Providence Gold Mines Inc. (TSXV: PHD) ("Providence" or the
"Company") is pleased to announce ongoing success on its Phase I
exploration program at the company’s Providence Gold Mine property.
“We are very pleased with the initial results
from this first phase of exploration at the Providence Gold
Properties,” said Ron Coombes, President & CEO of the Company.
“It is amazing that this historical past producing high grade gold
property has been idle for 100 years. With modern day exploration
methods we believe the Providence Gold Properties are a significant
untapped opportunity. The gold targets are now identified and we
look forward to the commencement of drilling.”
Stage 1 Exploration Program
In August, 2017 the Company initiated a Stage 1
program designed to investigate the structural controls to the gold
mineralization. To facilitate the Company's objectives, a program
of geological/structural mapping and underground channel sampling
together with detailed soil geochemistry and an underground 3D
laser survey was undertaken.
A limited number of continuous saw-cut and rock
chip samples were taken in the accessible underground workings at
the Providence Mine and Consuelo workings. Due to limited access
the work was completed mostly within the 1.6 km (one mile) drift on
the 600 foot Level. Rock chip sampling, completed along the
access drift and the stopes reinforced the historical reports of
high grade shoots occurring within the mine. Sampling of the
North Ore Shoot outlined an approximately 80 metre long section in
which highly variable gold values occur. The section corresponds to
an area of historic stoping completed on the level in an area
referred to as the “North Ore Shoot”. Within the stope,
samples were collected of the quartz veining along a pillar and
from both the foot and hanging walls. The results show high
grade, greater than 5.0 gpt (grams per ton) Au to occur
within narrow up to 2.20 metre wide quartz veined zones, with the
wall rock values generally being less. Within the
historically mined stope area, 46 rock chip samples were
collected. Values range from less than 0.020 gpt Au
over 1.50 metres to 1.3 metres assaying 45.64 gpt Au.
Of the 46 samples collected 18 samples assayed greater than 1 gpt
Au with eight of the samples assaying >3 gpt Au of which three
assayed >10 gpt Au. Limited rock sampling outside of the
historically stoped area returned weakly anomalous gold values
ranging from 0.010 gpt over 0.80 m to 1.26 gpt over 0.60 m.
These results validate the historical mining of previous operators
and show that even within stoped areas potential gold
mineralization remains.
PRELIMINARY ROCK CHIP SAMPLE
RESULTS (>3GPT Au) SUMMARY: 600
LEVEL-NORTH SHOOT |
|
|
|
Sample # |
Location |
Width (Metres) |
Au (GPT) |
|
2980069 |
Stope back |
1.0 |
8.60 |
|
2980074 |
398 |
0.9 |
4.15 |
|
2980076 |
398, West Rib |
1.0 |
3.31 |
|
Or |
|
2.2 |
3.28 |
|
2980077 |
372 Back, W Rib |
1.0 |
19.58 |
|
2980103 |
426 Slab From Small Stope |
0.3 |
14.55 |
|
2980108 |
435, W Rib |
1.3 |
45.64 |
|
2980116 |
447, East Rib and Back |
1.1 |
4.82 |
|
|
|
Sampling of the Consuelo drift returned
anomalous gold values with the best result being a 1.2 metre sample
of quartz veining assaying 2.89 gpt Au.
Results from sampling of the various workings in
the South Ore Shoot on the 600 foot level are pending.
Eight surface lines were soil sampled over a 300
metre wide transect straddling the Providence Mine. The
sampling was completed on lines located 50 metres apart with
stations established every 25 metres along the lines. Soil
samples were collected from the “B” horizon. Using the 25 ppb
(0.025 grams) gold in soil contour, an up to 50 metre wide 400
metre long linear anomaly, corresponding with the gold bearing
system was outlined. This anomaly is open at both ends.
Within the anomaly, gold values range from 25 to 1852 ppb (1.85
grams) gold. Due to the success of the survey in outlining
the gold mineralized zones the soil survey is being expanded to
cover the projected trend of gold mineralization.
Project Background
The Providence Property hosts a 850 metre long
north trending zone of moderately east dipping, gold bearing,
quartz veining. The vein system is open both to the north and
south. The veins are hosted within deformed and metamorphosed
layered rocks (calc-silicate gneisses, mica schists, slates and
limestones) of the Paleozoic Calaveras Complex and conformable
sill-like bodies of diorite. Individual veins range in width
from less than a centimeter to in excess of 3.0 metres.
According to Thompson’s report titled “Notes on the
Providence Mine” dated April 1933 “…the vein system consists of two
parallel veins occurring in a host black slate near the surface,
but at depth intrusions occur forming one of the walls. The
vein has an average width of 5 feet...”.Sulphide content is
generally low, <2%, consisting primarily of pyrite. Within the
veins several steeply-plunging chutes of higher grade gold
mineralization occur that were mined in the past.
Providence Gold Mines, through an option
purchase agreement, has the right to purchase a 100% interest in
the Providence Group of claims located in the Eastern Belt of the
Motherlode Gold District near the town of Tuolumne, California. The
property, consisting of 6 patented and 22 located claims totaling
197.3 hectares (490 acres), hosts several workings including those
at the formerly producing Providence Gold Mine. Access to the
property is by a combination of paved and gravel
roads.
History
Gold production on the property was primarily
from the Providence, Consuelo and Bonita Mines. The Bonita
Mine, located at the north end of the property is approximately 120
metres north of the Consuelo Mine which in turn is approximately
600 metres north of the Providence Shaft. In the 1894
Report of the State Mineralogist it states the Bonita Mine
“…consists of the Bonita and Garfield Veins. The latter lies
to the east and approaches the Bonita vein going southward.
They unite in the Consuelo Mine 750’ south of the Bonita.
Both veins are in black slate and each is accompanied by a light
grey dike. On the Bonita vein a 440’ adit has been run and in
it about 300’ from the mouth a 50’ winze sunk. On the
Garfield vein a 400’ adit has been driven; about 200’ beyond the
present face of the adit a 70’ shaft has been sunk from surface and
has no machinery…” In his report dated April 1932, Thompson
states “…at the north end of the Bonita claim another mineralized
shoot has been developed. A small mill was used to reduce the
mineralization from this shoot…The mineralization was very good and
this shoot as far as worked paid handsomely…”
With regards to the Consuelo Mine, John Chapman,
Superintendent for New Providence Gold Mines in a memo dated June,
1933 states “…the Consuelo mineralized shoot lies about 1800 feet
north of the Providence shaft…This mineralized body has been
attacked at two points, 300 feet apart by the McCarthy shaft on the
south and the Mexican shaft on the north to a depth of 100 feet to
the present tunnel level. Eighty feet south of the Mexican
shaft a winze was sunk to a depth of 90 feet in the vein
fissure. The vein filling at this point indicates that
mineralization is in the making and should be encountered at any
time. The vein material is about 6 feet wide and carries
$1.50 in values. Work is now being prosecuted in this winze,
at a depth of 100 feet a drift will be driven north under the
Mexican Shaft. The mineralization produced from this shaft
ran $80/ton. The McCarthy shaft is sunk 75 feet below the
tunnel level, exposing $9 mineralization. Some mineralization
was milled from this ground but there are no records as to values.
US Mint and Wells Fargo records indicate that not less than $50,000
in gold was taken from the Consuelo ground…”
The Providence Mine operated until 1916.
Development at the mine consisted of a double compartment shaft
sunk to a depth of 1470 feet on the dip of the vein system.
Drifting was completed on twelve levels. Production was from stopes
located throughout the workings. According to a report
written by Bluett (1916) “ some of these shoots and
veins have been stoped out. In others the mineralization is
still in place…” Research completed on the Company’s behalf by an
archivist associated with the Tuolumne County Museum located some
articles detailing work at the Providence Property.
According to a newspaper clipping dated April 7, 1931 the
Providence Mine ”…from 1902 to 1912, when the mine was owned and
operated by E.A. Wiltsee of San Francisco, yielded mineralization
averaging $18 a ton(gold at $20/ounce) to a total of
$3,000,000…” According to a September 14, 1921 report by
James Kendall “…the mine was not closed down for lack of good
mineralization, but because of a disagreement between the owners
and the parties to whom the mine had been leased, at the expiration
of which the owners refused to grant an extension and suspended
operations in the midst of active mining and milling of high grade
mineralization from the 10th and 11th levels and while good
mineralized bodies were being developed on the 12th levels after
which the lower levels filled with water and have never since been
unwatered. Thus the mineralized bodies in the lower six
levels are in identically the same condition as they were when the
mine ceased operations…”
The surface workings and mills of the
Providence, Consuelo and Bonita Mines along with the operation
records were destroyed in a large brush fire in 1918.
As most of the technical information was
destroyed in a fire in 1918, there is no way to document the
accuracy of the above statements. The above historical
account was taken from several miners and engineers who worked in
the mine or either visited it while in operation. Although
this information is believed to be factual the Company cannot state
unequivocally that it is accurate.
QA&QC Procedures
The Company followed industry standards in its
QA&QC procedures. A certified standard sample, or a blank
or a field duplicate sample is inserted every 10 samples before the
set of samples is sent to the Laboratory. This procedure is
applied to all rock chip and channel samples. The Company
sent all of the samples to Bureau Veritas Laboratory in Reno, a
laboratory that meets International Standards ISO 9001 and ISO
14001 Certification.
Qualified Person
John M. Kowalchuk, P.Geo, a geologist and
qualified person (as defined under NI 43-101) has read and approved
the technical information contained in this news release. Mr.
Kowalchuk is a senior geologist consulting to the Company.
ON BEHALF OF THE BOARD
“Ronald
Coombes”
Ronald Coombes, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936Contact: Ronald CoombesMobile: 1- 604-
724-2369rcoombes@providencegold.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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