Exposure to new high grade discoveries in
Nevada and Mexico
Shares Issued: 200,406,337
THUNDER BAY, ON, Oct. 26, 2016 /CNW/ - PREMIER GOLD MINES
LIMITED (TSX:PG) ("Premier", "the Company") is pleased to
announce that it has entered into two separate and definitive
agreements with Goldcorp Inc. (TSX:G, NYSE:GG) ("Goldcorp") and
Kinross Gold Corporation (TSX:K, NYSE:KGC) ("Kinross") to acquire
highly prospective exploration projects in Nevada and Mexico. The projects have had
recent exploration work that identified high-grade mineralization
where both could represent significant new discoveries for
Premier.
Goldbanks Project – Nevada (Kinross
Deal)
The Option Agreement with Kinross Gold USA, Inc. ("Kinross"), a wholly-owned
subsidiary of Kinross Gold Corporation, grants Premier the right to
earn a 50% interest in the Goldbanks Project ("Goldbanks") located
in Pershing County, Nevada, 50
kilometres south of Winnemucca. Goldbanks is comprised of 875
Claims totalling approximately 16,000 acres with several
significant targets on the property including the high-grade Golden
Devil discovery and the Main Zone and KW open pit deposits.
The Golden Devil discovery is the primary target where drilling
has already commenced to test a high grade epithermal vein
discovery beneath the known low grade near surface deposits.
Initial results are expected in early November. The
discovery resulted from a new geological interpretation by Kinross
in 2013 that resulted in the drilling of three deep holes (see
Table 1 below) that intersected gold mineralization including a
high grade intercept of 192.00 g/t Au and 10,850.00 g/t Ag over
1.1m (5.61 oz/t Au and 316.46 oz/t Ag over 3.7 ft).
Table 1 – Highlight results from 2013 Kinross drilling at the
Golden Devil target
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Hole
ID
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Coordinates(1)
(ft.)
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Azimuth/Dip
(Degrees)
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From
(m)
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To
(m)
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Core
Length(2)
(m)
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Au
(g/t)
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Ag
(g/t)
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Core
Length(2)
(ft)
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Au
(oz/t)
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Ag
(oz/t)
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Comment
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GB13-07
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15210356N/2873880E
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285/-60
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657.8
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660.8
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3.0
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5.57
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3.09
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9.9
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0.16
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0.09
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698.1
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699.2
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1.1
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192.50
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10850.00
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3.7
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5.61
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316.46
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Visible
Gold
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GB13-15
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15210360N/2873864E
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290/-58
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636.8
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637.9
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1.1
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27.90
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17.10
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3.7
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0.81
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0.50
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Visible
Gold
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688.8
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689.5
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0.6
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126.50
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25.00
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2.1
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3.69
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0.73
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Visible
Gold
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705.1
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706.9
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1.9
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5.06
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9.95
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6.1
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0.15
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0.29
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GB13-16
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15211419N/2873743E
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225/-50
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722.5
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723.4
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0.9
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4.52
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16.90
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2.9
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0.13
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0.49
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1) 2701 NAD83 State
Plane 2) True widths of drill intercepts are unknown
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All abbreviations used in this press release are available by
following this link (click here).
The geologic model at Goldbanks is interpreted to be similar to
the Midas and Sleeper Mines in Nevada that both produced gold early in their
production history from ore in excess of one ounce per ton.
It is the believed that the Kinross drilling intersected "splay"
veins proximal to a primary ore bearing structure and drilling will
focus on stepping out along the high grade Golden Devil trend as
well as testing the projected location of a highly prospective
basin-bounding fault zone.
The high grade epithermal vein targets at depth are geologically
connected to the property's near-surface deposits (90% oxide and
10% sulphide) that host an inferred mineral resource estimate of
556,700 ounces of gold contained within 25.7M tonnes @ 0.7 g/t Au
(28.3M tons 0.02 oz/t Au). The estimate was completed in 2006 by
Mine Development Associates of Reno,
Nevada on behalf of Desert Gold Ventures Inc., an earlier
partner on the project. Other prospective targets on the
property will be prioritized for future programs.
To earn a 50% interest in the project, Premier is required to
spend US$20 Million in exploration on
the property over five years including a firm commitment of
US$3.5 Million during the first 18
months. Premier will be the operator of exploration programs
on the property. Kinross may elect to become the operator
following Premier having earned a 50% interest.
Alto-Cristina Project – Mexico (Goldcorp Deal)
The Alto-Cristina Project is located in southwest part of
Chihuahua State, Mexico. Premier has secured an option
pursuant to an agreement with Minas de la Alta Pimeria, S.A. de
C.V., a subsidiary of Goldcorp, to acquire up to a 100% interest by
making payments of US$1.5 Million on
each of the date of execution of the agreement; on the 12 month
anniversary date; and on completion of a resource estimate on the
property. A final payment of US$2.5
Million is required at commercial production. Goldcorp
will retain a 2.0% Net Smelter Returns Royalty ("NSR"), half of
which can be purchased by Premier for the sum of US$1.5 Million for a period of three years from
the acquisition date.
Between 2013 and 2015 60 holes were drilled at Alto-Cristina
that resulted in the two high grade polymetallic vein discoveries
of Alto and Guadalupe. Quartz veins and quartz stockwork
occur within an area of approximately eight square kilometers where
individual vein zones have been traced over a distance of up to two
kilometers. The epithermal to mesothermal vein mineralization
contains gold, silver and base metals similar in nature to the
Tayoltita/San Dimas district (located to the south)
where 3.5 million gold equivalent ounces have been produced.
The drilling was completed on wide-spaced intervals, typically
100-200 metres and Premier hopes that tighter drilling may define
multiple high-grade shoots or lenses.
A drill has been mobilized to test the Alto/Bajo vein structure
with initial results expected by year-end. Previous drilling
intersected high-grade poly-metallic mineralization proximal to a
strong soil anomaly. Two of those intersections (on the
discovery section) are shown below and include:
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10.88 g/t Au, 155 g/t
Ag, 0.7% Cu, 1.2% Pb and 6.5% Zn across 2.80 m (Alto)
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9.98 g/t Au, 192 g/t
Ag, 1.9 % Cu, 1.5 % Pb and 15.2 % Zn across 1.85 m
(Alto)
1.64 g/t Au, 353
g/t Ag, 2.1 % Cu, 1.4 % Pb and 1.3 % Zn across 1.45 m
(Bajo)
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"These prospective high grade opportunities will further bolster
Premier's pipeline of exciting projects and both agreements adhere
to our strategy of gaining access to projects with the potential of
high-margin production and minimal upfront risk and costs. We
consider these targets to be some of the most attractive that the
Company has identified over the past several years," stated
Ewan Downie, President & CEO of
Premier on the Company's C-Suite Blog
(http://www.premiergoldmines.com/news/c-suite-blog).
Premier remains focused on building its mining business towards
a mid-tier producer status with two gold producing mines, South
Arturo and Mercedes, and the ongoing permitting for future mine
development at Hardrock in Ontario
(Trans-Canada JV) and McCoy-Cove in Nevada. Advanced
exploration continues in Red Lake
and further work on the newly acquired projects will assist to
prioritize the next tier of development projects and the future
growth of the Company.
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. Drill samples from Alto-Cristina were sent
to ALS Laboratories in Hermosillo,
Mexico for analysis by fire assay with AA finish.
Drill samples from Goldbanks were sent to ALS Laboratories in
Reno, Nevada for analysis with the
analytical facility utilizing fire assay with an AA finish for RC
samples and fire assay with AA finish and ICP-MS 30 element scan
from 4-acid digestion for Core samples. Samples containing visible
gold are submitted for screen metallic analysis and all over-limit
samples receive an automatic gravimetric finish.
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.
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.
SOURCE Premier Gold Mines Limited