Premier Gold Updates South Arturo Drilling

2019-01-29 / @newswire

 

Including 6.52 g/t Au over 21.3 m

THUNDER BAY, ON, Jan. 29, 2019 /CNW/ - Premier Gold Mines Limited ("Premier" or "the Company") is pleased to provide an update on exploration drilling completed in 2018 at the Company's South Arturo Property located in the Carlin Trend of Nevada.

The South Arturo Property is a Carlin-style gold deposit that hosts mineralization within the Silurian-aged Bootstrap Limestone at the contact with the Rodeo Creek Formation. The property is a joint venture between Premier (40% ownership) and operator Barrick Gold Exploration Inc. ("Barrick"), which processes ore at their Goldstrike facility located 5 km to the south.

Drilling was focused on near-surface mineralization, potentially amenable to heap leach processing (based on initial cyanide solubility or "AuCN" results) and higher-grade mineralization at depth. Highlights include:

  • 25.9 m of 5.84 g/t Au (BD18-05C) in the East Dee Target including 10.7 m of 8.39 g/t Au
  • 21.3 m of 4.50 g/t Au (BD18-06) in the East Dee Target including 10.7 m of 8.27 g/t Au
  • 21.3 m of 6.52 g/t Au (BD18-08C) in the East Dee Target including 4.6 m of 12.78 g/t Au
  • 153.6 m of 1.36 g/t Au (BD18-18C) in the Phase 3 Open Pit target area

"Drilling continues to demonstrate the potential to grow reserves and resources at South Arturo", stated Ewan Downie, President & CEO. "With two new mining initiatives, and the exploration success at East Dee and other targets, we expect this strategic asset will contribute to a strong operational future for the Company".

Figure 1: Longitudinal looking North presenting all the 2018 drillholes. Grade in g/t Au. (CNW Group/Premier Gold Mines Limited)

In 2019, processing of ore stockpiled from the Phase 2 pit will continue with efforts now shifted towards developing two new mining initiatives on the property; the Phase 1 open-pit and the El Nino underground mine. Both operations are now under construction with initial production from El Nino expected late in the year.

Phase 1 Open Pit – East Dee Target

Construction of the Phase 1 open-pit is underway with heap leach material stockpiled for potential future processing. Engineering designs for the heap leach option will be reviewed in 2019 and, if approved, construction of the facility is anticipated beginning in 2020. Several drill holes intersected mineralization within the heap leach target horizons and highlight assays are listed in Table 1.

Several holes were also drilled to test East Dee, an attractive target located immediately east of the Phase 1 pit that has the potential to become a new mining centre on the property. An infill drill program is planned for 2019. Multiple intercepts are highlighted in Table 1 below.

Table 1: Highlight intercepts from East Dee Target

(AuCN data suggest recoveries>70%, except * where AuCN recoveries are lower than 70%)

Hole ID

Target

From
m

To
m

Length
m

True

Width
m

Au
g/t

True

Width
ft

Au
oz/ton

BD18-01C

Phase 1 OP

15.2

21.3

6.1

5.2

2.50

17.0

0.073


Phase 1 OP

24.4

27.4

3.0

2.6

2.45

8.5

0.071

BD18-03

Phase 1 OP

32.0

47.2

15.2

13.0

0.94

42.5

0.027


East Dee

111.3

129.5

18.3

15.5

0.96

51.0

0.028


East Dee

166.1

182.9

16.8

14.2

0.59

46.7

0.017

BD18-04C

Phase 1 OP

22.9

32.0

9.1

7.8

1.61

25.5

0.047

BD18-05C*

East Dee

199.6

225.6

25.9

22.0

5.84

72.3

0.170

including

East Dee

213.4

224.0

10.7

9.1

8.39

29.8

0.245

BD18-06*

East Dee

243.8

265.2

21.3

18.1

4.50

59.5

0.131

including

East Dee

243.8

254.5

10.7

9.1

8.27

29.8

0.241

BD18-07C*

East Dee

265.2

289.6

24.4

20.7

2.85

68.0

0.083

including

East Dee

265.2

266.7

1.5

1.3

5.19

4.3

0.151

and

East Dee

281.9

286.5

4.6

3.9

7.39

12.8

0.216

BD18-08C*

East Dee

279.2

300.5

21.3

18.1

6.52

59.5

0.190

including

East Dee

279.2

283.8

4.6

3.9

12.78

12.8

0.373

 

Phase 3 Project

Phase 3 is a future open-pit development opportunity at South Arturo with the 2018 drill program targeting primarily heap leach mineralization. The program suggests the potential to expand mineralization beyond the currently modeled pit shell (see Figure 1) and work in 2019 will focus on de-risking this potential future phase of mining including additional metallurgical characterization on heap leach material. Table 2 summarizes highlight results from the 2018 drill program at Phase 3. Highlights include:

  • 1.36 g/t Au across 153.6 m in hole BD18-18C
  • 1.34 g/t Au across 24.4 m in hole BD18-19C
  • 1.32 g/t Au over 21.3 m in hole BD18-14C
  • 0.95 g/t Au over 18.3 m in hole BD18-16C 

Table 2: Highlight intercepts from Phase 3 Target

(AuCN data suggest potential for>70% except ** not analyzed for AuCN. True width estimated at 85% of the intercept)

Hole ID

Target

From
m

To
m

Length
m

True

Width
m

Au
g/t

True

Width
ft

Au
oz/ton

BD18-14C

Phase 3

338.9

360.3

21.3

18.1

1.32

59.5

0.038

BD18-16C

Phase 3

256.6

273.4

16.8

14.2

0.79

46.7

0.023

including

Phase 3

264.3

267.3

3.0

2.6

1.35

8.5

0.039

BD18-17C**

Phase 3

250.5

268.8

18.3

15.5

0.95

51.0

0.029

including

Phase 3

255.1

261.2

6.1

5.2

1.33

17.0

0.040


Phase 3

342.0

380.1

38.1

32.4

0.74

106.3

0.021

including

Phase 3

355.7

358.7

3.0

2.6

1.64

8.5

0.048

and

Phase 3

372.5

380.1

7.6

6.5

1.28

21.3

0.038

BD18-18C

Phase 3

239.3

392.9

153.6

130.6

1.36

428.4

0.040

including

Phase 3

239.3

253.0

13.7

11.7

2.21

38.3

0.064

and

Phase 3

262.1

274.3

12.2

10.4

2.43

34.0

0.071

and

Phase 3

293.8

295.4

1.5

1.3

5.75

4.3

0.168

and

Phase 3

316.7

325.8

9.1

7.8

2.49

25.5

0.073

and

Phase 3

385.3

392.9

7.6

6.5

3.61

21.3

0.105

BD18-19C**

Phase 3

237.7

262.1

24.4

20.7

1.34

68.0

0.039

including

Phase 3

237.7

239.3

1.5

1.3

3.74

4.3

0.109

and

Phase 3

254.5

262.1

7.6

6.5

2.97

21.2

0.087

 

2019 Program

Exploration drilling in 2019 will be focused primarily on East Dee, El Nino, and high priority exploration targets proximal to the pits. Definition drilling at East Dee will be designed to establish mineral resources with a high level of confidence. Drilling at El Nino will focus on reserve definition and expansion. Additional drilling will test prospective structures proximal to existing and new mine infrastructure.

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. The primary assay laboratories for the South Arturo Mine are ALS Chemex Labs (ALS Chemex) and American Assay Labs (American Assay) in Reno, Nevada. For a complete description of sample preparation, analytical methods and QA/QC procedures, refer to the technical report for the South Arturo dated March 26, 2018 (effective date December 31, 2017), entitled "Technical Report on the South Arturo Mine, Elko County, State of Nevada, USA" located on Premier's website and at www.sedar.com

Premier Gold Mines Limited is a gold-producer with a respected exploration and development pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. 

Table 3: Collar coordinates.

UTM

Project

Hole ID

North

m

East

m

Elevation

m

Azimuth

Dip

NAD83 - Zone 11

South Arturo

BD18-01C

548369

4542777

1740

64

-66

South Arturo

BD18-03

548315

4542904

1720

56

-75

South Arturo

BD18-04C

548316

4542901

1721

59

-61

South Arturo

BD18-05C

548594

4543037

1770

341

-89

South Arturo

BD18-06

548551

4543120

1793

97

-83

South Arturo

BD18-07C

548391

4543074

1777

67

-75

South Arturo

BD18-08C

548468

4543185

1810

232

-89

South Arturo

BD18-09C

548489

4543243

1821

47

-84

South Arturo

BD18-14C

548476

4542247

1788

59

-76

South Arturo

BD18-16C

548630

4542404

1746

246

-86

South Arturo

BD18-17C

548604

4542285

1749

298

-87

South Arturo

BD18-18C

548595

4542344

1753

317

-88

South Arturo

BD18-19C

548526

4542604

1793

14

-89

 

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.

Premier Gold Mines Limited (CNW Group/Premier Gold Mines Limited)

SOURCE Premier Gold Mines Limited

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