Initial hole intersects 118.9 m at 4.12 g/t gold and ends in
mineralization
THUNDER BAY, ON, April 29, 2019 /CNW/ - Premier Gold Mines
Limited (TSX:PG) ("Premier", "the Company") is pleased to
announce the discovery of high-grade gold mineralization
intersected in the first hole drilled at the Antenna target,
located between the historic Cove and McCoy gold/silver open-pit
mines where Barrick Gold (TSX:ABX)
("Barrick") Is spending $22.5M to
earn a 60% interest in the area surrounding Premier's wholly owned
Cove Deposit.
Highlights of this discovery include:
- Discovery of a 118.9 m thick
mineralized zone grading 4.12 g/t Au in hole PB19-03R
- This includes a higher-grade interval assaying 15.74 g/t Au
across 6.1 m starting at a depth of
606.6 m
- A second high-grade interval of 5.96 g/t Au across
33.5 m starting at a depth of
691.9 m including 8.08 g/t Au across
12.2 m
- PB19-03R is located at the Antenna Target, 800 m southwest of the Helen-Gap deposit
- The drill hole was lost at a depth of 725.4 m in mineralization grading 5.59 g/t Au
leaving the zone open
"Premier and Barrick geological teams have worked closely in
identifying multiple high-quality targets that will be tested in
the current drill program", commented Ewan
Downie, President & CEO. "The resulting Antenna
discovery consists of mineralization contained entirely within the
Favret Formation, a highly receptive and underexplored carbonate
host rock at McCoy-Cove. On a grade thickness basis, this drill
intercept represents one of the most significant ever drilled on
the property and terminated in high-grade
mineralization".
Table 1 – Composites summary from PB19-03R
PB19-03R
|
From
m
|
To
m
|
Intercept
m
|
Au
g/t
|
Composite
|
606.6
|
620.3
|
13.7
|
10.06
|
Included
|
614.2
|
620.3
|
6.1
|
15.74
|
Composite
|
691.9
|
725.4
|
33.5
|
5.96
|
Included
|
702.6
|
714.8
|
12.2
|
8.08
|
Composite
Total
|
606.6
|
725.4
|
118.9
|
4.12
|
The McCoy-Cove Project property, west of the Battle
Mountain-Eureka Trend, hosts four distinct mineralization types
including Carlin-style, polymetallic sheeted veins, carbonate
replacement (manto), and skarn. The McCoy and Cove gold mines
produced some 3.3 million ounces of gold and
110.0 million ounces of silver over a 20-year period between
1986 and 2006. Under Premier's stewardship, current mineral
resources at the 100%-owned portion now includes 1.05 million
tonnes grading 11.21 g/t Au for 0.34 million ounces of
gold (Indicated) and 4.04 million tonnes grading
11.25 g/t Au for 1.32 million ounces of gold (Inferred)
as released in a 2018 Preliminary Economic Assessment (PEA).
Phase 1 drilling is designed to explore the Favret at
wide-spaced sites where initial structural and/or chemical
precursors have been identified.
Results from this first RC hole at the Antenna target are
significant and warrant twinning of the hole with core for further
validation and to explore through both the entire Favret and the
Dixie Valley lithologies. Given the nature of RC versus core
drilling and the variability inherent in structural-controlled
deposits, some differences are anticipated between the original and
twinned holes. However, a successful validation should not result
in a material difference.
Phase 1 Exploration Program
During 2018, an integrated data acquisition program including
mapping, rock-chip analysis, soil geochemistry and geophysical
reprocessing was undertaken to establish a baseline dataset for
further exploration. The joint venture then completed 14 holes and
4,738 m of core drilling in an overall $4.4 million program operated by Premier and
funded by Barrick. An initial press release detailing results at
McCoy-Cove, was made on October 2, 2018. Exploration results
from the joint venture and 100%-owned ground together confirm a
greater than 4 km footprint of Carlin-style chemistry at
McCoy-Cove.
A joint peer review process by the Premier-Barrick teams was
conducted in early 2019 which prioritized exploration targets.
Each target included in the Phase 1 program was favored for
its high-quality profile with the top priorities identified being:
Alpha, Windy Point, Saddle South,
Antenna, Clara, Beacon and Lighthouse (Figure 1). To date, the
2019 exploration program has completed 4 reverse circulation (RC)
drill holes in 2,729 m. The Beacon and Lighthouse areas have
shown strong alteration and mineralization (PB19-02R, PB1905R and
PG19-03, assay pending). Upcoming targets to be drilled include
both Alpha and Windy Point (PB19-06R
in progress).
The Antenna Discovery
The Antenna target is defined as a swarm of northeast-striking,
northwest-dipping Eocene dikes and faults between McCoy and Cove
(Figure 2). Although many of these features were known to be
important primary and secondary controls to mineralization in the
Cove and McCoy pits, they had not yet been tested at depth in the
newly drilled area, until now. Furthermore, only few drill holes
have drilled to sufficient depth to intersect the Favret Fm, the
favorable carbonate host rock unit, leaving an extended area for
further exploration (see black points in Figure 1 and trace in
Figure 2). The nearest drill intercept to go through the host
rock formation is located 400 m to
the west of PB19-03R. This first drill hole validates the high
potential represented by these key geological features on the
property.
This intercept also contains two higher-grade sections, the
first beginning at 614.2 m (2015 ft)
hosts 15.74 g/t Au across 6.1 m (20 ft). The
second intercept begins at 702.6 m (2305 ft) and
hosts 8.08 g/t Au across 12.2 m (40 ft). These
two high-grade intercepts (each close to estimated true width) are
within a 118.9 m overall interval (390 ft) of
mineralization grading 4.12 g/t Au (Table 2).
Importantly, hole PB19-03R was lost in mineralization grading
5.59 g/t Au, leaving the final width of the intercept not yet
confirmed. A core rig is being mobilized immediately in order to
complete this.
Table 2 - Initial assay results and associated
composites from PB19-03R
PB19-03R
|
From
m
|
To
m
|
Intercept
m
|
Au
g/t
|
|
606.6
|
608.1
|
1.5
|
22.00
|
|
608.1
|
609.6
|
1.5
|
3.09
|
|
609.6
|
611.1
|
1.5
|
1.05
|
|
611.1
|
612.6
|
1.5
|
0.81
|
|
612.6
|
614.2
|
1.5
|
0.62
|
|
614.2
|
615.7
|
1.5
|
19.80
|
|
615.7
|
617.2
|
1.5
|
1.31
|
|
617.2
|
618.7
|
1.5
|
30.00
|
|
618.7
|
620.3
|
1.5
|
11.85
|
Composite
Total
|
606.6
|
620.3
|
13.7
|
10.06
|
Included
|
614.2
|
620.3
|
6.0
|
15.74
|
Composite
Total
|
620.3
|
691.9
|
71.6
|
2.12
|
|
691.9
|
693.4
|
1.5
|
7.48
|
|
693.4
|
694.9
|
1.5
|
4.77
|
|
694.9
|
696.5
|
1.5
|
5.15
|
|
696.5
|
698.0
|
1.5
|
5.88
|
|
698.0
|
699.5
|
1.5
|
3.35
|
|
699.5
|
701.0
|
1.5
|
2.84
|
|
701.0
|
702.6
|
1.5
|
2.71
|
|
702.6
|
704.1
|
1.5
|
14.35
|
|
704.1
|
705.6
|
1.5
|
8.08
|
|
705.6
|
707.1
|
1.5
|
7.06
|
|
707.1
|
708.7
|
1.5
|
6.88
|
|
708.7
|
710.2
|
1.5
|
5.45
|
|
710.2
|
711.7
|
1.5
|
7.04
|
|
711.7
|
713.2
|
1.5
|
7.55
|
|
713.2
|
714.8
|
1.5
|
8.19
|
|
714.8
|
716.3
|
1.5
|
3.93
|
|
716.3
|
717.8
|
1.5
|
3.91
|
|
717.8
|
719.3
|
1.5
|
9.44
|
|
719.3
|
720.9
|
1.5
|
6.45
|
|
720.9
|
722.4
|
1.5
|
3.18
|
|
722.4
|
723.9
|
1.5
|
1.91
|
|
723.9
|
725.4
|
1.5
|
5.59
|
Composite
Total
|
691.9
|
725.4
|
33.5
|
5.96
|
Included
|
702.6
|
714.8
|
12.2
|
8.08
|
Composite
Total
|
606.6
|
725.4
|
118.9
|
4.12
|
Terms of Earn-In Agreement with Barrick
In January 2018, Premier entered into an agreement with
several wholly-owned subsidiaries of Barrick whereby Barrick holds
an option to earn a 60% interest in the exploration portion of the
McCoy-Cove Project (the "Joint Venture Property") by spending
US$22.5 million in exploration
prior to June 30, 2022. Barrick intends to assume the Operator
role, exercising their right under the agreement to become Operator
of the Joint Venture Property. The "Cove Deposit" portion of the
McCoy-Cove Project is retained solely by Premier.
The statements contained herein reflect the views of Premier
Gold Mines Limited and may not reflect the views of Barrick or its
affiliates.
Julie-Anaïs Debreil, Ph. D., 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 samples were sent to ALS Laboratories prep facilities
located in Elko, Nevada and
Reno, Nevada and analysis was
performed at their Vancouver,
Canada analytical facility utilizing 30-gram fire assay with
an AA finish for Au and ICP-MS 48 elements scan from 4-acid
digestion for RC and Core samples. For a complete description of
Premier's sample preparation, analytical methods and QA/QC
procedures refer to the technical report dated June 29, 2018
(effective date March 31, 2018), entitled "Preliminary
Economic Assessment for the Cove Project, Lander County, Nevada" located on Premier's
website and at www.sedar.com.
Premier Gold Mines Limited is a gold producer with a
respected exploration and development pipeline of high-quality
precious metal projects in proven, accessible and safe mining
jurisdictions in Canada,
the United States, and
Mexico. Premier remains focused on
creating a low-cost, mid-tier gold producer through its two
producing gold mines - South Arturo and Mercedes - as well as mine
development opportunities at McCoy-Cove in Nevada and Hardrock in Ontario.
Table 3 - Collar coordinates
UTM
|
Project
|
Hole
ID
|
North
m
|
East
m
|
Elevation
m
|
Azimuth
|
Dip
|
NAD83
Zone 11
|
Cove
|
PB19-03R
|
4464605
|
481708
|
1648
|
135
|
-80
|
1 ft =
0.3048 m
|
Cut-off grade at
1 g/t Au
|
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