(Includes 374% increase in Inferred Mineral
Resources)
Shares Issued: 200,406,337
THUNDER BAY, ON, March 21, 2017 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
release an updated Mineral Resource estimate for the Company's
100%-owned McCoy-Cove Property, located 32 miles south of
Battle Mountain in Lander County, Nevada. The estimate, completed
by RPA Inc. of Toronto, Ontario
(with an effective date of March 21,
2017) is the culmination of a very successful multi-year
exploration and delineation drilling campaign by Premier that
focussed on the Helen, CSD Gap and 2201 Zone target areas.
Table 1 provides a summary of the Mineral Resources at
McCoy-Cove. Highlights of the estimate include:
- Total Indicated Mineral Resources of 614,000 tonnes grading
11.57 g/t Au (228,000 ounces of gold), an increase of 59% versus
the 2013 resource estimate.
- Total Inferred Mineral Resources of 3,378,000 tonnes grading
12.17 g/t Au (1,322,000 ounces of gold), an increase of 374% versus
the 2013 resource estimate.
- An increase in the grade of both Indicated and Inferred
mineral resources of 11% and 24% respectively.
- Preliminary Economic Assessment (PEA) underway as part of a
US$13.4M program in 2017.
- Exceptional exploration potential remains a hallmark of this
property.
All abbreviations used in this press release are available by
following this link (click here) and a supplement presentation can
be found on the Company's website www.premiergoldmines.com or by
following this link (click here).
"With this updated resource, McCoy-Cove now ranks amongst the
most significant exploration successes in recent memory in
Nevada," commented President &
CEO Ewan Downie 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 and technical team and
confirms the potential of this emerging high-grade development
opportunity."
Importantly, the mineral resources have been estimated following
creation of a robust litho-structural model that unifies the
stratigraphic, structural, intrusive and alteration elements that
are common with other world-class Carlin-style deposits in
Nevada. Further refinements to the
model are being conducted on an ongoing basis.
Figure 1 is a longitudinal section profiling the location and
geological context of each of the reported resource
areas. Premier will continue to seek increasing property-wide
resources by testing several existing and new exploration targets
that have been refined as a result of a successful 2016
campaign.
Table 1 – 2017 McCoy-Cove Mineral Resource
Estimate
|
|
|
2017
McCoy-Cove
Zone
|
INDICATED
RESOURCES GOLD
|
INFERRED RESOURCES
GOLD
|
Tonnage (000
t)
|
Grade (g/t
Au)
|
Au Ozs
(000's)
|
Tonnage (000
t)
|
Grade (g/t
Au)
|
Au Ozs
(000's)
|
Helen
|
409
|
12.41
|
163
|
1,138
|
13.04
|
477
|
CSD
|
180
|
9.26
|
54
|
200
|
8.81
|
57
|
CSD Gap
|
25
|
14.49
|
12
|
1,458
|
11.59
|
543
|
2201-VG
|
-
|
-
|
-
|
582
|
13.09
|
245
|
TOTAL
|
614
|
11.57
|
228
|
3,378
|
12.17
|
1,322
|
|
|
Notes:
|
|
|
|
1.
|
CIM definitions were
followed for mineral resources
|
2.
|
Mineral Resources are
estimated at a cut-off grade of 5.6 g/t Au
|
3.
|
Mineral Resources are
estimated using a long-term gold price of US$1400 per
ounce
|
4.
|
A minimum mining
width (vertical height or lens thickness) of 8 feet has been
used
|
5.
|
Bulk density is 2.1
t/m3 for CSD, GAP and Helen, and 2.6 t/m3 for 2201 &
VG.
|
6.
|
Numbers may not add
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 "indicated", or "inferred" as defined by CIM.
Premier is not aware of any environmental, permitting, legal,
title-related, taxation, socio-political, marketing or other
relevant issue that could materially affect the Mineral Resource
estimate.
The key assumptions and parameters used in the estimate of the
Mineral Resources are summarized as follows:
- A one pass, ID4 interpolation method was used in this mineral
resource estimate
- High grade assays were manage utilizing a 60 g/t Au capping
grade on raw assays for all lenses
- The compositing was realized on full intercept length
- Indicated classification has been applied to blocks
interpolated using at least 3 drill holes
- Inferred classification has been applied to remaining blocks
within the ore wireframes
- Ore shapes were trimmed to contain only above cut-off grade
composites, and expanded approximately 100 ft past last known
pierce point
A comprehensive description of key assumptions and parameters
used will be set out in a technical report that will be
available on SEDAR and Premier's website within 45 days of this
press release.
Tudorel Ciuculescu, P.Geo, is the independent Qualified Persons
who has reviewed and approved the contents of this press release
for the purposes of National Instrument 43-101.
McCoy-Cove PEA Study Confirmed
As a result of the high-grade nature of, and significant
increase in the McCoy-Cove mineral resource estimate, Premier today
confirms that it is now undertaking a Preliminary Economic
Assessment (PEA) at McCoy-Cove and is targeting its completion
during H2 of 2017. The PEA is being conducted by Practical
Mining LLC of Elko, Nevada,
utilizing the support of Premier's Nevada-based operating team working under the
direction of Brent Kristof,
Premier's Senior Vice President of Operations. Upon completion of
the PEA, Premier anticipates collaring the authourized
underground exploration decline in Q4 2017 to allow for an advanced
underground drilling and test mining program in 2018. With a
successful program, this work will augment completion of a
Feasibility Study thereafter.
2017 Infill & Exploration Program
The 2017 program will consist of 17,000 metres and US$5.0M in expenditures will focus on select
infill drilling of the Helen and Gap deposits as well as testing
multiple priority exploration targets across the property.
Highlight results include:
Infill
- Infill drilling of the Helen Zone has confirmed mineralization
in PG17-04: 9.07 g/t Au and 2.89 g/t Ag over 1.7m at 598.0m and
9.31 g/t Au and 12.11 g/t Ag over 5.5m at 642.2m.
- PG17-07: 9.06 g/t Au and 4.65 g/t Ag over 2.8m at 434.0m
and 8.23 g/t Au and 2.55 g/t Ag over 11.4m at 596.0m and 29.52
g/t Au and 8.48 g/t Ag over 5.9m at 629.3m.
Exploration
- Drilling at the Windy Point target has identified a large
mineralized system in PG17-13: 0.66 g/t Au and 0.10 g/t Ag over
197.2m at 402.3m including 7.11 g/t Au and no detectable Ag over
1.8m at 459.0m and 1.03 g/t Au and 0.07 g/t Ag over 58.4m at
541.2m.
Drilling is ongoing and assays are pending on multiple drill
holes with a full exploration update planned for early Q2 2017.
Stephen McGibbon, P. Geo., Vice
President of Corporate & Project Development, 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 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 estimation of mineral
resources, 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