Premier Gold Mines Limited ($PG:CA) is pleased to provide an update of ongoing underground drilling at the Company's Rahill-Bonanza Joint Venture Project (44% PG) in the Red Lake gold mining district of Northwestern Ontario. Rahill-Bonanza is being explored with partner and operator Red Lake Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc. ($G:CA) ($GG). The drill program continues to expand high-grade gold mineralization in a recently discovered fold structure (the "Fold Target") located immediately south of the tram and along the Red Lake Gold Mine Trend.
The Rahill-Bonanza Project is a joint venture located in the heart of the main Red Lake "Mine Trend." Current exploration is being conducted from drill bays along the haulage drift (tram), a deep underground platform constructed to link the Red Lake Gold Mines complex with the Cochenour complex. Favourable alteration and structure are now supported by multiple intercepts of higher grade gold mineralization typical of historic discoveries in the region. Additional fan drilling is being completed to test for size and continuity of this prospective horizon.
Significant new intercepts and developments include:
- Drilling in the Fold Target continues to intersect favourable veining, alteration and mineralization (including arsenopyrite and visible gold) associated with a folded ultramafic rock unit. New intercepts include assays of 5.2 grams per tonne gold (g/t Au) across 7.6 metres (m) (or 0.15 oz/t across 25.0 feet) in hole D36997, 7.9 g/t Au across 4.4 m (0.23 oz/t across 14.6 feet) in hole D36999.
- Step-out drilling to the east of the primary area continues to demonstrate expansion potential with visible gold having been intersected (assays pending) in hole D361000 and multiple zones of arsenopyrite mineralization in hole D361001.
"Our drilling has identified a very favourable environment similar to and on strike from Red Lake Gold Mines" stated Stephen McGibbon, Executive Vice-President of Premier. "The discovery of arsenopyrite-rich, replacement-style mineralization is similar to the prolific zones mined for several decades at the Campbell and Dickenson (Red Lake) Mines."
Table 1 - New highlight assay results from underground drilling
|Hole ID||From (ft)||To (ft)||Length (ft)||Au (oz/t)||From (m)||To (m)||Length (m)||Au (g/t)||Zone|
The Rahill-Bonanza Joint Venture Project covers approximately 4.5 kilometres of the main Red Lake "Mine Trend" with historic production exceeding 23 million ounces of gold and growing (see Figure 1). In addition to the Fold Target, several other holes drilled from the tram intersected gold mineralization and will be followed up in the future. Surface drilling is planned to test the down-plunge extension of the Bonanza deposit that is host to a resource of more than 500,000 ounces of gold.
Figure 1 - Red Lake Mine Trend
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 either Accurassay Laboratories or AGAT Laboratories, both accredited mineral analysis laboratories 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 and development 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 is fully financed with approximately $90 million in cash and investments, no debt and a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the most prolific gold trends in Nevada.
For further information, please contact:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com
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