PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that drilling has intersected the best results to-date in the recently discovered Kailey Zone at the Geraldton Project in Northwestern Ontario. Drilling has now identified that two broad parallel horizons exist within the Kailey Zone and that these converge as drilling traces the horizons to the east. Importantly, in this area gold grades are up to 50% higher and widths have increased by 100% over the “best” previous reported results.
Higher-grade gold mineralization, and increased widths to the east, mark recent developments within the Kailey Zone (bulk tonnage zone). Recent results include 39.64g/t Au (1.16 oz/ton) across 2.0 metres contained within a wider zone of mineralization which returned 5.87g/t Au across 16.0 metres, and 42.97g/t Au (1.25 oz/ton) across 1.0 meter contained within a wider zone of mineralization which returned 2.01g/t Au across 101.0 metres.
As drilling continues to delineate the Kailey Zone horizon, higher-grade vein style mineralization has been intersected within the wider stinger zone. This setting, of higher-grade vein mineralization within a broad stringer zone, is consistent with the Main Zone mined at the historic Little Long Lac Gold Mine from which more than 600,000 ounces of gold was produced during the period 1934-53 at an average grade of 11.66g/t Au. The Kailey zone is located approximately 50 metres to the north of, and parallel to, the Main Zone. These intersections are consistent with the company’s belief that higher grade “shoots” could exist within the near-surface, open pit style, gold mineralization that marks this new discovery.
Of particular significance, drilling has now identified that parallel horizons exist within the Kailey Zone (K1 — North & K2 — South) which has implications for increased tonnage potential within this horizon. These horizons have now been traced over a strike length of 450 meters, to depths of up to 200 metres, and remains open in all directions. The following table provides a complete summary of recent assay results received from drilling the Kailey Zone:
Table 1 Significant Results at Stringer Zone - Little Long Lac Target Area
|Hole-ID||Section||From||To||Length (m)||Zone||AU (g/t)||AU (opt)|
|PLL08023||1100E — 4+25N||93.0||113.0||20.0 (66 ft)||K1 (North)||1.31||0.038|
|PLL08025||1150E — 4+10N||74.0||102.0||28.0 (92 ft)||K1 (North)||1.36||0.040|
|PLL08026||1100E — 3+75N||157,0||173.0||16.0 (52 ft)||K1 (North)||5.87||0.171|
|Incl.||170.0||172.0||2.0 (6.6 ft)||K1 (North)||39.64||1.156|
|PLL08027||1100E — 3+75N||53.0||81.0||28.0 (92 ft)||K2 (South)||1.25||0.036|
|219.0||233.0||14.0 (46 ft)||K1 (North)||1.02||0.030|
|PLL08029||1350E — 3+50N||9.0||110.0||101.0 (331 ft)||K1-K2||2.01||0.059|
|Incl.||9.0||82.0||73.0 (240 ft)||K1-K2||2.45||0.071|
|Incl.||32.0||33.0||1.0 (3.3 ft)||K1-K2||42.97||1.253|
|PLL08030||1350E — 3+25N||43.0||146.0||103.0 (338 ft)||K1-K2||1.43||0.042|
|Incl.||47.0||48.0||1.0 (3.3 ft)||K1-K2||10.47||0.305|
|PLL08032||1350E — 3+25N||52.0||163.0||111 (364 ft)||K1-K2||1.18||0.034|
NOTE: True widths estimated at approximately 70% of intersection width
Premier holds the option to acquire up to a 70% interest in the Geraldton Project from Roxmark Mines Limited (TSX-V:RMK) by making cash and share payments to Roxmark, and performing exploration on the Project. The current drilling is part of an ongoing minimum $2.5 Million exploration program aimed at confirming Premier’s belief that previously untested sub-parallel mineralized faults occur proximal to the historic Little Long Lac Gold Mine. A systematic drill program is being carried out at Little Long Lac in an effort to build gold resources in the Kailey, and also in the No.9, No.10, and No.11 Vein zones.
The “Geraldton Project” is located in the heart of the Beardmore-Geraldton greenstone belt, a highly prospective high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers approximately 10 kilometres of some of the most prospective geology in the region and is host to three past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold. Several slides of the Little Long Lac area can be viewed on the Premier Gold Mines Limited website, www.premiergoldmines.com.
Other Projects - Red Lake & Santa Teresa
In addition to the Geraldton Project, Premier holds several additional highly prospective projects located in proven gold districts that are currently being explored by diamond drilling. In Red Lake, drilling continues at the Rahill-Bonanza Project, a joint venture with Red Lake Gold Mines Limited, where several 3 key target areas are being tested — Wilmar, Bonanza, and the deep mine target. Ongoing drilling at the Santa Teresa Project in Mexico, a joint venture between Premier and Sutter Gold Mining Inc. (TSX-V:SGM), has intersected numerous mineralized quartz vein zones along strike the past-producing Princessa Gold Mine (Historical data indicates that mined grades within the district average better than 1.00 ounce gold per ton). Assays from the first several holes are expected to be released in the near future.
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. Core from Geraldton is sent to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.
Premier Gold Mines Limited is a fully financed Canadian-based mineral exploration and development company with 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 Red Lake Gold Mines. A strategic project is also located on the main Musselwhite Gold Mine trend.