Premier Provides South Arturo Mine Update - Declares Commercial Production

Drilling Intersects 112.8 m of 7.29 g/t Au at Phase 3 and 24.4 m of 20.60 g/t Au at El Niño  

THUNDER BAY, ON, Oct. 28, 2019 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) (OTCPK: PIRGF) ("Premier", "the Company") is pleased to announce commercial production has been achieved, ahead of schedule, at the El Niño underground mine, the Company's 40%-owned South Arturo Property located in the Carlin Trend of Nevada. Also, new definition and step-out drilling results from the ongoing 2019 campaign are showing better outcomes than projected. Initial production supports this and emphasizes the continued opportunity to expand high-grade mineralization on the property. The South Arturo Mine is a joint venture between Premier and Nevada Gold Mines LLC, a joint venture between Newmont-Goldcorp and Barrick Gold Exploration Inc. ("Barrick") operated by Barrick. Highlight intercepts include:

Figure 1 – Plan view of El Niño deposit (CNW Group/Premier Gold Mines Limited)

Figure 2 – Longitudinal view of the Phase 3 Pit (CNW Group/Premier Gold Mines Limited)

El Niño

• 24.4 m of 20.60 g/t Au (SEC19010)
• 50.3 m of 6.36 g/t Au (SEC19009)
• 39.6 m of 8.75 g/t Au (SEC19001)
• 32.0 m of 10.09 g/t Au (IER19021)

Phase 3

• 112.8 m of 7.29 g/t Au (MAD19004)
• 62.5 m of 7.93 g/t Au (MAD19002)
• 118.9 m of 1.78 g/t Au (MAD19005)

Production at El Niño has commenced ahead of schedule and on budget, with high-grade ore now being processed at the Goldstrike facility located 8 km to the south. Based on current projections, overall gold production from South Arturo is anticipated to surpass expectations, which called solely for pre-production ore, for the year. Development of the Phase 1 pit is ongoing.

In 2019, multiple drill programs are being completed including in-fill and step-out drilling from the underground drill stations at the El Niño mine, geotechnical drilling at the proposed Phase 3 pit project, and drilling at the East Dee target.

El Niño Drill Program

During 2019, definition and step-out drill holes are being completed from underground drill stations at the newly constructed El Niño mine. Although some assay remains pending, results received to date have exceeded expectations (Table 1, Figure 1).

Table 1 – 2019 El Niño RC In-fill and Step-out Drill Results. True widths are estimated at 70 to 100%
Hole ID	From m	To m	Length m	Au g/t
SEC19001 (Core)	4.6	44.2	39.6	8.75
SEC19001A	6.1	38.1	32.0	9.93
SEC19003	111.3	118.9	7.6	3.98
SEC19004A	93.0	102.1	9.1	11.01
SEC19009	67.1	117.3	50.3	6.36
SEC19010	76.2	100.6	24.4	20.60
SER19001	44.2	67.1	22.9	23.22
IER19001	13.7	47.2	33.5	9.47
IER19002	1.5	42.7	41.1	11.41
IER19003	4.6	47.2	42.7	7.20
Including	12.2	21.3	9.1	14.67
IER19006	29.0	73.2	44.2	6.30
IER19007	16.8	25.9	9.1	14.00
	33.5	47.2	13.7	8.31
IER19009	47.2	71.6	24.4	12.75
IER19010	25.9	54.9	29.0	3.69
IER19013	42.7	64.0	21.3	15.58
IER19016	41.1	61.0	19.8	16.46
IER19017	45.7	57.9	12.2	10.75
IER19020	1.5	24.4	22.9	5.24
IER19021	1.5	33.5	32.0	10.09
IER19022	0.0	53.3	53.3	8.30
IER19024	36.6	79.2	42.7	5.98
IER19025	51.8	67.1	15.2	8.41
IER19026	53.3	70.1	16.8	13.60
IER19027	38.1	67.1	29.0	3.96
IER19028	50.3	68.6	18.3	13.13
IER19031	33.5	85.3	51.8	11.13
IER19032	35.1	57.9	22.9	5.89
	67.1	94.5	27.4	6.58
IER19033	38.1	96.0	57.9	5.08
IER19035	41.1	65.5	24.4	5.59
	89.9	106.7	16.8	11.06
IER19036	44.2	57.9	13.7	5.60
GER19001	16.8	47.2	30.5	5.72
GER19002	18.3	27.4	9.1	25.89

At the contact of the Rodeo Creek and Bootstrap formations, the host silica-sulphide breccia unit is presenting thicker intercepts than previously thought. Finally, work continues to advance the potential for processing run-of-mine (heap leach) material from Phase 1, currently being stockpiled, and Phase 3.

Phase 3 Pit Project

In an ongoing effort to advance the Phase 3 pit project into future mine planning, geo-technical and geo-metallurgical drilling is being performed. The program continues to expand mineralization within the deeper high-grade breccia target in addition to potential heap leach ore in the upper parts of the deposit (Table 2, Figure 2). Highlight results received to date from the 2019 drill program are presented in Table 2 with some assays still pending.

Table 2 – 2019 Phase 3 Core Drill Results. True widths are estimated at 70 to 100%
Hole ID	From m	To m	Length m	Au g/t
MAD19001	221.0	257.6	36.6	4.67
Including	231.6	240.8	9.1	11.99
MAD19002	205.7	268.2	62.5	7.93
MAD19004	242.3	355.1	112.8	7.29
MAD19005	262.1	329.8	67.7	1.90
MAD19007	32.0	150.9	118.9	1.78
MAD19021	198.1	204.2	6.1	2.63

East Dee Target

Drilling to further assess the opportunity of the East Dee Target is nearing completion. East Dee is located immediately east of the current Phase 1 open pit. Drilling in 2018 returned numerous significant intercepts including 25.9 m of 5.8 g/t Au in hole BD18-05C and 21.3 m of 6.5 g/t Au in hole BD18-08C. 2019 drilling has multiple intercepts of silica-sulphide-breccia, confirming the potential of this target. Assay results will be released in the future.

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. Premier remains focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; South Arturo and Mercedes, and through future mine development opportunities at Hardrock in Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing and McCoy-Cove in Nevada.

Stephen McGibbon, P. Geo., Executive Vice President, Corporate and Project Development, 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 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. 

Table 3 - Collar coordinates
UTM	Project	Hole ID	North m	East m	Elevation m	Azimuth	Dip
NAD83 – Zone 11	South Arturo	SEC19001	549216	4543321	1532	096	-12
	South Arturo	SEC19001A	549216	4543322	1532	099	-11
	South Arturo	SEC19003	549360	4543260	1527	182	-54
	South Arturo	SEC19004A	549479	4543398	1504	060	-61
	South Arturo	SEC19009	549272	4543419	1496	072	-7
	South Arturo	SEC19010	549272	4543419	1496	068	-12
	South Arturo	SER19001	549272	4543418	1496	127	2
	South Arturo	SER19002	549272	4543418	1496	038	2
	South Arturo	IER19001	549216	4543322	1532	069	-12
	South Arturo	IER19002	549216	4543321	1532	084	-9
	South Arturo	IER19003	549216	4543320	1532	105	-9
	South Arturo	IER19006	549269	4543400	1516	153	-2
	South Arturo	IER19007	549269	4543400	1516	136	-13
	South Arturo	IER19009	549271	4543403	1515	102	-10
	South Arturo	IER19010	549271	4543403	1515	085	-13
	South Arturo	IER19013	549408	4543320	1519	257	2
	South Arturo	IER19016	549408	4543320	1519	260	-9
	South Arturo	IER19017	549408	4543320	1519	275	-7
	South Arturo	IER19020	549443	4543363	1508	233	5
	South Arturo	IER19021	549443	4543363	1508	258	4
	South Arturo	IER19022	549273	4543506	1482	273	2
	South Arturo	IER19024	549273	4543506	1482	106	-1
	South Arturo	IER19025	549272	4543418	1496	098	1
	South Arturo	IER19026	549272	4543418	1496	107	1
	South Arturo	IER19027	549272	4543418	1496	098	1
	South Arturo	IER19028	549273	4543506	1482	082	2
	South Arturo	IER19031	549273	4543506	1482	119	7
	South Arturo	IER19032	549273	4543506	1482	113	-4
	South Arturo	IER19033	549273	4543506	1482	110	-5
	South Arturo	IER19035	549273	4543506	1482	097	-5
	South Arturo	IER19036	549216	4543322	1532	090	-8
	South Arturo	GER19001	549254	4543402	1497	003	18
	South Arturo	GER19002	549254	4543402	1497	007	-15
	South Arturo	MAD19001	548568	4542631	1792	124	-80
	South Arturo	MAD19002	548693	4542564	1776	257	-68
	South Arturo	MAD19004	548593	4542403	1743	079	-81
	South Arturo	MAD19005	548581	4542368	1756	085	-82
	South Arturo	MAD19007	548391	4542619	1720	150	-76
	South Arturo	MAD19021	548539	4542860	1775	088	-70

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, mineral resource and mineral reserve estimates 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

Ewan Downie, President & CEO, [email protected] or at 1.888.346.1390

Related Links

www.premiergoldmines.com