Premier - Trans-canada Drilling Expands High Grade Fortune Zone Horizon Including 10.68g/t Au Across 16.0 metres Shares Issued: 137,431,855 THUNDER BAY, ON, Feb. 29, 2012 /CNW/ -
Premier Gold Mines Limited - (TSX-PG) is pleased to announce that ongoing drilling at the Company's 100% owned Trans-Canada Project in Northwestern Ontario continues to expand high-grade gold mineralization within targeted high-grade horizons including the Fortune and High Grade North (HGN) Zones. The current drill program is focused in three broad areas (eastern, middle and western) delineating and expanding several high grade horizons in advance of completing an updated (NI) 43-101 compliant resource calculation (expected to be completed in Q1/Q2 2012) and a Preliminary Economic Assessment ('PEA' - expected to be completed in mid-2012) that will consider a range of possible development options to optimize the multiple deposits that comprise Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits.
The Fortune and HGN Zones are comprised of multiple, en-echelon, narrow-vein vein zones located in close proximity to the historic Hardrock mine workings. The primary vein zones have now been identified over a plunge length of some 2.0 kilometres, appear to coalesce at depth, and remain open still further to the west. The Fortune and HGN Zones have characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces produced at a grade of 31.5 g/t) Gold Mines that are located on the Trans-Canada Project.
Drilling is following up previous intersections that include 121.0 grams per tonne gold (g/t Au) across 1.5 metres (m) - or 3.53 ounces per ton (oz/t) across 4.9 feet (ft), 147.01 g/t Au across 2.0 m (4.29 oz/t across 6.6 ft), 251.00 g/t Au across 1.0 m (7.32 oz/t across 3.3 ft), and 54.26 g/t Au across 3.0 m (1.58 oz/t across 9.8 ft), focused on maximizing high-grade resource ounces in advance of completing the PEA. Recent highlights from ongoing drilling include:
15.77 g/t Au across 9.0 m (0.46 oz/t across 29.5 ft) in hole MM252 including 109.00 g/t Au across 1.0m (3.18 oz/t across 3.3 feet) as well as 10.68 g/t across 16.0 m (0.31 oz/t across 52.5 ft) including 102.00 g/t Au across 1.5 m (2.98 oz/t across 4.9 feet) 255.00 g/t Au across 1.0 m (7.45 oz/t across 3.3 ft) in hole MM236 74.20 g/t Au across 1.5 m (2.17 oz/t across 4.9 ft) in hole EP161 94.50 g/t Au across 1.3 m (2.76 oz/t across 4.3 ft) in hole MM244 Tables 1, 2 and 3 provide a summary of new assay results from step-out and infill drilling as the program delineates mineralization within several targeted high-grade horizons. Recent interpretation suggests that previous drilling down-plunge of the Fortune Zone intersected the horizon more than 300 metres further down-plunge of the current program. These previous results include 41.49 g/t Au across 3.0 m (1.21 oz/t across 9.8 ft) in MM182D, 11.34 g/t Au across 19.5 m (0.33 oz/t across 64.0 ft) in MM172, and 10.60 g/t Au across 7.7 m (0.31 oz/t across 25.3 ft) in MM191A. Highlighted holes are profiled in Figure 1 below.
"Drilling has now extended multiple high-grade horizons over plunge lengths that measure in kilometres" stated Brian Morris, Vice-President Exploration of Premier. "The ongoing program continues to see frequent sightings of visible gold demonstrating the robust nature and consistent down plunge continuity of mineralization which should allow for us to improve the economics of the project."
Fortune Zone - Eastern Area
As illustrated in Figure 1, drilling testing the interpreted up-plunge, near-surface, expression of the Fortune Zone target has intersected multiple high-grade vein zones with highlight assays of 15.77 g/t Au across 9.0 m (0.46 oz/t across 29.5 ft), and 74.20 g/t Au across 1.5 m (2.17 oz/t across 4.9 ft). This target area is the subject of ongoing drilling. Table 1 provides highlight intercepts from the Eastern (near surface) drilling.
Table 1 - Selected Assay Results from Eastern Area
The Fortune Zone was initially drill tested by Premier between the 400-600 metre levels of the historic Hardrock Mine, to assess the down-dip potential of a high-grade stringer zone that was evaluated, but not mined, on the 7th Level of the mine (at some 325 metres depth). This deeper Middle Area drilling continues to intersect multi-ounce gold intercepts and several drills are now focused on delineating this horizon.
Multiple high-grade vein zones continue to suggest excellent potential for significant gold mineralization. Recent assay results include 255.00 g/t Au across 1.0 m (7.45 oz/t across 3.3 ft), 30.50 g/t Au across 1.0m (0.89 oz/t across 3.3 ft, and 5.26 g/t Au across 8.1m (0.15 oz/t across 26.6 feet). This zone remains wide open for expansion and is the subject of ongoing drilling. Table 2 provides highlight intercepts from Middle Area drilling.
Table 2 - Selected Assay Results from Middle Area
Hole-ID UTM Coordinates (m) Dip/Az (degrees) From (m) To (m) Interval (m)* Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone MM236 5502626N 504251E 268.8 272.0 3.2 3.08 10.5 0.09 SP 309.0 310.5 1.5 5.20 4.9 0.15 P 410.5 422.5 12.0 2.12 39.4 0.06 F -58/360 498.0 499.0 1.0 255.00 3.3 7.45 F2 579.5 581.0 1.5 6.81 4.9 0.20 F1 623.0 624.0 1.0 9.67 3.3 0.28 HGN2 752.4 753.4 1.0 12.70 3.3 0.37 HGN1 MM237A 5502551N 504050E 460.8 461.8 1.0 9.37 3.3 0.27 P -65/360 743.3 744.3 1.0 11.70 3.3 0.34 F2 781.5 783.5 2.0 6.87 6.6 0.20 F1 MM239A 5502599N 504149E -68/360 415.7 416.7 1.0 64.50 3.3 1.88 P MM241 5502648N 504050E 422.0 425.0 3.0 5.27 9.8 0.15 F 448.0 449.8 1.8 8.19 5.9 0.24 F 535.0 543.1 8.1 5.26 26.6 0.15 F2 -64/360 548.0 550.0 2.0 6.84 6.6 0.20 F2 655.5 657.0 1.5 8.51 4.9 0.25 F1 771.7 776.9 5.2 9.89 19.4 0.29 HGN1 MM242 5502599N 504200E -57/360 486.5 487.5 1.0 11.00 3.3 0.32 F 497.5 498.5 1.0 79.40 3.3 2.32 F MM243 5502600N 503900E 573.0 574.0 1.0 16.70 3.3 0.49 F 613.0 622.0 9.0 7.09 29.5 0.21 F2 -64/360 640.0 643.0 3.0 8.66 9.8 0.25 SLC 658.0 662.0 4.0 10.91 13.1 0.32 SLB 677.5 679.0 1.5 7.50 4.9 0.22 F1 MM250 5502633N 503950E 625.5 626.5 1.0 14.70 3.3 0.43 SLC -65/360 652.0 653.0 1.0 30.50 3.3 0.89 F2 737.5 738.7 1.2 10.50 3.9 0.31 F1 * Horizontal widths of zone are 60-80% of drilled intervals The High Grade North Zone (HGN) was discovered by Premier in 2009 immediately north of the historic mine workings and below the proposed EP-Zone open pit. The discovery hole contained appreciable visible gold and returned one of the most impressive holes ever drilled at Hardrock - 1,141.50 g/t Au across 2.0 m (33.29 oz/t across 6.6 ft). Several holes in the current drill program are being extended beyond the Fortune Zone to test the HGN Zone. Selected results from recent drilling are provided in table 2 above with assays as high as 77.20 g/t Au across 1.0 m (2.25 oz/t across 3.3 ft).
Western Area
Table 3 shown below profiles holes drill in the western end of the Hardrock deposit, at depth, where drilling within the F, SP and K Zones continues to demonstrate the robust nature of the Hardrock Deposit.
Table 3 - Selected Assay Results from Western Area
Hole-ID UTM Coordinates (m) Dip/Azi (degrees) From (m) To (m) Interval (m)* Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone 668.5 670.0 1.5 46.60 4.9 1.36 SP MM232 5502790 N -70/360 747.6 769.0 21.6 5.04 70.8 0.15 F 502400 E 819.0 820.0 1.0 16.00 3.3 0.47 F2 673.0 674.0 1.0 13.40 3.3 0.39 SP MM233B 5502775N -70/360 696.0 697.0 1.0 93.30 3.3 2.72 P 502550E 944.0 945.5 1.5 22.40 4.9 0.65 K MM233C 5502775N -70/360 658.0 659.0 1.0 12.60 3.3 0.37 SP 502550E 919.2 921.4 2.2 4.38 7.2 0.13 K MM240 5502775N 502500E -68/360 633.4 634.4 1.0 6.24 3.3 0.18 SP MM240A 5502775N 502500E -68/360 681.0 692.5 11.5 5.47 37.7 0.16 SP * Horizontal widths of zone are 60-80% of drilled intervals These results support management's belief that the grade of the Hardrock Deposit has upside potential that may be more fully delineated and understood with in-fill drilling eventually completed from underground platforms.
Trans-Canada Project
The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968. The Hardrock Deposit is host to a (NI) 43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011. An updated resource estimate is being completed utilizing final results of the 2011 drill program, and is expected to be released late in Q1 or early Q2 2012. The Trans-Canada Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites. Significant services and a skilled labour pool exist with several communities located in close proximity.
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 are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, or to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.
Premier Gold Mines Limited is one of North America's leading exploration 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's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
Red Lake Haulage Drift crosses onto Rahill-Bonanza JV property - Drilling expands high grade gold including 60.01g/t Au across 2.6m -
THUNDER BAY, ON, March 26, 2012 /CNW/ -
PREMIER GOLD MINES LIMITED - (TSX:PG) is pleased to announce that the Cochenour-Red Lake Haulage Drift (Haulage Drift) that is being constructed to link the Red Lake Gold Mines complex to the Cochenour (Bruce Channel) complex has now crossed onto the Rahill-Bonanza Joint Venture Project.
Additionally, surface drilling at the JV Project continues to expand high-grade gold mineralization in the Wilmar Mine target area.
The Rahill-Bonanza Project is located in the heart of the main Red Lake "Mine Trend" and is being explored with joint venture partner Red Lake Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc. (TSX:G, NYSE:GG).
The Rahill-Bonanza Project (PG:49% & G:51%) is strategically located between the Red Lake Gold Mines complex to the east, and the Cochenour (Bruce Channel) complex to the west. Highlights include:
The Haulage Drift construction has crossed on the Rahill-Bonanza JV. The Haulage Drift will intersect several kilometres of some of the highest potential and untested geology along the main Red Lake "Mine Trend". Exploration drilling is slated to commence in the second half of 2012.
Recent and previous drilling has successfully extended high-grade gold mineralization within the '2E Zone' structure, suggesting a distance of approximately 500 metres down-plunge of the past-producing 2E Zone mined at Wilmar. Highlight results within the 2E target to-date include: 68.87 grams per tonne gold (g/t Au) across 3.5 metres (m) or 2.01 oz/t across 11.5 feet, including 207.43 g/t across 1.15 m (6.06 oz/t across 3.8 feet) in hole PG10082.
46.15 g/t Au across 4.5 m (1.35 oz/t across 14.8 feet) in hole PG10090.
15.12 g/t Au across 2.0 m (0.44 oz/t across 6.6 feet), and 19.8 g/t Au across 1.15 m (0.58 oz/t across 3.8 feet) in hole PG11102. Drilling has intersected high-grade gold within the 'Footwall Diorite Zone' several hundred metres below Wilmar with a new intercept assaying 60.01 g/t Au across 2.6 m (1.75 oz/ton across 8.5 feet).
Drilling down-plunge of the historic '6E Zone' has returned multiple gold intercepts including 89.95 g/t Au across 1.0 m (2.63 oz/ton across 3.3 feet).
Recent step-out drilling to the east of Wilmar workings has intersected favourable geology and sulphide mineralization. Assays are pending and wedge drilling is being completed. The Rahill-Bonanza JV is one of Premier's core projects, representing the only portion of the main Red Lake "Mine Trend" not 100% owned by Goldcorp. The project is immediately west of the RLGM that is considered to be one of the world's richest gold mines with production of more than 18 million ounces of gold and nearly 10 million ounces of gold resources.
The Property covers approximately 4.5 kilometres of the main Red Lake "Mine Trend" between the world class RLGM complex to the east, and the Cochenour (Bruce Channel) complex to the west. The haulage drift is being constructed to connect the two operations and will provide a prime underground exploration platform to conduct a long-term exploration program to test this largely unexplored part of the camp.
"This represents a historic event for Premier Gold Mines" stated Ewan Downie, President of Premier. "For the balance of 2012, all underground Haulage Drift construction will be on the JV Property and will provide an excellent platform to conduct exploration drilling in this highly prospective part of the Red Lake camp for years to come. We believe that the potential for discovery is high and the Haulage Drift will unlock the true value of the property."
In addition to the underground development, an ongoing surface drill program continues to intersect high-grade gold mineralization in multiple horizons proximal to, and below, the historic Wilmar Gold Mine. Table 1 provides a summary of new results that complement previous drilling that is aimed at identifying potential resource areas that will be more fully explored from the Wilmar Mine workings and from drill bays being constructed at approximately 400 foot intervals in the Haulage Drift. Wilmar is linked by an underground drift with the Cochenour Mine which is currently being rehabilitated by RLGM. Past-production at Wilmar, over a period of four years, resulted in 203,256 tons of ore being mined at an average grade of 0.30 oz/ton Au (10.3g/t Au). The deposit remained open at depth when the mine shut down.
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