High potential within underexplored epithermal
district
THUNDER BAY, ON, May 29, 2019 /CNW/ - Premier Gold Mines
Limited (TSX: PG) ("Premier", "the Company") is pleased to
announce the start of a drilling campaign at the Rye Vein and
Goldbanks Properties, located some 55 km south of Winnemucca, in Pershing County, Nevada (Figure 1).
Premier holds an option to acquire a 100% interest in the Rye Vein
Property ("Rye") from Barrick Gold,
and up to a 50% interest in the Goldbanks Property from
Kinross Gold. Rye is considered one
of the Company's top exploration priorities in 2019 targeting
high-grade epithermal mineralization.
The Rye and Goldbanks properties are host to low-sulfidation
epithermal systems, locally known to contain appreciable
gold-silver mineralization. Rye hosts one of the most extensive
epithermal veins in Nevada with an
exposed strike length of more than 5 km and widths of up to
10 m. It has remained greatly underexplored for the past
several decades, with limited shallow drilling. However, numerous
significant intercepts returned gold grades up to
1.5 m of 139.2 g/t Au along an ore shoot
(Figure 2), whose trend will be one focus of 2019 drill
campaign. Premier is required to spend $3.0 million at Rye by July 2021 in order to meet the terms in the
earn-in agreement.
"Whilst our drill program is just getting underway for 2019, we
have not been idle at Goldbanks and Rye", commented Stephen McGibbon, Executive Vice-President.
"Previous work has identified high-grade gold mineralization that
appears to have appreciable upside. A strong plan has been
developed by our geological team, highlighting why Premier is
well-suited to advance this emerging epithermal district."
Goldbanks is host to several significant exploration targets
including the high-grade Golden Devil discovery area where previous
drilling has identified several vein intervals at depth.
Importantly, the Golden Devil model has been refined by better
integrating geophysics and geochemical vectors into the geological
framework. The result of this work includes revised interpretation
of vein orientations and a potential 400 m vertical productive
horizon within the targeted vein. Clear exploration targets have
emerged and will be drill-tested in June. High-grade intercepts
from previous drill campaigns include 3.4 m of
245.27 g/t Au & 251.65 g/t Ag (GB-17-13)
and 0.9 m of 25.30 g/t Au & 1,379 g/t Ag
(GB-18-04). Premier has limited spending requirements at Goldbanks
through 2020 in order to maintain earn-in obligations.
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.
Drill samples from Goldbanks are sent to American Assay
Laboratories in Reno, Nevada, for
analysis with the analytical facility utilizing a 30 g fire
assay with an ICP-AES finish for Core and RC samples. Samples
containing visible gold are submitted for screen metallic analysis
and all over-limit samples receive an automatic gravimetric
finish.
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.
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