Premier expands high grade mineralization at the Cove Gold Project

Image 1 - Ariel View of Cove Project (CNW Group/Premier Gold Mines Limited)

Drill intercepts include 182.87 g/t Au and 46.90 g/t Ag across 1.5m and 40.23 g/t Au and 203.17 g/t Ag across 4.9m

Shares Issued:  151,533,975

THUNDER BAY, ON, May 27, 2014 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier", "the Company") is pleased to announce that ongoing drilling continues to confirm the potential to define high-grade mineralization in multiple horizons at the Company's Cove Gold Project, located along the Eureka-Battle Mountain Trend in Nevada.  Initial drill results from the 2014 exploration program have intersected multiple zones of gold and poly-metallic mineralization, including massive sulphides proximal to the historic open pit Cove gold mine.

New assay results from the initial holes drilled in 2014 demonstrate continuity in the Cove South Deep Zone and have expanded the mineralized envelope within the recently discovered 2201 Zones. In 2013, drilling within the 2201 Zone intersected 13.22 grams per tonne gold (g/t Au) or 0.39 ounces per ton (oz/t) and 38.67 g/t Ag (1.13 oz/t) across 10.3 metres (m) and 18.96 g/t Au (0.55 oz/t) and 23.00 g/t Ag (0.67 oz/t) across 4.1 m in hole AX-51; and 15.83 g/t Au (0.46 oz/t) and 38.95 g/t Ag (1.14 oz/t) across 6.1 m in hole PG-02. Step-out drilling on the 2013 discovery holes was completed in 100 m increments, intersecting mineralization over an area approximately 350 m by 300 m and remains open in all directions. Highlights from recent drilling include:

  • 2201 Zone Discovery highlight assay results
    • PG14-02:
      • 182.87 g/t Au (5.33 oz/t), 46.90 g/t Ag (1.37 oz/t), 0.10% Pb/Zn across 1.5 m (5.0 ft)
    • PG14-03:
      • 40.23 g/t Au (1.17 oz/t), 203.17 g/t Ag (5.93 oz/t), 1.58% Pb/Zn across 4.9 m (16.2 ft)
    • PG14-05:
      • 28.38 g/t Au (0.83 oz/t), 33.40 g/t Ag (0.97 oz/t), 0.89% Pb/Zn across 1.5 m (5.0 ft)
      • 11.33 g/t Au (0.33 oz/t), 72.64 g/t Ag (2.12 oz/t), 2.45% Pb/Zn across 4.3 m (14.0 ft)

PG14-01 was an exploration hole drilled from the north edge of the pit and returned low gold values.  Step-out hole's PG14-02 and PG14-03 were drilled approximately 200 m west of the initial discovery holes in the 2201 Zone showing the potential to define resources in this horizon.  Additional step-out and infill drilling continues to focus on the 2201 Zone.  Table 1 provides a summary of new results from follow-up drilling in the 2201 Zone.

Table 1 - Select Assay Results for the 2201 Zone in holes PG14-02 to PG14-05

Hole ID UTM (m) Dip/Az
(degrees)
From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Ag
(g/t)
From
(ft)
To
(ft)
Interval
(ft)
Au
(oz/t)
Ag
(oz/t)
Zn
(%)
Pb
(%)
PG14-02 4464909N
482431E
-53/035 777.2 780.3 3.0 5.84 26.25 2550.0 2560.0 10.0 0.17 0.77 0.03 0.02
  798.6 800.1 1.5 182.87 46.90 2620.0 2625.0 5.0 5.33 1.37 0.07 0.03
PG14-03 4464911N
482432E
-45/035 722.7 726.9 4.3 0.58 75.41 2371.0 2385.0 14.0 0.02 2.20 3.77 1.15
  836.2 841.1 4.9 40.23 203.17 2743.3 2759.5 16.2 1.17 5.93 1.37 0.21
PG14-04 4464709N
483069E
-47/300 640.4 641.3 0.9 17.08 928.00 2101.0 2104.0 3.0 0.50 27.07 0.62 1.91
  843.1 843.7 0.6 13.42 113.30 2766.0 2768.0 2.0 0.39 3.30 0.30 0.32
  886.4 889.4 3.0 6.16 6.50 2908.0 2918.0 10.0 0.18 0.19 0.02 0.01
PG14-05 4464778N
482740E
-54/035 699.1 700.6 1.5 28.38 33.40 2293.5 2298.5 5.0 0.83 0.97 0.72 0.12
  737.3 740.4 3.0 7.15 13.90 2419.0 2429.0 10.0 0.21 0.41 0.31 0.24
  748.0 762.0 14.0 6.40 33.94 2454.0 2500.0 46.0 0.19 0.99 0.50 0.57
including 748.0 752.2 4.3 11.33 72.64 2454.0 2468.0 14.0 0.33 2.12 0.91 1.54
PG14-06 4464808N
482646E
-45/035 Abandoned
PG14-07 4464826N
483291E
-45/311 Abandoned

- Gravimetric assays used when available       - true widths are unknown for this zone        - assays provided are un-cut and rounded to nearest tenth

The 2201 Zone was discovered when drilling (hole, AX-46) intersected massive, semi-massive, sheeted veins and stringer mineralization in the deeper Dixie Valley formation, which was not previously known to be a significant ore host on the property.  Mineralization within the 2201 Zone occurs approximately 225 meters (740 feet) below the historic Cove Pit, and in the vicinity of several "feeder" structures that were mined within the pit, confirming Premier's belief that these structures could also serve as conduits for mineralization in the rock units beneath the pit which have previously received little attention.

Cove South Deep Target

The Cove South Deep ('CSD') horizon is located approximately 50 metres (160 feet) below the limits of the historic Cove open pit mine and is similar to the Carlin-style mineralization in the Helen Zone.  The CSD Zone was discovered near the end of mining at Cove in an area that had received very little previous exploration drilling.  Table 2 provides a summary of new results from step-out drilling in the CSD Zone.

Table 2 - Select assay results for Cove South Deep Zone

Hole-ID UTM (m) Dip/Azimuth
(degrees)
From
(m)
To (m) Interval
(m)
Au
(g/t)
Ag
(g/t)
From
(ft)
To
(ft)
Interval
(ft)
Au
(oz/t)
Ag
(oz/t)
PG14-01 4465852N
482834E
-53/162 No Significant Values
PG14-02 4464909N
482431E
-53/035 500.3 501.4 1.1 16.52 10.2 1641.5 1645 3.5 0.48 0.30
PG14-03 4464911N
482432E
-45/035 631.9 635.2 3.4 1.39 25.95 2073 2084 11.0 0.04 0.76
  660.5 663.5 3.0 3.41 29.50 2167 2177 10.0 0.10 0.86
PG14-04 4464709N
483069E
-47/300 404.8 407.8 3.0 6.86 1.85 1328 1338 10.0 0.20 0.05
  477.8 483.1 5.3 4.22 2.27 1567.5 1585 17.5 0.12 0.07
PG14-05 4464778N
482740E
-54/035 430.8 440.4 9.6 3.11 5.06 1413.5 1445 31.5 0.09 0.15
PG14-06 4464808N
482646E
-45/035 Abandoned
PG14-07 4464826N
483291E
-45/311 Abandoned

- Gravimetric assays used when available       - true widths are approximately 80% of intercept        - assays provided are un-cut and rounded to nearest tenth

The Cove Gold Project is located along the Eureka-Battle Mountain Trend (See Image 1) that is host to numerous multi-million ounce producing and past-producing mines.  The property is located in close proximity to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.

"The intercepts from early drilling in our current program demonstrate the potential to expand mineralization in the recently discovered 2201 Zone.  High grade gold and silver mineralization occurs in multiple horizons that could become future resources at Cove" stated Warren Thompson, U.S. Exploration Manager for Premier. "Ongoing drilling continues to intersect favourable alteration and mineralization as we focus on defining the 2201 Zone including new intercepts in the massive sulphide horizon."

The Cove Project is held under lease from Newmont Mining Corporation. Newmont has the option at any time to earn back 51% under a joint venture arrangement by paying venture expenditures in an amount equal to 250% of all exploration expenditures on the project since March of 2006.  If Premier submits a positive feasibility study containing 500,000 ounces gold or greater, Newmont has a window of 90 days in order to confirm its participation.

The Cove deposit was mined (primarily by open pit) between 1986 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of gold, and more than 100 million ounces of silver making Cove the 4th largest producer of silver in Nevada.

A presentation updating the new results at Cove can be found on the Company's website www.premiergoldmines.com.

OTHER PROJECTS

Premier holds several projects that are subject to major exploration and development programs in 2014.  Underground drilling, testing priority target areas, is underway from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%).  A new resource is expected in June, work has commenced for the completion of a Feasibility Study, and the permitting process has been initiated for the Company's 100%-owned Hardrock Project.

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  were sent to Inspectorate America Laboratories prep facility located in Elko, Nevada and analysis was performed at their Sparks, Nevada analytical facility utilizing 30 gram fire assay with an AA finish for RC samples and 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion for Core samples.

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'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

Image with caption: "Image 1 - Ariel View of Cove Project (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20140527_C7009_PHOTO_EN_40775.jpg

For further information:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-1381
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com