Shares of Premier Gold Mines (TSX: PG) went up 7% at Monday's market open on news of a high-grade discovery at the McCoy-Cove project in Nevada. The company's market capitalization sits at C$345 million.
In today's press release, the company announced the discovery of a 118.9 m thick mineralized zone grading 4.12 g/t, including a high-grade interval assaying 15.74 g/t gold across 6.1 m, in the first hole drilled at the Antenna target.
The Antenna target is situated between the historic Cove and McCoy open-pit mines that produced 3.3 Moz. gold and 110 Moz. silver between 1986 and 2006.
In Januray 2018, Premier entered into an agreement with Barrick Gold (TSX: ABX; NYSE: GOLD) whereby Barrick could earn a 60% stake in the McCoy-Cove project by spending $22.5 million in exploration prior to June 30, 2022, with Barrick assuming the operator role.
Last year, Premier and Barrick completed a $4.4 million program funded by the gold major that included 14 holes and 4,738 m of core drilling. Earlier this year, the partners then prioritized exploration targets, including Antenna and six other targets.
So far, the 2019 exploration program has completed four reverse circulation (RC) drill holes in 2,729 metres.
(A version of this article first appeared in The Northern Miner)