THUNDER BAY, ON, April 9, 2019 /CNW/ - Premier Gold Mines
Limited ("Premier" or "The Company") (TSX:PG) is pleased to
announce that a 2019 core and reverse circulation drilling program
is underway at Greenstone Gold Mines (GGM), a 50:50 partnership
with Centerra Gold Inc. ("Centerra"). The program is the second
phase of a two-phase drilling strategy initiated in 2018 to
validate and de-risk the 2016 Feasibility Study block model.
Premier is encouraged by the positive results of the phase
one program that included reverse circulation drilling a portion of
the block model that would be mined during the initial year of
potential production. The Greenstone Property, that includes
the Hardrock deposit, is located 275 kilometres northeast of
Thunder Bay along the Trans-Canada
Highway.
2018 Reverse Circulation Grade Control Program (RCGC)
In 2018, based on a recommendation from an independent peer
review by Roscoe Postle Associates, GGM undertook a resource
definition program designed to de-risk the Hardrock deposit and
focus on increasing the confidence level in the mineral resources
in the initial years of production. The program, designed by
GMining Services Inc., the independent QP for the 2016 Hardrock
Feasibility Study, called for the completion of some 20,000 metres
of reverse circulation drilling in some 400 holes (-50 degrees,
50-metres each) on a 10-metre by 20-metre drilling grid (locally
10-metres by 10-metres) and covering five areas over the F-Zone,
SP-Zone, Porphyry Zone and Iron Formation Zone to a depth equal to
three mining benches or 30-metres. The program collected some 9,000
samples (See Figure 1) and was monitored by a comprehensive QAQC
program. Upon completion of the program, GMining undertook a series
of reconciliations, comparing the results of the RC drill program
against results predicted by the 2016 Feasibility Study resource
model. A summary of those results included the following:
- The RCGC program confirmed most of the gold in the 2016
resource block model and suggested the addition of ounces of gold
in most areas drilled in 2018
- Grade continuity was confirmed in all areas tested
- GMining has concluded that these results warrant an update to
the resource block model
Average gold grade in areas drilled by the RCGC was around 15%
higher than predicted by the 2016 resource block model based on
preliminary estimates done in 2018 by GMining. Premier cautions
that these results pertain to a localized area of the Hardrock
deposit block model and do not imply that a similar (or any)
improvement to the overall block model grade is
anticipated.
GMining's remodelling strategy includes remodelled
mineralization wireframes, re-investigate capping and EDA, the
reduction of the number of principal domains, the addition of new
domains not modelled in 2016 and the refinement of the 2016
interpretation by reducing the amount of dilution within previously
modelled domains. Gold will be re-estimated into a newly created
block model. In addition, a new sulphur and arsenic model will be
completed to support mine planning.
2019 Core and Reverse Circulation Drilling Program
Subsequent to completion of the RCGC and remodelling of the
domain wireframes, GGM has prepared a final drilling program to be
completed with the following goals:
- Core drill specific locations to test remodelled wireframe
continuity in areas where drilling density is locally less
in-filled
- Utilize reverse circulation drilling to push the grade control
drilling results to seven benches from three (70-metres depth) in
the SP Zone in order to further test conclusions made in the
initial RCGC program
The ongoing 2019 drilling program, which includes drilling 75
reverse circulation holes totalling 7,000 metres and 51 core holes
totalling 12,900 metres, will be complete by late-April.
Reconciliation of the program results and integration of the data
into a final resource model will be completed during Q2 2019.
Premier Gold anticipates reporting on the final results of the
updated resource block model during the third quarter of 2019.
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.
Sampling and QAQC Protocol for 2018 RCGC Program
Procedures implemented to ensure a high standard of data
acquisition during the RCGC program include the following
protocols:
- Two-metre samples collected downhole utilizing a "dry" RC-
drilling rig and an integral sample (cone) splitter to capture two
simultaneous samples, a 4kg met sample for analysis and a 10kg
representative sample
- A small amount of the representative sample is placed into a
"dry" chip tray. An equal amount is sieved and cleaned and placed
into a "wet" tray.
- Samples shipped to Actlabs in Geraldton for 50-gram fire assay
- QAQC samples inserted into the sample stream at the rate of one
for every ten samples
- QAQC samples include blanks, standards and field
duplicates
- Standards used include a low grade (0.42 g/t Au), mid-grade
(0.89 g/t Au) and high grade (5.95 g/t Au)
- Failure rates for blanks and standards were less than 2%, field
duplicate failure rate was about 4%
Premier Gold Mines Limited is a gold-producer with a
respected exploration and development pipeline of high-quality
precious metal projects in proven, accessible and safe mining
jurisdictions in Canada,
the United States, and
Mexico. Premier remains focused on
creating a low-cost, mid-tier gold producer through its two
producing gold mines - South Arturo and Mercedes - as well as mine
development opportunities at McCoy-Cove in Nevada and Hardrock in Ontario.
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 regarding the Company's achievement
of the full-year projections for ounce production (including
pre-commercial production ounces), production costs, ASIC costs per
ounce, cash cost per ounce and realized gold/silver price per
ounce, development capital cost estimate at the South Arturo Mine,
the Company's ability to meet annual operations estimates, 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