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:
“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.
|Table 1 – Highlight Intercepts for Lupita area including *previously released intercepts|
|L19-419D||San Martin – HW||190.0||194.7||4.7||4.5||5.51||203.00|
|L19-421D||San Martin – HW||165.8||167.0||1.2||1.1||2.17||28.00|
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|
|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-RDO19-041||Vein 3 – Silver||47.0||47.5||0.5||0.5||0.04||363.00|
|UG-RDO19-044||Vein 1 – 2||53.0||54.5||1.5||1.3||4.52||29.00|
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|
|NAD 27 ZONE 12||Mercedes||L19-409D||3360775||553464||1293||145||-65|
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)
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