Drill results include 21.95 m at 36.65 g/t Au and 171.30 g/t
Ag
THUNDER BAY, ON, Aug. 2, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
provide an exploration update, including the confirmation of high
grade extensions, at the Company's 100%-owned Mercedes Mine,
located in the State of Sonora,
Mexico. The ongoing 40,000 metre surface and underground
drill programs include definition and expansion of the main gold
bearing horizons and testing new zones on the property.
Underground drilling at the Rey de Oro deposit, one of several zones being
brought into production this year, has confirmed the extension of a
high-grade vein system that exhibits some of the best widths
drilled to date. Recent highlights include:
- UG-R018-002 with 6.21 g/t Au and 101.83 g/t Ag across 16.55
metres
- UG-R018-006 with 36.65 g/t Au and 171.30 g/t Ag across 21.95
metres
- UG-R018-007 with 8.10 g/t Au and 121.32 g/t Ag across 20.50
metres
- UG-R018-008 with 8.33 g/t Au and 67.66 g/t Ag across 9.20
metres
"These high grade results and good widths are similar to our
success at the Aida vein zone intersected earlier this year and
confirms our belief that substantial potential exists to expand the
mine life at Mercedes" stated Charlie
Ronkos, Executive Vice-President of Premier. "These
initial intercepts suggest a zone with grades well in excess of the
current reserve grade at Mercedes".
Rey de Oro
Additional drills are being mobilized to Rey de Oro in order to continue step-out and
delineation drilling of this vein extension. These results
include some of the widest vein intercepts on the property and are
located proximal to recently constructed underground mine workings
(see Figure 1 below).
Table 1 summarizes recent intercepts from 2018 drilling at Rey
de Oro.
Table 1 – Highlight drill intercepts from the Rey de
Oro vein target
Hole
ID
|
Coordinates
(m)
|
Azimuth/
Dip
|
Elevation
|
Comment
|
From
(m)
|
To
(m)
|
Intercept
(m)
|
Intercept
True Width
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
|
|
R18-204D
|
552166N/3357830E
|
17/-55
|
1287
|
|
119.20
|
120.70
|
1.50
|
1.40
|
5.45
|
16.00
|
|
R18-205D
|
552335N/3357703E
|
25/-55
|
1278
|
Exploration
|
129.70
|
134.20
|
4.50
|
4.35
|
2.59
|
13.33
|
|
|
|
|
|
and
|
154.22
|
156.20
|
1.98
|
1.70
|
2.59
|
6.02
|
|
R18-206D
|
552335N/3357703E
|
25/-55
|
1278
|
|
150.20
|
151.20
|
1.00
|
0.95
|
3.55
|
6.00
|
|
|
|
|
|
and
|
152.20
|
154.20
|
2.00
|
1.90
|
3.20
|
6.00
|
|
|
|
|
|
and
|
155.20
|
155.70
|
0.50
|
0.50
|
2.36
|
9.00
|
|
UG-RDO18-001
|
552166N/3357830E
|
61/1
|
1062
|
Infill
|
101.95
|
109.00
|
7.05
|
5.45
|
7.81
|
71.12
|
|
|
|
|
|
Including
|
105.00
|
108.05
|
3.05
|
2.75
|
12.71
|
86.38
|
|
UG-RDO18-002
|
552082N/3357855E
|
25/5
|
1063
|
Infill
|
77.80
|
86.92
|
9.12
|
7.15
|
8.77
|
259.46
|
|
|
|
|
|
and
|
88.75
|
91.50
|
2.75
|
1.90
|
1.23
|
108.00
|
|
|
|
|
|
and
|
94.00
|
110.55
|
16.55
|
11.50
|
6.21
|
101.83
|
|
|
|
|
|
Including
|
103.35
|
106.75
|
3.40
|
2.55
|
20.10
|
82.08
|
|
|
|
|
|
and
|
117.43
|
118.95
|
1.52
|
1.20
|
3.40
|
31.00
|
|
UG-RDO18-003
|
552082N/3357855E
|
25/-8
|
1062
|
Delineation
|
74.50
|
80.60
|
6.10
|
4.75
|
1.64
|
146.50
|
|
|
|
|
|
and
|
85.20
|
88.35
|
3.15
|
3.10
|
1.76
|
102.00
|
|
|
|
|
|
and
|
105.00
|
108.05
|
3.05
|
2.90
|
1.76
|
102.00
|
|
UG-RDO18-004
|
552082N/3357855E
|
41/5
|
1062
|
Delineation
|
74.50
|
80.00
|
5.50
|
4.25
|
1.55
|
93.90
|
|
UG-RDO18-006
|
552082N/3357855E
|
8/3
|
1062
|
Delineation
|
89.15
|
111.10
|
21.95
|
15.50
|
36.65
|
171.30
|
|
|
|
|
|
Including
|
89.15
|
105.70
|
16.55
|
11.10
|
47.94
|
200.16
|
|
|
|
|
|
and
|
141.60
|
149.22
|
7.62
|
5.25
|
3.46
|
42.59
|
|
|
|
|
|
and
|
161.42
|
164.90
|
3.48
|
2.45
|
3.07
|
5.00
|
|
UG-RDO18-007
(1060)
|
552049N/3357880E
|
230/4
|
1060
|
Infill
|
62.53
|
83.06
|
20.53
|
18.55
|
8.10
|
121.32
|
|
|
|
|
Including
|
70.15
|
73.20
|
3.05
|
2.90
|
14.91
|
107.87
|
|
|
|
|
|
Including
|
79.30
|
81.80
|
2.50
|
2.35
|
30.70
|
165.50
|
|
|
|
|
|
and
|
88.75
|
92.30
|
3.55
|
3.30
|
2.78
|
40.00
|
|
|
|
|
|
and
|
94.55
|
96.07
|
1.52
|
1.45
|
2.49
|
19.00
|
|
UGRDO18-008
(1060)
|
552049N/3357880E
|
22/-4
|
1060
|
Infill
|
86.92
|
88.45
|
1.53
|
1.40
|
2.65
|
37.00
|
|
|
|
|
|
and
|
91.35
|
100.55
|
9.20
|
6.75
|
8.33
|
67.66
|
|
|
|
|
|
Including
|
94.55
|
97.60
|
3.05
|
2.75
|
16.10
|
113.45
|
|
|
|
|
|
and
|
121.50
|
123.10
|
1.60
|
1.46
|
2.97
|
9.00
|
|
Aida
A surface and underground drill program is underway to define
the high-grade Aida target that is located to the west of the main
Mercedes vein (see Figure 2) and proximal to existing mine
workings. Broad zones of mineralization have returned
multiple high-grade intercepts as highlighted in Table 2.
Table 2 – Highlight drill intercepts from the Aida
target
Hole
ID
|
Coordinates
(m)
|
Azimuth/
Dip
|
Elevation
|
Comment
|
From
(m)
|
To
(m)
|
Intercept
(m)
|
Intercept
True Width
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
|
|
-864D
|
549003N/3355797E
|
202/-46
|
1176
|
Infill
|
93.50
|
95.00
|
1.50
|
1.45
|
2.79
|
11.00
|
|
|
|
|
|
and
|
96.50
|
99.08
|
2.58
|
2.37
|
2.40
|
41.18
|
|
|
|
|
|
and
|
100.17
|
104.50
|
4.33
|
3.35
|
3.12
|
43.25
|
|
|
|
|
|
and
|
118.00
|
119.00
|
1.00
|
0.90
|
2.54
|
9.00
|
|
|
|
|
|
and
|
135.50
|
141.50
|
6.00
|
4.05
|
12.04
|
8.91
|
|
|
|
|
|
Including
|
137.00
|
138.00
|
1.00
|
0.90
|
52.50
|
13.00
|
|
|
|
|
|
and
|
167.00
|
170.00
|
3.00
|
2.47
|
4.84
|
38.50
|
|
M18-865D
|
549004N/3355798E
|
212/-48
|
1176
|
Infill
|
94.50
|
95.00
|
0.50
|
0.45
|
2.96
|
12.00
|
|
|
|
|
|
and
|
95.85
|
98.85
|
3.00
|
1.90
|
3.92
|
36.75
|
|
M18-866D
|
549004N/3355798E
|
212/-48
|
1176
|
Infill
|
83.50
|
84.25
|
0.75
|
0.62
|
1.84
|
24.00
|
|
|
|
|
|
and
|
84.25
|
85.68
|
1.43
|
1.40
|
3.77
|
27.47
|
|
M18-867D
|
548910N/3355750E
|
70/-60
|
1141
|
Infill
|
60.45
|
62.20
|
1.75
|
1.00
|
2.77
|
45.71
|
|
|
|
|
|
and
|
66.10
|
67.00
|
0.90
|
0.70
|
2.10
|
28.00
|
|
|
|
|
|
and
|
74.20
|
75.40
|
1.20
|
0.90
|
3.65
|
57.00
|
|
M18-869D
|
548814N/3356240E
|
219/-54
|
11615
|
|
245.35
|
246.35
|
1.00
|
0.80
|
3.08
|
8.00
|
|
|
|
|
|
and
|
248.35
|
249.35
|
1.00
|
0.80
|
1.96
|
7.00
|
|
M18-870D
|
548834N/3356265E
|
218/-54
|
1174
|
Infill
|
292.25
|
296.25
|
4.00
|
2.85
|
9.45
|
40.85
|
|
|
|
|
|
Including
|
293.25
|
295.20
|
1.95
|
1.42
|
15.69
|
50.70
|
|
M18-883D
|
54882N/3356048E
|
214/-50
|
1158
|
Infill
|
93.00
|
94.68
|
1.68
|
1.15
|
11.92
|
12.67
|
|
|
|
|
|
Including
|
93.45
|
94.68
|
1.23
|
0.91
|
15.85
|
10.00
|
|
M18-884D
|
548854N/3356048E
|
229/-58
|
1158
|
Infill
|
105.45
|
107.45
|
2.00
|
1.01
|
5.79
|
4.50
|
|
|
|
|
|
Including
|
106.45
|
107.45
|
1.00
|
0.80
|
11.20
|
4.00
|
|
M18-887D
|
548800N/3358262E
|
150/-45
|
1145
|
Infill
|
163.20
|
164.15
|
0.95
|
0.75
|
9.30
|
57.63
|
|
|
|
|
|
Including
|
163.20
|
163.70
|
0.50
|
0.40
|
17.35
|
51.00
|
|
M18-888D
|
548814N/3356240E
|
219.50/-45
|
1164
|
Infill
|
200.20
|
207.85
|
7.65
|
4.45
|
8.80
|
16.72
|
|
|
|
|
|
Including
|
202.40
|
204.20
|
1.80
|
1.00
|
24.11
|
19.44
|
|
M18-892D
|
548805N/3356198E
|
214/54
|
1169
|
Infill
|
199.43
|
207.80
|
8.37
|
5.10
|
3.71
|
27.40
|
|
|
|
|
|
Including
|
205.30
|
207.80
|
2.50
|
1.85
|
5.69
|
27.40
|
|
M18-893D
|
548911N/3355915E
|
216/-54
|
1155
|
Infill
|
106.30
|
107.20
|
0.90
|
0.75
|
4.43
|
48.00
|
|
M18-894D
|
548911N/3355915E
|
|
|
Infill
|
76.20
|
80.58
|
4.38
|
2.55
|
5.26
|
152.06
|
|
M18-895D
|
548911N/3355915E
|
228/-50
|
1155
|
Infill
|
129.80
|
132.18
|
2.38
|
1.45
|
4.33
|
91.16
|
|
|
|
|
|
Including
|
131.30
|
131.85
|
0.55
|
0.40
|
13.40
|
113.00
|
|
|
|
|
|
and
|
151.30
|
152.30
|
1.00
|
0.65
|
1.74
|
40.00
|
|
|
|
|
|
and
|
153.50
|
154.30
|
0.80
|
0.60
|
4.23
|
46.00
|
|
M18-896D
|
548916N/3355968E
|
217/-46
|
1158
|
Infill
|
144.43
|
146.20
|
1.77
|
1.35
|
2.48
|
49.59
|
|
M18-897D
|
548916N/3355968E
|
228/-53
|
1158
|
Infill
|
160.30
|
163.30
|
3.00
|
1.95
|
5.06
|
81.66
|
|
|
|
|
|
and
|
167.30
|
169.30
|
2.00
|
1.45
|
2.68
|
81.50
|
|
|
|
|
|
and
|
171.30
|
174.56
|
3.26
|
2.05
|
2.64
|
136.25
|
|
M18-898D
|
549004N/3355797E
|
234/-59
|
1178
|
Infill
|
108.70
|
113.20
|
4.50
|
2.75
|
3.65
|
53.33
|
|
M18-899D
|
549004N/3355797E
|
155/-77
|
1178
|
Infill
|
95.20
|
117.70
|
22.50
|
14.55
|
12.11
|
25.74
|
|
|
|
|
|
Including
|
111.46
|
116.20
|
4.74
|
3.15
|
45.88
|
24.34
|
|
|
|
|
|
and
|
132.20
|
135.08
|
2.88
|
1.35
|
5.11
|
37.30
|
|
The 2018 drill program will also test for extensions of the
known vein systems, and for new target areas on the property.
The primary target areas are as follows (see Figure 2):
- Drilling at the Axis target located to the west of the main
Mercedes vein, has discovered a broad zone of low-grade
mineralization with assays of up to 0.64 g/t Au and 0.79 g/t Ag
across 31.5 metres;
- Once the drift has been sufficiently established in H2 2018,
drilling is expected to begin on the Marianas vein, located along
the main Mercedes vein trend; and
- Continued definition and step-out drilling at Diluvio and
Lupita that were recently brought into production.
Production at Mercedes is expected to be weighted to the second
half of the year owing to changes in the mining methods, the
required additional drilling at the new Diluvio deposit and delays
in permitting associated with the ventilation raise at Rey de
Oro. Stope mining has commenced at Diluvio and the ramp up in
production from Rey de Oro
continues. As a result of these initiatives, monthly
production in July has been the best so far in 2018.
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.
Stephen McGibbon, P. Geo.,
Executive Vice-President, Corporate and Project Development, 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, British Columbia, 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, 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