Shares Issued: 170,692,322
THUNDER BAY, ON, Dec. 2, 2015 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) ("Premier", "the Company") is pleased to announce that it has entered into an agreement to acquire a 100% interest in a 513-hectare land package located immediately west of, and contiguous with, the Company's Hasaga Property, located in Red Lake, Ontario, from Pure Gold Mining Inc. (TSX.V:PGM) ("Pure Gold") for $5 million in cash and shares of Premier.
The property purchase, which will be integrated into the Hasaga Project, expands Premier's presence in a strategic location where widespread, near surface mineralization has been discovered during its 2015 exploration program (See Figure 1). Key highlights of the expanded Hasaga Property include:
- The expanded 1200-hectare Hasaga Property is 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 640,000 ounces of gold from 1936 to 1952, remain open at depth. The Buffalo Mine remains a valid near surface exploration target.
- Shallow (within 400 metres of surface) drilling conducted during 2015 suggests the potential for mineralization amenable to open pit mining methods.
- The Hasaga Property is proximal to significant infrastructure, including nearby roads, power lines and gold mills.
The Hasaga Property is located in the heart of the Red Lake Mining camp that is host to numerous multi-million ounce producing and past-producing mines.
"This latest property acquisition is consistent with our strategy to acquire prospective assets in mine-friendly jurisdictions with proximity to infrastructure," stated Ewan Downie, President and CEO of Premier on the Company's C-Suite Blog ( http://www.premiergoldmines.com/news/c-suite-blog ). "This transaction strengthens our project portfolio by increasing our land exposure in an existing project area, and signals our satisfaction with results coming from the 2015 exploration program at Hasaga."
Ongoing drilling at Hasaga will see some 60,000 metres drilled on the main Hasaga Porphyry trend and the Central Zone. Drilling on the newly acquired lands in early 2016 will test the on-strike potential of the Hasaga Porphyry.
Premier has agreed to pay Haywood Securities Inc. ("Haywood") a finder's fee for its efforts in facilitating the land purchase.
Premier holds several projects that are subject to ongoing exploration and development programs in 2015. Premier anticipates significant gold production from its 40% interest in the South Arturo Property located in Nevada beginning in 2016. Definition drilling on the Company's 50%-owned Trans-Canada Property will provide the basis of the preparation of a Feasibility Study, expected in H1-2016. Surface drilling at the Company's 100%-owned McCoy-Cove Property in Nevada is targeting several attractive areas of known and potential mineralization. Underground drilling from the haulage drift in Red Lake continues to test a prospective area on the Rahill-Bonanza Project (PG 44% and Red Lake Gold Mines 56%).
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 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: "Figure 1 - Expanded Hasaga Property (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20151202_C7299_PHOTO_EN_556622.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