PREMIER GOLD MINES LTD (TSX:PG) is pleased to release the remaining assay results from its initial 32-hole Phase One program drilled at the Santa Teresa Concession in Baja California, Mexico. These new results, with intercepts as high as 21.10 grams per tonne (gpt) or 0.62 ounces per ton (opt) gold across 1.35 metres (m), and 16.68g/t across 3.1m continue to demonstrate the potential of this underexplored district.
Results to date confirm the following:
- Drilling has discovered multiple high-grade veins up to 260 metres along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton.
- Results include multiple intercepts in excess of 34.00 gpt (about 1.00 oz/ton) gold between one and three metres within the Princessa structure.
- Twenty-three significant intercepts with length weighted average in excess of 35.00 gpt.
- Structures remain open in all directions
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 ore body 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). Premier has secured the right to earn up to a 65% interest in the Santa Teresa Project from Sutter.
“In all, our Phase One program had 23 intercepts drilled that were greater than 5.00 grams per tonne across no less than one metre, and the length weighted average of those exceeded 35.00 grams per tonne.” commented Stephen McGibbon, Executive Vice-President & COO of Premier. “Recent drilling with more tightly patterned holes helped us better understand the nature and distribution of gold within this system.”
Premier and joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM) continue to regard expansion of their interests at El Alamo as a priority for 2009.
Table 1 includes all assay results greater than 2.00 gpt gold for holes ST024 to ST032, with assay results greater than 10.00 gpt highlighted in yellow. Several of these contained visible gold upon visual inspection of the core. Drill holes ST024-029 were drilled to test the South structure, while holes ST030-032 tested the main Princessa structure.
Table 1 Significant Results ST024 To ST032
True widths estimated between 50-75% of intersection width
The Santa Teresa Project is accessible by road, and is located approximately 100 kilometres southeast of Ensenada and about 250 kilometres south of San Diego, California, USA. A total of some 7,000 metres (22,800 feet) in 32 holes were drilled on Santa Teresa in 2008.
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.
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.