THUNDER BAY, ON, Oct. 2, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED (TSX:PG) ("Premier", "the Company") is pleased to
announce initial 2018 drilling results at the McCoy-Cove Project,
located along the Eureka-Battle Mountain Trend in Nevada.
Highlights include the discovery of gold and poly-metallic
mineralization (including semi-massive sulphides) to the east of
the historic Cove gold/silver open-pit mine, Carlin-style
mineralization intersected at Windy Point and gold mineralization
intersected at a new "off-trend" target.
Highlight results from the initial program include:
- New discovery south of the Helen-Gap deposit assaying
12.69 g/t Au across 4.6 metres (m; 15 feet) in hole HE18‑02
- Poly-metallic discovery east of the Cove pit assaying 5.00
g/t Au, 410.0 g/t Ag, 5.7% Zn & 5.0% Pb across 2.74 m (9.0 feet) in hole PB18-02
- Strong alteration and mineralization in the Windy Point
target assaying 0.84 g/t Au & 0.33 g/t Ag across
46.0 m (151.0 feet) and 2.25 g/t Au
& 0.99 g/t Ag across 17.1 m (56.0
feet) in hole PB18-07
Barrick is currently funding exploration on portions of the
McCoy-Cove Project with the right to Earn-In to a 60% interest in
those portions (the "Joint Venture Property"). The McCoy-Cove
Project is located within the central Nevada portion of the Basin and Range
Province. The current exploration program is testing several
targets on‑trend with the CSD-Helen-Gap deposit that is situated on
Premier's 100% owned lands, and new targets on the property.
Highlight assay results and intercepts summarized on Figure 1 below
and in Table 1.
Table 1 – Initial assay results from McCoy-Cove
Project
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Hole
ID
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Coordinates(1)
(m)
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Azimuth/Dip
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Elevation
(m)
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Comment
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From
(m)
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To
(m)
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Intercept
(2)
(m)
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Au
(g/t)
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Ag
(g/t)
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Intercept(2)
(ft)
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Au
(oz/t)
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Ag
(oz/t)
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HE18-02*
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4465547N/481632E
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089/-80
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1670
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Off-trend
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638.6
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643.1
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4.6
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12.69
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3.17
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15.0
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0.37
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0.09
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PB18-02
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4465283N/483637E
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131/-79
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1488
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Core
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402.3
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404.5
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2.1
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0.00
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282.00
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7.0
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0.00
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8.23
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525.8
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530.0
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4.3
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2.64
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3.15
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14.0
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0.08
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0.09
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541.8
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547.9
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6.1
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2.77
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199.19
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20.0
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0.08
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5.81
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including
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541.8
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544.5
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2.7
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5.06
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410.33
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9.0
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0.15
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11.97
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570.6
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573.6
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3.0
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0.03
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717.00
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10.0
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0.00
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20.91
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PB18-07
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4465977N/480980E
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55/-65
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1734
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Core
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349.9
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395.9
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46.0
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0.84
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0.33
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151.0
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0.02
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0.01
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including
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364.8
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395.9
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31.1
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1.01
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0.35
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102.0
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0.03
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0.01
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and
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587.7
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604.7
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17.1
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2.25
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0.99
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56.0
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0.07
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0.03
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1) UTM
NAD83, Zone 11 2) True widths are estimated to be 80 to 90% of core
length; * denotes "RC-hole"
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"Off-Trend" (Piezometre) Discovery
HE18-02, a piezometre hole drilled to support Premier's
hydrology modelling at Cove, intersected Carlin-style
mineralization in the middle of the Favret rock unit above a mafic
sill. The setting and host rock unit are similar to the main
deposits located approximately 320 metres to the north. HE18-02 is
the first hole drilled in this target area and returned an
impressive 12.69 g/t Au across 4.6 metres (15 feet).
The "Off-Trend" discovery occurs some 125 metres west of the
Gold Dome fault and 200 metres south of the NW Dike, an intrusion
that demarcates the southern margin of the currently known
Helen-Gap mineralization trend. The mineralization occurs within a
poorly drill-tested location on the property. Importantly, this
discovery occurs in proximity to the carve-out boundary and may
trend onto the 100%-held Premier ground. Immediate planned
follow-up on the Piezometre discovery includes completing four
rotary holes on the earn-in property prior to the end of 2018.
Poly-Metallic Discovery
PB18-02 intersected multiple zones of mineralization (see Figure
2) including 5.00 g/t Au, 410.0 g/t Ag, 5.7% Zn & 5.0% Pb
across 2.74 metres (9.0 feet) that could represent a new
poly-metallic zone and 717.0 g/t Ag & 0.1% Cu across 3.0
metres (10.0 feet).
The poly-metallic discovery is characterized by semi-massive to
massive pyrite-sphalerite-galena mineralization occurring along the
hanging wall of the west-dipping Beacon fault. Though this fault
was previously unmapped since its surface expression is covered by
pediment, early results suggest it could be an important fluid
conduit. As such, it is similar to the east-dipping
Lighthouse fault that is associated with both the shallow
poly-metallic mineralization in the Cove pit and deep poly-metallic
mineralization (2201 Zone) under the pit. The mineralization in
PB18-02 occurs 625 metres (~2050 feet) east of the 2201 Zone
confirming Premier's belief that the 2201 Zone is underexplored in
several directions.
Windy Point
PB18-07 intersected both open-pit style mineralization and
Carlin-style alteration and mineralization on strike to the west of
the Helen Zone deposit including an upper zone that returned
0.84 g/t Au & 0.33 g/t Ag across 46.0 metres (151.0 feet)
and a deeper zone on strike from the main deposit that assayed 2.25
g/t Au & 0.99 g/t Ag across 17.1 metres (56.0 feet).
The intercepts at the Windy Point target are 510 metres (1675
feet) to the west of the Helen Zone deposit (see Figure 1). The
upper zone consists of an interval of mixed oxide/sulfide
Carlin-style mineralization that could be amenable to open-pit
mining if mineralization can be traced towards surface. The lower
zone consists of Carlin-style mineralization hosted in the Favret
Formation, proximal to mafic dikes and sills, and along the Cove
anticline - all important controls in the Helen and Gap Zones to
the east. Follow-up drilling is underway.
The McCoy-Cove Project property lies west of the central part of
the Battle Mountain-Eureka Trend and hosts four distinct
mineralization types including Carlin-style, polymetallic sheeted
veins, carbonate replacement (Manto), and skarn. The McCoy and Cove
gold mines have historic production of some 3.3 million ounces of
gold and 110.0 million ounces of silver between 1986 and 2006, a
20-year period of relatively low to historically low gold and
silver prices.
"The early success from drilling in this initial program
demonstrates the potential of the area for additional gold and
poly‑metallic deposits" stated Charlie
Ronkos, Executive Vice-President. "The new discoveries have
potential to trend onto Premier's wholly-owned property providing
upside opportunities for future work."
In January 2018, Premier entered
into an Agreement with several wholly-owned subsidiaries of Barrick
Gold Corporation (TSX:ABX) ("Barrick") whereby Barrick holds an
option to earn a 60% interest in the exploration portion of the
McCoy-Cove Project (the "Joint Venture Property") by spending
US$22.5 million in exploration prior
to June 30, 2022. The Joint Venture
Property excludes the "Cove Deposit" portion of the McCoy-Cove
Project which is retained solely by Premier.
The statements contained herein reflect the views of Premier
Gold Mines Ltd and may not reflect the views of Barrick or its
Affiliates.
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 samples were sent to ALS Laboratories prep
facilities located in Elko, Nevada
and Reno, Nevada and analysis was
performed at their Vancouver,
Canada analytical facility utilizing 30-gram fire assay with
an AA finish for Au and ICP-MS 48 element scan from 4-acid
digestion for RC and Core samples. For a complete description of
Premier's sample preparation, analytical methods and QA/QC
procedures refer to the technical report dated June 29, 2018 (effective date March 31, 2018), entitled "Preliminary Economic
Assessment for the Cove Project, Lander
County, Nevada" located on Premier's website and at
www.sedar.com.
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.
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 the completion of the
Financing, 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