Premier Expands High-Grade at Mercedes Mine

Date : 11/21/2019 @ 11:00AM
Source : PR Newswire (Canada)
Stock : Premier Gold Mines Limited (PG)
Quote : 1.65  -0.01 (-0.60%) @ 9:10PM

Premier Expands High-Grade at Mercedes Mine

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Drilling Intersects 8.9 m of 9.41 g/t Au & 34.15 g/t Ag at Lupita Extension

THUNDER BAY, ON, Nov. 21, 2019 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) (OTCPK: PIRGF) ("Premier", "the Company") is pleased to announce an update on its 42,000m exploration and delineation core drilling program at the Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The 2019 drilling campaign is currently focused on delineating new mineral resources in the Lupita Extension area as well as confirming potentially important discoveries at San Martin and Neo (See Figure 1, Table 1). Highlights from October drilling include:

  • San Martin exploration drilling expands high grade zone with:
    • 1.4 m of 15.80 g/t Au & 69.00 g/t Ag (L19-457D)
    • 4.6 m of 10.03 g/t Au & 57.65 g/t Ag (L19-496D)

  • Ongoing delineation program at Lupita Extension - highlights:
    • 8.9 m of 9.41 g/t Au & 34.15 g/t Ag (L19-488D)
    • 3.6 m of 7.96 g/t Au & 31.69 g/t Ag (L19-480D)

"Our Lupita Extension and San Martin drill program has emerged as an important contributor to the future of Mercedes," commented Stephen McGibbon, Executive Vice-President. "With true widths approaching 3 m and grades well in excess of 2019 production grades, each new result is quickly adding to the value of this operation."

Figure 1 – Grade x Thickness Map of the Lupita-San Martin Drilling Areas, showing cross section location (CNW Group/Premier Gold Mines Limited)


Table 1 – Highlight True Width Intercepts from San Martin and Lupita Extension

Hole ID

Target

From
 m

To
m

Length
 m

True Width

m

Au
g/t

Ag

g/t

LUPITA EXTENSION

L19-461D

Lupita Extension

144.0

148.2

4.2

4.0

4.07

35.41

L19-464D

Lupita Extension

129.0

131.1

2.1

2.1

6.09

58.52

L19-466D

Lupita Extension

148.2

152.6

4.4

4.3

3.33

38.80

L19-468D

Lupita Extension

143.5

150.0

6.5

4.9

5.09

55.89

L19-474D

Lupita Extension

180.0

182.2

2.2

1.9

3.47

36.50

L19-475D

Lupita Extension

119.7

123.6

3.8

3.8

5.30

40.44

L19-478D

Lupita Extension

144.7

151.5

6.8

5.5

3.23

63.71

L19-479D

Lupita Extension

169.3

172.3

3.1

2.8

5.52

61.64

L19-480D

Lupita Extension

136.3

139.8

3.6

3.6

7.96

31.69

L19-481D

Lupita Extension

132.0

138.0

6.0

6.0

4.25

43.28

L19-482D

Lupita Extension

203.6

206.0

2.4

2.4

3.18

36.80

L19-483D

Lupita Extension

137.0

139.2

2.2

2.2

6.33

42.45

L19-486D

Lupita Extension

112.3

115.8

3.5

3.0

8.40

36.49

L19-488D

Lupita Extension

125.9

135.0

9.1

8.9

9.41

34.15

L19-490D

Lupita Extension

112.1

116.8

4.7

1.8

6.93

22.56

L19-491D

Lupita Extension

165.0

168.6

3.6

3.0

4.69

72.52

L19-492D

Lupita Extension

162.5

164.9

2.3

2.1

9.91

80.70

L19-494D

Lupita Extension

205.0

207.0

2.0

1.7

6.62

52.00

L19-495D

Lupita Extension

198.8

201.3

2.6

2.5

10.78

55.90

L19-498D

Lupita Extension

217.7

221.0

3.3

3.2

3.30

18.46









SAN MARTIN

L19-457D

San Martin

216.7

218.2

1.5

1.4

15.80

69.00

L19-496D

San Martin

208.3

212.9

4.6

4.6

10.03

57.65

 

Lupita Extension

The Lupita discovery outcrop hosts a 3 m wide silicified vein of typical low-sulphidation epithermal textures and diagnostic green quartz. The Lupita Extension drill program was designed to expand the Lupita resource to the west. After a successful Phase 1 program of 18 drill holes with a 60 m spacing, Phase 2 started in May 2019 on a 30 m grid, aiming to create indicated mineral resource for the year end.

The Phase 2 drill program at Lupita Extension continues to delineate high grade areas and successfully expand mineralization 300 m to the west, where it remains open for expansion. The delineation program completed a total of 87 drillholes, of which 17 still have assays pending.

Based on drilling to-date, the average true width of Lupita Extension is approximately 2.9 m grading 5.56 g/t Au. Minimum mining widths in the Lupita area in 2020 are expected to be reduced from 4 m to 3 m, minimizing dilution in future mining at Lupita Extension. Development to access the Lupita Extension, which is displaying grades well in excess of the current reserve grade at Mercedes, is planned for H1-2020.

San Martin

San Martin is a target located 600 m to the west of Lupita, discovered with an intercept of 1.5 m of 5.56 g/t Au (L19-396D) in the first hole in May 2019. Additional drilling (10 drillholes) suggest an average true width of approximately 3.2 m grading 6.95 g/t Au. The two new intercepts recently drilled at San Martin continue to expand high grade mineralization with 1.4 m of 15.80 g/t Au & 69.00 g/t Ag in L19-457D and 4.6 m of 10.3 g/t Au & 57.65 g/t Ag in L19-496D.

Although these new results increase the high-grade discovery of San Martin, management believes the distribution and tenor of grade at San Martin may be similar to Lupita Extension. More delineation is planned in 2020 with the intent to upgrade mineralization to an Indicated mineral resource. Given a spacing of less than 60 m of drilling at San Martin during 2019, a portion of the mineralization will warrant inclusion into mineral resources at year end.

Figure 2 – Cross Section Looking East Through San Martin Mineralization (CNW Group/Premier Gold Mines Limited)



Table 2 - Collar coordinates

UTM

Project

Hole ID

North
m

East
m

Elevation
m

Azimuth

Dip

Nad 27 zone 12

Mercedes

L19-457D

551064

3360034

1214

110

-68

Mercedes

L19-461D

551414

3360080

1251

172

-46

Mercedes

L19-464D

551459

3360068

1253

130

-64

Mercedes

L19-466D

551414

3360080

1251

172

-54

Mercedes

L19-468D

551457

3360065

1253

140

-75

Mercedes

L19-474D

551413

3360080

1251

178

-71

Mercedes

L19-475D

551457

3360068

1253

167

-50

Mercedes

L19-478D

551456

3360066

1253

176

-74

Mercedes

L19-479D

551413

3360079

1252

183

-63

Mercedes

L19-480D

551376

3359946

1305

079

-71

Mercedes

L19-481D

551455

3360066

1253

185

-60

Mercedes

L19-482D

551411

3360079

1251

198

-75

Mercedes

L19-483D

551504

3360075

1262

135

-63

Mercedes

L19-486D

551465

3359941

1303

029

-80

Mercedes

L19-488D

551503

3360074

1262

171

-52

Mercedes

L19-490D

551463

3359942

1303

290

-82

Mercedes

L19-491D

551473

3360117

1252

139

-71

Mercedes

L19-492D

551472

3360116

1251

162

-68

Mercedes

L19-494D

551447

3360144

1245

158

-72

Mercedes

L19-495D

551295

3360079

1247

135

-48

Mercedes

L19-496D

551050

3359978

1215

171

-76

Mercedes

L19-498D

551444

3360144

1245

184

-73

 

Premier Gold Mines Limited is a gold-producer and respected exploration and development company with a high‑quality pipeline of 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, and through future mine development opportunities at Hardrock in Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing and McCoy-Cove in Nevada.

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." 

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, mineral resource and mineral reserve estimates 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.

Premier Gold Mines Limited (CNW Group/Premier Gold Mines Limited)

SOURCE Premier Gold Mines Limited

Copyright 2019 Canada NewsWire

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