Premier Gold identifies prospective open pit targets near Hardrock
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THUNDER BAY, ON, April 23, 2014 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that it will begin exploration to test the Bankfield West and Viper target areas, two highly prospective open pit target areas along strike from the Company's 100%-owned Hardrock Project that is host to the multi-million ounce Hardrock open pit deposit.
"Premier holds a district scale property package in the Hardrock area much of which has seen little previous exploration." stated Stephen McGibbon, Executive Vice-President of Premier. "The Bankfield West and Viper targets represent potential within the district to discover new open pit deposits that could support further resource growth which, when considered in relation to the Hardrock Project, would represent an opportunity to leverage infrastructure and increase scale of currently contemplated operations."
The Bankfield West target area (11 km west of Hardrock) was identified through a review of historic drill data where several holes drilled by Placer Dome in the 1990's suggested the potential for widespread gold mineralization within a porphyry host rock unit. A drill program, which will consist of several holes designed to confirm the existence of mineralization within the porphyry will commence at the conclusion of the current confirmation program at Hardrock.
The Viper target area (30 km east of Hardrock) was recently staked by Premier in an area that shares similarities to the geological environment at Hardrock. Specifically, intense folding of iron formation and porphyry rock units is suggested by geophysics in an area with numerous local gold showings and deposits. The primary target areas (Target 1 & Target 2 in Image 1 below) are covered by overburden and have never been drill tested. Image 1 below displays the size of the proposed open pit shell for Hardrock relative to the primary airborne geophysical (magnetics) signature of the fold structures associated with these targets. Target 3 is a new gold showing identified during staking. A surface prospecting program is planned in 2014 prior to drilling.
The current drill program at Hardrock is nearing completion and has seen approximately 60,000 metres of confirmation and infill drilling designed to upgrade the Inferred portion of the open pit mineral resource estimate to Indicated. The program has been very successful in intersecting mineralization within multiple horizons and has identified a potential higher grade core within the recently discovered North Wall Zone. Recent highlight drill results from this program include 18.54 g/t Au across 25.5 m in hole MM552 and 2.90 g/t Au across 27.3 m in hole MM538 in the main pit area and 1.30 g/t Au across 57.0 m and 29.20 g/t Au across 11.0 m in hole MM571 and 80.57 g/t Au across 4.5 m in hole MM573 in the North Wall Zone.
Hardrock, which is one of four gold deposits that make up the Trans-Canada Property, is the subject of a recently completed Preliminary Economic Assessment (PEA) Study released by the Company on January 28, 2014. The Hardrock Project has potential development advantages given the Trans-Canada Highway, the Trans-Canada Pipeline, and major power lines run through or in close proximity to the main deposit area. Significant services and a skilled labour pool also exist within several communities located in close proximity.
The Hardrock PEA Study was prepared as an open-pit only mining project related solely to the mineral resources estimate reported by the Company on October 29, 2013 (press release "Premier Gold Releases Updated Mineral Resource Estimate on Hardrock Deposit") (mineral resources that are not mineral reserves do not have demonstrated economic viability). The PEA Study demonstrates the potential for an open pit operation with a 15 year mine life and producing more than 200,000 ounces of gold per year (see press release dated January 28, 2014) and does not include 5.5 Mt at 5.01 g/t Au containing 889,000ozs Indicated and 16.9 Mt at 5.38 g/t Au containing 2,925,000ozs Inferred, incorporated in the underground component of the Hardrock mineral resource estimate.
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 results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods
Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is well financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends 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, 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 Gold'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 Gold 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
Image with caption: "Image 1 - Viper Target Area (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20140423_C4692_PHOTO_EN_39517.jpgFor further information: