Multiple gold zones discovered in underground drill program
Shares Issued: 149,372,712
THUNDER BAY, ON, June 27, 2013 /CNW/ - Premier Gold Mines Limited (TSX-PG) is pleased to provide an update from ongoing work being performed at the
Company's Rahill-Bonanza Joint Venture Project (49% PG) and the East
Bay Joint Venture Project (35% PG) in the Red Lake mining district of
Northwestern Ontario. Both projects are being explored with partner
and operator Red Lake Gold Mines Limited ("RLGM"), an affiliate of
Goldcorp Inc. (TSX:G, NYSE: GG). New mineralized horizons have been intersected on both projects and two
drills are now mobilized in the tram to test the primary targets on the
Rahill-Bonanza joint venture, the Bonanza and Wilmar structures.
RAHILL-BONANZA JOINT VENTURE
The Rahill-Bonanza Project is located in the heart of the main Red Lake
"Mine Trend" and is being explored with diamond drilling from the
haulage drift (tram), a deep underground platform being constructed to
link the Red Lake Gold Mine complex with the Cochenour complex. Tram
development and underground drilling continues to intersect favourable
alteration, mineralization and structure as construction heads west,
suggesting multiple prospective targets for future drilling.
Significant developments at Rahill-Bonanza include:
The first holes drilled along strike to the west of the Red Lake Gold
Mines Complex have confirmed that favourable ultramafic horizons,
similar to those that host many of the ore bodies at the Red Lake Mine,
trend onto the joint venture project. Structures intersected show
veining and mineralization including visible gold with assays up to
13.99 grams per tonne gold (g/t Au) across 1.4 metres (m) or 0.41
ounces per ton (oz/t) across 4.6 feet in hole D36678 (see figure 1).
Diamond drilling designed to test a gold-bearing structure previously
intersected by the tram development has returned assays of up to 134.7
g/t Au across 0.3 m (3.93 oz/t across 1.0 foot) in hole D36719.
Recent drilling (hole D36726) has discovered multiple vein zones
proximal to an ultramafic rock unit with assays of up to 13.05 g/t Au
across 0.6 m (0.38 oz/t across 2.0 feet) and 10.01 g/t Au across 0.77 m
(0.29 oz/t across 2.5 feet). Additional drilling is planned in this
Hole D36770 has started and is expected to be the first hole drilled to
test the primary Wilmar target area.
"We have been waiting several years for the tram construction to be
completed such that we can begin testing this highly prospective area"
stated Ewan Downie, President and CEO of Premier. "Early indications
are favourable and further definition of recently identified vein
structures is now underway".
The Rahill-Bonanza Project covers approximately 4.5 kilometres of the
main Red Lake "Mine Trend" between the Red Lake Gold Mines complex to
the east, and the Cochenour Complex to the west (see figure 1). The
tram development has advanced through the JV project and by-pass
infrastructure, which could be used for the future development of
Wilmar, has been excavated.
The orebodies hosted within the main Red Lake "Mine Trend", including
the prolific High Grade Zone (HGZ), are often spatially associated with
a regional unconformity that trends through the southern portion of the
Project area for several kilometres. A significant milestone for
Premier has been the establishment of an underground exploration
platform from which systematic diamond drilling could be undertaken to
test this prospective horizon with flat holes up to 1,525 metres (5,000
feet) long. This drilling will allow for a complete geological model
of this prospective area that will provide a platform for further
Figure 1 - Tram development image - As at March 2013.
The tram drift, being excavated by RLGM to support mine development of
its Cochenour Project (Bruce Channel Deposit), is serving as an
invaluable exploration platform for the Property. It is located some
1,650 metres (5,400 feet) below surface, at an elevation where
exploration for HGZ-style mineralization has been most successful in
the past. The early part of the program has seen holes spaced at
approximately 360 metres (1200 feet), however because a HGZ footprint
can be very compact, fan holes are being completed in areas where
favourable veining an mineralization have been intersected.
It is interpreted that a potential cross fault occurs between holes
D36726 and D36730 due to an apparent offset of the rock units. Owing
to the elevated veining in these holes and that multiple gold-bearing
zones were intersected in D36726 east of the projected location of the
N-S fault (assays are pending for hole D36730), additional drilling is
being completed in this area. The majority of the major gold deposits
at the Red Lake Mine are closely associated with north-south fault
The primary target on the Property is the projected down-plunge
extension of the Wilmar Zone that was mined in the 1960's and where
high grade gold mineralization has been intersected in surface
drilling. Surface holes drilled to test this horizon to depths of up
to 1220 metres (4,000 feet) over the past several years have returned
numerous high grade intercepts including 14.2 g/t Au across 5.0 m (hole
PG07018W1), 68.9 g/t Au across 3.5 m (PG11082), 46.15 g/t Au across 4.5
m (PG11090), and 4.0 g/t Au across 20.5 m including 11.5 g/t Au across
3.0 m. Tram infrastructure including a bypass and elevated ramp with
tram loading pocket have recently been constructed immediately north of
East Bay Joint Venture
The East Bay Project represents the second active joint venture between
Premier and RLGM in the heart of the prolific Red Lake gold mining
district (Premier holds a 35% interest). The East Bay JV is located to
the north of Rubicon Minerals' Phoenix Gold Project and covers
approximately 8 km of the East Bay ultramafic horizon.
In 2010, Premier and Goldcorp discovered the Footwall Zone while testing
favourable geophysical structures along the East Bay Ultramafic Trend.
The mineralized zones in the Footwall discovery area consist of
narrow-vein high-grade structures with numerous intercepts grading in
excess of one ounce per ton (oz/ton) gold (34.29 grams per tonne
(g/t)). The partnership completed additional exploration in 2011 and
2012 with significant success and has recently completed its 2013 drill
program from the ice of Red Lake.
Assays from this program confirm appreciable gold mineralization on the
joint venture property along the East bay deformation zone in multiple
areas. Highlights from initial assays received from the first two
holes of the seven hole program include:
115.46 g/t Au across 0.6 m (3.37 oz/ton across 2.0 ft) in FW2 Zone in
hole EBJV13202. This hole is drilled down-dip of previously drilled
holes EBJV12196 that intersected 58.36 g/t Au across 1.0 m (1.70 oz/ton
across 3.3 ft) and EBJV12198 that intersected 69.23 g/t Au across 0.9 m
(2.02 oz/ton across 3.0 ft).
10.26 g/t Au across 3.0 m (0.30 oz/ton across 9.8 ft) in a new area
approximately 1 km north of the main Footwall Zone.
To date, gold mineralization has been intersected in the footwall of the
East Bay ultramafic horizon over a strike length of approximately 1,500
metres and to depths of up to 800 metres.
Figure 2 - Longitudinal Section of drilling in the Footwall Zone
ANNUAL GENERAL MEETING
Premier Gold Mines Limited cordially invites all shareholders to its
Annual General Meeting of Shareholders, at 4:00pm today, Thursday June
27, 2013, at the Toronto Board of Trade. Following the formal meeting a
presentation will be given at 4:30pm by several members of the of the
Company's management team and will include a complete update on the
progress of all three of its core projects and highlight your Company's
substantial recent successes, and provide guidance on Premier's future
plans and initiatives.
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 Thunder Bay, Ontario, or to Accurassay Laboratories, an
accredited mineral analysis laboratory in Thunder Bay, Ontario, for
preparation and analysis utilizing both fire assay and screen metallic
Premier Gold Mines Limited is one of North America's leading exploration companies with a
high-quality pipeline of projects focused in proven, safe and
accessible mining jurisdictions in Canada and the United States. The
Company is fully financed and its property portfolio includes
significant assets in world class gold mining districts such as Red
Lake and Geraldton in Ontario and the Battle Mountain Trend 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.
Image with caption: "Figure 1 - Tram development image - As at March 2013. (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20130627_C4079_PHOTO_EN_28621.jpg
Image with caption: "Figure 2 - Longitudinal Section of drilling in the Footwall Zone (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20130627_C4079_PHOTO_EN_28622.jpg
SOURCE: Premier Gold Mines Limited
For further information:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com