Includes 2.9 m grading
14.02 g/t Au & 136.00 g/t Ag
THUNDER BAY, ON, Aug. 13, 2019 /CNW/ - Premier Gold Mines
Limited (TSX: PG) ("Premier", "the Company") is pleased to
announce an update on its delineation core drilling program at the
Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. This drilling has
confirmed two high-grade zones at Lupita Extension at the newly
discovered San Martin area.
Highlights of this program include:
- San Martin step-out
drilling expands high-grade zone
-
- 2.9 m of 14.02 g/t Au &
136.00 g/t Ag (L19-422D)
- 3.9 m of 8.41 g/t Au &
67.64 g/t Ag including 1.4 m of 16.20
g/t Au & 92.00 g/t Ag (L19-424D)
- Lupita extension continues intercepting high-grade including
4.5 m of 4.57 g/t Au & 27.07 g/t
Ag (L19-414D)
- Successful delineation at Rey De Oro including 2.3 m of 18.15 g/t Au & 27.49 g/t Ag
(UG-RDO19-40)
"The new discovery of high-grade mineralization at San Martin, and ongoing success at the Lupita
Extension area, continue to demonstrate our ability to add to the
mine life at Mercedes," commented Stephen McGibbon, Executive
Vice-President. "We are very excited by the prospects for
additional discoveries in the coming year".
Mercedes is an underground gold and silver mine, with production
to date (2011-2018) of approximately 687,000 recovered ounces of
gold, that exploits quartz veins and quartz-carbonate stockworks
within a low-sulphidation epithermal system (Figure 1).
Lupita Extension and San Martin Discovery
The Phase 2 infill program at Lupita Extension and ongoing
drilling testing the San Martin
discovery continues to expand the mineralized horizons and is
demonstrating continuity of the vein system to the west
(Figure 2). New results are expanding high-grade areas, as
well as defining their limit, which will guide the focus of future
drilling (Table 1).
At San Martin, the current
120 m spaced drilling continues
exploration to the north and returned 2.9
m of 14.02 g/t Au & 136.00 g/t Ag and
3.9 m of 8.41 g/t Au & 67.64
g/t Ag including 1.4 m of
16.20 g/t Au & 92.00 g/t Ag (L19-422D and L19-424D
respectively) expanding the higher-grade area. These new intercepts
confirm the presence of a high-grade core to the area. Future
drilling will test the extension of the zone to the west toward the
San Martin Fault and commence infill drilling.
At Lupita extension, the high-grade zone extension to the west
is confirmed by the 60 m step-outs
with results including 4.5 m of
4.57 g/t Au & 27.07 g/t Ag (L19-414D). Further step-out
holes will help define its western extension and a phase 3 infill
program is planned to delineate at 30
m centers, starting from the 2018 resource limits.
Results are also showing the presence of mineralization within
the hanging wall of the Lupita vein, where continuity and
interpretation are currently being investigated by the exploration
team. Assay results from this hanging wall zone include
4.5 m of 5.51 g/t Au & 203.00 g/t Ag
(L19-419D).
Margarita Exploration
Exploration at Margarita, located 1.2 km further to the
east of Lupita (Figure 1), has returned two new intercepts
including 6.30 g/t Au over 1.6 m and 3.51 g/t Au
over 2.0 m at the Lupita vein contact projection
(Table 1). Above the contact, stockwork vein with
mineralization was found, but contained no meaningful gold results.
This indicates that the hydrothermal system was active in the
andesite above the Lupita Fault, as was the case at Diluvio.
Further exploration will be conducted before the end of the year in
this area.
Table 1 –
Highlight Intercepts for Lupita area including *previously
released intercepts
|
Hole
ID
|
Target
|
From
m
|
To
m
|
Length
m
|
True
Width
m
|
Au
g/t
|
Ag
g/t
|
L19-416D
|
San
Martin
|
231.7
|
232.7
|
1.0
|
1.0
|
2.10
|
6.00
|
L19-419D
|
San Martin -
HW
|
190.0
|
194.7
|
4.7
|
4.5
|
5.51
|
203.00
|
|
San
Martin
|
212.1
|
213.5
|
1.4
|
1.4
|
2.19
|
25.86
|
L19-421D
|
San Martin -
HW
|
165.8
|
167.0
|
1.2
|
1.1
|
2.17
|
28.00
|
|
San
Martin
|
230.1
|
231.5
|
1.4
|
1.4
|
3.29
|
29.90
|
L19-422D
|
San
Martin
|
207.7
|
210.7
|
3.0
|
2.9
|
14.02
|
136.00
|
L19-424D
|
San
Martin
|
223.9
|
227.8
|
3.9
|
3.9
|
8.41
|
67.64
|
Including
|
San
Martin
|
225.0
|
226.4
|
1.4
|
1.4
|
14.20
|
92.00
|
*L19-400D
|
San
Martin
|
197.2
|
204.7
|
7.5
|
7.2
|
4.64
|
30.45
|
L19-414D
|
Lupita
Extension
|
129.3
|
133.9
|
4.6
|
4.5
|
4.57
|
27.07
|
*L19-403D
|
Lupita
Extension
|
128.6
|
132.6
|
4.0
|
3.9
|
10.30
|
88.25
|
*L19-405D
|
Lupita
Extension
|
121.5
|
126.9
|
5.3
|
5.3
|
4.98
|
35.84
|
*L19-408D
|
Lupita
Extension
|
174.8
|
176.3
|
1.5
|
1.5
|
23.90
|
71.15
|
L19-409D
|
Margarita
|
255.2
|
257.2
|
2.0
|
2.0
|
3.51
|
6.00
|
L19-415D
|
Margarita
|
284.1
|
285.9
|
1.8
|
1.6
|
6.30
|
47.30
|
Rey de Oro Delineation
Rey de Oro deposit is located on the eastern border of a
synclinal basin, at the same contact that hosts the mine main
trend. As at December 31, 2018, the
Rey de Oro deposit carried a mineral reserve of 374 kt @
4.19 g/t Au for 50 koz of gold and 374 kt @
46.51 g/t Ag for 559 koz of silver.
Recent structural compilation work and mapping have led to a
more refined geological model demonstrating that Rey de Oro is
composed of three principal quartz veins, with exposure on surface.
A delineation and infill drilling program are underway in the
southern part of the deposit. This program has highlighted good
intercepts in Veins 2 and 3, highlighted by an intercept of
2.4 m of 18.15 g/t Au & 27.49 g/t Ag, as
well as a stockwork connection between the main veins and the
presence of a silver-rich system associated with Vein 3
(Table 2).
Table 2 –
Highlight Intercepts from Rey de Oro
|
Hole
ID
|
Target
|
From
m
|
To
m
|
Length
m
|
True
Width
m
|
Au
g/t
|
Ag
g/t
|
UG-RDO18-034
|
Vein 1
|
70.5
|
74.1
|
3.6
|
3.3
|
4.05
|
107.67
|
UG-RDO19-039
|
Vein 1 -
2
|
5.9
|
7.4
|
1.5
|
1.5
|
3.25
|
45.00
|
|
Vein 3 –
Silver
|
37.1
|
38.3
|
1.2
|
1.1
|
0.09
|
426.00
|
UG-RDO19-040
|
Vein 2
|
28.3
|
30.6
|
2.4
|
2.3
|
18.15
|
27.49
|
UG-RDO19-041
|
Vein 3 –
Silver
|
47.0
|
47.5
|
0.5
|
0.5
|
0.04
|
363.00
|
UG-RDO19-043
|
Vein 3
|
78.8
|
83.4
|
4.6
|
3.4
|
3.06
|
56.40
|
UG-RDO19-044
|
Vein 1 -
2
|
53.0
|
54.5
|
1.5
|
1.3
|
4.52
|
29.00
|
UG-RDO19-045
|
Vein 3
|
92.5
|
97.0
|
4.6
|
3.1
|
4.06
|
56.19
|
UG-RDO19-047
|
Vein 2
|
84.8
|
86.4
|
1.5
|
1.2
|
6.46
|
33.00
|
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 3 -
Collar coordinates
|
UTM
|
Project
|
Hole
ID
|
North
m
|
East
m
|
Elevation
m
|
Azimuth
|
Dip
|
NAD 27
ZONE 12
|
Mercedes
|
L19-409D
|
3360775
|
553464
|
1293
|
145
|
-65
|
Mercedes
|
L19-414D
|
3360068
|
551454
|
1253
|
185
|
-45
|
Mercedes
|
L19-415D
|
3360702
|
553522
|
1301
|
130
|
-45
|
Mercedes
|
L19-416D
|
3360079
|
551294
|
1246
|
150
|
-75
|
Mercedes
|
L19-419D
|
3360029
|
551180
|
1235
|
150
|
-45
|
Mercedes
|
L19-421D
|
3360114
|
551141
|
1208
|
215
|
-70
|
Mercedes
|
L19-422D
|
3360033
|
551064
|
1214
|
145
|
-65
|
Mercedes
|
L19-424D
|
3360057
|
550972
|
1184
|
155
|
-62
|
Mercedes
|
UG-RDO18-034
|
3357881
|
552048
|
1057
|
017
|
-52
|
Mercedes
|
UG-RDO19-039
|
3357829
|
552146
|
1005
|
053
|
-40
|
Mercedes
|
UG-RDO19-040
|
3357829
|
552146
|
1006
|
050
|
-11
|
Mercedes
|
UG-RDO19-041
|
3357828
|
552145
|
1005
|
040
|
-70
|
Mercedes
|
UG-RDO19-043
|
3357813
|
552166
|
1076
|
012
|
-17
|
Mercedes
|
UG-RDO19-044
|
3357812
|
552166
|
1076
|
031
|
-15
|
Mercedes
|
UG-RDO19-045
|
3357811
|
552166
|
1077
|
027
|
5
|
Mercedes
|
UG-RDO19-047
|
3357810
|
552166
|
1077
|
037
|
5
|
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