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
confirm a maiden Mineral Resource estimate for the Company's
100%-owned Hasaga Property, located in Red Lake, Ontario, Canada some 440 kilometres
northwest of Thunder Bay. The
estimate, completed by MRB and Associates of Val-d'Or, Quebec (with an effective date of
December 30th, 2016) has
been completed following a two-year exploration and delineation
drilling campaign by Premier that focussed on the Central, Hasaga
and Buffalo target areas.
Table 1 provides a property-wide summary of the Mineral
Resources at Hasaga, while Table 2 separates the Mineral Resources
into respective target areas described in earlier press
releases.
Highlights of the December
30th, 2016 Hasaga estimate include:
- Total Indicated Mineral Resources of 1,123,900 ounces of
gold
- Total Inferred Mineral Resources of 630,500 ounces of
gold
- Central Zone Indicated Mineral Resources of 803,900 ounces
of gold and 583,000 ounces inferred
- Resources restricted to having open-pit potential only;
underground potential untested
- Mineral resources constrained by property boundary and
within an optimized pit shell
All abbreviations used in this press release are available by
following this link (click here).
"Our focus on resource delineation at Hasaga has resulted in a
discovery cost of less than $17.00
per indicated resource ounce" commented Premier Executive
Vice-President Stephen McGibbon on
the Company's C-Suite Blog
(http://www.premiergoldmines.com/news/c-suite-blog). "This is
the result of excellent work by our on-site team and an important
first step toward assessing the future mining potential at
Hasaga."
Importantly, the estimated resources are hosted within
mineralization that remains open at depth. Premier will seek
to increase property-wide resources by testing for potential higher
grade mineralization in 2017 that may be amenable to underground
mining methods.
Table 1 - Hasaga Mineral Resource Estimate
(Dec 30th, 2016)
|
|
|
|
|
Property
|
Resource
Category
|
Tonnes
('000t)
|
Gold Grade
(g/t)
|
Contained Au
('000 oz)
|
|
Measured
|
-
|
-
|
-
|
|
Indicated
|
42,294
|
0.83
|
1,124
|
HASAGA
|
Measured
+
|
|
|
|
|
Indicated
|
42,294
|
0.83
|
1,124
|
|
|
|
|
|
|
Total
Inferred
|
25,143
|
0.78
|
631
|
- Independent Qualified Persons for the Hasaga Mineral Resources
Estimate are Abderazzak Ladidi P.Geo and Vincent Jourdain, Eng.,
Ph.D from MRB & Associates and the effective date of the
estimate is December 30th 2016
- CIM definitions were followed for Mineral Resources
- Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
issues.
- The estimate includes 13 mineralized zones (3 in Buffalo
sector, 6 in Hasaga sector, 4 in Central sector) and 2 lithological
envelopes
- High gold assays were capped at 15 g/t
- Bulk density data were averaged on a per zone basis (1220,
1230, 1320:2.71 t/m3; 1330, 1510, 1540, 2399: 2.72 t/m3; 1520,
1525: 2.74 t/m3; 1210, 1340: 2.75 t/m3; 1515, 2599: 2.77 t/m3;
1530: 2.79 t/m3; 1310: 2.83 t/m3)
- Resources were evaluated from drill hole and channel samples
using a 5-pass ID2 interpolation in a block model (block size = 5 x
5 x 5metres)
- Open pit resources are constrained to the property limit in an
optimized pitshells at a cut-off grade of 0.5 g/t Au
- Pitshell optimization parameters: Mining cost = CAD$2.50/t, milling cost = CAD$12.00/t, G&A = CAD$3.00/t, Gold price US$1400/oz (exchange rate CAD$1.30 = US$1.00), milling recovery = 94%, mining recovery
= 100%, mining dilution = 0.0%, pit slope = 55°
- Totals may not add correctly due to rounding
The Mineral Resource estimate used the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), CIM Definition Standards
for Mineral Resources and Mineral Reserves, Definitions and
Guidelines prepared by CIM Standing Committee on Reserve
Definitions and adopted by CIM Council on May 10, 2014. The mineral resource estimate
is classified as "measured", "indicated", or "inferred" as defined
by CIM.
Table 2 - Hasaga Mineral Resources by Target Area
|
|
|
|
|
Deposit
|
Category
|
Tonnes
('000t)
|
Gold Grade
(g/t)
|
Contained Au
('000 oz)
|
Central
Zone
|
Indicated
|
31,613
|
0.79
|
804
|
|
Inferred
|
23,733
|
0.76
|
583
|
Hasaga
Zone
|
Indicated
|
9,050
|
0.89
|
258
|
|
Inferred
|
806
|
1.00
|
26
|
Buffalo
Zone
|
Indicated
|
1,632
|
1.18
|
62
|
|
Inferred
|
604
|
1.12
|
22
|
Total
|
Indicated
|
42,294
|
0.83
|
1,124
|
|
Inferred
|
25,143
|
0.78
|
631
|
- Independent Qualified Persons for the Hasaga Mineral Resources
Estimate are Abderazzak Ladidi P.Geo and Vincent Jourdain, Eng.,
Ph.D. from MRB & Associates and the effective date of the
estimate is December 30th 2016
- CIM definitions were followed for Mineral Resources
- Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
issues.
- The estimate includes 13 mineralized zones (3 in Buffalo
sector, 6 in Hasaga sector, 4 in Central sector) and 2 lithological
envelopes
- High gold assays were capped at 15 g/t
- Bulk density data were averaged on a per zone basis (1220,
1230, 1320:2.71 t/m3; 1330, 1510, 1540, 2399: 2.72 t/m3; 1520,
1525: 2.74 t/m3; 1210, 1340: 2.75 t/m3; 1515, 2599: 2.77 t/m3;
1530: 2.79 t/m3; 1310: 2.83 t/m3)
- Resources were evaluated from drill hole and channel samples
using a 5-pass ID2 interpolation in a block model (block size = 5 x
5 x 5metres)
- Open pit resources are constrained to the property limit in an
optimized pitshells at a cut-off grade of 0.5 g/t Au
- Pitshell optimization parameters: Mining cost = CAD$2.50/t, milling cost = CAD$12.00/t, G&A = CAD$3.00, Gold price US$1400/oz (exchange rate CAD$1.30 = $US1.00), milling recovery = 94%, mining recovery
= 100%, mining dilution = 0.0%, pit slope = 55°
- Totals may not add correctly due to rounding
The key assumptions and parameters used in the estimate of the
Mineral Resources are summarized as follows:
- The 5-pass ID2 interpolation method was used in this mineral
resource estimate.
- The optimized pit shell used reflects a revenue factor of
0.74.
- High grade (outlier) assays managed utilizing a 15 g/t Au
capping grade on raw assays as well as using a restricted search
approach with a grade threshold established on composites on a per
zone basis (generally 3-6 g/t Au) within half of the variography
derived search range.
- An exchange rate of CAD $1.30 to
US$1.00 has been assumed.
- Mineral resources have been restricted to no closer than 50
metres of any shoreline, but are not restricted by cultural effects
such as roads and buildings.
- Total number of below cut-off (waste) tonnes contained within
the optimized pits is some 94,000,000 tonnes.
Table 3 is a sensitivity analysis of the of the Hasaga Property
mineral resource estimate across a range of potential cut-off
grades.
Table 3 Sensitivity Analysis for Hasaga Mineral
Resource Estimate
|
|
|
|
|
Cut-off
Parameter
|
Category
|
Tonnes
('000t)
|
Gold Grade
(g/t)
|
Contained Au
('000 oz)
|
>0.90 g/t
Au
|
Indicated
|
11,687
|
1.25
|
471
|
|
Inferred
|
5,383
|
1.28
|
221
|
>0.70 g/t
Au
|
Indicated
|
22,853
|
1.03
|
754
|
|
Inferred
|
11,177
|
1.02
|
368
|
>0.50 g/t
Au
|
Indicated
|
42,294
|
0.83
|
1,124
|
|
Inferred
|
25,143
|
0.78
|
631
|
>0.30 g/t
Au
|
Indicated
|
70,821
|
0.65
|
1,490
|
|
Inferred
|
49,589
|
0.59
|
940
|
A comprehensive description of key assumptions and parametres
used are set out in a technical report that will be available on
SEDAR and Premier's website within 45 days of this press
release.
Hasaga Metallurgy Summary
In December, Premier reported on a recently completed
metallurgical scoping program on samples from the Hasaga, Central
and Buffalo Zones with the intent to characterize the lithological
and mineralization domains of the project areas, and to complement
the Hasaga mineral resource estimate. Although bottle roll tests
utilizing coarser crush sample composites (¼", ½", ¾" crush
sizes) does not support a potential heap leach recovery process,
the baseline bottle roll cyanidation study indicated very good
recoveries for all grade ranges with metallurgical results of
between 94% and 97% when grinding to 80% passing 200 mesh.
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.
Abderazzak Ladidi, P.Geo and Vincent Jourdain, Eng., Ph.D. are
the independent Qualified Persons who have reviewed and approved
the contents of this press release for the purposes of National
Instrument 43-101.
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 estimation of mineral
resources and mineral reserves, 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