THUNDER BAY, ON, June 25, 2019 /CNW/ - Premier Gold Mines Limited (TSX: PG) ("Premier", "the Company") is pleased to announce an exploration update from an ongoing 42,000 m exploration and delineation core drilling program at the Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. Multiple new intercepts at the Lupita zone indicate the potential to extend the horizon by up to 600 metres to the west.
Highlights of this program include:
- New mineralized veins confirmed at San Martin opening the area 600 m to the west of the Lupita deposit with high potential for future discoveries (Figure 1)
- San Martin drilling returned multiple intercepts including 7.2 m of 4.64 g/t Au & 30.45 g/t Ag and 1.4 m of 5.56 g/t Au & 37.66 g/t Ag (L19-400D and L19-396D)
- Ongoing delineation program at Lupita including intercepts of 3.9 m of 10.30 g/t Au & 88.25 g/t Ag and 1.5 m of 23.90 g/t Au & 71.15 g/t Ag (L19-403D and L19-408 D)
- Exploration to be activated at La Mesa, which represents the geological extension of the adjacent Santa Gertrudis Property, where Agnico Eagles Mines Ltd is having exploration success (See Figure 3)
"Our Lupita delineation and exploration program is emerging as an important success story at Mercedes," commented Stephen McGibbon, Executive Vice-President. "We are concurrently activating teams in under-explored areas on the property in an effort to discover new deposits".
Lupita Extension and San Martin Success
Mercedes is an underground gold and silver mine, with production to date (2011-2018) of 687,000 recovered ounces of gold, that exploits quartz veins and quartz-carbonate stockworks within a low-sulphidation epithermal system (Figure 1). The Lupita-Diluvio basin, located 4 km northeast of the main trend, is attractive for future discoveries. As at December 31, 2018, the Lupita deposit carried a mineral reserve of 329 kt @ 4.42 g/t Au for 47 koz of gold and is located immediately west of the Diluvio deposit. The Lupita Vein outcrops on surface for 1,300 m, has an average width of 3 m, and locally extends down dip up to 450 m. Initial exploration drilling to the west and east of Lupita at both San Martin and Margarita have recently discovered mineralized veins along the Lupita fault (Figure 2). These areas are 3 km apart and remain open further to the east and north.
The Lupita Extension drill program continues to expand 2018 resource mineralization by demonstrating the continuity of the vein to the west (Figure 1). Assay results presented in Table 1 include those received since the initial reported results on May 14, 2019, with grades ranging from 3.57 g/t Au over 1.8 m at the periphery to 10.30 g/t Au over 3.9 m. A Phase 2 infill drill program of 6,000 m is currently underway to support the creation of Indicated mineral resources.
Drilling to test the continuity of the Lupita vein 600 m to the west at the San Martin area (Figures 1 & 2) intercepted 1.5 m of 5.56 g/t Au (L19-396D) in the first hole and up to7.5 m of 4.64 g/t Au (L19-400D). Results from this initial program, planned with a wide spaced drilling, are presented in Table 1.
Table 1 – Highlight Intercepts
In addition, the Lupita vein is being tested 1.2 km further to the east at Margarita (Figure 2). The area is marked by the projected trend of outcropping veins to the north. The first drill hole testing the Margarita area intercepted 1.3 m of 2.98 g/t Au & 61.93 g/t Ag (L19-395D), warranting further drilling. New discoveries at San Martin and Margarita demonstrate the potential of the Lupita-Diluvio basin which remains largely untested to date. The Company is expanding and accelerating its evaluation of this emerging corridor.
La Mesa Area Exploration
The La Mesa area, located 24 km NE of the main Mercedes Mine, is host to the same stratigraphy that hosts the Santa Gertrudis property deposits owned by Agnico Eagle Mines Ltd. These geological structures extend onto the La Mesa area as shown in Figure 3. 2019 work by Premier will focus on collecting baseline information expected to include mapping, soil sampling, litho-geochemistry and potentially geophysics to better understand the potential of this area.
Premier Gold Annual General Meeting of Shareholders – June 25, 2019
The Company would also like to invite shareholders and investors to meet its senior management and board of directors at its Annual and General Meeting to be held at 4:00 pm EST on June 25, 2019 at the Board of Trade, 1 First Canadian Place, Toronto, Ontario. The AGM will be followed by a corporate presentation and comprehensive project update beginning at 4:30 pm EST (with webcast from the company's website www.premiergoldmines.com).
AGM Conference Call and Webcast Information
Details for the conference call and webcast can be found below and will be accessible on the Company's website.
Toll Free (North America): 1-888-231-8191
Conference ID: 9782067
Webcast Link: https://event.on24.com/wcc/r/2029304/66AB57A3F40E906CFF8C6A00302D0573
Conference Call Replay
Toll Free Replay Call (North America): 1-855-859-2056
International Replay Call: 1-416-849-0833
Both the webcast and conference call replay will be available 7:30 pm EDT on June 25, 2019 until 11:59 pm EST on July 2, 2019.
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
NAD 27 ZONE 12
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