Premier expands high-grade mineralization at the Cove Gold Project, Nevada
27 Jun, 2013, 06:00 ET
Highlights include 6.52 g/t Au across 84.4 m and 40.47 g/t Au across 10.5 m
Shares Issued: 149,372,712
THUNDER BAY, ON, June 27, 2013 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier") is pleased to announce additional assay results from the Helen Zone on the Company's Cove Gold Project, located along the Eureka-Battle Mountain Trend in Nevada. These results continue to expand mineralization with strong grades and widths within the Upper and Lower Helen Zones.
The Helen Zone deposit represents a prospective, high-grade, Carlin-style, gold deposit and is the focus of an ongoing drill program to extend mineralization within both the Upper and Lower Helen Zone horizons. Drilling has now expanded well beyond the 2011 resource envelope and indicates that the favourable horizons remain wide open for expansion. Highlights of the most recent 20 drill holes (one was abandoned) include:
Upper Helen Zone
- 19.60 grams per tonne gold (g/t Au) across 10.80 metres (m) (or 0.57 ounces per ton gold (oz/t Au) across 35.4 feet) in hole AX-35
- 37.01 g/t Au across 2.7 m (1.08 oz/t Au across 8.8 feet) in the Upper Helen Zone from hole AX-40.
- 9.98 g/t Au across 9.6 m (0.29 oz/t Au across 31.5 feet) in hole AX-41
Lower Helen Zone
- 6.52 g/t Au across 84.4 m ((0.19 oz/t Au across 276.8 feet) including 14.59 g/t Au across 14.0 m (0.43 oz/t Au across 46.0 feet) from hole AX-27
- 21.49 g/t Au across 4.5 m (0.63 oz/t Au across 14.7 feet) in the Lower Helen Zone from hole AX-30
- 40.47 g/t Au across 10.5 m (1.18 oz/t Au across 34.4 feet) including 76.58 g/t Au across 5.0 m (2.24 oz/t Au across 16.3 feet) from hole AX-36
Drilling has extended high-grade mineralization in the Helen target horizon by approximately 365 m (1200 feet) southeast and 245 m (800 feet) northwest of the previously tested Helen deposit and mineralization remains open in multiple directions. The balance of the 2013 program will see additional expansion drilling completed in the Helen Zone, testing of highly prospective targets beneath the historic Cove pit, and culminating in a resource estimate in Q4-2013.
Nevada is one of the world's most favourable jurisdictions for mine development and the Cove Gold Project offers substantial upside in the existing resource areas in addition to opportunities for the discovery of new high-grade gold deposits within the district. The Cove deposit was mined (primarily by open pit) between 1986 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of gold, and more than 100 million ounces of silver. The Cove Gold Project is held under lease from Newmont Mining Corporation. Newmont has the option at any time to earn back 51% by funding expenditures equal to 250% of all exploration expenditures on the project since March of 2006. If Premier submits a positive feasibility study containing 500,000 ounces gold or greater, Newmont has a window of 90 days in order to confirm its participation.
Table 1.0 provides a summary of recent results at Cove and Image 1.0 provides a surface plan view of drilling into the Lower Helen Zone. These results include both infill drilling and step-out holes designed to expand mineralization within the Helen Zone.
Table 1.0 - Select assay results for Helen Zone drilling
|Dip/Azimuth (degrees)|| From
|From (ft)||To (ft)|| Interval
|AX-34 (RC)|| 4466043N/481574
|AX-38 (RC)|| 4466041N/481572
|- Gravimetric assays used when available - true widths estimated at approximately 80% - 95% of core intercept - * denotes table values calculated from original data|
"Our drill results comprise some of the best results seen coming out of Nevada over the past several years" stated Warren Thompson, US Exploration Manager for Premier. "These results confirm the robust nature of the Helen Zone deposit and we look forward to expanding mineralization and testing additional prospective targets in the current program".
In May, the Bureau of Land Management (BLM) approved the Company's Plan of Operation (POO) for the Cove-Helen Underground Mine Project. The approval allows Premier the flexibility to consider, at its discretion, up to 100 acres of disturbance for exploration and development purposes and to construct a portal and ramp to further explore the Helen Zone from underground. These key approvals position the Company to aggressively pursue expansion of its mineral resources from new surface platforms during the remainder of 2013 and potentially complete an underground bulk sampling program in the future.
Premier's management team believes that the Cove Gold Project represents one of the most under-explored projects in Nevada. It is located along the Eureka-Battle Mountain Trend that is host to numerous multi-million ounce producing and past-producing mines. The property is located in close proximity to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.
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.
Premier holds several projects that are subject to major exploration programs in 2013. Recently, underground drilling has commenced from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%). Several drills are active on the Company's 100%-owned Trans-Canada Property. Activity is focussed in preparation for a revised mineral resource estimate at Hardrock and work on Preliminary Economic Assessments for the Hardrock and Brookbank deposits.
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 for RC drill samples were sent to American Assay Laboratories located in Elko, Nevada prep facility and analysis was performed at their Sparks, Nevada analytical facility utilizing 30 gram fire assay with an AA finish. Core samples were analyzed by Inspectorate laboratory facility located in Sparks, Nevada and analysis was done using 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion.
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, Musselwhite and Geraldton in Ontario and the Battle Mountain and Carlin 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.
Image with caption: "Image 1.0 - Current Lower Helen Zone mineralized footprint (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20130627_C3769_PHOTO_EN_28585.jpg
SOURCE: Premier Gold Mines Limited
For further information:
Ewan Downie, President & CEO
e-mail: [email protected]
Web Site: www.premiergoldmines.com
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