THUNDER BAY – Mining – Premier Gold has announced additional high-grade results from ongoing drilling at the Trans-Canada Property’s Hardrock Deposit located near Geraldton, Ontario. Drilling confirms the robust nature of the primary mineralized zones and the potential to expand mineralization. New highlight intercepts include:
- 1.90 grams per tonne gold (g/t Au) across 51.8 metres (m) and 2.14 g/t Au across 41.5 m in hole HR131, a step-out hole beneath the current 200m limit of the resource designated as potentially open-pittable.
- 3.50 g/t Au across 20.7 m in hole MM351 drilled to upgrade current resources from the Inferred to Indicated category.
- 12.43 g/t Au across 12.0 m in hole MM324 drilled to upgrade Inferred resources in the deeper portion of the F-Zone.
- 22.87 g/t Au across 3.0 m in hole MM336 drilled down-plunge of the North Zone deposit.
- 8.46 g/t Au across 5.5m in hole MM337 and 10.52 g/t Au across 2.5m in hole MM340 drilled to test the new “Mulligan Zone” at Hardrock.
A Preliminary Economic Assessment (PEA) is expected to be completed in Q3-2013 for the Hardrock and Brookbank deposits that will evaluate a range of potential open pit and underground options. These studies will be completed following an updated mineral resource estimate that is underway incorporating data available as of April 5, 2013. Some of the assay results reported in this release have been received subsequent to that date.
The Hardrock Deposit is regarded as having both open pit and underground mineable potential. A recently completed mineral resource estimate (See Table 1 below) indicates 3.15 million ounces of gold in the Measured and Indicated category plus an additional 3.41 million ounces of gold in the Inferred category have been documented. The Hardrock Deposit is the largest of the four deposits that comprise the Trans-Canada Property and is the focus of the current drill program. The open pit portion of the 2012 mineral resource estimate for the Hardrock Deposit was limited to a depth of approximately 200 metres, with the remainder being reported as potentially underground mineable resources. Scoping work suggests that removing the 200-metre depth limit imposed on the previous resource may benefit the overall potential of the project. The resource update is planned prior to the completion of the PEA.
The ongoing program comprised primarily of delineation drilling at Hardrock is designed to potentially upgrade inferred resources in addition to testing previously undrilled areas. Table 2 provides a summary of new assay results from step-out and infill drilling within the open pit target area.
Premier Gold states, “The Trans-Canada Property benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites. Significant services and a skilled labour pool exist within several nearby communities.
Exploration drilling at Hardrock continues to target potentially higher grade underground mineralization within the F, SP and Fortune Zones and also in new target areas including the Mulligan Zone and the TAZ (North Shear) Zone.
The Mulligan Zone is hosted in the main iron formation unit at Hardrock parallel to the historic mine, and the TAZ (North Shear) Zone discovery that is located midway between the historic McLeod-Cockshutt Mine and the Little Long Lac Mine from which 605,449 ounces of gold were mined at an average grade of 11.7g/t Au (0.34oz/st).
Drilling also continues to test extensions of some of the known zones of the Hardrock Deposit with recent highlights including extensions of the North Limb Zone, F-Zone, SP Zone and the A-Zone.
