Drilling Intersects 112.8 m of 7.29 g/t Au at Phase 3 and 24.4 m of 20.60 g/t Au at El Niño
Thunder Bay, October 28, 2019 - Premier Gold Mines Limited (TSX:PG) (OTCPK: PIRGF) (“Premier”, “the Company”) is pleased to announce commercial production has been achieved, ahead of schedule, at the El Niño underground mine, the Company’s 40%-owned South Arturo Property located in the Carlin Trend of Nevada. Also, new definition and step-out drilling results from the ongoing 2019 campaign are showing better outcomes than projected. Initial production supports this and emphasizes the continued opportunity to expand high-grade mineralization on the property. The South Arturo Mine is a joint venture between Premier and Nevada Gold Mines LLC, a joint venture between Newmont-Goldcorp and Barrick Gold Exploration Inc. (“Barrick”) operated by Barrick. Highlight intercepts include:
- 24.4 m of 20.60 g/t Au (SEC19010)
- 50.3 m of 6.36 g/t Au (SEC19009)
- 39.6 m of 8.75 g/t Au (SEC19001)
- 32.0 m of 10.09 g/t Au (IER19021)
- 112.8 m of 7.29 g/t Au (MAD19004)
- 62.5 m of 7.93 g/t Au (MAD19002)
- 118.9 m of 1.78 g/t Au (MAD19005)
Production at El Niño has commenced ahead of schedule and on budget, with high-grade ore now being processed at the Goldstrike facility located 8 km to the south. Based on current projections, overall gold production from South Arturo is anticipated to surpass expectations, which called solely for pre-production ore, for the year. Development of the Phase 1 pit is ongoing.
In 2019, multiple drill programs are being completed including in-fill and step-out drilling from the underground drill stations at the El Niño mine, geotechnical drilling at the proposed Phase 3 pit project, and drilling at the East Dee target.
El Niño Drill Program
During 2019, definition and step-out drill holes are being completed from underground drill stations at the newly constructed El Niño mine. Although some assay remains pending, results received to date have exceeded expectations (Table 1, Figure 1).
At the contact of the Rodeo Creek and Bootstrap formations, the host silica-sulphide breccia unit is presenting thicker intercepts than previously thought. Finally, work continues to advance the potential for processing run-of-mine (heap leach) material from Phase 1, currently being stockpiled, and Phase 3.
Phase 3 Pit Project
In an ongoing effort to advance the Phase 3 pit project into future mine planning, geo-technical and geo-metallurgical drilling is being performed. The program continues to expand mineralization within the deeper high-grade breccia target in addition to potential heap leach ore in the upper parts of the deposit (Table 2, Figure 2). Highlight results received to date from the 2019 drill program are presented in Table 2 with some assays still pending.
East Dee Target
Drilling to further assess the opportunity of the East Dee Target is nearing completion. East Dee is located immediately east of the current Phase 1 open pit. Drilling in 2018 returned numerous significant intercepts including 25.9 m of 5.8 g/t Au in hole BD18-05C and 21.3 m of 6.5 g/t Au in hole BD18-08C. 2019 drilling has multiple intercepts of silica-sulphide-breccia, confirming the potential of this target. Assay results will be released in the future.
Premier Gold Mines Limited is a gold-producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. Premier remains focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; South Arturo and Mercedes, and through future mine development opportunities at Hardrock in Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing and McCoy-Cove in Nevada.
Stephen McGibbon, P. Geo., Executive Vice President, Corporate and Project Development, 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. The primary assay laboratories for the South Arturo Mine are ALS Chemex Labs (ALS Chemex) and American Assay Labs (American Assay) in Reno, Nevada. For a complete description of sample preparation, analytical methods and QA/QC procedures, refer to the technical report dated March 26, 2018 (effective date December 31, 2017), entitled “Technical Report on the South Arturo Mine, Elko County, State of Nevada, USA” located on Premier’s website and at www.sedar.com.
For further information, please contact:
Ewan Downie, President & CEO
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, mineral resource and mineral reserve estimates 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.