Mercedes Diluvio Target Area

Diluvio is included in the 2016 mineral resource statement at Mercedes, but is not yet in reserves and is not included in the current life-of-mine (LOM) plan. The 2017 exploration plan for Diluvio will include surface and underground drilling, completing an exploration drift, and bulk sampling. Table 2 provides a summary of key intercepts from the current drill program and Figure 3 is a surface plan of the Target.

Table 2 – Selected highlight assay results from drilling at Diluvio

* True widths are 85% to 100% of core length

Figure 3 – Diluvio Drilling – Surface Plan

Mineralization at Diluvio is distinct from other Mercedes deposits in that it consists of two or more gently-dipping “Manto” type ore bodies that could be amenable to bulk underground mining or higher grade narrow vein mining.

Mercedes Rey de Oro Target

Rey de Oro is immediately adjacent to the Klondike mine workings and represents one of the higher priority exploration targets at Mercedes. Current drilling is testing both near-surface (open pit) mineralization and deeper high-grade veining.

Based on positive results from the ongoing program, drilling will continue to focus on three main veins (Cuerpo 1, Cuerpo 2 and Cuerpo 3). Highlight intercepts in the potential open pit deposit contained assays of up to 3.68 g/t Au and 23.50 g/t Ag across 21.7 m. Drilling in the deeper high-grade gold vein system cut intercepts of up to 68.43 g/t Au and 71.80 g/t Ag over 4.6 m.

Table 3 provides a summary of recent highlight results from drilling at Rey de Oro and Figure 4 exhibits a long-section view of the open pit and underground targets:

Table 3 – Highlight results from drilling at Rey de Oro

* True widths are 85% to 100% of core length

Figure 4 – Longitudinal Section – Rey de Oro

McCoy-Cove Project, Nevada

Ongoing exploration at the Company’s 100%-owned McCoy-Cove Gold Project, situated along the Battle Mountain-Eureka Trend in Nevada, continues to delineate high grade mineralization within the CSD Gap and Helen Zone deposits.

The 2016 drill program was focused on select infill holes to better define continuity as well as multiple step-out holes along the margins of the deposits to test the expansion potential of the Carlin-style gold and silver system. Results continue to confirm substantial grade and thickness continuity across the core of the deposit. Highlight results, as presented in Figure 5 and Table 4 below, demonstrate that both deposits remain open for expansion in multiple directions. An updated resource estimate is expected to be complete in Q1 2017.

Highlights of the recent results include:

• PG16-23: 6.30 g/t Au and 0.47 g/t Ag over 25.2m at 558.4m (0.18 oz/t Au and 0.01 oz/t Ag over 101.7 ft.) including 7.64 g/t Au and 0.31 g/t Ag over 6.9m at 567.3m (0.22 oz/t Au and 0.01 oz/t Ag over 22.8 ft.)
• PG16-25: 10.18 g/t Au and 2.08 g/t Ag over 4.9m at 390.8m (0.30 oz/t Au and 0.06 oz/t Ag over 16 ft.)
• PG16-28: 6.18 g/t Au and 6.23 g/t Ag over 40.2m at 611.4m (0.18 oz/t Au and 0.18 oz/t Ag over 132.0 ft.) including 16.10 g/t Au and 8.90 g/t Ag over 4.0m at 611.4m (0.47 oz/t Au and 0.26 oz/t Ag over 13.0 ft.)

Figure 5: Schematic longitudinal section of the Cove Au/Ag

Table 4: Select Q4 2016, CSD Gap and Helen exploration drill program results

*True widths are estimated to be 80 to 90% of core length

South Arturo Project, Nevada

The South Arturo Project, located in the Carlin Trend of Nevada, is a joint venture between Premier (40%) and Barrick Gold (60%). In 2016, little exploration was completed at South Arturo owing to mine development.

Exploration will ramp up in 2017 to test several key targets, including the El Nino deposit that is currently subject to a permit submission for potential underground mine development. A US$1.1M program of definition drilling is planned in the upper portion of the El Nino deposit in preparation for mining. In addition, a US$1.8M program of drilling is planned in the Phase 1 and Phase 3 deposit areas, which together represent a second potential open pit under consideration on the property. Also, several holes are planned to test new exploration targets on the property including the “Ardent” target that shares many geological similarities to the area currently being mined.

Goldbanks Project, Nevada

Premier entered into a joint venture earn-in agreement with Kinross in 2016 to acquire a 50% interest in the Goldbanks Project (“Goldbanks”) located in Pershing County, Nevada, 50 kilometres south of Winnemucca. Goldbanks is comprised of 875 Claims totalling 1,600 acres with several significant targets on the property including the high-grade Golden Devil discovery, and the Main Zone and KW open pit deposits.

The initial drilling completed in late 2016 consisted of two deep core holes designed to investigate structural targets and potential controls on mineralization in the Golden Devil discovery area in order to better define the controls on high grade mineralization. The primary target, a proposed basin bounding fault, was intersected in both GB16-01 and GB16-02. Premier is encouraged by the intensity of alteration and anomalous Au/Ag values associated with this structure and intends on testing this fault both up-dip and along strike in 2017. The highest grade intercept from the first two holes was in GB16-02 that assayed 0.44 g/t Au, 12,492.5 g/t Ag and 4.41% Cu over 0.3m at 552.6m (0.01 oz/t Au and 364.38 oz/t Ag over 1.0 ft). Further drilling is planned in several target areas in 2017.

Investor Day

Premier will be hosting an Investor Day presentation at the Toronto Board of Trade (4th floor, rooms A/B), 1 First Canadian Place, Toronto, Ontario at 10:00am (EST) on Thursday, January 12, 2017. The Company invites all current and future shareholders to attend this event.

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. Mercedes assay results are from core samples sent to ALS Canada LTD, an accredited mineral analysis laboratory in Vancouver, British Columbia. Mercedes and McCoy Cove 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.

For further information, please contact:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-1381
e-mail: [email protected]
Web Site: www.premiergoldmines.com

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 completion of the Financing, 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.

Original Article: https://www.premiergoldmines.com/news/press-releases/premier-gold-mines-provides-exploration-update