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Premier Gold Mines Ltd
Symbol C : PG
Shares Issued 210,430,482
Close 2019-04-08 C$ 1.60
Recent Sedar Documents

Premier Gold, Centerra start drilling at Greenstone

2019-04-09 06:13 ET - News Release

Also News Release (C-CG) Centerra Gold Inc

Mr. Ewan Downie of Premier reports

PREMIER GOLD UPDATES DRILLING ACTIVITY AT HARDROCK

A 2019 core and reverse circulation drilling program is under way at Premier Gold Mines Ltd.'s Greenstone Gold Mines (GGM), a 50:50 partnership with Centerra Gold Inc. The program is the second phase of a two-phase drilling strategy initiated in 2018 to validate and derisk the 2016 feasibility study block model. Premier is encouraged by the positive results of the phase 1 program that included reverse circulation drilling a portion of the block model that would be mined during the initial year of potential production. The Greenstone property, that includes the Hardrock deposit, is located 275 kilometres northeast of Thunder Bay along the Trans-Canada Highway.

2018 reverse circulation grade control program (RCGC)

In 2018, based on a recommendation from an independent peer review by Roscoe Postle Associates, GGM undertook a resource definition program designed to derisk the Hardrock deposit and focus on increasing the confidence level in the mineral resources in the initial years of production. The program, designed by GMining Services Inc., the independent qualified person for the 2016 Hardrock feasibility study, called for the completion of about 20,000 metres of reverse circulation drilling in about 400 holes (minus 50 degrees, 50 metres each) on a 10-metre-by-20-metre drilling grid (locally 10 metres by 10 metres) and covering five areas over the F zone, SP zone, Porphyry zone and Iron Formation zone to a depth equal to three mining benches or 30 metres. The program collected about 9,000 samples and was monitored by a comprehensive quality assurance/quality control program. Upon completion of the program, GMining undertook a series of reconciliations, comparing the results of the RC drill program against results predicted by the 2016 feasibility study resource model. A summary of those results included the following:

  • The RCGC program confirmed most of the gold in the 2016 resource block model and suggested the addition of ounces of gold in most areas drilled in 2018.
  • Grade continuity was confirmed in all areas tested.
  • GMining has concluded that these results warrant an update to the resource block model.

Average gold grade in areas drilled by the RCGC was around 15 per cent higher than predicted by the 2016 resource block model based on preliminary estimates done in 2018 by GMining. Premier cautions that these results pertain to a localized area of the Hardrock deposit block model and do not imply that a similar (or any) improvement to the overall block model grade is anticipated.

GMining's remodelling strategy includes remodelled mineralization wireframes, reinvestigating capping and EDA, the reduction of the number of principal domains, the addition of new domains not modelled in 2016, and the refinement of the 2016 interpretation by reducing the amount of dilution within previously modelled domains. Gold will be re-estimated into a newly created block model. In addition, a new sulphur and arsenic model will be completed to support mine planning.

2019 core and reverse circulation drilling program

Subsequent to completion of the RCGC and remodelling of the domain wireframes, GGM has prepared a final drilling program to be completed with the following goals:

  • Core drill-specific locations to test remodelled wireframe continuity in areas where drilling density is locally less infilled;
  • Utilize reverse circulation drilling to push the grade control drilling results to seven benches from three (70-metre depth) in the SP zone in order to further test conclusions made in the initial RCGC program.

The continuing 2019 drilling program, which includes drilling 75 reverse circulation holes totalling 7,000 metres and 51 core holes totalling 12,900 metres, will be complete by late April. Reconciliation of the program results and integration of the data into a final resource model will be completed during the second quarter of 2019. Premier Gold anticipates reporting on the final results of the updated resource block model during the third quarter of 2019.

Stephen McGibbon, PGeo, 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.

Sampling and QA/QC protocol for 2018 RCGC program

Procedures implemented to ensure a high standard of data acquisition during the RCGC program include the following protocols:

  • Two-metre samples collected downhole utilizing a dry RC (reverse circulation) drilling rig and an integral sample (cone) splitter to capture two simultaneous samples: a four-kilogram met sample for analysis and a 10 kg representative sample;
  • A small amount of the representative sample placed into a dry chip tray; an equal amount sieved and cleaned and placed into a wet tray;
  • Samples shipped to Actlabs in Geraldton for 50-gram fire assay;
  • QA/QC samples inserted into the sample stream at the rate of one for every 10 samples;
  • QA/QC samples include blanks, standards and field duplicates Standards used include low grade (0.42 gram per tonne gold), mid-grade (0.89 g/t Au) and high grade (5.95 g/t Au);
  • Failure rates for blanks and standards less than 2 per cent, field duplicate failure rate about 4 per cent.

About Premier Gold Mines Ltd.

Premier Gold Mines 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.

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