldcorp-Kinross). Premier is debt free and has a strong treasury.