Open-pit constrained M+I Resources exceed
5.8 M ounces gold
THUNDER BAY, ON, Oct. 3, 2019 /CNW/ - PREMIER GOLD MINES
LIMITED (TSX:PG) (OTCPK: PIRGF) ("Premier", "the Company") is
pleased to announce results of an updated mineral resource estimate
for the Hardrock deposit, which includes the Hardrock open
pit deposit (the "Deposit") located south of Geraldton, Ontario. Hardrock, the primary
deposit within the larger Greenstone Property, is owned by
Greenstone Gold Mines, a 50/50 partnership between Premier and
Centerra Gold Inc (TSX:CG) (the "Partnership").
Table 1 summarizes the total mineral resources. Highlights of
the September 4, 2019 estimate
include:
- Total Measured and Indicated Resources of 7,105,000 ounces
of gold for the Hardrock deposit, an 11% increase versus the
2016 estimate
- Measured and Indicated Resources (M+I) restricted to open
pit potential of 5,868,000 ounces of gold including an initial
237,000 ounces in the Measured category
- Updated 2019 mineral resource estimate represents a 21%
increase in grade, 26% increase in ounces and 4% increase in
tonnes versus Measured and Indicated O/P resources reported in the
2016 Feasibility Study
- Estimate supported by some 12,000 m of additional
infill core drilling and 26,000 m of reverse
circulation (RC) drilling in selected areas during two
campaigns held in 2018 and 2019.
Table 1 – Summary of 2019 mineral resources at Hardrock
Project
|
|
Tonnes Mt
|
Grade g/t Au
|
Au
Ounces 000's
|
Measured Resources
|
Open Pit
Restricted
|
5.7
|
1.30
|
237
|
Underground
Restricted
|
-
|
-
|
-
|
Sub-Total
|
5.7
|
1.30
|
237
|
Indicated Resources
|
Open Pit
Restricted
|
132.0
|
1.33
|
5,631
|
Underground
Restricted
|
9.8
|
3.93
|
1,237
|
Sub-Total
|
141.8
|
1.51
|
6,868
|
Measured +
Indicated Resources
|
Open Pit
Restricted
|
137.7
|
1.33
|
5,868
|
Underground
Restricted
|
9.8
|
3.93
|
1,237
|
Sub-Total
|
147.5
|
1.50
|
7,105
|
Inferred Resources
|
Open Pit
Restricted
|
0.9
|
1.19
|
36
|
Underground
Restricted
|
24.6
|
3.87
|
3,059
|
Sub-Total
|
25.5
|
3.77
|
3,095
|
|
- The Independent and Qualified Person for the
Mineral Resource Estimate, as defined by NI 43-101, is Rejean
Sirois, B.Sc., P.Eng. of G Mining Services Inc, and the effective
date of the estimate is 04/09/2019.
- Mineral Resources are not Mineral Reserves
and do not have demonstrated economic viability.
- Mineral Resources are inclusive of Mineral
Reserves.
- In-Pit results are presented undiluted within
a merged surface of the pit optimization shell 24 and the pit
design, using a US$1250 gold price and a revenue factor 0.78.
- The estimate includes 17 gold-bearing zones,
and grade shells to incorporate remaining mineralized
material.
- In-Pit Resources were compiled at cut-off
grades of 0.20, 0.30, 0.40, 0.50, 0.60, 0.70, 0.80 and 0.90 g/t Au;
however, the official resource is at a cut-off grade of 0.30 g/t
Au.
- Underground Resources were compiled at
cut-off grades of 1.50, 2.00, 2.50, 3.00, 3.50, 4.00 and 4.50 g/t
Au; however, the official resource is at a cut-off grade of 2.00
g/t Au.
- Density (g/cm3) data used is on a per zone
basis, varying from 2.72 to 3.28 g/cm3.
- Ounce (troy) = Metric Tonnes x Grade /
31.10348. Calculations used metric units (metres, tonnes and
g/t).
- The number of metric tonnes was rounded to
the nearest thousand and ounces was rounded to the nearest hundred.
Any discrepancies in the totals are due to rounding effects;
rounding followed the recommendations in Regulation NI 43-101.
|
The mineral resource estimate for the Hardrock deposit has been
completed by GMining Services Inc., under the supervision of Réjean
Sirois, P. Eng., Vice-President, Geology and Resources. GMining is
in the process of updating the related mineral reserve estimate for
the project, which is anticipated to be complete by year-end.
"Significant work has been completed by the Greenstone Gold
Mines team since the release of the Feasibility Study in 2016",
stated Ewan Downie, President &
CEO of Premier. "The increase in ounces and grade within the
updated pit shell confirm our view that Hardrock is one of
Canada's most attractive near-term
development opportunities."
Two drilling campaigns have been completed in 2018 and 2019
designed to address specific aspects of the Hardrock project based
on recommendations stemming from audits of the 2016 Feasibility
Study.
2018 Drill Program
The first program, beginning in August
2018, was a resource definition RCGC (RC Grade Control)
program designed to increase the confidence level in the mineral
resources in the initial years of production. A total of
20,011 m was drilled in 405 holes using a drill pattern of
10 m x 20 m, locally raised to 10 m
x 10 m, in five key areas. A variety of zones and
mineralization styles were tested through the first three benches
(30 m) of the mine design as shown in Figure 1. The RCGC
program confirmed most of the gold expected in the 2016 Block model
and additional ounces of gold were identified in most of the areas
drilled. Grade continuity was confirmed and overall, the grade was
around 15% higher than predicted by the 2016 BM for the areas
drilled with RCGC. The key findings of the program lead GMining to
remodel the mineralisation wireframes with the aim of reducing
internal dilution, reinvestigate the assay capping strategy, adjust
estimation parameters and re-estimate gold grades into the newly
created block model. An internal resource model update was
undertaken in 2018 showing 14% less tonnes, 24% more grade and 6%
more ounces of gold compared to the 2016 estimate within the 2016
FS Pit at 0.30 g/t Au cut-off grade.
2019 Drill Program
The second campaign drilled in 2019 included a total of
12,008 m of core drilling in 53 holes, and 5,946 m of RC
drilling in 76 holes as presented in Figure 2. The core drilling
was designed to infill specific areas across the model and validate
the 2018 internal mineral resource model update. The 2019 RC
program tested up to seven benches (70 m) in previously
drilled zones. The results were positive and confirmed the
continuity and gold grades as predicted in the 2018 resource model
update.
GMining updated the mineralisation wireframes with the 2019
drilling information and following the same estimation strategy as
undertaken in the 2018, updated the mineral resource model
(described in previous paragraph). After visual and statistical
validation, the block model was found to be a good representation
of the wireframes used to constrain the mineralization and the
grade composites. Mineral Resource classification was based
primarily on estimation pass, and other considerations such as
drill spacing and confidence in grade continuity.
Comparison of 2016 and 2019 Mineral Resource Estimates
The 2019 mineral resource estimate is compared to its 2016
counterpart in Table 2. The principal factors contributing to
the improved mineral resource are better continuity of
mineralization observed in the drilling campaign as well as the
diminution of dilution within the wireframes. The same gold price
was used in the 2019 and in the 2016 estimates, therefore has not
contributed to the upgraded profile of the new mineral resource.
The waterfall diagram in Figure 3 summarizes changes in the
2019 resource estimate.
Table 2 – Summary of Changes in 2019 Estimate vs 2016
Estimate
|
|
|
|
2016
|
2019
|
2019 vs 2016
|
Measured
+
Indicated
Resources
|
Open pit
Restricted
|
Tonnes
|
Mt
|
131.9
|
137.7
|
4%
|
Grade
|
g/t
Au
|
1.10
|
1.33
|
21%
|
Au
Oz
|
000's
|
4,667
|
5,868
|
26%
|
Underground
Restricted
|
Tonnes
Grade
Au
Oz
|
Mt
g/t
Au
000's
|
13.7
|
9.8
|
(28%)
|
3.91
|
3.93
|
1%
|
1,720
|
1,237
|
(28%)
|
Subtotal
|
Tonnes
Grade
Au
Oz
|
Mt
g/t
Au
000's
|
145.6
|
147.5
|
1%
|
1.36
|
1.50
|
10%
|
6,387
|
7,105
|
11%
|
Inferred
Resources
|
Open pit
Restricted
|
Tonnes
|
Mt
|
0.2
|
0.9
|
350%
|
Grade
|
g/t
Au
|
0.87
|
1.19
|
37%
|
Au
Oz
|
000's
|
5
|
36
|
650%
|
Underground
Restricted
|
Tonnes
Grade
Au
Oz
|
Mt
g/t
Au
000's
|
21.5
|
24.6
|
14%
|
3.57
|
3.87
|
8%
|
2,470
|
3,059
|
24%
|
Subtotal
|
Tonnes
Grade
Au
Oz
|
Mt
g/t
Au
000's
|
21.7
|
25.5
|
18%
|
3.55
|
3.78
|
6%
|
2,475
|
3,095
|
25%
|
|
- Mineral Resources are not Mineral Reserves
and do not have demonstrated economic viability.
- Mineral Resources are inclusive of Mineral
Reserves.
- In-Pit Resources are reported using a cut-off
grade of 0.30 g/t Au.
- Underground Resources are reported using a
cut-off grade 2.00 g/t Au.
- Ounce (troy) = Metric Tonnes x Grade /
31.10348. Calculations used metric units (metres, tonnes and
g/t).
- The number of metric tonnes was rounded to
the nearest thousand and ounces was rounded to the nearest hundred.
Any discrepancies in the totals are due to rounding effects;
rounding followed the recommendations in Regulation NI 43-101.
|
The differences observed between the 2019 and 2016 MRE's for the
open pit restricted resources are summarized below:
- The 2019 MRE is constrained by a deeper optimized shell than in
2016, therefore incorporating more blocks into the MRE.
- The reduction of unmineralized material into the 2019
wireframes resulted in a higher average grade within the domains
(coupled with a reduction in tonnage), and a reduction in grade
smoothing.
- Grade capping was revisited inside the new wireframes, and new
capping thresholds were chosen (9.4% of "metal" removed
by capping).
- RC grade-control drilling and validation diamond drilling
conducted in 2018 and 2019 confirmed the continuity of
mineralization within the resource model. Generally, the
intersected gold grades are higher than predicted by the 2016 model
by greater than 15%.
The total underground Mineral Resource remains relatively
unchanged, apart from some reclassifications as described
below:
- 3.9Mt reduction in Indicated Mineral Resources
-
- These blocks were previously estimated within a poorly
constrained lithological domain and have been reclassified into the
Inferred Category.
- 3.1 Mt increase in Inferred Mineral Resources
-
- All underground blocks within the 0.1 and 0.6 g/t grade shells
outside of the main wireframes are defined as Inferred.
In addition to the Hardrock open pit deposit, the only deposit
considered in the 2016 Feasibility Study, the Greenstone Property
hosts several additional deposits that offer considerable upside.
The high-grade satellite deposits at Brookbank and Key Lake remain
attractive as potential future sources of production.
Réjean Sirois, P. Eng., of GMining, an Independent Qualified
Person, as defined under NI 43-101, has read and approved the
technical portions of this news release.
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.
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.
SOURCE Premier Gold Mines Limited