Premier provides South Arturo project update - Drilling confirms high-grade underground target

Shares Issued: 170,692,322

THUNDER BAY, ON, Oct. 19, 2015 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to provide an update of ongoing exploration and development activities at the Company's 40%-owned South Arturo Mine in Nevada. The South Arturo Mine is a joint venture between Premier and Barrick Gold Corporation's wholly-owned subsidiary Barrick Gold Exploration Inc. ("Barrick").

As updated guidance and exploration results, following a recent joint venture meeting, for the Phase 2 mining project at South Arturo, Premier provides the following (100% basis):

  • Development work continues to advance open pit operations with first gold production expected in 2016 - Premier has funded the projected spend to the end of November.
  • Drilling to test the continuity and expansion of the NE Button Hill underground target confirms high-grade gold mineralization with intercepts as high as 0.75 ounces per ton gold (oz/t Au) across 90 feet (25.7 grams per tonne (g/t) Au across 27.4 metres (m)).
  • 2016 gold production projected to be approximately 200,000 ounces of gold (80,000 to Premier).

 

Ongoing work includes a capitalized pre-stripping program (currently progressing at 200,000 tons per day) and associated site preparation for mining the Phase 2 open pit.  Initial gold production is expected in early 2016; however, primary production is expected to begin at mid-year next year.

In addition to mine development, Barrick is conducting drilling on behalf of the JV of the NE Button Hill horizon for high-grade gold mineralization situated down-dip of the Phase 2 pit.  This program is designed to infill drill spacing to demonstrate continuity and continue to step out down-dip and along strike.  Both targets have been successful with assays being received from 7 holes – Table 1 provides a summary of results.  Drilling at NE Button Hill is ongoing.

Table 1 – Assay results from drilling at NE Button Hill

Hole ID

From
(ft)

To
(ft)

Thickness
(ft)

Grade
(opt Au)

Thickness
(m)

Grade
(g/t)

BD15-024

   Including

1165

1215

50

0.22

15.3

7.54

1165

1190

25

0.30

7.6

10.40

BD15-031

   Including

840

900

60

0.27

18.3

9.19

865

890

25

0.41

7.6

14.09

BD15-050A

752

762

10

0.21

3.0

7.20

BD15-051

   Including

725

815

90

0.75

27.4

25.71

755

795

40

1.26

12.2

43.03

BD15-052

Assays Pending

BD15-053

   Including

662

810

148

0.22

45.1

7.54

722

737

15

0.52

4.6

17.66

BD15-054

   Including

810

865

55

0.23

16.8

7.99

845

860

15

0.32

4.6

10.90

BD15-055

NSV (confirms gap)


* True widths are estimated to be 95-98% of hole intervals. (Note both Core and RC values are reported here, Holes 024 and 031 are RC)

 

"Exploration drilling at South Arturo is providing exceptional results in the underground target area immediately below the Phase 2 pit" stated Ewan Downie, President & CEO of Premier on the company's latest C-Suite Blog (See http://www.premiergoldmines.com/news/c-suite-blog.)  "This horizon is not part of current mineral resources, but is being evaluated as a potential multi-year underground extension following mining in the initial pit.  The Carlin Trend is world-renowned for high-grade gold, and this drilling supports this potential on the JV property".

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 Reverse Circulation samples sent to ALS-Chemex, an accredited mineral analysis laboratory in Vancouver, BC, Canada, for preparation and analysis utilizing both fire and AA methods. 

Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States that includes world class gold mining districts such as Red Lake and Geraldton in Ontario and the Carlin and Eureka-Battle Mountain Trends in Nevada. 

Forward Looking Information

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 the estimation of mineral resources and mineral reserves, 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

For further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-0100, e-mail: Info@premiergoldmines.com, Web Site: www.premiergoldmines.com

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