Premier Gold Mines Limited (TSX-PG) is pleased to announce that diamond drilling has begun on its 100%-owned Hasaga Property at Red Lake, Ontario (See Figure 1). Premier acquired the property in February 2015 as part of a “swap” of property assets with Goldcorp Inc. (TSX-G, NYSE-GG) as announced in February. Hasaga is strategically-located proximal to the Balmer-Confederation unconformity, recognized as an important geologic feature at the multi-million ounce past and currently-producing Red Lake area mines.
Premier believes that the Hasaga and Gold Shore Mines, which ceased production in the early 1950’s, have the potential to host shallow mineralization that may be amenable to open pit mining methods in addition to higher grade underground-style mineralization. The initial target in the program, being tested with some 25,000 metres of diamond drilling, will be the main porphyry rock unit that was mined at Hasaga and at the adjacent Howey Gold Mine. These mines produced in excess of 600,000 ounces of gold by underground mining methods.
The Hasaga Red Lake Property is favourably located proximal to significant infrastructure, including nearby roads, power lines and gold mills.
Figure 1 - Hasaga Red Lake Property Location Map
“We’re proud of our historic ties to the Red Lake area and believe the region has a bright future ahead of it” commented Ewan Downie, President & CEO of Premier Gold Mines Ltd. “We believe that the Hasaga Property has the potential to host significant gold resources and are excited to start our substantial drill program that is expected to provide regular exploration updates during 2015”.
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.
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 fully-financed with approximately $110 million in cash and investments and no debt.