Shares Issued: 159,137,353
THUNDER BAY, ON, Feb. 11, 2015 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier", "the Company") is pleased to announce that it has entered into an agreement to increase to 100% its interest in the past-producing Hasaga Property, located in Red Lake, Ontario, from Goldcorp Inc. (TSX:G, NYSE:GG) ("Goldcorp") . In exchange, Premier will assign to Goldcorp its 35% participating interest in the East Bay Property (Red Lake) and its 100% interest in the PQ-North Property located near Goldcorp's Musselwhite Mine in Ontario. The Rahill-Bonanza Joint Venture will remain in good standing with Premier continuing to hold a 49% interest.
The arrangement positions Premier to secure 100%-ownership in an underexplored, target-rich property. Key highlights of the opportunity include:
- Strategically-located proximal to the Balmer–Confederation unconformity, recognized as an important geologic feature in multi-million ounce past and currently-producing Red Lake area mines.
- The Hasaga and Gold Shore Mines, which produced some 240,000 ounces of gold from 1936 to 1952, remain open at depth.
- Limited shallow drilling suggests the potential to target mineralization amenable to open pit mining methods with broad intercepts in excess of 1.0 g/t Au.
- The Hasaga Property is proximal to significant infrastructure, including nearby roads, power lines and gold mills.
The Hasaga Property is located (see Image 1) in the heart of the Red Lake Mining camp that is host to numerous multi-million ounce producing and past-producing mines.
"The Hasaga property acquisition is consistent with our strategy to acquire assets in mine-friendly jurisdictions with proximity to infrastructure," stated Ewan Downie, President and CEO of Premier. "This transaction streamlines our asset portfolio while increasing our flexibility to explore and develop core regional interests. The Hasaga Property has seen only limited exploration since the mine was closed in the early 1950's and reminds me of the opportunity we saw when acquiring the Company's Hardrock Property in 2008."
Premier expects to begin a drill program at Hasaga in 2015 and will direct its initial exploration on advancing the open pit target areas. A presentation for the Hasaga Property can be found on the Company's website www.premiergoldmines.com.
The East Bay Property is host to the prospective GAZ and Footwall gold zones that have been the subject of multiple drill programs since 2000. The PQ-North Property is strategically located along the northern extension of the main Musselwhite iron formation where Premier had previously identified several gold zones that are open for expansion. Premier will retain a 2% Net Smelter Royalty (NSR) in the PQ North Property.
Premier holds several projects that are subject to ongoing exploration and development programs in 2015. Definition drilling on the Company's 50%-owned Trans-Canada Property (recently announced Joint Venture with Centerra Gold Inc.) will provide the basis of the preparation of a Feasibility Study, expected in mid-2015. Surface drilling at the Company's 100%-owned McCoy-Cove Property in Nevada is targeting potential open pit resources. Underground drilling from the haulage drift in Red Lake continues to test a prospective area on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%).
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.
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 fully 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 - Hasaga Property location map (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20150211_C8867_PHOTO_EN_11998.jpg
For further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-1381, e-mail: [email protected], Web Site: www.premiergoldmines.com