Lupita and Diluvio Drill Results Include
30.4 m of 6.43 g/t Au
THUNDER BAY, ON, May 14,
2019 /CNW/ - Premier Gold Mines Limited (TSX: PG) ("Premier",
"the Company") is pleased to announce multiple new and
high-grade intercepts from the expansion and delineation program
active at the Company's 100%‑owned Mercedes Mine, located in the
State of Sonora, Mexico.
Highlights of this ongoing drill program include:
- New mineralized veins have been discovered at San Martin and Margarita, outlining a 3 km
corridor with high potential for future discoveries (Figure
1)
- Lupita vein extension drilling returned multiple intercepts
including 3.9 m of 5.99 g/t Au &
40.75 g/t Ag and 2.9 m of 5.70 g/t Au
& 56.00 g/t Ag (LP19-392D and LP19-390D)
- Ongoing delineation program at Lupita intersected high-grade
intercepts including 1.2 m of 10.75
g/t Au & 89.31 g/t Ag (UG-LP19-016)
- Diluvio West delineation returns 30.4
m of 6.43 g/t Au & 11.91 g/t Ag including 4.4 m of 13.79 g/t Au & 21.93 g/t Ag
(UG-DI19-056)
"Premier is very encouraged by the expansion of the Lupita –
Diluvio resource areas, and the 3 km corridor that step‑out
exploration has identified", commented Stephen McGibbon,
Executive Vice-President. "A high-grade intercept from the
delineation program at Diluvio West validates our current resource
model".
Mercedes is an underground gold and silver mine that exploits
quartz veins and quartz-carbonate stockworks within a
low-sulphidation epithermal system. The Mercedes trend is host to a
series of high-grade sub-vertical veins with production to-date
(2011-2018) of some 687,000 recovered ounces of gold
(Figure 1). Four kilometres east of this main trend is an
under-explored basin that hosts both the Lupita and Diluvio
deposits. This corridor is attractive for future discoveries. The
Lupita deposit has a 2018 P+P mineral reserve of 329 kt @
4.42 g/t Au for 47 koz and the Diluvio deposit has a
2018 P+P mineral reserve is 2,055 kt @ 3.10 g/t Au for
205 koz. It is the Company's goal to convert a portion of Lupita
and Diluvio resources to mineral reserves during the balance of
2019 and successfully explore for potential resource
extensions.
Drilling has recently discovered favourable veining and
mineralization in newly tested areas proximal to the Lupita –
Diluvio deposits, to the west at San
Martin and to the east at Margarita (Figure 1). An
exploration campaign is currently testing both San Martin (600 m to the west) and
Margarita (1.2 km to the east) where drill holes have recently
discovered mineralized veins at a similar Lupita Vein host contact with assays pending on
multiple holes. The two areas are approximately 3 km apart,
and the target is still open to the east and west. The consistent
intersection of the mineralized vein along the Lupita fault contact
to the west of the Lupita resource makes this area a focus for
continued exploration.
The Lupita discovery outcrop hosts a 3 m wide silicified
vein of typical low-sulphidation epithermal textures and diagnostic
green quartz. Lupita differs from the conventional sub-vertical
veins found on the property by its flatter geometry along a
north-dipping listric fault (25-45 degrees).
The Lupita Extension drill program, designed to expand the
Lupita resource, was started early in 2019 to test the continuity
of the vein to the west (Figure 2). The planned Phase 1
program included 18 drill holes with a 60 m spacing of which
eight drill holes are now completed. Assay results presented in
Table 1 show that the mineralized Lupita vein has been
repeatedly crossed, with grades ranging from 1.09 g/t Au over
0.9 m at the periphery to 5.99 g/t Au over 3.9 m. A
second phase of 6,000 m drilling will infill to a 30 m
spacing, supporting the creation of Indicated mineral
resources.
In addition, an underground Lupita Delineation program is
focused on upgrading ounces of gold from the current resource.
Highlights presented in Table 1 include high-grade intercepts
that improved the grade x thickness of the zone (Figure 2). A
portion of the underground program plan will also drill directly to
the east of Lupita ore body.
Table 1 also summarizes results from the Diluvio
underground delineation program. The ore at Diluvio is found within
a stockwork system that is a unique host environment on the
property. Recent structural compilation work and additional infill
drilling has led to a more refined resource model and subsequent
infill drilling remains very positive.
Five drill holes were part of an underground delineation program
on the western part of Diluvio. UG-DI19-056, located within the
heart of the zone, intersected a thick high-grade interval of
30.4 m of 6.43 g/t Au & 11.91 g/t Ag
including 4.4 m of 13.79 g/t Au &
21.93 g/t Ag and 5.0 m of 12.58 g/t Au &
8.99 g/t Ag. This interval supports confidence in the
high-grade core of Diluvio West. The other four drill holes tested
the edge of the zone, and are still returning high‑grade
intercepts, including 8.7 m of 3.48 g/t Au and
188.82 g/t Ag (UG-DI19-055) and 1.3 m of 5.94 g/t Au
and 327.00 g/t Ag (UG-DI19-054). The ongoing delineation
program is designed to upgrade and possibly expand the mineral
resource.
Table 1 –
Highlights Intercepts
|
Hole
ID
|
Target
|
From
m
|
To
m
|
Length
m
|
TrueWidth m
|
Au
g/t
|
Ag
g/t
|
LUPITA
EXTENSION
|
L19-388D
|
Lupita
Extension
|
197.7
|
200.2
|
2.6
|
2.4
|
4.96
|
62.59
|
L19-389D
|
Lupita
Extension
|
185.6
|
186.6
|
1.0
|
1.0
|
3.28
|
42.00
|
L19-390D
|
Lupita
Extension
|
176.6
|
179.6
|
3.0
|
2.9
|
5.70
|
56.00
|
L19-391D
|
Lupita
Extension
|
178.7
|
180.7
|
2.0
|
2.0
|
5.01
|
58.00
|
L19-392D
|
Lupita
Extension
|
181.8
|
185.8
|
4.0
|
3.9
|
5.99
|
40.75
|
Including
|
Lupita
Extension
|
184.2
|
185.8
|
1.6
|
1.5
|
12.41
|
90.25
|
L19-393D
|
Lupita
Extension
|
198.0
|
199.0
|
1.0
|
0.9
|
1.02
|
15.00
|
L19-394D
|
Lupita
Extension
|
198.5
|
202.0
|
2.6
|
2.4
|
1.12
|
12.25
|
Hole
ID
|
Target
|
From m
|
To m
|
Length m
|
True
Width m
|
Au g/t
|
Ag g/t
|
LUPITA
DELINEATION
|
UG-LP19-016
|
Lupita
Delineation
|
118.0
|
136.3
|
18.3
|
1.2
|
10.75
|
89.31
|
UG-LP19-017
|
Lupita
Delineation
|
45.4
|
60.8
|
19.2
|
4.7
|
2.87
|
45.75
|
Including
|
Lupita
Delineation
|
45.4
|
50.2
|
4.8
|
2.2
|
6.20
|
118.31
|
UG-LP19-019
|
Lupita
Delineation
|
26.8
|
29.7
|
2.9
|
1.6
|
5.50
|
70.05
|
UG-LP19-023
|
Lupita
Delineation
|
44.0
|
56.2
|
12.2
|
2.1
|
4.28
|
42.63
|
Including
|
Lupita
Delineation
|
47.1
|
50.1
|
3.1
|
0.9
|
8.64
|
75.43
|
DILUVIO
DELINEATION
|
UG-DI19-052
|
Diluvio
West
|
130.8
|
132.3
|
1.5
|
-
|
3.15
|
89.00
|
UG-DI19-053
|
Diluvio
West
|
23.9
|
25.2
|
1.3
|
-
|
5.94
|
327.00
|
UG-DI19-054
|
Diluvio
West
|
11.9
|
15.0
|
3.1
|
-
|
3.84
|
34.73
|
UG-DI19-055
|
Diluvio
West
|
31.8
|
40.5
|
8.7
|
-
|
3.48
|
188.82
|
UG-DI19-056
|
Diluvio
West
|
65.9
|
71.8
|
5.8
|
-
|
8.06
|
13.49
|
|
Diluvio
West
|
94.1
|
124.5
|
30.4
|
-
|
6.43
|
11.91
|
Including
|
Diluvio
West
|
98.3
|
102.7
|
4.4
|
-
|
13.79
|
21.93
|
And
|
Diluvio
West
|
118.0
|
123.0
|
5.0
|
-
|
12.58
|
8.99
|
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.
Mercedes assay results are from core samples sent to ALS Chemex, an
accredited mineral analysis laboratory in Lima (Peru)
or Vancouver (Canada), for preparation and analysis
utilizing both fire assay and ICP methods. For a complete
description of Mercedes's sample preparation, analytical methods
and QA/QC procedures refer to the technical report for the Mercedes
Mine dated April 18, 2018 (effective date December 31,
2017), entitled "Technical Report on the Mercedes Gold-Silver Mine,
Sonora State, Mexico."
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 2 –
Collar coordinates
|
UTM
|
Project
|
Hole
ID
|
North m
|
East
m
|
Elevation
m
|
Azimuth
|
Dip
|
NAD 27
ZONE 12
|
Mercedes
|
L19-388D
|
551625
|
3360094
|
1304
|
136
|
-66
|
Mercedes
|
L19-389D
|
551626
|
3360094
|
1304
|
155
|
-72
|
Mercedes
|
L19-390D
|
551626
|
3360094
|
1304
|
190
|
-68
|
Mercedes
|
L19-391D
|
551587
|
3360126
|
1294
|
177
|
-65
|
Mercedes
|
L19-392D
|
551587
|
3360126
|
1294
|
187
|
-75
|
Mercedes
|
UG-LP18-016
|
551695
|
3360158
|
1104
|
216
|
6
|
Mercedes
|
UG-LP18-017
|
551696
|
3360158
|
1104
|
225
|
-1
|
Mercedes
|
UG-LP18-019
|
551695
|
3360158
|
1104
|
208
|
-11
|
Mercedes
|
UG-LP18-023
|
551700
|
3360158
|
1105
|
150
|
-1
|
Mercedes
|
UG-DI19-053
|
552017
|
3360622
|
1051
|
187
|
-63
|
Mercedes
|
UG-DI19-054
|
552017
|
3360622
|
1051
|
170
|
-44
|
Mercedes
|
UG-DI19-055
|
552017
|
3360622
|
1051
|
155
|
-63
|
Mercedes
|
UG-DI19-056
|
552016
|
3360624
|
1050
|
213
|
-53
|
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