PREMIER GOLD MINES LTD (TSX:PG) is pleased to announce new partial assay results at the Santa Teresa Project located in the historic and high grade El Alamo District of Baja California Norte, Mexico. These results are from the first hole drilled to test a second prospective horizon on the Property, resulting in the discovery of a second high-grade horizon that has the potential to host significant gold and is the first hole ever drilled to test this area. Historical mine workings (pre-1900’s) located several hundred metres along strike on the newly acquired Victoria claim are potentially located on the same horizon, suggesting significant expansion potential. Premier expects to report the remainder of its recent drilling results in the near future.
Hole ST006 returned 82.91 g/t gold (2.42 oz/ton) from 173.80 metres to 175.30 metres. This interval is characterized by grey quartz veining, bands of pyrite, pyrrhotite and sphalerite mineralization as well as visible gold. Premier regards the results from this intercept as significant for the following reasons:
- It represents a vein occurrence not previously identified in the historic record on the property.
- It supports the belief that high grade mineralization occurs in multiple vein systems within a much wider structural corridor.
- It increases the strike length of the mineralized system at Santa Teresa to approximately 400 metres and occurs nearly 500 metres from the past-producing Princessa Mine.
Hole ST006 was drilled approximately 200 metres southeast of the Princessa structure which to-date has been the focus of drilling and has returned numerous high-grade gold intercepts. Highlights from drilling the Princessa horizon include the following:
|-||Hole ST001 — 26.19 g/t Au (0.76 oz/ton) across 1.2 metres|
|-||Hole ST005 - 479.31 g/t Au (13.98 oz/ton) across 2.0 metres|
|-||Hole ST008 — 39.41 g/t Au (1.15 oz/ton) across 1.0 metres|
Hole ST013 - 125.91 g/t Au (3.68 oz/ton) across 1.0 metres
Mineralization remains open to the southeast on the Santa Teresa Concession in several veins as well as at depth. To date, a total of 5,230 metres have been drilled in 21 holes in the Phase One program and numerous assays remain pending. The joint venture has recently approved the completion of a further 2,020 metres in nine new holes and two hole extensions. These are expected to be completed by early October.
“Drilling suggests a very robust vein system across multiple horizons”, stated Ewan Downie, President of Premier. “The narrow vein, extremely high-grade gold system at Santa Teresa has similarities to some of the world’s prolific high-grade producing districts such as the Red Lake gold camp”.
The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district’s largest gold producer with an average production grade of more than one ounce per ton), which was mined to a maximum depth of only 110 metres, and whose orebody was known to extend close to the northern boundary of the Santa Teresa Property.
Gold production at El Alamo, a 16-kilometre long district, was halted at its peak owing to technological and political circumstances early in the 20th century. Since then, only minimal exploration has taken place, presenting a unique opportunity for Premier and its joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM).
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, 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. A stringent QAQC program utilizing blanks, standards and replicates has been developed by Mark Payne, Consulting Geologist, for the STC joint venture. All sample prep and analysis is being conducted by American Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton fire assay and 500-gram 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.