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Positive Exploration & Delineation Drilling at Premier Gold Mines’ Mercedes Mine

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Premier Gold Mines Limited (TSX: PG) is pleased to announce an exploration update from an ongoing 42,000 m exploration and delineation core drilling program at the Company’s 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. Multiple new intercepts at the Lupita zone indicate the potential to extend the horizon by up to 600 metres to the west.

 

Highlights of this program include:

 

  • New mineralized veins confirmed at San Martin opening the area 600 m to the west of the Lupita deposit with high potential for future discoveries (Figure 1)
  • San Martin drilling returned multiple intercepts including 7.2 m of 4.64 g/t Au & 30.45 g/t Ag and 1.4 m of 5.56 g/t Au & 37.66 g/t Ag (L19-400D and L19-396D)
  • Ongoing delineation program at Lupita including intercepts of 3.9 m of 10.30 g/t Au & 88.25 g/t Ag and 1.5 m of 23.90 g/t Au & 71.15 g/t Ag (L19-403D and L19-408 D)
  • Exploration to be activated at La Mesa, which represents the geological extension of the adjacent Santa Gertrudis Property, where Agnico Eagles Mines Ltd is having exploration success (See Figure 3)

 

“Our Lupita delineation and exploration program is emerging as an important success story at Mercedes,” commented Stephen McGibbon, Executive Vice-President. “We are concurrently activating teams in under-explored areas on the property in an effort to discover new deposits”.

 

Lupita Extension and San Martin Success

 

Mercedes is an underground gold and silver mine, with production to date (2011-2018) of 687,000 recovered ounces of gold, that exploits quartz veins and quartz-carbonate stockworks within a low-sulphidation epithermal system (Figure 1). The Lupita-Diluvio basin, located 4 km northeast of the main trend, is attractive for future discoveries. As at December 31, 2018, the Lupita deposit carried a mineral reserve of 329 kt @ 4.42 g/t Au for 47 koz of gold and is located immediately west of the Diluvio deposit. The Lupita Vein outcrops on surface for 1,300 m, has an average width of 3 m, and locally extends down dip up to 450 m. Initial exploration drilling to the west and east of Lupita at both San Martin and Margarita have recently discovered mineralized veins along the Lupita fault (Figure 2). These areas are 3 km apart and remain open further to the east and north.

 

The Lupita Extension drill program continues to expand 2018 resource mineralization by demonstrating the continuity of the vein to the west (Figure 1). Assay results presented in Table 1 include those received since the initial reported results on May 14, 2019, with grades ranging from 3.57 g/t Au over 1.8 m at the periphery to 10.30 g/t Au over 3.9 m. A Phase 2 infill drill program of 6,000 m is currently underway to support the creation of Indicated mineral resources.

 

Drilling to test the continuity of the Lupita vein 600 m to the west at the San Martin area (Figures 1 & 2) intercepted 1.5 m of 5.56 g/t Au (L19-396D) in the first hole and up to7.5 m of 4.64 g/t Au (L19-400D). Results from this initial program, planned with a wide spaced drilling, are presented in Table 1.

 

Table 1 – Highlight Intercepts

 

Hole ID Target From
m
To
m
Length
m
True Width
m
Au
g/t
Ag
g/t
L19-398D Lupita Extension 132.8 134.6 1.8 1.8 3.57 41.92
L19-399D Lupita Extension 138.0 141.5 3.5 3.5 2.25 33.86
L19-403D Lupita Extension 128.6 132.6 4.0 3.9 10.30 88.25
L19-405D Lupita Extension 121.5 126.9 5.3 5.3 4.98 35.84
Including   122.0 124.3 2.3 2.2 10.10 29.50
L19-406D Lupita Extension 166.4 170.0 3.5 3.5 4.32 44.27
L19-408D Lupita Extension 174.8 176.3 1.5 1.5 23.90 71.15
L19-410D Lupita Extension 191.9 196.9 4.9 4.8 3.68 29.42
L19-411D Lupita Extension 164.0 168.8 4.8 3.4 5.09 57.33
L19-396D San Martin 220.2 221.7 1.5 1.4 5.56 37.66
L19-397D San Martin 231.0 232.7 1.7 1.5 3.02 23.65
L19-400D San Martin 197.2 204.7 7.5 7.2 4.64 30.45
L19-407D San Martin 182.4 184.4 1.9 1.9 4.14 11.59
L19-395D Margarita 304.3 305.8 1.5 1.3 2.98 61.93

 

 

Margarita Exploration

 

In addition, the Lupita vein is being tested 1.2 km further to the east at Margarita (Figure 2). The area is marked by the projected trend of outcropping veins to the north. The first drill hole testing the Margarita area intercepted 1.3 m of 2.98 g/t Au & 61.93 g/t Ag (L19-395D), warranting further drilling. New discoveries at San Martin and Margarita demonstrate the potential of the Lupita-Diluvio basin which remains largely untested to date. The Company is expanding and accelerating its evaluation of this emerging corridor.

 

La Mesa Area Exploration

 

The La Mesa area, located 24 km NE of the main Mercedes Mine, is host to the same stratigraphy that hosts the Santa Gertrudis property deposits owned by Agnico Eagle Mines Ltd. These geological structures extend onto the La Mesa area as shown in Figure 3. 2019 work by Premier will focus on collecting baseline information expected to include mapping, soil sampling, litho-geochemistry and potentially geophysics to better understand the potential of this area.

 

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.

 

Table 2 – Collar coordinates

 

UTM Project Hole ID North
m
East
m
Elevation
m
Azimuth Dip
NAD 27 ZONE 12 Mercedes L19-395D 553465 3360774 1294 120 45
Mercedes L19-396D 551031 3359947 1206 150 50
Mercedes L19-397D 551031 3359948 1206 129 50
Mercedes L19-398D 551505 3360077 1262 140 74
Mercedes L19-399D 551505 3360077 1262 144 52
Mercedes L19-400D 551031 3359947 1206 150 63
Mercedes L19-403D 551456 3360068 1253 160 64
Mercedes L19-404D 551027 3359948 1206 172 50
Mercedes L19-405D 551524 3360046 1278 179 47
Mercedes L19-406D 551572 3360071 1296 155 54
Mercedes L19-407D 551074 3359879 1217 150 54
Mercedes L19-408D 551649 3360050 1306 160 65
Mercedes L19-409D 553464 3360775 1293 145 65
Mercedes L19-410D 551296 3360078 1246 150 45
Mercedes L19-411D 551455 3360069 1253 160 83

 

 

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.

 


Figure 1 – Grade x Thickness Map of Lupita Deposit (CNW Group/Premier Gold Mines Limited)

 

Figure 2 – Geological Map of Mercedes Mine (CNW Group/Premier Gold Mines Limited)

 


Figure 3 – Mercedes Geological map (CNW Group/Premier Gold Mines Limited)

 

Posted June 25, 2019

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