PREMIER GOLD MINES LTD (TSX:PG) is pleased to announce the discovery of high-grade gold mineralization at the Santa Teresa Project located in the historic and high grade El Alamo District of Baja California Norte, Mexico.
- Results to date, highlighted in Table 1 below, confirm the following:
- Drilling has discovered multiple high-grade veins along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton.
- Results include multiple intercepts in excess of 1.0 oz/ton gold and up to 13.98 oz/ton Au (479.31 g/tonne) along core widths of between one and three metres.
- Results from hole ST005, the highest grade to date, occur some 210 metres SE of Princess, at more than twice the depth of the deepest known mining at Princessa (possibly the entire district) and remains open at depth.
- Recent drill intersections (assays pending) confirm this high grade mineralization extends up to 500 metres to the southeast of the Princessa Mine and currently remains open in that direction.
- Additional discovery potential is indicated by a single drill hole, ST006 (assays pending), that has intersected favourable looking veining and mineralization in a parallel structure.
Core from hole ST005 will be on display at the Company’s Annual General Meeting, being held at the Toronto Board of Trade on Tuesday, June 17, 2008
The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district’s largest gold producer), 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 it’s joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM).
Results to date indicate that high grade gold mineralization, with intersections as high as 479.31g/t Au (13.98 oz/ton) over 2.0 metres, occurs over a minimum strike length of 150 metres, open to the south, and to a minimum depth of over 200 metres where the horizon remains open. Table 1 includes all holes drilled to-date with significant assay results received and/or preliminary comments listed for each.
Table 1 Significant Results to Date
|ST002||150 SE||ASSAYS PENDING|
|ST003||150 SE||ASSAYS PENDING|
|ST004||150 SE||ASSAYS PENDING|
|ST005||QUINOTA||210 SE||239.0||241.0||2.0||479.31||6.6||13.98||VG; ASSAYS PENDING WITH VG|
|ST006||NEW||490 SE||ASSAYS PENDING; VG NOTED|
|ST009||100 SE||nsv||ALL ASSAYS < 1.0 GPT|
|ST015||490 SE||ASSAYS PENDING|
|ST016||00 SE||nsv||ALL ASSAYS < 1.0 GPT|
|ST017||210 SE||ASSAYS PENDING; VG NOTED|
* True widths estimated between 65-85% of intersection width
The Santa Teresa Project is accessible by road, and is located approximately 100 kms southeast of Ensenada and about 250 kms south of San Diego, California, USA. Premier’s initial Phase One 5,000 metre drill program was designed to test the extent, continuity and grade of known gold-bearing vein structures previously evaluated only within 20 metres of surface. The program has since been expanded to a minimum of 21 holes in Phase One due to current results and continued quartz vein-hosted mineralization (including visible gold, pyrite, chalcopyrite and galena) noted in holes recently drilled, but not yet assayed. Of particular note is the mineralized vein intersection in drill hole ST006, a single hole drilled to test a structure parallel to “main zone” which is the currently the focus of ongoing drilling. Follow-up drilling will be performed in this area in the near future.
Premier is attracted to the El Alamo District because of a unique history of high mined grades, but little modern exploration. The properties, being explored by Premier and Sutter are:
- Located within a proven (some 220,000 ounces of past production) gold district.
- Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces per ton (opt).
- The majority of district production occurred within 120 metres of surface, but remains open at depth.
- Geologically similar to the historic Mother Lode District of California.
“We are extremely satisfied and excited with the drill results received to date.” commented Ewan Downie, President & CEO of Premier, “Our goal is to develop a high grade resource at Santa Teresa and these initial results indicate that this potential is real”.
Premier has secured the right to earn up to a 65% interest in the joint venture with SGMI at Santa Teresa. Recently, Premier announced that it had signed a Memorandum of Understanding (“MOU”) with Compania Minera Quasaro SA DE CV (“Quasaro”), a private, arms-length company, to purchase the “La Victoria Concession” located within the Santa Teresa Concession for the joint venture. Veins currently being explored in the Phase One program may extend along strike into La Victoria.
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 Canadian-based mineral exploration and development company with a strong treasury and has diverse property holdings that include several projects and deposits in Northwestern Ontario and a joint venture in Mexico.