PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”, “the Company”) is pleased to provide an update of the 2016 exploration program at the Company’s McCoy-Cove Project, located along the Battle Mountain-Eureka Trend in Nevada. Drilling has commenced on the high grade Helen/CSD target where Premier seeks to expand mineralization immediately northwest of the historic Cove gold-silver open pit mine. Premier has also been granted the required permits to drill the historic McCoy-Cove heap leach pads in order to assess the potential viability of reprocessing this material and expects drilling to begin shortly. All abbreviations used in this press release are available by following this link (click here).
Step-out drilling will focus on testing the on-strike extension of the Helen Zone to the southeast towards core hole PG-01 drilled by Premier in 2014. The Helen Zone is a “Carlin-style” mineralized horizon that is host to a mineral resource estimate as summarized in Table 1 below. PG-01 is located approximately 365 metres (1200 feet) along strike from the Helen Zone deposit with mineralization hosted in the same carbonate rock units, see Figure 1 below. Multiple high grade zones in the PG-01 target horizon include 28.05 g/t Au and 15.81 g/t Ag across 4.5 m (0.82 oz/t Au and 0.46 oz/t Ag across 14.8 feet) and 3.74 g/t Au and 718.72 g/t Ag across 5.0 m (0.11 oz/t Au 20.96 oz/t Ag across 16.5 feet). The goal of the current program is to establish continuity between the Helen Zone and PG-01 target horizon in order to support potential advanced exploration at McCoy-Cove in the future. In 2014, Premier received approval for a Plan of Operation (POO) from the Bureau of Land Management (BLM), relating to the Cove-Helen Underground Mine Project. With additional bonding monies, the approved POO will allow Premier to construct a portal and ramp to further explore the Helen Zone using underground drill stations, and to collect potential bulk samples.
Figure 1 Long Section of the Cove area deposits including the Helen, CSD and 2201 Zones
Table 1 : 2013 Helen Zone Mineral Resource Estimate (using 5.83 g/t Au cutoff grade) with sensitivities
|Cutoff Grade Au (g/t)||Tonnes (000’s)||Au (g/t)||Ounces (000’s)||Tonnes (000’s)||Au (g/t)||Ounces (000’s)|
To view original November 19, 2013 press release (click here)
In addition to the Helen Zone, numerous other targets on the property have the potential to host economic gold-silver mineralization including multiple discoveries made by Premier since 2012. The 2201 Zone was discovered by Premier in late 2013 and remains wide open for expansion. The final hole drilled into the zone (PG14-25A) intersected high grade gold-silver mineralization assaying 12.73 g/t Au and 39.05 g/t Ag across 7.5 m (0.37 oz/t Au and 1.14 oz/t Ag across 24.7 ft). Mineralization within the 2201 Zone occurs approximately 225 metres (740 feet) below the historic Cove Pit and remains a high priority exploration target in the future. Exploration drilling has also intersected mineralization in several areas including the final hole drilled in 2015, midway between the McCoy and Cove pits, which intersected two zones assaying 5.80 g/t Au across 4.5 m (0.17 oz./t Au across 14.8 feet) and 14.35 g/t Au across 2.8 m (0.42 oz./t Au across 9.2 feet) in hole PM15-17.
A full presentation summarizing the numerous targets at McCoy-Cove can be viewed on the Company’s website www.premiergoldmines.com.
The McCoy-Cove Project is located along the Battle Mountain-Eureka Trend that is host to numerous multi-million ounce producing and past-producing mines. The property is located in close proximity to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.
The McCoy-Cove Gold Mines have a combined historic production of some 3.3 million ounces of gold and over 110.0 million ounces of silver between 1986 and 2003, a 17-year period of relatively low to historically low gold and silver prices.The mines are believed to have a close genetic relationship, associated with the same fault/feeder structures; however the ores mined were hosted in different rock units. The feeder structures between the mines have seen only limited previous exploration and represent a priority future exploration target.
“We believe McCoy-Cove has tremendous potential to host significant future mineral resources and reserves” stated Chad Peters, Premier’s Exploration Manager, Nevada on the Company’s C-Suite Blog. “Our 2016 Helen Zone program is designed to give us the confidence to make future investments at McCoy-Cove that may result in our goal of a second producing asset in Nevada being realized.”
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. Drill samples were sent to ALS Laboratories in Reno,, Nevada for analysis with the analytical facility utilizing 30 gram fire assay with an AA finish for RC samples and 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion for Core samples. Over-limit samples receive an automatic gravimetric finish.
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’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 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.