Drill intercepts include 18.09 g/t Au and 18.50 g/t Ag across 4.3m and
12.73 g/t Au and 39.05 g/t Ag across 7.5m
Shares Issued: 153,748,463
THUNDER BAY, ON , Aug. 26, 2014 /CNW/ - PREMIER GOLD MINES LIMITED (PG.TO) ("Premier", "the Company") is pleased to announce that drilling continues to define high-grade
mineralization in multiple horizons at the Company's Cove Gold Project,
located along the Eureka-Battle Mountain Trend in Nevada . One
highlight of the 2014 exploration program is the continued discovery of
gold and poly-metallic mineralization, including massive sulphides, in
the 2201 Zone discovery below the historic gold/silver open-pit Cove
Mine.
New assay results from 9 holes completed demonstrate continuity in the
Cove South Deep Zone and expand the mineralized envelope within the
recently discovered 2201 Zone. Step-out drilling is being completed at 100-metre (m) increments, with
mineralization having been intersected over an area approximately 350 m
by 300 m and remains open in all directions. Highlights from recent drilling include:
2201 Zone Discovery highlight assay results
-
PG14-08: 4.58 grams per tonne gold (g/t Au) or 0.13 ounces per ton
(oz/t), 184.95 g/t Silver (Ag) (5.39 oz/t) and 4.26% combined lead-zinc
(Pb-Zn) across 1.8 m or 6.0 feet (ft)
-
PG14-10: 18.09 g/t Au (0.53 oz/t), 18.50 g/t Ag (0.54 oz/t) across 4.3
m (14.0 ft) and 12.36 g/t Au (0.36 oz/t) and 15.12 g/t Ag (0.44 oz/t)
across 3.3 m (10.7 ft)
-
PG14-15: 5.27 g/t Au (0.15 oz/t) and 22.73 g/t Ag (0.66 oz/t) across
21.9 m (72.0 ft) including 14.75 g/t Au (0.43 oz/t) and 51.36 g/t Ag
(1.50 oz/t) across 2.4 m (8.0 ft)
-
PG14-25A: 12.73 g/t Au (0.37 oz/t), 39.05 g/t Ag (1.14 oz/t) and 3.13%
Pb-Zn across 7.5 m (24.7 ft)
CSD Zone highlight assay results
-
PG14-22: 17.89 g/t Au (0.52 oz/t) and 13.06 g/t Ag (0.38 oz/t) across
3.4 m (11.0 ft)
-
PG14-23: 15.09 g/t Au (0.44 oz/t) and 161.42 g/t Ag (4.71 oz/t) across
4.0 m (13.0 ft) and 6.17 g/t Au (0.18 oz/t) and 221.17 (6.45 oz/t)
across 9.8 m (32.0 ft)
The highlight of the 2014 program is the exploration and development of
the 2201 Zone, discovered in late 2013. The 2201 discovery,
characterized by massive, semi-massive, sheeted veins and stringer
mineralization was intersected in the deeper Dixie Valley formation,
which was not previously known to be a significant ore host on the
property. Mineralization within the 2201 Zone occurs approximately 225
metres (740 feet) below the historic Cove Pit, and in the vicinity of
several "feeder" structures that were mined within the pit. An
interpretation of thrust faulting deep within the 2201 Zone is emerging
as new structural control that contributes to major ore zones,
confirming Premier's belief that these structures could also serve as
conduits for mineralization in the rock units beneath the pit which
have previously received little attention.
The Cove South Deep ('CSD') horizon is located approximately 50 metres
(160 feet) below the limits of the historic Cove open pit mine and is
similar to the Carlin-style mineralization in the Helen Zone. The CSD
Zone was discovered near the end of mining at Cove in an area that had
received very little previous exploration drilling.
Table 1 provides a summary of new results from follow-up drilling at
Cove.
Table 1 - Select Assay Results for Cove Drilling in holes PG14-08 to PG14-25A
with several holes abandoned or not yet drilled
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hole-ID
|
UTM Coordinates (m)
|
Dip/Azimuth (degrees)
|
From (m)*
|
To (m)*
|
Interval (m)*
|
Au (g/tonne)
|
Ag (g/tonne)
|
From (ft)
|
To (ft)
|
Interval (ft)
|
Au (oz/ton)*
|
Ag (oz/ton)
|
Zn/Pb%
|
Zone
|
PG14-08
|
4464823N/483292E
|
-45/311
|
478.5
|
481.6
|
3.0
|
4.13
|
18.55
|
1570.0
|
1580.0
|
10.0
|
0.12
|
0.54
|
0.02
|
CSD Upper
|
|
490.7
|
492.3
|
1.5
|
6.64
|
217.00
|
1610.0
|
1615.0
|
5.0
|
0.19
|
6.33
|
0.45
|
CSD Lower
|
|
527.6
|
529.4
|
1.8
|
4.58
|
184.95
|
1731.0
|
1737.0
|
6.0
|
0.13
|
5.39
|
4.26
|
2201
|
|
584.5
|
588.1
|
3.7
|
0.84
|
143.76
|
1917.5
|
1929.5
|
12.0
|
0.02
|
4.19
|
4.18
|
2201
|
PG14-09
|
4464876N/483362E
|
-45/311
|
Abandoned
|
PG14-09A
|
4464876N/483362E
|
-45/311
|
No Significant Values
|
PG14-10
|
4464837N/482539E
|
-53/037
|
583.8
|
585.2
|
1.4
|
4.13
|
5.40
|
1915.5
|
1920.0
|
4.5
|
0.12
|
0.16
|
0.06
|
CSD Lower
|
|
672.7
|
674.1
|
1.4
|
5.97
|
65.80
|
2207.0
|
2211.5
|
4.5
|
0.17
|
1.92
|
1.54
|
CSD Lower
|
|
730.6
|
734.9
|
4.3
|
18.09
|
18.50
|
2397.0
|
2411.0
|
14.0
|
0.53
|
0.54
|
0.26
|
2201
|
including
|
730.6
|
733.2
|
2.6
|
28.11
|
16.50
|
2397.0
|
2405.5
|
8.5
|
0.82
|
0.48
|
0.24
|
2201
|
|
794.8
|
796.6
|
1.8
|
31.98
|
85.11
|
2607.5
|
2613.5
|
6.0
|
0.93
|
2.48
|
0.19
|
2201
|
|
807.0
|
810.2
|
3.3
|
12.36
|
15.12
|
2647.5
|
2658.2
|
10.7
|
0.36
|
0.44
|
0.07
|
2201
|
including
|
807.7
|
809.0
|
1.3
|
23.16
|
29.90
|
2650.0
|
2654.3
|
4.3
|
0.68
|
0.87
|
0.12
|
2201
|
PG14-11
|
4464835N/482539E
|
-45/035
|
Abandoned
|
PG14-12
|
4464800N/482646E
|
-45/030
|
467.8
|
468.8
|
1.0
|
2.2
|
16.70
|
1534.8
|
1538.0
|
3.2
|
0.06
|
0.49
|
0.02
|
CSD Upper
|
|
666.4
|
668.1
|
1.7
|
0.15
|
73.71
|
2186.4
|
2192.0
|
5.6
|
0.00
|
2.15
|
5.33
|
2201
|
|
683.1
|
696.2
|
13.1
|
4.38
|
18.16
|
2241.0
|
2284.0
|
43.0
|
0.13
|
0.53
|
0.61
|
2201
|
including
|
692.7
|
696.2
|
3.5
|
8.53
|
40.20
|
2272.5
|
2284.0
|
11.5
|
0.25
|
1.17
|
1.12
|
2201
|
|
705.9
|
720.4
|
14.5
|
4.41
|
36.82
|
2316.0
|
2363.5
|
47.5
|
0.13
|
1.07
|
1.20
|
2201
|
including
|
705.9
|
706.5
|
0.6
|
25.52
|
195.60
|
2316.0
|
2318.0
|
2.0
|
0.74
|
5.71
|
0.88
|
2201
|
and
|
713.8
|
715.5
|
1.7
|
18.92
|
51.70
|
2342.0
|
2347.5
|
5.5
|
0.55
|
1.51
|
1.23
|
2201
|
PG14-13
|
4464712N/483073E
|
-45/311
|
Abandoned
|
PG14-14
|
4464979N/482365E
|
-43/41
|
695.4
|
700.4
|
5.0
|
1.55
|
101.88
|
2281.5
|
2298.0
|
16.5
|
0.05
|
2.97
|
3.96
|
CSD Lower
|
Including
|
695.4
|
697.4
|
2.0
|
2.79
|
160.40
|
2281.5
|
2288.0
|
6.5
|
0.08
|
4.68
|
4.19
|
CSD Lower
|
|
769.6
|
773.3
|
3.7
|
2.48
|
105.29
|
2525.0
|
2537.0
|
12.0
|
0.07
|
3.07
|
2.22
|
CSD Lower
|
PG14-15
|
4464978N/482364E
|
-53/039
|
566.7
|
568.2
|
1.6
|
23.79
|
60.30
|
1859.2
|
1864.3
|
5.1
|
0.69
|
1.76
|
0.18
|
CSD Lower
|
|
749.8
|
771.8
|
21.9
|
5.27
|
22.73
|
2460.0
|
2532.0
|
72.0
|
0.15
|
0.66
|
0.25
|
2201
|
including
|
756.8
|
758.3
|
1.5
|
11.80
|
25.10
|
2483.0
|
2488.0
|
5.0
|
0.34
|
0.73
|
0.12
|
2201
|
and
|
766.0
|
768.4
|
2.4
|
14.75
|
51.36
|
2513.0
|
2521.0
|
8.0
|
0.43
|
1.50
|
0.21
|
2201
|
PG14-16
|
4464978N/482366E
|
-50/043
|
Pre-Collared
|
PG14-17
|
4464980N/482363E
|
-53/027
|
Pre-Collared
|
PG14-18
|
4464981N/482364E
|
-45/027
|
Pre-Collared
|
PG14-19
|
4464777N/483224E
|
-45/311
|
Abandoned
|
PG14-20
|
4464790N/483224E
|
-45/310
|
Abandoned
|
PG14-21
|
4464840N/482535E
|
-55/033
|
Abandoned
|
PG14-22
|
4464840N/482535E
|
-55/033
|
581.1
|
584.5
|
3.4
|
17.89
|
13.06
|
1906.5
|
1917.5
|
11.0
|
0.52
|
0.38
|
0.02
|
CSD Lower
|
|
687.6
|
692.0
|
4.4
|
3.40
|
19.70
|
2256.0
|
2270.5
|
14.5
|
0.10
|
0.57
|
0.52
|
2201
|
including
|
687.6
|
688.2
|
0.6
|
14.25
|
84.30
|
2256.0
|
2258.0
|
2.0
|
0.42
|
2.46
|
2.54
|
2201
|
|
748.3
|
750.1
|
1.8
|
33.04
|
80.33
|
2455.0
|
2461.0
|
6.0
|
0.96
|
2.34
|
0.97
|
2201
|
PG14-23
|
4464799N/482645E
|
-45/025
|
423.4
|
505.8
|
82.5
|
2.14
|
47.96
|
1389
|
1659.6
|
270.6
|
0.06
|
1.40
|
0.48
|
CSD Upper/Lower
|
including
|
455.4
|
459.3
|
4.0
|
15.09
|
161.42
|
1494
|
1507.0
|
13.0
|
0.44
|
4.71
|
1.01
|
CSD Upper
|
and
|
474.9
|
484.6
|
9.8
|
6.17
|
221.17
|
1558
|
1590.0
|
32.0
|
0.18
|
6.45
|
0.75
|
CSD Upper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
545.4
|
550.6
|
5.2
|
0.29
|
138.93
|
1789.3
|
1806.5
|
17.2
|
0.01
|
4.05
|
4.89
|
CSD Lower
|
including
|
545.4
|
547.3
|
1.9
|
0.37
|
226.40
|
1789.3
|
1795.5
|
6.2
|
0.01
|
6.60
|
8.09
|
CSD Lower
|
|
750.0
|
755.6
|
5.6
|
1.44
|
362.80
|
2460.5
|
2479.0
|
18.5
|
0.04
|
10.58
|
11.69
|
CSD Lower
|
|
773.6
|
776.6
|
3.0
|
1.47
|
173.00
|
2538.0
|
2548.0
|
10.0
|
0.04
|
5.05
|
8.19
|
CSD Lower
|
PG14-24
|
4464799N/482645E
|
-45/029
|
Abandoned
|
PG14-25
|
4464785N/482744E
|
-50/031
|
Abandoned
|
PG14-25A
|
4464785N/482744E
|
-50/031
|
720.2
|
727.8
|
7.5
|
12.73
|
39.05
|
2363.0
|
2387.7
|
24.7
|
0.37
|
1.14
|
3.13
|
2201
|
including
|
725.7
|
727.8
|
2.0
|
36.30
|
37.50
|
2381.0
|
2387.7
|
6.7
|
1.06
|
1.09
|
1.74
|
2201
|
|
802.5
|
805.6
|
3.0
|
6.49
|
6.50
|
2633.0
|
2643.0
|
10.0
|
0.19
|
0.19
|
0.12
|
2201
|
-Gravimetric assays used when available - true widths are unknown
for this zone - assays provided are un-cut and rounded to
nearest tenth
The Cove Gold Project forms part of Premier's Cove-McCoy Property
located along the Eureka-Battle Mountain Trend (See Image 1) that is
host to numerous multi-million ounce producing and past-producing
mines. The property is located in close proximity to excellent
infrastructure (including paved roads & power) and is permitted for an
expanded surface drill campaign and underground access.
Premier recently announced that it has signed a binding Agreement with
Newmont Mining Corporation (NEM) ("Newmont") to consolidate a 100%
interest in the Cove-McCoy Gold Properties (See Press Release dated
Aug. 5, 2014 ) by making staged payments to Newmont over 18 months (plus
bonding) and will transfer to Newmont all land sections that comprise
its South Carlin Project. Consolidating 100% interest in the combined
Cove-McCoy property package (now totaling 31,000 acres or 48 square
miles) provides Premier with a large core land package in the heart of
one of the world's most productive gold districts and the agreement
includes the elimination of "back-in" rights previously held by Newmont
as well as a revision of the royalty terms held by Newmont from a
"potential" 5.0% Net Smelter Royalty ("NSR") to a 1.5% NSR. Also, the
agreement provides for a "good faith efforts" processing arrangement
with Newmont over a 10-year period within a 12-year window for ores
mined at Cove-McCoy. Premier will retain a 1.5% (NSR) in the South
Carlin property interests.
"The continued success from drilling in our current program demonstrates
the potential for the recently discovered 2201 Zone to become a
significant high grade gold and silver deposit that could host
appreciable future resources" stated Warren Thompson , U.S. Exploration
Manager for Premier. "The addition of the upside available from
controlling the entire district through the McCoy Property acquisition
provides the Company with a trident of deposit types; skarn, distal
disseminated poly-metallic sulfide and Carlin style to explore for."
The Cove-McCoy Gold Mines have historic production of some 3.3 million
ounces of gold and 110.0 million ounces of silver between 1986 and
2006, a 20-year period of relatively low to historically low gold and
silver prices.The mines are believed to have a close genetic
relationship, associated with the same fault/feeder structures; however
the ores mined occurred in different rock units. The feeder structures
between the mines have seen only limited previous exploration and
represent a priority future exploration target.
OTHER PROJECTS
Premier holds several projects that are subject to ongoing exploration
and development programs in 2014. An updated Mineral Resource Estimate
at the Hardrock Project which lies within the Company's 100%-owned
Trans-Canada Property was recently announced which will provide the
basis of the preparation of a Feasibility Study, expected H1-2015.
Underground drilling, testing priority target areas is also underway
from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG
49% and Red Lake Gold Mines 51%).
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 were sent to
Inspectorate America Laboratories prep facility located in Elko, Nevada
and analysis was performed at their Sparks, Nevada 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.
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 well financed with a portfolio of advanced-stage assets
in world class gold mining districts such as Red Lake and Geraldton in
Ontario and the most prolific gold trends in Nevada .
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
Image with caption: "Image 1 - Satellite View of Cove Project (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20140826_C7881_PHOTO_EN_42536.jpg