PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”, “the Company”) is pleased to provide an update of activities at the Company’s 100%-owned McCoy-Cove Gold Property in Nevada. After securing 100% ownership of the entire property, Premier’s focus will shift to the identification and delineation of mineralization that could be amenable to open pit mining methods. Oxide gold mineralization that could be processed by heap leach methods and located proximal to the past producing McCoy pit is the target of a recently commenced drill program. Oxide mineralization in the vicinity of the Windy Point fault is being assessed through surface trenching and future drilling. In addition, re-compositing (utilizing a 0.3 g/t Au cutoff) of recent drilling completed at the past-producing Cove pit (not anticipated to be oxide material) confirms the need to re-evaluate the potential value of widespread gold and silver mineralization proximal to the pit. Figure 1 highlights the Company’s near-term area of interest on the McCoy-Cove Property package.
Figure 1: Planview of near-term area of interest at McCoy-Cove
McCoy Pit Target
Compilation of historic data suggests the potential for oxide gold-silver mineralization proximal to the historic McCoy open pit mine (see Figure 2). Delineation drilling is underway on the first target, mineralization that occurs in the east wall of the pit, which, if successful, would lead to a study evaluating the likelihood for a future pit push back. This mineralization is located on the flank of the McCoy Brown Stock and Premier believes is open for expansion and could be advanced towards future development.
Overall, drilling will focus on near-pit mineralization identified in several areas prior to deeper drilling designed to test for potential extensions to high-grade intercepts below the McCoy ramp.
Figure 2: View direction SE of potential remaining ore block in East Wall of McCoy pit
Windy Point Target
The Windy Point target is a prospective target located to the northwest of the Cove pit where surface gold mineralization has been identified proximal to the Windy Point fault. The Company has completed surface rock chip sampling on outcropping mineralization that identified consistent surface mineralization over an area 100 metres by 60 metres with assay values of up to 12.98 grams per tonne gold (g/t Au). An historic and prominent soil anomaly at Windy Point has been tested by limited historic drilling. Results from that drilling support the need to complete surface trenching and a new round of drilling in an effort to assess the potential for both open pit and underground mineralization.
Cove Pit Drilling
During 2014, drilling at Cove was focused on high grade mineralization beneath the pit. Recent compilation work has highlighted the potential for widespread lower grade material proximal to the pit (see Figure 3). Additional in-fill sampling from that drilling is currently being completed. Highlight composites are listed below.
- PG-01 intersected 1.55 grams per tonne gold (g/t Au) and 30.4 g/t silver (Ag) across 161.5 metres (m), including 6.23 g/t Au and 162.78 g/t Ag across 25.3 m, (beginning at 517.3 m downhole) and is located approximately 200 m west of the limits of the west pit wall.
- AX-51 intersected 2.36 g/t Au and 1.41 g/t Ag across 73.9 m (beginning at 405.4 m downhole) and is located approximately 250 m west of the limits of the east pit wall.
- PG14-05 intersected 2.56 g/t Au and 3.41 g/t Ag across 14.6 m (beginning at 425.8 m downhole) and 1.52 g/t Au and 13.16 g/t Ag across 186.5 m (beginning at 642.5 m downhole) and is located approximately 250 m west of the limits of the east pit wall.
- PG14-10 intersected 1.98 g/t Au and 11.87 g/t Ag across 112.5 m (beginning at 699.2 m downhole) and is located approximately 250 m west of the limits of the east pit wall.
Ongoing modelling and potential future drilling will be designed to further test these areas as sites amenable to renewed open pit mining at Cove. Future work will also include metallurgical testing necessary to assess potential recoveries.
Figure 3: of Thematic Map of Cove Blasthole Gold Grades
The consolidation of this district-scale property provides 100% exposure and complete flexibility to explore and develop the Cove and McCoy deposit areas while also securing a “best efforts” commitment to process ores potentially mined at predetermined toll rates over a 10-year period. Premier believes that a world-class exploration/production opportunity exists at McCoy-Cove.
The McCoy-Cove Gold Mines have historic production of some 3.3 million ounces of gold and 110.0 million ounces of silver between 1986 and 2006, a 20-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 occurred in different rock units. The feeder structures between the mines have seen only limited previous exploration and represent a priority future exploration target.
The McCoy lands contain significant infrastructure including existing heap leach pads, buildings, and other infrastructure that could potentially allow for accelerated minesite development.
A presentation for the Cove-McCoy Project can be found on the Company’s website www.premiergoldmines.com.
The Cove-McCoy Gold Project is located along the Eureka-Battle Mountain Trend that is host to numerous multi-million ounce producing and past-producing mines and is located close to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.
Premier holds several projects that are subject to ongoing exploration and development programs in 2014. An updated Mineral Resource Estimate at the Hardrock Project which lies within the Company’s 100%-owned Trans-Canada Property will provide the basis of the preparation of a Feasibility Study, expected in H1-2015. Underground drilling, testing several target areas is underway from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%).
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 were sent to Inspectorate America Laboratories prep facility located in Elko, Nevada and analysis was performed at their Sparks, Nevada 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.
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 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.