Drilling includes 12.64 g/t Au & 240.1
g/t Ag across a true width (TW) of 13.5 metres
THUNDER BAY, ON, Sept. 11, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company")
(TSX:PG) is pleased to update ongoing drilling results from
the Rey de Oro deposit at the
Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The 2018 drill
program is focused on defining and expanding mineralization
proximal to existing mine workings.
The Mercedes Mine is located 150 kilometres north-northeast of
the city of Hermosillo in the
state of Sonora, Mexico.
Operations are exploiting low-sulfidation quartz veins and quartz
veinlet stockwork for gold and silver utilizing underground
modified overhand cut-and-fill and narrow-vein longitudinal
longhole mining methods at an ore extraction rate of approximately
2,000 tonnes per day. Underground drilling at the Rey de
Oro deposit, one of several zones
being brought into production this year, continues to expand
high-grade mineralization including some of the best widths seen on
the property. Recent highlights include:
- UG-R018-013 returned 12.64 g/t Au & 240.1 g/t Ag across
29.65 m (TW of 13.5 m)
- UG-R018-015 returned 0.41 g/t Au & 3120.0 g/t Ag
(91.0 oz/ton) across 1.52 m (TW of
1.06 m)
- UG-R018-012 returned 17.00 g/t Au & 321.0 g/t Ag across
1.1 m (TW of 0.8 m) and 4.47 g/t Au & 138.5 g/t Ag across
8.25 m (TW of 6.1 m)
"As we continue to advance an aggressive multi-year exploration
program at Mercedes, the Rey de Oro target confirms our belief that
substantial potential exists to expand the mine life" stated
Charlie Ronkos, Executive
Vice-President of Premier. "This new mineralized zone is
under development and we plan to begin mining (prior to year-end)
where we are achieving substantial widths. Mined grades at Rey de
Oro are expected to be well above
our current mine site reserve grade."
Underground drilling at Rey de Oro consists of step-out and delineation
drilling of this recently developed horizon. This drilling
continues to intersect some of the widest vein intercepts on the
property and demonstrate the potential to continue to extend the
mine life at Mercedes (see Figure 1 below).
Figure 1 – Longitudinal Section Looking NE - Rey de Oro
Offset vein target & grade x thickness map
Table 1 summarizes recent intercepts from drilling at Rey de
Oro.
Table 1 – Highlight drill intercepts from Rey de Oro Offset
vein target
|
|
|
|
|
|
|
|
|
|
|
Hole
ID
|
Coordinates(1)
(m)
|
Azimuth/Dip
|
Elevation
(m)
|
Comment
|
From
(m)
|
To
(m)
|
Intercept
(m)
|
Intercept
True Width (m)
|
Au
(g/t)
|
Ag (g/t)
|
UG-RDO18-011
|
552050/3357880
|
042/-22
|
1060
|
Delineation
|
86.90
|
88.43
|
1.53
|
1.48
|
2.76
|
58.00
|
|
|
|
|
and
|
93.00
|
94.53
|
1.53
|
1.47
|
2.69
|
48.00
|
UG-RDO18-012
|
552049/3357880
|
019/-20
|
1060
|
Delineation
|
71.90
|
73.00
|
1.10
|
0.77
|
17.00
|
321.00
|
|
|
|
|
and
|
76.00
|
84.25
|
8.25
|
6.09
|
4.47
|
138.47
|
|
|
|
|
and
|
107.12
|
108.25
|
1.13
|
1.00
|
2.00
|
54.00
|
UG-RDO18-013
|
552049/3357880
|
036/11
|
1060
|
Delineation
|
84.70
|
114.35
|
29.65
|
13.50
|
12.64
|
240.06
|
UG-RDO18-014
|
552114/3357954
|
022/0
|
1060
|
Delineation
|
10.80
|
14.05
|
3.25
|
2.73
|
1.96
|
21.00
|
|
|
|
|
and
|
18.30
|
19.80
|
1.50
|
1.31
|
6.97
|
33.00
|
UG-RDO18-015
|
552049/3357880
|
023/17
|
1060
|
Delineation
|
118.95
|
119.55
|
0.60
|
0.40
|
3.85
|
42.00
|
|
|
|
|
and
|
122.00
|
129.62
|
7.62
|
5.16
|
3.21
|
29.78
|
|
|
|
|
Including
|
128.10
|
129.62
|
1.52
|
1.07
|
6.56
|
48.0
|
|
|
|
|
and
|
152.50
|
154.02
|
1.52
|
1.06
|
0.41
|
3120.00
|
|
|
|
|
and
|
166.23
|
167.75
|
1.52
|
1.14
|
1.97
|
35.00
|
1) UTM NAD83, Zone
15; * Denotes previously released assays, numbers may not add due
to rounding
|
Production at Mercedes is expected to be weighted to the second
half of the year owing to changes in mining method, additional
drilling required at the new Diluvio deposit and delays in
permitting associated with a ventilation raise at Rey de Oro.
Full production has recently been established at Diluvio and the
ramp-up in production at Rey de Oro continues.
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