(Includes 374% increase in Inferred Mineral Resources)
Shares Issued: 200,406,337
THUNDER BAY, ON, March 21, 2017 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to release an updated Mineral Resource estimate for the Company's 100%-owned McCoy-Cove Property, located 32 miles south of Battle Mountain in Lander County, Nevada. The estimate, completed by RPA Inc. of Toronto, Ontario (with an effective date of March 21, 2017) is the culmination of a very successful multi-year exploration and delineation drilling campaign by Premier that focussed on the Helen, CSD Gap and 2201 Zone target areas.
Table 1 provides a summary of the Mineral Resources at McCoy-Cove. Highlights of the estimate include:
All abbreviations used in this press release are available by following this link (click here) and a supplement presentation can be found on the Company's website www.premiergoldmines.com or by following this link (click here).
"With this updated resource, McCoy-Cove now ranks amongst the most significant exploration successes in recent memory in Nevada," commented President & CEO Ewan Downie on the Company's C-Suite Blog (http://www.premiergoldmines.com/news/c-suite-blog). "This is the result of excellent work by our on-site and technical team and confirms the potential of this emerging high-grade development opportunity."
Importantly, the mineral resources have been estimated following creation of a robust litho-structural model that unifies the stratigraphic, structural, intrusive and alteration elements that are common with other world-class Carlin-style deposits in Nevada. Further refinements to the model are being conducted on an ongoing basis.
Figure 1 is a longitudinal section profiling the location and geological context of each of the reported resource areas. Premier will continue to seek increasing property-wide resources by testing several existing and new exploration targets that have been refined as a result of a successful 2016 campaign.
Table 1 – 2017 McCoy-Cove Mineral Resource Estimate
| 2017 McCoy-Cove Zone |
INDICATED RESOURCES GOLD |
INFERRED RESOURCES GOLD |
||||
| Tonnage (000 t) |
Grade (g/t Au) |
Au Ozs (000's) |
Tonnage (000 t) |
Grade (g/t Au) |
Au Ozs (000's) |
|
| Helen |
409 |
12.41 |
163 |
1,138 |
13.04 |
477 |
| CSD |
180 |
9.26 |
54 |
200 |
8.81 |
57 |
| CSD Gap |
25 |
14.49 |
12 |
1,458 |
11.59 |
543 |
| 2201-VG |
- |
- |
- |
582 |
13.09 |
245 |
| TOTAL |
614 |
11.57 |
228 |
3,378 |
12.17 |
1,322 |
| Notes: |
|
| 1. |
CIM definitions were followed for mineral resources |
| 2. |
Mineral Resources are estimated at a cut-off grade of 5.6 g/t Au |
| 3. |
Mineral Resources are estimated using a long-term gold price of US$1400 per ounce |
| 4. |
A minimum mining width (vertical height or lens thickness) of 8 feet has been used |
| 5. |
Bulk density is 2.1 t/m3 for CSD, GAP and Helen, and 2.6 t/m3 for 2201 & VG. |
| 6. |
Numbers may not add due to rounding. |
The Mineral Resource estimate used the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Definition Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines prepared by CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. The mineral resource estimate is classified as "indicated", or "inferred" as defined by CIM. Premier is not aware of any environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource estimate.
The key assumptions and parameters used in the estimate of the Mineral Resources are summarized as follows:
A comprehensive description of key assumptions and parameters used will be set out in a technical report that will be available on SEDAR and Premier's website within 45 days of this press release.
Tudorel Ciuculescu, P.Geo, is the independent Qualified Persons who has reviewed and approved the contents of this press release for the purposes of National Instrument 43-101.
McCoy-Cove PEA Study Confirmed
As a result of the high-grade nature of, and significant increase in the McCoy-Cove mineral resource estimate, Premier today confirms that it is now undertaking a Preliminary Economic Assessment (PEA) at McCoy-Cove and is targeting its completion during H2 of 2017. The PEA is being conducted by Practical Mining LLC of Elko, Nevada, utilizing the support of Premier's Nevada-based operating team working under the direction of Brent Kristof, Premier's Senior Vice President of Operations. Upon completion of the PEA, Premier anticipates collaring the authourized underground exploration decline in Q4 2017 to allow for an advanced underground drilling and test mining program in 2018. With a successful program, this work will augment completion of a Feasibility Study thereafter.
2017 Infill & Exploration Program
The 2017 program will consist of 17,000 metres and US$5.0M in expenditures will focus on select infill drilling of the Helen and Gap deposits as well as testing multiple priority exploration targets across the property. Highlight results include:
Infill
Exploration
Drilling is ongoing and assays are pending on multiple drill holes with a full exploration update planned for early Q2 2017.
Stephen McGibbon, P. Geo., Vice President of Corporate & Project Development, 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. Drill samples were sent to ALS Laboratories in Reno, Nevada for analysis with the analytical facility utilizing 30 gram fire assay with an AA finish for RC samples and 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion for core samples. Over-limit samples receive an automatic gravimetric finish.
Premier Gold Mines Limited is a respected production, exploration and development company with a high-quality pipeline of gold projects focused in proven, safe, and accessible mining jurisdictions in Canada, the United States, and Mexico.
Forward Looking Information
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 the estimation of mineral resources, 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
Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-0100, e-mail: [email protected], Web Site: www.premiergoldmines.com
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