Premier Gold Provides Exploration and Development Update at South Arturo Mine

Drill results include 45.7 m of 21.7 g/t Au and 68.7 m of 15.92 g/t Au

THUNDER BAY, ON, May 1, 2018 /CNW/ - Premier Gold Mines Limited ("Premier" or "the Company") is pleased to provide an update of active exploration and development programs at the South Arturo Mine, located in the Carlin Trend of Nevada.  Highlights include the development of two new deposits planned in 2018, along with multiple high-grade in-fill drill results from these deposits as highlighted below.

El Nino Upper Zone

In-fill drilling in the upper zone demonstrates high grades that may have a positive effect on the resources and incentive to develop this project into the production schedule.  Results include:

• 140 feet grading 0.33 oz/ton Au (42.7 metres of 11.20 g/t Au) including 25 feet grading 0.95 oz/ton Au (7.6 m of 32.47 g/t Au) in hole ELN17-MX-06
• 200 feet grading 0.20 oz/ton Au (61.0 m of 6.96 g/t Au) including 50 feet grading 0.46 oz/ton Au (15.2 m of 15.94 g/t Au) in hole ELN17-MX-14

El Nino Near-Pit

Near surface in-fill and expansion drilling also resulted in better than expected grades that provide additional incentive and upside to develop these resources.  Results include:

• 225 feet grading 0.46 oz/ton Au (68.6 m of 15.92 g/t Au) including 35 feet grading 1.88 oz/ton Au (10.7 m of 64.57 g/t Au) in hole EL17-10
• 150 feet grading 0.63 oz/ton Au (45.7 m of 21.68 g/t Au) including 45 feet grading 1.28 oz/ton Au (13.7 m of 43.84 g/t Au) in hole EL17-12

Phase 3 Pit Zone

Results included exceptional widths and excellent grades that indicate additional upside and incentive to develop the next phase.  Results include:

• 118.8 feet grading 0.23 oz/ton Au (36.2 m of 7.95 g/t Au) in hole ART17-01C
• 261.6 feet grading 0.15 oz/ton Au (79.7 m of 5.21 g/t Au) in hole ART17-04C
• 117.0 feet grading 0.48 oz/ton Au (35.7 m of 16.54 g/t Au) including 50 feet grading 0.82 oz/ton Au (15.2 m of 28.26 g/t Au) and an additional intercept of 226.5 feet grading 0.09 oz/ton Au (69.0 m of 3.05 g/t Au) in hole ART17-10C

Near-Surface Mineralization at the South Hinge Target

• 27.7 feet grading 0.07 oz/ton Au (8.4 m of 2.23 g/t Au) in hole BD17-06C
• 77.5 feet grading 0.03 oz/ton Au (23.6 m of 1.17 g/t Au) in hole BD17-08C

The South Arturo Mine is a series of deposits that is operated under a joint venture between Premier (40% ownership) and Barrick Gold Exploration Inc. a wholly-owned subsidiary of Barrick Gold Corporation ("Barrick").  Barrick is the operator and processes ore from South Arturo at their Goldstrike facility located 5 kilometres to the south.

Processing of stockpiled ore from the Phase 2 pit has been accelerated in 2018 with gold production for the year having already exceeded annual guidance of 5,000 to 10,000 ounces.  In addition to processing of stockpiled ore, efforts have shifted towards further exploration on the greater property package and the development of two new mining operations on the property beginning in 2018; the Phase 1 open pit and the El Nino underground mine.

"This project continues to deliver positive results and these high grade intercepts are some of the best the company has ever achieved," stated Ewan Downie, President & CEO.  "Results-to-date support our belief that this joint venture, made up of several deposits in the heart of the Carlin Trend, will continue to provide a solid operational future. Premier has already realized a significant return on our investment with no dilution to our shareholders on upcoming phases of development. These deposits remain open for expansion and we expect South Arturo to remain a critical component of the Premier's production profile".

Phase 1 Open Pit Project

Development of the Phase 1 open-pit is scheduled to begin in mid-2018 and will be one of the first North American mines operated by Barrick that will test autonomous haul trucks that could lead to reduced mining and maintenance costs and improved safety. 

In addition to ore that will be processed at Goldstrike, work will continue to advance a potential run-of-mine (ROM) heap leach opportunity.  Column leach testing to verify ROM recoveries will be completed in 2018 to validate and strengthen recovery curves. Additional drilling may be considered to potentially add additional mineralization in the eastern portion of the pit.

El Nino Underground Project

The El Nino deposit is located down-plunge of the Phase 2 pit that was mined in 2016-17.  Development of the El Nino underground mine is expected to begin in H2-2018.  During 2017 core drilling from surface was completed in the Upper Zone and Cubex RC drilling was completed from within the pit to test mineralization near the pit, in-fill gaps in the Upper Zone, delineate potential voids, and condemn areas around planned underground development.  Drilling results in the Upper Zone confirmed the mineral inventory; see Table 1 highlights.  

Table 1: El Nino 2017 Core Drilling Highlights
Hole ID		Coordinates^(1)		Azimuth/Dip	Elevation (ft)	From  (ft)	To (ft)	Intercept^(2) (ft)	Au (oz/t)	Intercept^(2) (m)	Au  (g/t)
		Latitude	Longitude
ELN17-MX-01		41.03973487	-116.4130648	100/-85	5256	310.0	350.0	40.0	0.04	12.2	1.23
ELN17-MX-02		41.03963022	-116.4126627	350/-90	5269	370.0	425.0	55.0	0.06	16.8	2.19
	including					375.0	385.0	10.0	0.16	3.0	5.52
ELN17-MX-03		41.0398133	-116.4131754	090/-80	5254	330.0	340.0	10.0	0.16	3.0	5.52
ELN17-MX-04		41.04002602	-116.4138944	030/-85	5232	290.0	300.0	10.0	0.10	3.0	3.29
ELN17-MX-06		41.03956375	-116.4126504	240/-80	5269	295.0	435.0	140.0	0.33	42.7	11.21
	including					325.0	350.0	25.0	0.95	7.6	32.47
ELN17-MX-07		41.03963624	-116.4126789	340/-80	5268	355.0	365.0	10.0	0.15	3.0	5.18
						375.0	400.0	25.0	0.10	7.6	3.39
ELN17-MX-08		41.03959632	-116.4127098	300/-84	5263	325.0	390.0	65.0	0.07	19.8	2.43
ELN17-MX-09		41.03957963	-116.4126393	020/-84	5269	360.0	400.0	40.0	0.13	12.2	4.35
ELN17-MX-10		41.03964441	-116.4126635	350/-75	5268	415.0	425.0	10.0	0.11	3.0	3.74
ELN17-MX-11		41.03957343	-116.4124682	032/-71	5270	370.0	470.0	100.0	0.25	30.5	8.57
	including					395.0	405.0	10.0	0.44	3.0	14.98
	and					430.0	440.0	10.0	0.45	3.0	15.43
ELN17-MX-12		41.03957963	-116.4126393	025/-50	5269	360.0	595.0	235.0	0.18	71.6	6.21
	including					400.0	450.0	50.0	0.35	15.2	12.14
	and					485.0	505.0	20.0	0.39	6.1	13.41
ELN17-MX-13		41.03980236	-116.4131149	060/-60	5254	370.0	505.0	135.0	0.08	41.1	2.78
	including					395.0	425.0	30.0	0.18	9.1	6.03
ELN17-MX-14		41.03980236	-116.4131149	052/-55	5254	365.0	565.0	200.0	0.20	61.0	6.96
	including					405.0	455.0	50.0	0.47	15.2	15.94
ELN17-MX-15		41.04007911	-116.4139598	358/-70	5230	350.0	365.0	15.0	0.07	4.6	2.43
ELN17-MX-16		41.04002054	-116.41387	020/-65	5232	340.0	365.0	25.0	0.31	7.6	10.70
ELN17-MX-17		41.03989219	-116.4132786	357/-54	5251	400.0	415.0	15.0	0.12	4.6	4.25
ELN17-MX-22		41.03932027	-116.4120303	020/-70	5289	365.0	405.0	40.0	0.04	12.2	1.47
ELN17-MX-23		41.03986517	-116.4132174	015/-55	5252	410.0	455.0	45.0	0.08	13.7	2.81
ELN17-MX-24		41.0398791	-116.4132419	030/-55	5252	410.0	495.0	85.0	0.06	25.9	2.19
	including					440.0	455.0	15.0	0.12	4.6	4.11
ELN17-MX-25		41.03930384	-116.4120346	340/-77	5289	285.0	300.0	15.0	0.09	4.6	3.09
1) Coordinates are in WGS84, 2) True widths are estimated to be 80 to 90% of core length

The Cubex drill program has confirmed continuity of mineralization near the pit with higher than expected grades encountered near the planned portal.  The Cubex drilling could not reach target depths to fully test the Upper Zone and additional surface drilling or drilling from underground will be completed in the future.  Table 2 provides highlight results from the Cubex drill program.

Table 2:  El Nino 2017 Cubex Drilling Highlights
Hole ID	Coordinates^(1)		Azimuth/ Dip	Elevation (ft)	From  (ft)	To  (ft)	Intercept^(2) (ft)	Au (oz/t)	Intercept^(2) (m)	Au  (g/t)
	Latitude	Longitude
EL17-01	41.03900465	-116.4138531	019/0	5013	10.0	30.0	20.0	0.07	6.1	2.26
					60.0	95.0	35.0	0.07	10.7	2.50
EL17-02	41.03903222	-116.4138367	019/-7	5022	5.0	185.0	180.0	0.08	54.9	2.67
including					130.0	185.0	55.0	0.15	16.8	5.25
EL17-04	41.03888924	-116.4136098	025/0	5017	35.0	95.0	60.0	0.20	18.3	6.75
EL17-05	41.03891107	-116.4135986	025/-7	5015	0.0	90.0	90.0	0.14	27.4	4.80
					125.0	135.0	10.0	0.18	3.0	6.27
EL17-06	41.03888924	-116.4136098	025/-17	5017	15.0	200.0	185.0	0.12	56.4	4.22
including					50.0	90.0	40.0	0.26	12.2	8.95
and					245.0	255.0	10.0	0.21	3.0	7.03
EL17-07	41.03887254	-116.4134573	029/-5	5021	60.0	90.0	30.0	0.07	9.1	2.37
EL17-08	41.03881268	-116.4135045	029/-14	5012	60.0	275.0	215.0	0.07	65.5	2.30
including					180.0	200.0	20.0	0.14	6.1	4.87
and					245.0	270.0	25.0	0.17	7.6	5.79
EL17-09	41.03881496	-116.4135045	029/-26	5013	90.0	385.0	295.0	0.09	89.9	2.91
including					205.0	290.0	85.0	0.13	25.9	4.46
and					280.0	290.0	10.0	0.31	3.0	10.77
EL17-10	41.03904312	-116.4140177	000/-10	5017	50.0	275.0	225.0	0.46	68.6	15.91
including					105.0	260.0	155.0	0.64	47.2	22.05
and					220.0	255.0	35.0	1.88	10.7	64.56
EL17-12	41.03911454	-116.4141129	344/-10	5018	85.0	235.0	150.0	0.63	45.7	21.67
including					160.0	205.0	45.0	1.28	13.7	43.85
EL17-14	41.03905128	-116.4139246	008/-12	5018	65.0	240.0	175.0	0.09	53.3	3.05
including					220.0	235.0	15.0	0.43	4.6	14.74
1) Coordinates are in WGS84, 2) True widths are estimated to be 80 to 90% of core length

Phase 3 Open Pit Project

Phase 3 is an additional potential open pit at South Arturo and the 2017 drill program returned numerous positive results.  Continuity of the mineralization was confirmed, higher-than-expected grades were encountered in the southern extent of the current pit design, and new mineralization was also intersected below the current pit design.  Drilling in 2018 is planned to define the extents of the high-grade breccia zone and the potential for expansion.  Table 3 provides highlight results from the Phase 3 - 2017 drill program.

Table 3: Phase 3 - 2017 Drilling Highlights
Hole ID		Coordinates^(1)		Azimuth/ Dip	Elevation (ft)	From  (ft)	To  (ft)	Intercept^(2) (ft)	Au  (oz/t)	Intercept ^(2) (m)	Au (g/t)
		Longitude	Latitude
ART17-01C		41.03132989	-116.4208134	333/-84	5720	670.2	789.0	118.8	0.23	36.2	7.95
	including					696.2	716.0	19.8	0.33	6.0	11.31
	and					741.0	749.0	8.0	0.44	2.4	15.05
						1088.0	1113.0	25.0	0.06	7.6	1.95
						1198.0	1203.0	5.0	0.18	1.5	6.07
ART17-02C		41.03214607	-116.420721	238/-81	5790	982.4	1033.0	50.6	0.13	15.4	4.59
						1098.0	1128.0	30.0	0.10	9.1	3.36
ART17-04C		41.03217877	-116.4207067	305/-73	5791	734.4	996.0	261.6	0.15	79.7	5.21
	including					734.4	877.0	142.6	0.20	43.5	6.99
ART17-10C		41.03130071	-116.4207623	292/-81	5719	733.0	850.0	117.0	0.48	35.7	16.53
	including					738.0	788.0	50.0	0.82	15.2	28.25
	and					955.0	1030.0	75.0	0.06	22.9	2.02
	including					955.0	990.0	35.0	0.08	10.7	2.57
	and					1020.0	1030.0	10.0	0.09	3.0	3.12
						1061.0	1287.5	226.5	0.09	69.0	3.05
	including					1076.0	1121.0	45.0	0.16	13.7	5.59
1) Coordinates are in WGS84, 2) True widths are estimated to be 80 to 90% of core length

South Arturo - Exploration

In addition to continued development activities, exploration initiatives are aimed at adding additional resources and testing new target areas on the property.  In 2018, activities will continue to advance the South Hinge and East Dee targets.

South Hinge is one of the primary exploration targets owing to its proximity as a potential link between the Phase 2 and Phase 3 pit designs that could lead to potential expansion of the planned Phase 3 pit.  The deep high-grade target at South Hinge was not reached in the 2017 drill program, however mineralization was encountered above the target with the results highlighted in Table 4.

Table 4: South Hinge 2017 Drilling Highlights
Hole ID	Coordinates^(1)		Azimuth/ Dip	Elevation (ft)	From  (ft)	To  (ft)	Intercept^(2) (ft)	Au (oz/t)	Intercept ^(2) (m)	Au  (g/t)
	Latitude	Longitude
BD17-01C	41.03669806	-116.427577	282/-55	5291	92.0	97.0	5.0	0.11	1.5	3.91
BD17-03C	41.03686944	-116.427255	269/-89	5290	82.8	87.8	5.0	0.01	1.5	0.48
BD17-04C	41.03755721	-116.4268952	323/-48	5287	42.5	47.5	5.0	0.05	1.5	1.68
BD17-05C	41.03628961	-116.4281789	140/-90	5284	142.0	147.0	5.0	0.14	1.5	4.87
BD17-06C	41.03739662	-116.4268656	218/-90	5285	58.0	85.7	27.7	0.07	8.4	2.23
BD17-07C	41.03579864	-116.4266688	198/-48	5351	46.0	59.0	13.0	0.04	4.0	1.27
BD17-08C	41.03734703	-116.4269294	151/-90	5286	0.0	77.5	77.5	0.03	23.6	1.17
including					16.0	23.5	7.5	0.07	2.3	2.37
1) Coordinates are in WGS84, 2) True widths are estimated to be 80 to 90% of core length

East Dee is a target located to the east of the Phase 1 pit believed to be located on the east side of the Bootstrap Formation; a similar structural setting to El Nino. Drilling at East Dee is planned in 2018 and the Ardent target which is a generative exploration target on the property where drilling in 2017 intersected favourable structure and strong and continuous alteration with the potential to host Carlin-style mineralization.

All abbreviations used in this press release are available at this link. (click here)

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. The primary assay laboratories for the South Arturo Mine are ALS Chemex Labs (ALS Chemex) and American Assay Labs (American Assay) in Reno, Nevada. For a complete description of sample preparation, analytical methods and QA/QC procedures, refer to the technical report for the South Arturo dated March 26, 2018 (effective date December 31, 2017), entitled "Technical Report on the South Arturo Mine, Elko County, State of Nevada, USA" located on Premier's website and at www.sedar.com. 

Premier Gold Mines Limited is a gold producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico.

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

please contact: Ewan Downie, President & CEO, Phone: [phone], e-mail: [email protected], Web Site: www.premiergoldmines.com

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