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Premier Expands High-Grade at San Martin and Lupita Extension

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Premier Expands High-Grade at San Martin and Lupita Extension

 

 

 

 

 

Premier Gold Mines Limited (TSX: PG) is pleased to announce an update on its delineation core 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 at the newly discovered San Martin area. Highlights of this program include:

 

  • San Martin step-out drilling expands high-grade zone
    • 2.9 m of 14.02 g/t Au & 136.00 g/t Ag (L19-422D)
    • 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 (L19-424D)
  • Lupita extension continues intercepting high-grade including 4.5 m of 4.57 g/t Au & 27.07 g/t Ag (L19-414D)
  • Successful delineation at Rey De Oro including 2.3 m of 18.15 g/t Au & 27.49 g/t Ag (UG-RDO19-40)

 

“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).

 

Margarita Exploration

 

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.

 

 

Table 1 – Highlight Intercepts for Lupita area including *previously released intercepts
Hole ID Target From

m

To

m

Length

m

True Width

m

Au

g/t

Ag

g/t

L19-416D San Martin 231.7 232.7 1.0 1.0 2.10 6.00
L19-419D San Martin – HW 190.0 194.7 4.7 4.5 5.51 203.00
  San Martin 212.1 213.5 1.4 1.4 2.19 25.86
L19-421D San Martin – HW 165.8 167.0 1.2 1.1 2.17 28.00
  San Martin 230.1 231.5 1.4 1.4 3.29 29.90
L19-422D San Martin 207.7 210.7 3.0 2.9 14.02 136.00
L19-424D San Martin 223.9 227.8 3.9 3.9 8.41 67.64
Including San Martin 225.0 226.4 1.4 1.4 14.20 92.00
*L19-400D San Martin 197.2 204.7 7.5 7.2 4.64 30.45
L19-414D Lupita Extension 129.3 133.9 4.6 4.5 4.57 27.07
*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
*L19-408D Lupita Extension 174.8 176.3 1.5 1.5 23.90 71.15
L19-409D Margarita 255.2 257.2 2.0 2.0 3.51 6.00
L19-415D Margarita 284.1 285.9 1.8 1.6 6.30 47.30

 

 

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).

 

 

Table 2 – Highlight Intercepts from Rey de Oro
Hole ID Target From

m

To

m

Length

m

True Width

m

Au

g/t

Ag

g/t

UG-RDO18-034 Vein 1 70.5 74.1 3.6 3.3 4.05 107.67
UG-RDO19-039 Vein 1 – 2 5.9 7.4 1.5 1.5 3.25 45.00
  Vein 3 – Silver 37.1 38.3 1.2 1.1 0.09 426.00
UG-RDO19-040 Vein 2 28.3 30.6 2.4 2.3 18.15 27.49
UG-RDO19-041 Vein 3 – Silver 47.0 47.5 0.5 0.5 0.04 363.00
UG-RDO19-043 Vein 3 78.8 83.4 4.6 3.4 3.06 56.40
UG-RDO19-044 Vein 1 – 2 53.0 54.5 1.5 1.3 4.52 29.00
UG-RDO19-045 Vein 3 92.5 97.0 4.6 3.1 4.06 56.19
UG-RDO19-047 Vein 2 84.8 86.4 1.5 1.2 6.46 33.00

 

 

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 3 – Collar coordinates
UTM Project Hole ID North

m

East

m

Elevation

m

Azimuth Dip
NAD 27 ZONE 12 Mercedes L19-409D 3360775 553464 1293 145 -65
Mercedes L19-414D 3360068 551454 1253 185 -45
Mercedes L19-415D 3360702 553522 1301 130 -45
Mercedes L19-416D 3360079 551294 1246 150 -75
Mercedes L19-419D 3360029 551180 1235 150 -45
Mercedes L19-421D 3360114 551141 1208 215 -70
Mercedes L19-422D 3360033 551064 1214 145 -65
Mercedes L19-424D 3360057 550972 1184 155 -62
Mercedes UG-RDO18-034 3357881 552048 1057 017 -52
Mercedes UG-RDO19-039 3357829 552146 1005 053 -40
Mercedes UG-RDO19-040 3357829 552146 1006 050 -11
Mercedes UG-RDO19-041 3357828 552145 1005 040 -70
Mercedes UG-RDO19-043 3357813 552166 1076 012 -17
Mercedes UG-RDO19-044 3357812 552166 1076 031 -15
Mercedes UG-RDO19-045 3357811 552166 1077 027 5
Mercedes UG-RDO19-047 3357810 552166 1077 037 5

 

 


Figure 1 – Geological Map of Mercedes Mine (CNW Group/Premier Gold Mines Limited)

 

 


Figure 2 – Grade x Thickness Map of Lupita Vein (CNW Group/Premier Gold Mines Limited)

 

Posted August 13, 2019

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