THUNDER BAY, ON, June 25, 2015 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier", "the Company") is pleased to provide an update of ongoing exploration activities at the Company's five project sites.
In the Company's Investor Day presentation, to be held at 4:30pm EST today, Management will highlight progress from development and ongoing drill programs at Premier's South Arturo and McCoy-Cove Projects in Nevada, as well as Red Lake and Trans-Canada in Ontario. Results continue to demonstrate the potential for future resource growth and discovery of high-grade poly-metallic mineralization has been made at McCoy.
Also, as the Company continues to transition from explorer to developer, changes in the management team are being made to support future growth and participation in mining operations.
Selected highlights to be presented include:
- South Arturo Gold Project, Nevada (PG-40%):
- Ongoing construction of the Phase 2 open pit at South Arturo by partner and operator Barrick Gold is expected to see initial production in late 2015 or early 2016.
- A surface drill program (21 holes) has been completed on the Phase 3 pit area (assays pending).
- A surface drill program (15 holes) is underway at the Button Hill target, a prospective underground target that will be evaluated for development from the bottom of the Phase 2 open pit.
- McCoy-Cove Gold Project, Nevada (PG-100%):
- Drilling in the vicinity of the historic McCoy pit confirms the existence of mineralization adjacent to the pit wall.
- Initial drilling in the UPC Zone confirms the potential to expand mineralization and has resulted in the discovery of high-grade sulphide-bearing interval below the limits of previous drilling. The first hole drilled intersected 12.81 g/t Au, 25.56 g/t Ag & 0.68% Cu over 4.3 metres in the deeper discovery horizon.
- Ongoing work is being completed in advance of additional drilling to assess the potential of the Windy Point open pit target, the Cove pit concept, and several prospective exploration targets.
- Rahill-Bonanza (Red Lake) JV Project, Ontario (PG-44%):
- Underground drilling is targeting mineralization in the recently identified Fold Target structure, located 200 metres south of the tram. Fan-style drilling is correlating strong veining and arsenopyrite mineralization near the contact of an ultramafic rock unit with new assays that include intercepts of up to 18.20 g/t Au over 3.35 metres.
- Surface drilling is planned to test the down-plunge extension of the Bonanza deposit this summer.
- Hasaga Red Lake Property, Ontario (PG-100%):
- A drill program is underway to assess both the open pit and underground potential of this highly prospective property.
- Initial results include intercepts of up to 3.61 g/t Au over 12.0 metres.
- Drilling has commenced at the "Central Target" where a historic drill hole intersected widespread gold mineralization. Initial holes have intersected broad intervals of silicification, veining and mineralization – assays are pending.
- Trans-Canada Property, Ontario (PG-50%):
- Ongoing permitting and feasibility work is being completed to allow for future mine development.
- A definition drill program has been completed in advance of final resource work. Highlight assays include 7.71 g/t Au over 25.3 metres and 3.30 g/t Au over 40.4 metres.
"We have been able to ensure that solid progress will be made on all project sites by maintaining a strong balance sheet and continuing to work with partners. These successes demonstrate that 2015 need not be a year overshadowed by the challenging market, and can be viewed as a year of opportunity", stated Ewan Downie, President and CEO of Premier. "In fact, we have been able to leverage this position to consider, and make, new acquisitions – acquisitions that bring Premier closer to its near-term goal; achieving producer status".
In 2015, Premier has secured a partner (Centerra) to participate in the advancement and financing of the Trans-Canada Property, acquired a 100% interest in the Hasaga Red Lake Property, and recently acquired Goldcorp's 40% interest in the South Arturo Mine Project located along the Carlin Trend in Nevada. Following the South Arturo transaction, Premier closed a financing in the amount of more than Cdn$27 Million.
The closing of the South Arturo Project acquisition will realize Premier's stated goal of building a North American focused gold producer with a pipeline of development projects in several of the nation's major mining districts.
"Premier has been very successful in building opportunities through the development of strong relationships with major mining companies" stated Stephen McGibbon, Executive Vice-President of Premier. "We hope that a relationship with Barrick will result in opportunities for both companies and could provide benefits to Premier beyond just South Arturo".
The Company's Investor Day will be held at 4:30pm EST on Thursday June 25, 2015 at the Toronto Board of Trade, 1 First Canadian Place, Toronto, Ontario and will be webcast on the Company's website www.premiergoldmines.com.
The Company also announces that Ebe Scherkus will be stepping down as Chairman and Director. Ebe has played an instrumental part in securing Premier's substantial development team, and implementation of a growth strategy that includes the evolution to becoming a mining company. Premier is pleased to announce that long-standing director, John Begeman, will be assuming the role of Chairman of the Board. John has been with Premier since its inception and was part of the Management Team at the Company's predecessor, Wolfden Resources Inc.
John is a Professional Mining Engineer, completed an MBA from the University of South Dakota and brings over 35 years of broad mining experience in both operations and the management of mining companies. Previously, John held the position of VP of Western Operations at Goldcorp Inc, was Chief Operating Officer at Wolfden Resources, and served as President and CEO of Avion Gold Corp. John is currently also a Director of Yamana Gold Inc. and Aberdeen International Inc.
Premier holds several projects that are subject to ongoing exploration and development programs in 2015. A contingency drilling program at the Hardrock Project which lies within the Company's 50%-owned Trans-Canada Property will provide the basis of the preparation of a Feasibility Study, expected late 2015. Underground drilling, testing several target areas is underway from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 44% and Red Lake Gold Mines 56%). In Nevada, development is underway at the Company's South Arturo Project expected to be in production late 2015/early 2016 and an extensive drill campaign is in progress at the 100% owned McCoy-Cove Property.
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 were sent to Inspectorate America Laboratories prep facility located in Elko, Nevada and analysis was performed at their Sparks, Nevada analytical facility utilizing 30 gram fire assay with an AA finish for RC samples and 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion for Core samples.
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
For further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-1381, e-mail: [email protected], Web Site: www.premiergoldmines.com