Thunder Bay, August 13, 2019 - Premier Gold Mines Limited (TSX: PG) (“Premier”, “the Company”) is pleased to announce an update from its ongoing drilling program at the Company’s 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. This drilling has confirmed two high-grade zones; at Lupita Extension and at the newly discovered San Martin target area. Highlights of this program include:
“The new discovery of high-grade mineralization at San Martin, and ongoing success at the Lupita Extension area, continue to demonstrate our ability to add to the mine life at Mercedes,” commented Stephen McGibbon, Executive Vice-President. “We are very excited by the prospects for additional discoveries in the coming year”.
Mercedes is an underground gold and silver mine, with production to date (2011-2018) of approximately 687,000 recovered ounces of gold, that exploits quartz veins and quartz-carbonate stockworks within a low-sulphidation epithermal system (Figure 1).
Lupita Extension and San Martin Discovery
The Phase 2 infill program at Lupita Extension and ongoing drilling testing the San Martin discovery continues to expand the mineralized horizons and is demonstrating continuity of the vein system to the west (Figure 2). New results are expanding high-grade areas, as well as defining their limit, which will guide the focus of future drilling (Table 1).
At San Martin, the current 120 m spaced drilling continues exploration to the north and returned 2.9 m of 14.02 g/t Au & 136.00 g/t Ag and 3.9 m of 8.41 g/t Au & 67.64 g/t Ag including 1.4 m of 16.20 g/t Au & 92.00 g/t Ag (L19-422D and L19-424D respectively) expanding the higher-grade area. These new intercepts confirm the presence of a high-grade core to the area. Future drilling will test the extension of the zone to the west toward the San Martin Fault and commence infill drilling.
At Lupita extension, the high-grade zone extension to the west is confirmed by the 60 m step-outs with results including 4.5 m of 4.57 g/t Au & 27.07 g/t Ag (L19-414D). Further step-out holes will help define its western extension and a phase 3 infill program is planned to delineate at 30 m centers, starting from the 2018 resource limits.
Results are also showing the presence of mineralization within the hanging wall of the Lupita vein, where continuity and interpretation are currently being investigated by the exploration team. Assay results from this hanging wall zone include 4.5 m of 5.51 g/t Au & 203.00 g/t Ag (L19-419D).
Exploration at Margarita, located 1.2 km further to the east of Lupita (Figure 1), has returned two new intercepts including 6.30 g/t Au over 1.6 m and 3.51 g/t Au over 2.0 m at the Lupita vein contact projection (Table 1). Above the contact, stockwork vein with mineralization was found, but contained no meaningful gold results. This indicates that the hydrothermal system was active in the andesite above the Lupita Fault, as was the case at Diluvio. Further exploration will be conducted before the end of the year in this area.
Rey de Oro Delineation
Rey de Oro deposit is located on the eastern border of a synclinal basin, at the same contact that hosts the mine main trend. As at December 31, 2018, the Rey de Oro deposit carried a mineral reserve of 374 kt @ 4.19 g/t Au for 50 koz of gold and 374 kt @ 46.51 g/t Ag for 559 koz of silver.
Recent structural compilation work and mapping have led to a more refined geological model demonstrating that Rey de Oro is composed of three principal quartz veins, with exposure on surface. A delineation and infill drilling program are underway in the southern part of the deposit. This program has highlighted good intercepts in Veins 2 and 3, highlighted by an intercept of 2.4 m of 18.15 g/t Au & 27.49 g/t Ag, as well as a stockwork connection between the main veins and the presence of a silver-rich system associated with Vein 3 (Table 2).
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. Mercedes assay results are from core samples sent to ALS Chemex, an accredited mineral analysis laboratory in Lima (Peru) or Vancouver (Canada), for preparation and analysis utilizing both fire assay and ICP methods. For a complete description of Mercedes’s sample preparation, analytical methods and QA/QC procedures refer to the technical report for the Mercedes Mine dated April 18, 2018 (effective date December 31, 2017), entitled “Technical Report on the Mercedes Gold-Silver Mine, Sonora State, Mexico.”
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.
For further information, please contact:
Ewan Downie, President & CEO
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.