Delineation program intersects 31.0 m of
4.96 g/t Au & 71.06 g/t Ag
THUNDER BAY, ON, May 7, 2019 /CNW/ - Premier Gold Mines Limited
(TSX: PG) ("Premier", "the Company") is pleased to announce
high-grade intercepts from initial underground drilling at the east
margin of the Marianas Zone, one of the primary exploration targets
at the Company's 100%-owned Mercedes Mine, located in the
State of Sonora, Mexico.
Highlights of this delineation drill program include:
- 31.0 m of 4.96 g/t Au &
71.06 g/t Ag including 3.1 m of 25.65
g/t Au & 171.30 g/t Ag (UG-MR19-011)
- 20.5 m of 4.51 g/t Au &
64.09 g/t Ag including 3.8 m of 11.04
g/t Au & 94.09 g/t Ag (UG-MR19-007)
- 3.5 m of 7.29 g/t Au &
8.25 g/t Ag (UG-MR19-010)
"Initial drilling confirms our belief that Marianas will be
important to the future of Mercedes", commented
Stephen McGibbon, Executive Vice-President. "The drill program
is in its very early stages, testing the margins of Marianas from
new ramp development. We expect stronger and more consistent
results as the drilling progresses toward the core of the Marianas
resource later in 2019".
Marianas
The Marianas Zone comprises the down-plunge extension of the
main Mercedes mine trend (Figure 1). Previous surface drilling
suggests Marianas has the potential to host economic mineralization
of higher than the current reserve grade. It is the Company's goal
to convert a portion of Marianas mineral resources to mineral
reserves with a delineation drill program during the balance of
2019. Ore development could commence in 2020.
Mercedes is an underground gold and silver mine that exploits
quartz veins and quartz-carbonate stockworks in a low sulphidation
epithermal system at an extraction rate approaching 2,000 tonnes
per day. The main Mercedes mine trend is host to a series of high
grade sub-vertical quartz veins that strike in a northwesterly
direction. It represents the property's most substantial producing
area with total past-production of some 687,000 recovered ounces
from 2011 through 2018. Premier has been extending the mine's
production ramp to support the delineation and possible expansion
of mineral resources into the "Indicated" category with more than
13,000 m of surface and underground drilling planned in 2019.
Table 1 provides highlights of significant intercepts from 11
holes completed at the margin of the Marianas East area, away from
the core of the mineral resource. Locally, the grade and width of
mineralization is exceeding expectations with intercepts of up to
31.0 m of true width grading 4.96 g/t Au and
71.06 g/t Ag in hole MR-UG-011 from drill bay #1 (Figure
2). Importantly, this mineralization is located within 100 m
of the main ramp.
Table 1 – Highlight composites summary from underground
drilling at Marianas East (DB: Drill Bay)
Hole
ID
|
|
From m
|
To m
|
Length m
|
True
Width m
|
Au
g/t
|
Ag g/t
|
UG-MR19-003
|
DB 1
|
95.7
|
98.0
|
2.4
|
2.3
|
2.91
|
114.26
|
UG-MR19-006
|
DB 1
|
132.6
|
135.7
|
3.1
|
2.5
|
7.87
|
54.07
|
UG-MR19-007
|
DB 1
|
91.5
|
112.9
|
21.4
|
20.5
|
4.51
|
64.09
|
Including
|
|
91.5
|
96.1
|
4.6
|
3.8
|
11.04
|
94.09
|
Including
|
|
103.7
|
106.8
|
3.1
|
2.7
|
7.96
|
46.50
|
Including
|
|
111.3
|
112.9
|
1.5
|
1.4
|
9.89
|
33.00
|
UG-MR19-008
|
|
98.6
|
99.6
|
1.1
|
1.0
|
6.58
|
17.00
|
UG-MR19-010
|
DB 2
|
118.4
|
121.9
|
3.6
|
3.5
|
7.29
|
8.25
|
Including
|
|
119.4
|
120.4
|
1.1
|
1.0
|
14.55
|
6.00
|
UG-MR19-011
|
DB 1
|
87.3
|
118.9
|
31.6
|
31.0
|
4.96
|
71.06
|
Including
|
|
95.9
|
99.0
|
3.2
|
3.1
|
25.65
|
171.30
|
Including
|
|
103.3
|
104.8
|
1.5
|
1.5
|
6.51
|
95.00
|
Including
|
|
110.9
|
112.4
|
1.5
|
1.4
|
15.05
|
51.00
|
Including
|
|
117.1
|
118.9
|
1.8
|
1.8
|
7.24
|
66.72
|
Note that addition
errors in tables are due to rounding.
|
Delineation Program
At the end of 2018, mineral resources in the Marianas area stood
at 21 kt at 18.39 g/t Au for 13,000 ounces of gold
(Indicated) and 645 kt at 4.46 g/t Au for 92,000 ounces
of gold (Inferred). The grade x thickness image profiles the
current distribution of drilling planned in 2019 and beyond
(Figure 2). The delineation program started at the beginning
of the year with the development of the ramp west to the Lagunas
deposit. The current results are from drill bays 1 & 2,
intersecting the Marianas East vein which will be the focus of the
2019 underground program. Delineation from surface is planned on
the north side of the deposit, mainly within the Marianas West
vein. The objective from the 2019 campaign is to convert half of
the inferred mineral resources in this area. In addition to
Marianas, the Mercedes team is targeting the Lupita, Diluvio and
Rey de Oro areas in 2019 to offset
mining depletion and focus on mineral resource growth.
Julie-Anaïs Debreil, Ph.D., 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.
Mercedes assay results are from core samples sent to ALS Chemex, an
accredited mineral analysis laboratory in Lima, Peru or Vancouver, British Columbia, for preparation
and analysis utilizing both fire assay and ICP methods. For a
complete description of Mercedes's sample preparation, analytical
methods and QA/QC procedures refer to the technical report for the
Mercedes Mine dated April 18, 2018
(effective date December 31, 2017),
entitled "Technical Report on the Mercedes Gold-Silver Mine, Sonora
State, Mexico."
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.
Table 2 - Collar coordinates
UTM
|
Project
|
Hole
ID
|
North
m
|
East
m
|
Elevation
m
|
Azimuth
|
Dip
|
NAD27
Zone 12
|
Mercedes
|
UG-MR19-003
|
3357542
|
547584
|
890
|
004
|
6
|
Mercedes
|
UG-MR19-006
|
3357544
|
547585
|
891
|
038
|
26
|
Mercedes
|
UG-MR19-007
|
3357544
|
547585
|
890
|
035
|
7
|
Mercedes
|
UG-MR19-008
|
3357544
|
547585
|
890
|
003
|
18
|
Mercedes
|
UG-MR19-010
|
3357604
|
547500
|
875
|
015
|
-14
|
Mercedes
|
UG-MR19-011
|
3357544
|
547584
|
891
|
018
|
10
|
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