Shares Issued: 201,530,687
THUNDER BAY, ON, June 21, 2017 /CNW/ - Premier Gold Mines
Limited (TSX-PG) is pleased to provide an update of ongoing
exploration and development programs at multiple project
sites. The 2017 programs include surface exploration,
sustained drilling efforts and development initiatives at several
operations.
Highlights include:
Mercedes Mine
Underground drilling along strike from the Corona de Oro mine
workings has discovered additional high-grade mineralization with
intercepts including 116.39 g/t Au & 120.7 g/t Ag across 1.5
metres and 19.84 g/t Au & 700.4 g/t Ag across 3.2
metres.
Development has now reached the Diluvio deposit, located along
trend from the Lupita mine workings. Surface and underground
drilling continues to define the mineralized horizon prior to mine
planning. Step-out drilling has expanded the Diluvio deposit
with intercepts up to 10.92 g/t Au & 84.8 g/t Ag across 3.05
metres and 5.17 g/t Au & 13.5 g/t Ag across 30.60
metres.
Underground development (drifting) is underway to access the
Marianas Zone, located down-plunge of the Lagunas mine
workings. Underground drilling to convert the Marianas Zone
from resource to reserve will commence in late 2017.
McCoy-Cove
Definition and expansion drilling continues at McCoy-Cove.
Recent highlights include multiple intercepts including 29.52
g/t Au & 8.48 g/t Ag across 5.9 metres and 19.72 g/t Au &
7.29 g/t Ag across 14.3 metres in the Helen and Gap deposits,
the identification of widespread alteration and gold mineralization
at the Windy Point exploration target, and potentially significant
gold mineralization in a target area approximately 1 km south of
the main deposit.
"Production costs at our mines, as measured by Cash Cost and
All-in-Sustaining-Cost (AISC) metrics, are among the best in the
industry," stated Ewan Downie in the
Company's c-suite blog
(https://www.premiergoldmines.com/news/c-suite-blog/all ),
"Actively advancing our pipeline of exploration and development
projects will sustain the growth trajectory we have firmly
established since becoming a producer."
Mercedes Mine, Sonora State, Mexico
Mercedes reported solid first quarter production of 22,164
ounces of gold and 88,572 ounces of silver and remains on track
with 2017 guidance.
Drilling is focused on defining and expanding mineralization in
the existing gold horizons and exploring for new veins on the
property. The 50,000 metre program is one of the most extensive
exploration campaigns in the history of the mine with up to ten
surface and underground drills to be active on the property.
Successful results to date include numerous high grade
intercepts at Corona de Oro, and in definition and expansion
drilling at Diluvio. Diluvio is expected to become part of
the mine plan during the second half of the year. Underground
crews have commenced access to two additional deposits (Marianas
and Rey de Oro) for drilling and
development purposes. Drilling at the prospective Marianas
Zone is targeted to begin in Q4-2017.
Table 1 Highlights of Results from the Mercedes Mine 2017
Drill Program
|
|
|
|
|
|
|
Hole
ID
|
Target /
Zone
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
L17-286D
|
Diluvio
Central
|
297.5
|
299.0
|
1.5
|
10.85
|
29.00
|
|
356.0
|
359.0
|
3.0
|
7.78
|
32.70
|
Including
|
357.0
|
358.0
|
1.0
|
19.75
|
50.00
|
L17-289D
|
Lupita
|
228.0
|
230.4
|
2.4
|
15.52
|
24.00
|
Including
|
229.2
|
230.4
|
1.2
|
29.50
|
40.00
|
UG-DI17-005
|
Diluvio
Central
|
30.2
|
31.7
|
1.5
|
12.30
|
29.00
|
|
33.2
|
36.3
|
3.1
|
10.92
|
84.80
|
|
37.8
|
68.4
|
30.6
|
5.17
|
13.50
|
Including
|
55.6
|
65.2
|
9.6
|
7.27
|
15.20
|
UG-LG17-002
|
Lagunas LG
930
|
22.9
|
30.1
|
7.7
|
4.56
|
43.40
|
Including
|
22.9
|
24.4
|
1.6
|
6.66
|
73.00
|
|
28.5
|
30.5
|
2.1
|
9.74
|
45.00
|
Including
|
28.5
|
29.0
|
0.5
|
24.90
|
73.00
|
C017-910DL-022
|
Corona de Oro
CDO-910
|
20.5
|
22.0
|
1.5
|
24.40
|
138.00
|
CO17-910DL-023
|
Corona de Oro
CDO-910
|
19.0
|
20.5
|
1.5
|
116.39
|
120.70
|
Including
|
19.0
|
19.7
|
0.7
|
264.00
|
235.00
|
|
25.0
|
28.0
|
3.0
|
5.16
|
49.00
|
Including
|
25.0
|
26.5
|
1.5
|
10.35
|
40.00
|
|
31.0
|
34.0
|
3.0
|
11.20
|
99.50
|
Including
|
31.0
|
32.3
|
1.5
|
18.25
|
126.00
|
CO17-910DL-024
|
Corona de Oro
CDO-910
|
19.5
|
24.2
|
4.7
|
13.94
|
635.80
|
Including
|
21.0
|
24.2
|
3.2
|
19.84
|
700.40
|
Note: True widths are
currently estimated at 60-80% of the core Interval
|
South Arturo Mine, Carlin
Trend, Nevada
Mining at the Company's 40%-owned South Arturo Mine resulted in
a solid first quarter with production of 28,815 ounces of gold.
The mine remains on track to meet 2017 guidance. The
joint venture (with Barrick Gold) is
assessing additional development initiatives including the
potential El Nino underground mine and Phases 1 & 3 open pit
opportunities.
Access permits have been submitted for an underground ramp from
the bottom of the current Phase 2 pit to the El Nino deposit.
Following the completion of mining, drilling is planned in H2-2017
from the pit to further define the deposit in advance of potential
development. Barrick is performing multiple phases of work,
including bulk sampling for metallurgical purposes, in order to
refine the economics of additional open pit mining at South Arturo
that have been previously permitted. Some drilling is planned
for the additional pit areas during 2017 and exploration drilling
will test a new area to the west of the current open pit mine.
McCoy-Cove Project, Battle Mountain Trend, Nevada
In March, Premier released 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 includes:
- Total Indicated Mineral Resources of 614,000 tonnes grading
11.57 g/t Au (228,000 ounces)
- Total Inferred Mineral Resources of 3,378,000 tonnes grading
12.17 g/t Au (1,322,000 ounces)
Drilling is focused on defining and expanding mineralization in
the existing gold horizons and testing additional targets on the
property. Highlights from the 2017 program are provided in
Table 2 below.
Table 2 Highlight Results from the 2017 McCoy-Cove Drill
Program
|
|
|
|
|
|
|
|
|
|
|
Hole
ID
|
Target /
Zone
|
Az/Dip
(Degrees)
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
Interval
(ft)
|
Au
(oz/t)
|
Ag
(oz/t)
|
PG17-01
|
Helen
|
48/-48
|
Abandoned (Pre-collar
deviation)
|
PG17-02
|
Helen
|
254/-83
|
370.2
|
371.2
|
1.1
|
6.47
|
1.90
|
3.5
|
0.19
|
0.06
|
PG17-03
|
Helen
|
351/-57
|
519.1
|
520.6
|
1.5
|
9.41
|
0.31
|
5.0
|
0.27
|
0.01
|
PG17-04
|
Helen
|
46/-59
|
598.0
|
599.7
|
1.7
|
9.07
|
2.89
|
5.5
|
0.26
|
0.08
|
|
|
|
642.2
|
647.7
|
5.5
|
9.31
|
12.11
|
18.0
|
0.27
|
0.35
|
PG17-05
|
Helen
|
201/-86
|
No Significant
Values
|
PG17-06
|
Helen
|
287/-80
|
352.5
|
356.8
|
4.3
|
5.69
|
1.31
|
14.0
|
0.17
|
0.04
|
|
574.9
|
579.7
|
4.9
|
6.44
|
1.00
|
16.0
|
0.19
|
0.03
|
591.3
|
597.4
|
6.1
|
6.21
|
1.79
|
20.0
|
0.18
|
0.05
|
Including
|
594.7
|
597.4
|
2.7
|
10.49
|
3.30
|
9.0
|
0.31
|
0.10
|
PG17-07
|
Helen
|
30/-63
|
434.0
|
436.8
|
2.8
|
9.06
|
4.65
|
9.2
|
0.26
|
0.14
|
595.1
|
602.3
|
7.2
|
13.13
|
0.93
|
23.5
|
0.38
|
0.03
|
605.6
|
607.5
|
1.8
|
11.25
|
4.22
|
6.0
|
0.33
|
0.12
|
629.3
|
635.2
|
5.9
|
29.52
|
8.48
|
19.5
|
0.86
|
0.25
|
696.2
|
702.1
|
5.9
|
7.81
|
1.57
|
19.5
|
0.23
|
0.05
|
PG17-08
|
CSD Gap
|
48/-56
|
424.1
|
426.4
|
2.3
|
8.38
|
0.98
|
7.5
|
0.24
|
0.03
|
467.3
|
476.6
|
9.3
|
5.99
|
5.80
|
30.5
|
0.17
|
0.17
|
Including
|
470.0
|
472.7
|
2.7
|
7.90
|
6.17
|
9.0
|
0.23
|
0.18
|
PG17-09
|
Helen
|
38/-62
|
606.3
|
617.8
|
11.5
|
12.08
|
2.60
|
37.7
|
0.35
|
0.08
|
648.9
|
663.2
|
14.3
|
19.72
|
7.29
|
47.0
|
0.58
|
0.21
|
676.6
|
684.0
|
7.4
|
8.74
|
1.69
|
24.3
|
0.25
|
0.05
|
PG17-10
|
CSD Gap
|
53/-51
|
483.7
|
486.6
|
3.0
|
17.73
|
104.90
|
9.7
|
0.52
|
3.06
|
557.8
|
560.2
|
2.4
|
19.37
|
11.28
|
8.0
|
0.56
|
0.33
|
591.5
|
594.8
|
3.4
|
16.75
|
3.55
|
11.0
|
0.49
|
0.10
|
651.1
|
655.6
|
4.6
|
6.92
|
4.99
|
15.0
|
0.20
|
0.15
|
PG17-11
|
CSD Gap
|
57/-46
|
550.5
|
557.2
|
6.7
|
6.33
|
6.60
|
22.0
|
0.18
|
0.19
|
665.7
|
671.5
|
5.8
|
5.67
|
1.67
|
18.9
|
0.17
|
0.05
|
678.3
|
681.2
|
2.9
|
8.69
|
1.53
|
9.5
|
0.25
|
0.04
|
PG17-12
|
CSD Gap
|
203/-46
|
Abandoned (Pre-collar
deviation)
|
PG17-13
|
Windy
Point
|
59/-52
|
399.3
|
599.5
|
200.3
|
0.65
|
0.31
|
657.0
|
0.02
|
0.01
|
Including
|
459.0
|
460.9
|
1.8
|
7.11
|
0.25
|
6.0
|
0.21
|
0.01
|
PG17-14
|
Windy
Point
|
38/-77
|
370.3
|
404.3
|
34.0
|
0.25
|
0.19
|
111.5
|
0.01
|
0.01
|
570.4
|
636.9
|
66.5
|
0.45
|
0.16
|
218.1
|
0.01
|
0.00
|
PG17-15
|
CSD Gap
|
41/-70
|
Abandoned (Pre-collar
deviation)
|
PG17-16
|
Deep IP
|
133/-85
|
No Significant
Values
|
PG17-17
|
CSD Gap
|
|
Abandoned (Pre-collar
deviation)
|
PG17-18
|
CSD Gap
|
41/-70
|
409.8
|
413.3
|
3.5
|
4.98
|
8.69
|
11.5
|
0.15
|
0.25
|
616.9
|
618.6
|
1.7
|
5.35
|
177.00
|
5.5
|
0.16
|
5.16
|
627.3
|
628.5
|
1.2
|
5.08
|
208.00
|
4.0
|
0.15
|
6.07
|
PG17-19
|
Windy
Point
|
71/-45
|
No Significant
Values
|
PG17-20
|
Deep IP
|
220/-85
|
541.6
|
544.1
|
2.4
|
6.07
|
3.70
|
8.0
|
0.18
|
0.11
|
Note: True widths are
currently estimated at 60-90% of the core Interval
|
Drilling at the Windy Point exploration target (holes PG17-13
& 14), located 1 km northwest of the main deposit has
identified a broad zone of alteration and gold mineralization.
Locally, higher grade intervals may be indicative of a new area
with the potential to host Helen/Gap style deposits. Drilling
has also intersected gold mineralization within the same host rock
unit as the main deposit approximately 1 km south of the Helen/Gap
resource in a previously untested area midway between the historic
Cove and McCoy pits (hole PG17-20).
Positive drill results to date support the next stages of
development for the project including hydrological flow tests, a
full suite of metallurgical test work, and the completion of a
Preliminary Economic Assessment ('PEA') by year end.
Greenstone Gold Mines
At the Greenstone Gold Property work continues to advance the
project toward submission of Federal and Provincial EA & EIS
documentation required for the receipt of permits. It is
expected that the EA and EIS documents will be submitted in early
Q3-2017. Additionally, the Partnership continues to support
the advancement of Long Term Relationship Agreements with local
Aboriginal communities and optimize the mine plan.
Other Exploration
Premier also remains active on its earlier stage exploration
stage projects including:
- Goldbanks Property in Nevada that is under option from Kinross Gold (Premier earning 50%)
- Hasaga Property in the Red
Lake camp (100% owned)
- Alto-Christina Property in Mexico that is under option from Goldcorp Inc.
(Premier earning 100%)
At Goldbanks, Premier has focused on detailed re-logging of the
historic drill holes to gain a better understanding of the
structural controls in the Golden Devil area. Previous
results includes up to 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). The first
phase of drilling will test multiple structural intersections
across the property in an effort to define the Golden Devil Zone
and potentially identify additional high-grade targets along
strike.
The Hasaga Property is host to the past-producing Hasaga and
Gold Shore Mines and is strategically-located proximal to the
Balmer-Confederation regional unconformity, an important geologic
feature of the Red Lake mining
camp. Earlier this year, Premier reported a potentially
open-pitable mineral resource estimate for Hasaga of 1.124 million
ounces (42.294 Mt @ 0.83 g/t Au ) Indicated and 0.631 million
ounces (25.143 Mt @ 0.78g/t Au) Inferred resources (See
January 11, 2017 press release) based
on 109,000 metres of drilling conducted in 2015 and 2016. The 2017
22,500 metre exploration drill program is designed to test the
potential for deeper higher grade extensions of this
mineralization. Historic drilling completed by previous operators
that returned high-grade gold mineralization has not been
adequately followed up. These historic results, when combined with
the March release of hole HMP151 (10.94 g/t Au across 54.0m), may
represent mineralization that appears consistent with that of the
C-Zone at the historic Hasaga Mine. Premier believes that
establishing continuity and scale to this potential C-Zone
extension at depth represents a highly attractive underground
opportunity.
The Alto-Christina Property is under option from Goldcorp Inc.
and is host to multiple poly-metallic horizons that were discovered
in 2013 by Goldcorp and the subject of several drill campaigns
prior to Premier's involvement. Current drilling is designed
to assess the continuity in the Guadalupe Vein where previous
drilling returned elevated gold-silver-base metal mineralization
over a strike length of some 1.1 km.
Premier AGM and Investor Update June 22, 2017
Premier Gold Mines Limited is pleased to invite its shareholders
and investors to meet senior management and board of directors of
the Company at its Annual and General Meeting to be held at
4:00pm EST on June 22, 2017 at the Board of Trade, 1 First
Canadian Place, Toronto,
Ontario. The AGM will be followed by a corporate presentation
at 4:30pm EST and a
reception.
For those that cannot attend in person the presentation can be
viewed at 4:30pm EST via webcast from
the company's website www.premiergoldmines.com or via the link
below.
Webcast URL:
https://event.on24.com/wcc/r/1440253/EC4B6EF6B98E5DCA9D1E2C8BF45496F3
The webcast replay will be available 9:00am EDT on June 23,
2017 until 11:59 pm EST on
June 21, 2018 from the above
link.
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. Assay results at Hasaga are from core
samples sent to Activation Labs, an accredited mineral analysis
laboratories in Thunder Bay,
Ontario, for preparation and analysis utilizing both fire
assay and screen metallic methods. Assay results for
McCoy-Cove are from RC and core samples sent to ALS Laboratories in
Reno, Nevada for analysis with the
analytical facility utilizing 30 gram fire assay with an AA finish
and ICP-MS 42 element scan from 4-acid digestion. Over-limit
samples receive an automatic gravimetric finish. Assay results for
Goldbanks are from RC and core samples sent to American Assay
Laboratories in Reno, Nevada for
analysis with the analytical facility utilizing 30 gram fire assay
with an AA finish and ICP-MS 50 element scan from 4-acid digestion.
Over-limit samples receive an automatic gravimetric finish.
Mercedes and Alto Cristina samples are from core samples sent to
ALS Chemex an accredited mineral analysis lab in Vancouver, Canada for preparation and analysis
by fire assay and ICP methods.
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.
Cautionary Note
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 production and exploration
potential and the Mercedes mine, South Arturo, McCoy-Cove and
Hasaga, 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, preliminary economic assessment 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