THUNDER BAY, ON, March 27, 2019 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased
to provide an update of its 2019 exploration program at the
Company's 100%-owned Cove Property and the adjacent McCoy-Cove
Property where Barrick holds an option to earn a 60% interest by
spending US$22.5 Million before
June 30, 2022. Premier will retain
100% ownership over the Cove Deposit portion ("Cove Carve-Out")
that includes the high-grade Helen, Gap, 2201 and CSD Deposits
(Figure 1).
The 2019 exploration program on the McCoy-Cove joint venture
property is designed to include 7,000 m of surface drilling
testing several targets by mid-year. Two drills are now in
operation with the primary targets of the program to include the
Beacon, Lighthouse, Antenna, Alpha, Apex, Favret Floor, Saddle
South, and Clara structures.
Exploration drilling is also underway on the Cove Carve-Out
property targeting the Clara and East pit "Polymetallic Discovery"
from the 2018 program. In 2018, drilling at Clara returned
intercepts as high as 12.69 g/t Au across 4.6 m. Drilling
on the joint venture to the east of the Cove pit resulted in the
"Polymetallic Discovery" with an intercept of 5.00 g/t Au,
410.0 g/t Ag, 5.7% Zn & 5.0% Pb across 2.7 m.
Significantly, this intercept returned mineralization similar to
the 2201 Zone, located approximately 700 m to the west within
the Cove Carve-Out. The 2201 Zone hosts an Inferred Resource of
169,000 ounces of gold at an average grade of 20.43 g/t Au.
Premier is currently drilling the area between this intercept and
the 2201 Zone that, if successful, could suggest potential for a
material increase in resources on the combined property
package.
"Following a successful 2018 campaign, exploration is being
advanced at McCoy-Cove and the Cove Carve-Out in an effort to
expand resources and to make new discoveries on this large land
package" commented Stephen McGibbon,
Executive Vice-President of Corporate & Project
Development.
In addition to the surface exploration program, Premier intends
to undertake an underground development and drill program at the
Cove Property beginning in H2-2019. This program will be designed
to complete infill and expansion drilling in advance of completing
a Feasibility Study. In 2018, the Company released an updated
mineral resource estimate and Preliminary Economic Assessment
(PEA).
The PEA completed for the Cove Carve-Out project highlighted
Indicated mineral resources of 1,045,000 tons at 0.327 oz/t Au
(11.21 g/t) & 0.861 oz/t Ag (29.52 g/t) for
342,000 ounces of gold & 900,000 ounces of silver and Inferred
mineral resources of 4,037,000 tons at 0.327 oz/t Au
(11.21 g/t) & 0.609 oz/t Ag (20.88 g/t) for
1,322,000 ounces of gold & 2,457,000 ounces of silver. This
mineral resource would support life of mine gold production of
740,000 ounces for 8 years of operations (based on assumptions made
in the PEA). The PEA concludes the potential for robust economics
(after-tax NPV5 of $142.0 million, and an after-tax internal
rate of return of 48%) to exist at the Cove Carve-Out with low
pre-production capital costs. Based on these positive results, a
hydrological flow study and additional permitting is being
completed with a view that the Cove Deposit could become Premier's
next 100%-owned mine development.
All abbreviations used in this press release are available by
following this link (click here).
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.
Premier Gold Mines Limited is a gold-producer with a
respected exploration and development 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