Over 45,000 Metres Drilled During the
Year
THUNDER BAY, ON, Jan. 3, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
provide an exploration update of the Company's 100%- owned Mercedes
Mine in the State of Sonora,
Mexico. The 2017 exploration program focused on the expansion of
potential high-grade, near-infrastructure targets that may be
upgraded to resources. Results of the 45,000 metre program of
surface and underground drilling will be included in an updated
estimate of the resources and reserves, expected in Q1-2018.
Highlights of recent results include:
- 69.50 g/t Au and 111.78 g/t Ag across 12.2 m in hole UG-BR17-007 at Barrancas.
- 70.75 g/t Au and 45.16 g/t Ag across 6.0
m in hole R17-169D near surface at Rey de Oro.
- 22.86 g/t Au and 73.11 g/t Ag across 15.25 m in hole UG-BR17-026 at Barrancas.
- 84.85 g/t Au and 81.50 g/t Ag across 2.3
m at Brecha Hill in hole UG-BH17-035 testing vein extensions
and parallel veins.
- 13.68 g/t Au and 132.14 g/t Ag across 7.65 m at Casa
Blanca in hole MUG17-152D testing vein extensions.
The primary target areas (see Figure 1) included 1) the main
Mercedes/Barrancas/Lagunas mine
trend; 2) Lupita/Diluvio; 3) open pit and underground targets at
Rey de Oro; and 4) new potential vein trends on the property
beneath post-mineral cover that had not been previously tested.
A total of 349 core holes were drilled during the year to test
for potential extensions of known vein systems and also new
mineralized horizons.
Mercedes Mine
Trend
Since the mid-year exploration update (June 21, 2017 press release), drilling focused on
areas with the highest potential for resource and reserve
expansion. This included the Mercedes mine trend, near‑development
opportunities at Barrancas, Brecha
Hill, Lagunas, Corona de Oro and
Casa Blanca (see Table 1 and
Figure 2 for highlighted results to-date).
Table 1: Highlighted underground drill results from the Mercedes
mine trend
Hole
ID
|
Elevation
|
Area
|
From
(m)
|
To
(m)
|
Intercept
(*)
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
UG-BR17-007
|
1050
|
Barrancas including
|
44.15 53.30
|
56.35 56.35
|
12.20 3.05
|
69.50 226.00
|
111.78 63.00
|
UG-BR17-026
|
1070
|
Barrancas including
|
52.95 52.95
|
68.20 56.00
|
15.25 3.05
|
22.86 95.69
|
73.11 70.59
|
MUG17-184D
|
1060
|
Barrancas
|
17.50
|
34.50
|
17.00
|
11.98
|
50.61
|
MUG17-179D
|
1060
|
Barrancas including
|
17.60 19.00
|
25.50 22.50
|
7.90 3.50
|
36.55 64.20
|
118.07 144.00
|
UG-BH17-035
|
N/A
|
Brecha Hill
NW
|
54.95
|
58.40
|
3.45
|
58.29
|
74.00
|
MUG17-153D
|
N/A
|
Casa
Blanca
|
35.75
|
38.80
|
3.05
|
23.90
|
151.08
|
MUG17-152D
|
N/A
|
Casa
Blanca
|
35.75
|
43.40
|
7.65
|
13.68
|
132.14
|
MUG17-798D
|
N/A
|
Casa
Blanca
|
73.35
|
77.10
|
3.75
|
12.18
|
230.66
|
*True widths
represent 80 to 90% of core widths
|
Diluvio-Lupita Target Area
Work at Diluvio-Lupita included surface and underground drilling
and an exploration drift to access and bulk sample the Diluvio
deposit from the mine workings at Lupita. Table 2 highlights some
of the recent drill results and Figure 3 exhibits a cross section
of hole L17-337D.
Table 2: Highlights of recent drill results at
Diluvio-Lupita
Hole
ID
|
Ore
Shoot
|
Comment
|
From
(m)
|
To
(m)
|
Intercept
(*)
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
L17-306D
|
1
|
Lupita including
|
302.10 305.10
|
308.10 306.60
|
6.00 1.50
|
19.56 65.40
|
11.25 24.00
|
L17-337D
|
1
|
Diluvio
West including
|
346.70 351.20
|
365.70 352.70
|
19.00 1.50
|
7.35 35.00
|
16.16 18.00
|
L17-339D
|
1
|
Diluvio including
|
215.30 216.30
|
217.20 217.20
|
1.90 0.90
|
14.00 23.90
|
130.73 216.00
|
*True widths
represent 80 to 90% of core widths
|
Mineralization at Diluvio-Lupita is distinct from other Mercedes
deposits as it occurs in veins along a major fault that can expand
into wider mineable vein stockwork systems. Two areas of
stockwork mineralization have been identified to-date with Diluvio
West interpreted as a faulted offset of the main Diluvio deposit.
Recent drill results at Diluvio West display good grades and
continuity.
Rey de Oro Target
Recent drilling at Rey de Oro targeted an open-pitable deposit
focused primarily on the near-surface portion of this vein system
with limited deeper drilling to potentially expand underground
resources. Table 3 highlights recent drill results from Rey de Oro
and Figure 4 provides a cross sectional view of hole R17-169D along
with the outline of the resource constrained pit shell.
Table 3: Highlights of recent drill results from Rey de Oro
Hole
ID
|
Ore
Shoot
|
Comment
|
From
(m)
|
To
(m)
|
Intercept
(*)
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
L17-169D
|
1
|
Rey de
Oro
|
29.00
|
35.00
|
6.00
|
70.50
|
45.16
|
|
|
including
|
30.00
|
31.00
|
1.00
|
413.00
|
117.00
|
L17-180D
|
1
|
Rey de
Oro
|
13.50
|
24.00
|
10.50
|
5.01
|
15.88
|
*True widths
represent 70 to 80% of core widths
|
Generative Targets
The newly discovered Axis vein, 1.5 kilometers south of the main
Mercedes vein system, will be a priority drill target in 2018. This
wide vein is part of a strong and possibly parallel vein system to
Mercedes that was discovered in 2017 by testing below surface. Only
one hole has cut the vein system and exhibits wide low-grade gold
and silver mineralization. Drilling in early 2018 is designed to
vector towards potential higher grade mineralization.
Several other new target areas on the Mercedes property have
been identified and will tested systematically in 2018. Geophysical
surveys will be conducted prior to drilling in these areas
including other Diluvio-style vein stockwork bodies and covered
areas between the main Mercedes vein system and Diluvio.
All abbreviations used in this press release are available at
this link. (click here)
Stephen McGibbon, 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 results are from core samples sent to ALS
Chemex, an accredited mineral analysis laboratory in Lima, Peru or Vancouver, British Columbia, for preparation
and analysis utilizing both fire assay and ICP methods.
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's team is focused
on creating a low‑cost, mid-tier gold producer through its two
producing gold mines; and two advanced multi-million ounce
development projects where permitting and pre-construction
initiatives are in progress.
The statements made in this Press Release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ
materially from the Company's expectations and projections.
SOURCE Premier Gold Mines Limited