Including 64.14 g/t Au Across 4.5 metres
Shares Issued: 137,431,855
THUNDER BAY, ON, April 30, 2012 /CNW/ - Premier Gold Mines Limited (TSX-PG) is pleased to provide an exploration update from ongoing drilling at the Company's 100% owned Trans-Canada Project in Northwestern Ontario. Drilling continues to delineate and expand mineralization in several high-grade horizons including numerous high-grade intercepts within the primary target, the Fortune Zone. Due to the continued success in this highly prospective horizon, the completion of an updated (NI) 43-101 compliant mineral resource estimate has been delayed such that the majority of intercepts contained in this release will be included. The resource update is expected to be completed during the current quarter.
The updated resource will include the multiple deposits that comprise Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits. All deposits are being assessed for both underground and open pit potential.
The Fortune Zone horizon is comprised of multiple, en-echelon, narrow vein zones located in close proximity to the historic Hardrock mine workings. The horizon has now been delineated over a substantial plunge length and remains open down-plunge. The Fortune Zone has characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces produced at a grade of 31.5 g/t) Gold Mines that are located on the Trans-Canada Project.
Recent highlights from ongoing drilling include:
- 14.30 grams per tonne gold (g/t Au) across 4.0 metres (m) or 0.42 ounces per ton (oz/t) across 13.1 feet (ft) in the Fortune Zone horizon in wedge hole MM172A
- 21.26 g/t Au across 5.1 m (0.62 oz/t across 16.7 ft) in the Fortune Zone horizon, and 18.20 g/t Au across 9.7 m (0.53 oz/t across 31.8 ft) and 10.77 g/t Au across 8.3 m (0.31 oz/t across 27.2) within the North Zone horizon in wedge hole MM191B
- 62.80 g/t Au across 3.0m (1.83 oz/t across 9.8 ft) in the Fortune Zone horizon in hole MM254
- 13.66 g/t across 7.0 m (0.40 oz/t across 23 ft) and 64.14 g/t Au across 4.5 m (1.87 oz/t across 14.8 ft) in the Fortune Zone horizon in hole MM268
- 116.00 g/t Au across 1.0 m (3.39 oz/t across 3.3 ft) in the Fortune Zone horizon in hole MM270
- 16.31 g/t Au across 2.2 m (0.48 oz/t across 7.2 ft) in the Fortune Zone horizon in hole MM274
- 12.95 g/t Au across 2.7 m (0.38 oz/t across 8.9 ft) in the K-Zone and 12.84 g/t Au across 3.6 m (0.38 oz/t across 11.8 ft) in the Fortune Zone in hole MM276
"Drilling continues to demonstrate the high-grade nature of recent vein zones being targeted at Hardrock" stated Brian Morris, Vice-President Exploration of Premier. "Owing to the ongoing success in delineating the recently identified Fortune Zone, the revised resource estimate is delayed to maximize resources in this horizon as well as to potentially optimize the economics in a PEA. Going forward, we will continue to define the Fortune Zone but also begin exploration on several other prospective high-grade targets"
Table 1 provides a summary of new assay results from step-out and infill drilling within several targeted high-grade horizons.
Table 1: New Assay Results from the Fortune Zone
|To (m)|| Interval
|-59/360||Hole abandoned due to deviation|
|-63/360||Hole abandoned due to workings|
|-59/360||Hole abandoned due to deviation|
|-63/360||Hole abandoned due to deviation|
|-60/360||883.0||884.0||1.5||2.75||4.9||0.08||F2 (VG to rerun)|
The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968. The Hardrock Deposit is host to a (NI) 43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011. An updated mineral resource estimate will be completed in the near future and a Preliminary Economic Assessment will be released following a second mineral resource estimate that will be completed later in 2012 following additional drilling in the Fortune Zone horizon and any further drilling to be completed on other zones. The Trans-Canada Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites. Significant services and a skilled labour pool exist with several communities located in close proximity.
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, or to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, 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 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's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
Image with caption: "Figure 1 Fortune Zone (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20120430_C2302_PHOTO_EN_12866.jpg
For further information:
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-346-0100