Shares Issued: 201,313,187
THUNDER BAY, ON, Jan. 11, 2017 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
provide an update on the Company's 2016 exploration programs and
final results from its multiple projects in Mexico and Nevada. Premier remains focused on driving
shareholder value by leveraging the potential of its current asset
base. Success in exploration is fundamental to value
creation.
Exploration highlights for 2016 include:
- Positive results from multiple targets at the Mercedes mine
with potential to expand mineral reserves and extend the mine
life
- The discovery of the CSD Gap Zone at the McCoy-Cove Property,
that will result in an updated mineral resource estimate, PEA and
potential underground development in 2017
- Premier's joint venture opportunity with Kinross at Goldbanks is poised to add to the
Company's strong track record of discovery success in Nevada.
All abbreviations used in this press release are available by
following this link (click here).
"Premier Gold has a long-standing commitment to exploration that
has resulted in several significant discoveries" commented Premier
President & CEO Ewan Downie on
the Company's C-Suite Blog
(http://www.premiergoldmines.com/news/c-suite-blog ). "This
commitment will continue during 2017 where we expect our largest
annual exploration budget in company history with no less than
US$18.5 million being spent on
programs expected to have a direct, near-term impact on future
production and on our peer-best development pipeline."
Mercedes Mine, Sonora State, Mexico
Drilling at the Company's 100%-owned Mercedes Mine, located in
the State of Sonora, Mexico,
focused on defining and expanding mineralization in the existing
gold horizons and exploring for new veins on the property. In
addition to surface exploration, the 2016 program utilized
underground drilling from existing mine workings resulting in
several new discoveries. Premier intends to continue the
program in 2017 with a proposed US$4.7
million, 23,000 metre drill campaign, utilizing rigs for
both the surface and underground. Recent highlights
include:
- Exploration drilling for mineralization parallel to the
Barrancas/Lagunas mining area has
identified parallel horizons and vein spurs that could represent
new vein systems with intercepts of up to 11.94 g/t Au and 81.60
g/t Ag across 8.2 m in hole MUG16-140D. Horizontal exploration
was not previously contemplated on the project and Premier views
this drilling as a potential near term opportunity to extend mine
life.
- Infill and step-out drilling in the Diluvio area continues to
define high-grade mineralization with intercepts of up to 16.06
g/t Au & 13.60 g/t Ag across 12.5 m and 29.23 g/t Au &
49.00 g/t Ag across 4.5 m in hole L16-266D and 17.19 g/t Au
& 31.10 g/t Ag across 13.5 m in hole L16-278D.
- Testing for open pit and underground mineralization at Rey de
Oro (infill/step out drilling) has
returned assays as high as 68.43 g/t Au & 71.80 g/t Ag
across 4.6 m in hole R16-133D and 3.68 g/t Au & 21.60
g/t Ag across 13.7 m in hole R16-124D.
In 2016, a total of was 27,442 metres in 135 core holes was
completed in a combined surface and underground program. The
drill program is testing for extensions to the known vein systems
in addition to exploration to discover new mineralized
horizons. The primary target areas are as follows (see Figure
1):
- Mineralization proximal to the main Mercedes/Barrancas/Lagunas trend;
- Confirming resource/reserve potential at Diluvio;
- Defining the open pit and underground opportunity at Rey de
Oro; and
- Surface exploration to explore for new target areas on the
property.
Mercedes Mine Trend
Drilling is testing the potential for mineralization parallel to
the Mercedes, Barrancas and
Lagunas mine area, including the first-ever flat holes from
underground at Mercedes. This program has successfully
intersected horizons of alteration and gold/silver bearing vein
systems both NE and SW from the Mercedes Mine trend including 7.35
g/t Au and 259.90 g/t Ag across 0.9m in hole MUG16-144D. Table 1
and Figure 2 highlight results to-date. Additional drilling is
being completed to focus on defining resources proximal to the
current workings.
Table 1 -
Highlight assays from flat hole drilling at
Mercedes/Barrancas/Lagunas
|
Hole
|
Area
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
MUG16-140D
|
LG South
|
0.1
|
8.3
|
8.2
|
11.94
|
81.60
|
|
|
21.3
|
24.3
|
3.0
|
4.98
|
75.00
|
MUG16-144D
|
CDO
|
101.0
|
101.4
|
0.9
|
7.35
|
259.90
|
*2g/t AuEq cutoff, *
True widths are 85% to 100% of core length
|
|
Mercedes Diluvio Target Area
Diluvio is included in the 2016 mineral resource statement at
Mercedes, but is not yet in reserves and is not included in the
current life-of-mine (LOM) plan. The 2017 exploration plan
for Diluvio will include surface and underground drilling,
completing an exploration drift, and bulk sampling. Table 2
provides a summary of key intercepts from the current drill program
and Figure 3 is a surface plan of the Target.
Table 2 - Selected
highlight assay results from drilling at Diluvio
|
Hole
|
Area
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
L16-266D
|
Diluvio
Central
|
215.5
|
228.0
|
12.5
|
16.06
|
13.60
|
|
|
321.0
|
325.5
|
4.5
|
29.23
|
49.00
|
L16-267D
|
Diluvio
Central
|
291.5
|
312.5
|
21.0
|
3.24
|
21.50
|
L16-269D
|
Diluvio
West
|
335.0
|
339.5
|
4.5
|
9.47
|
20.60
|
L16-271D
|
Diluvio
Central
|
317.0
|
318.5
|
1.5
|
11.95
|
14.00
|
L16-273D
|
Diluvio
Central
|
265.0
|
290.5
|
25.0
|
3.12
|
7.00
|
|
Including
|
265.0
|
275.5
|
10.5
|
5.41
|
13.70
|
L16-275D
|
Diluvio
Central
|
259.2
|
273.5
|
14.3
|
3.58
|
9.20
|
|
Including
|
263.0
|
269.0
|
6.0
|
6.31
|
12.70
|
L16-276D
|
Diluvio
Central
|
269.9
|
295.9
|
26.0
|
3.01
|
9.50
|
|
Including
|
277.5
|
280.4
|
2.9
|
7.84
|
9.50
|
L16-277D
|
Diluvio
Central
|
234.5
|
236.0
|
1.5
|
10.70
|
10.00
|
|
|
246.5
|
249.5
|
3.0
|
6.16
|
5.50
|
L16-278D
|
Diluvio
Central
|
268.2
|
281.7
|
13.5
|
17.19
|
33.10
|
|
|
296.7
|
311.7
|
15.0
|
4.72
|
7.80
|
|
|
363.7
|
373.2
|
9.6
|
4.14
|
15.10
|
L16-280D
|
Diluvio
Central
|
277.0
|
279.7
|
2.7
|
7.72
|
19.00
|
L16-283D
|
Diluvio
Central
|
173.3
|
234.8
|
61.6
|
3.66
|
10.70
|
|
Including
|
186.8
|
198.8
|
12.0
|
7.81
|
15.30
|
* True widths are 85%
to 100% of core length
|
|
Mineralization at Diluvio is distinct from other Mercedes
deposits in that it consists of two or more gently-dipping "Manto"
type ore bodies that could be amenable to bulk underground mining
or higher grade narrow vein mining.
Mercedes Rey de Oro Target
Rey de Oro is immediately
adjacent to the Klondike mine workings and represents one of the
higher priority exploration targets at Mercedes. Current
drilling is testing both near-surface (open pit) mineralization and
deeper high-grade veining.
Based on positive results from the ongoing program, drilling
will continue to focus on three main veins (Cuerpo 1, Cuerpo 2 and
Cuerpo 3). Highlight intercepts in the potential open pit
deposit contained assays of up to 3.68 g/t Au and 23.50 g/t Ag
across 21.7 m. Drilling in the deeper high-grade gold
vein system cut intercepts of up to 68.43 g/t Au and 71.80 g/t
Ag over 4.6 m.
Table 3 provides a summary of recent highlight results from
drilling at Rey de Oro and Figure
4 exhibits a long-section view of the open pit and underground
targets:
Table 3 –
Highlight results from drilling at Rey de Oro
|
Hole
|
Area
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
R16-121D
|
Cuerpo
1
|
0.0
|
7.9
|
7.9
|
1.05
|
10.50
|
R16-124D
|
Cuerpo 1
|
0.9
|
14.6
|
13.7
|
3.68
|
21.60
|
|
Including
|
11.6
|
14.6
|
3.1
|
8.59
|
8.50
|
R16-126D
|
Cuerpo 1
|
0.8
|
10.8
|
10.0
|
1.94
|
36.20
|
|
Including
|
9.7
|
10.8
|
1.1
|
6.92
|
73.10
|
R16-127D
|
Cuerpo 1
|
7.0
|
11.6
|
4.6
|
2.90
|
81.30
|
R16-128D
|
Cuerpo 1
|
0.0
|
6.7
|
6.7
|
4.18
|
36.80
|
R16-129D
|
Cuerpo 1 &
2
|
33.3
|
50.9
|
17.6
|
1.39
|
48.80
|
R16-131D
|
Cuerpo 1
|
20.7
|
22.3
|
1.5
|
10.05
|
3.00
|
R16-132D
|
Cuerpo 1
|
5.2
|
6.7
|
1.5
|
4.96
|
5.00
|
|
|
14.3
|
17.4
|
3.0
|
5.81
|
5.00
|
R16-133D
|
Cuerpo 1
|
20.4
|
25.0
|
4.6
|
68.43
|
71.80
|
R16-134D
|
Cuerpo 3
|
44.4
|
46.6
|
2.3
|
88.28
|
11.30
|
R16-136D
|
Cujerpo 1
|
4.5
|
25.8
|
21.7
|
3.68
|
23.50
|
R16-137D
|
Cuerpo 2
|
160.4
|
173.6
|
13.2
|
5.17
|
126.10
|
R16-139D
|
Cuerpo 1
|
3.5
|
12.5
|
9.0
|
3.10
|
9.40
|
R16-141D
|
Cuerpo 1 &
2
|
237.2
|
251.1
|
13.9
|
9.86
|
122.70
|
|
Including
|
238.6
|
247.1
|
8.5
|
15.24
|
148.20
|
* True widths are 85%
to 100% of core length
|
|
McCoy-Cove Project, Nevada
Ongoing exploration at the Company's 100%-owned McCoy-Cove Gold
Project, situated along the Battle Mountain-Eureka Trend in
Nevada, continues to delineate
high grade mineralization within the CSD Gap and Helen Zone deposits.
The 2016 drill program was focused on select infill holes to
better define continuity as well as multiple step-out holes along
the margins of the deposits to test the expansion potential of the
Carlin-style gold and silver system. Results continue to
confirm substantial grade and thickness continuity across the core
of the deposit. Highlight results, as presented in Figure 5
and Table 4 below, demonstrate that both deposits remain open for
expansion in multiple directions. An updated resource
estimate is expected to be complete in Q1 2017.
Highlights of the recent results include:
- PG16-23: 6.30 g/t Au and 0.47 g/t Ag over 25.2m at 558.4m (0.18
oz/t Au and 0.01 oz/t Ag over 101.7 ft.) including 7.64 g/t Au
and 0.31 g/t Ag over 6.9m at 567.3m (0.22 oz/t Au and 0.01 oz/t Ag
over 22.8 ft.)
- PG16-25: 10.18 g/t Au and 2.08 g/t Ag over 4.9m at 390.8m
(0.30 oz/t Au and 0.06 oz/t Ag over 16 ft.)
- PG16-28: 6.18 g/t Au and 6.23 g/t Ag over 40.2m at 611.4m (0.18
oz/t Au and 0.18 oz/t Ag over 132.0 ft.) including 16.10 g/t Au
and 8.90 g/t Ag over 4.0m at 611.4m (0.47 oz/t Au and 0.26 oz/t Ag
over 13.0 ft.)
Table 4: Select Q4
2016, CSD Gap and Helen exploration drill program
results
|
Hole
ID
|
Area
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
PG16-18
|
CSD Gap
|
425.8
|
426.3
|
0.5
|
8.37
|
84.60
|
435.9
|
436.5
|
0.6
|
16.55
|
94.60
|
PG16-19
|
CSD Gap
|
441.4
|
442.4
|
1.1
|
9.70
|
1.60
|
PG16-23
|
Upper
Helen
|
453.2
|
457.5
|
4.3
|
7.81
|
2.23
|
|
467.0
|
470.0
|
3.0
|
7.16
|
4.80
|
Lower
Helen
|
558.4
|
583.6
|
25.2
|
6.30
|
0.47
|
including
|
567.3
|
574.2
|
6.9
|
7.64
|
0.31
|
Lower
Helen
|
577.0
|
579.7
|
2.7
|
8.65
|
0.63
|
including
|
581.6
|
583.6
|
2.0
|
10.15
|
1.33
|
PG16-25
|
Lower
Helen
|
390.8
|
395.6
|
4.9
|
10.18
|
2.08
|
PG16-27
|
CSD Gap
|
456.6
|
459.8
|
3.2
|
5.78
|
3.29
|
480.5
|
481.7
|
1.2
|
13.70
|
4.30
|
PG16-28
|
CSD Gap
|
611.4
|
651.7
|
40.2
|
6.18
|
6.23
|
including
|
611.4
|
615.4
|
4.0
|
16.10
|
8.9
|
and
|
633.7
|
637.3
|
3.7
|
14.89
|
3.65
|
*True widths are
estimated to be 80 to 90% of core length
|
|
South Arturo Project, Nevada
The South Arturo Project, located in the Carlin Trend of
Nevada, is a joint venture between
Premier (40%) and Barrick Gold
(60%). In 2016, little exploration was completed at South
Arturo owing to mine development.
Exploration will ramp up in 2017 to test several key targets,
including the El Nino deposit that is currently subject to a permit
submission for potential underground mine development. A
US$1.1M program of definition
drilling is planned in the upper portion of the El Nino deposit in
preparation for mining. In addition, a US$1.8M program of drilling is planned in the
Phase 1 and Phase 3 deposit areas, which together represent a
second potential open pit under consideration on the
property. Also, several holes are planned to test new
exploration targets on the property including the "Ardent" target
that shares many geological similarities to the area currently
being mined.
Goldbanks Project, Nevada
Premier entered into a joint venture earn-in agreement with
Kinross in 2016 to acquire 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 1,600 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 initial drilling completed in late 2016 consisted of two
deep core holes designed to investigate structural targets and
potential controls on mineralization in the Golden Devil discovery
area in order to better define the controls on high grade
mineralization. The primary target, a proposed basin bounding
fault, was intersected in both GB16-01 and GB16-02. Premier is
encouraged by the intensity of alteration and anomalous Au/Ag
values associated with this structure and intends on testing this
fault both up-dip and along strike in 2017. The highest grade
intercept from the first two holes was in GB16-02 that assayed 0.44
g/t Au, 12,492.5 g/t Ag and 4.41% Cu over 0.3m at 552.6m (0.01 oz/t
Au and 364.38 oz/t Ag over 1.0 ft). Further drilling is
planned in several target areas in 2017.
Investor Day
Premier will be hosting an Investor Day presentation at the
Toronto Board of Trade
(4th floor, rooms A/B), 1 First Canadian Place,
Toronto, Ontario at 10:00am (EST) on Thursday,
January 12, 2017. The Company invites all current and
future shareholders to attend this event.
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. Mercedes assay results are from core samples
sent to ALS Canada LTD, an accredited mineral analysis laboratory
in Vancouver, British Columbia.
Mercedes and McCoy Cove drill
samples were sent to ALS Laboratories in Reno, Nevada for analysis with the analytical
facility utilizing 30-gram fire assay with an AA finish for RC
samples and 30-gram fire assay with AA finish and ICP-MS 30 element
scan from 4-acid digestion for core samples. Over-limit samples
receive an automatic gravimetric finish.
Premier Gold Mines Limited is a respected production,
exploration and development company with a high-quality pipeline of
gold projects focused in proven, safe, and accessible mining
jurisdictions in Canada,
the United States, and
Mexico.
Forward Looking Information
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 the completion of the
Financing, 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