Premier Gold Mines (PG.TSX) announced that surface drilling at the Rahill-Bonanza Joint Venture Project in Red Lake, Ontario continues to expand gold mineralization in multiple target areas proximal to the Wilmar Mine. In addition, new gold-bearing structures have been intersected by the haulage drift on the Project.
Premier Gold Mines holds a 49% stake in Rahill-Bonanza through a joint venture with Red Lake Gold Mines Limited (RLGM) – which serves as operator of the Project, holds a 51% stake, and is an affiliate of Goldcorp Inc. The Project is strategically located in the heart of the main Red Lake “Mine Trend” between the Red Lake Gold Mines complex to the east, and the Cochenour ( Bruce Channel ) Project to the west. The property is being explored from both surface and underground.
* PG12110 tested the down-dip extension of the past-producing Wilmar Mine returning an intersection of 4.01 grams per tonne gold (g/t Au) across 20.5 meters (m), or 0.12 ounces per ton (oz/t) across 67.3 feet, including 11.51 g/t Au across 3.0 m (0.34 oz/t across 9.8 feet)
* PG12112 returned an interval of 1.52 g/t Au across 126.0 m (0.04 oz/t across 413.4 feet) with higher grade intervals of up to 27.08 g/t Au across 1.0 m (0.79 oz/t across 3.3 feet)
* Multiple gold-bearing horizons, in addition to those previously announced, have been intersected in the tram; eight closely-spaced holes have been drilled to test one of these structures hosting visible gold (assays pending)
* The regional drill program, consisting of flat holes drilled at regular intervals and up to 5000 feet (1,524.0 meters) in length has commenced with the first hole having been completed
Stephen McGibbon, Executive Vice-President of Premier Gold Mines:
“Solid results from the surface drilling program continue to confirm the potential for the Wilmar area to host significant gold resources.”
Ovais Habib, Scotia Capital:
Reiterates Sector Outperform rating and C$10.00 price target on Premier Gold Mines (PG.TSX)