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New drilling program announced for Greenstone’s Hardrock Project

Premier Gold Mines Limited (TSX: PG) is pleased to announce that a 2019 core and reverse circulation drilling program is underway at Greenstone Gold Mines (GGM), a  50:50 partnership with Centerra Gold Inc. (“Centerra”), it was announced Tuesday.

The program is the second phase of a two-phase drilling strategy initiated in 2018 to validate and de-risk the 2016 Feasibility Study block model.  Premier is encouraged by the positive results of the phase one program that included reverse circulation drilling a portion of the block model that would be mined during the initial year of potential production, said the company news release.

The Greenstone Property, that includes the Hardrock deposit, is located 275 kilometres northeast of Thunder Bay along the Trans-Canada Highway near the community of Geraldton.

Additional company information:

2018 Reverse Circulation Grade Control Program (RCGC)

In 2018, based on a recommendation from an independent peer review by Roscoe Postle Associates, GGM undertook a resource definition program designed to de-risk the Hardrock deposit and focus on increasing the confidence level in the mineral resources in the initial years of production. The program, designed by GMining Services Inc., the independent QP for the 2016 Hardrock Feasibility Study, called for the completion of some 20,000 metres of reverse circulation drilling in some 400 holes (-50 degrees, 50-metres each) on a 10-metre by 20-metre drilling grid (locally 10-metres by 10-metres) and covering five areas over the F-Zone, SP-Zone, Porphyry Zone and Iron Formation Zone to a depth equal to three mining benches or 30-metres. The program collected some 9,000 samples (See Figure 1) and was monitored by a comprehensive QAQC program. Upon completion of the program, GMining undertook a series of reconciliations, comparing the results of the RC drill program against results predicted by the 2016 Feasibility Study resource model. A summary of those results included the following:

  • The RCGC program confirmed most of the gold in the 2016 resource block model and suggested the addition of ounces of gold in most areas drilled in 2018
  • Grade continuity was confirmed in all areas tested
  • GMining has concluded that these results warrant an update to the resource block model

Average gold grade in areas drilled by the RCGC was around 15% higher than predicted by the 2016 resource block model based on preliminary estimates done in 2018 by GMining. Premier cautions that these results pertain to a localized area of the Hardrock deposit block model and do not imply that a similar (or any) improvement to the overall block model grade is anticipated.

GMining’s remodelling strategy includes remodelled mineralization wireframes, re-investigate capping and EDA, the reduction of the number of principal domains, the addition of new domains not modelled in 2016 and the refinement of the 2016 interpretation by reducing the amount of dilution within previously modelled domains. Gold will be re-estimated into a newly created block model. In addition, a new sulphur and arsenic model will be completed to support mine planning.

2019 Core and Reverse Circulation Drilling Program

Subsequent to completion of the RCGC and remodelling of the domain wireframes, GGM has prepared a final drilling program to be completed with the following goals:

  • Core drill specific locations to test remodelled wireframe continuity in areas where drilling density is locally less in-filled
  • Utilize reverse circulation drilling to push the grade control drilling results to seven benches from three (70-metres depth) in the SP Zone in order to further test conclusions made in the initial RCGC program

The ongoing 2019 drilling program, which includes drilling 75 reverse circulation holes totalling 7,000 metres and 51 core holes totalling 12,900 metres, will be complete by late-April. Reconciliation of the program results and integration of the data into a final resource model will be completed during Q2 2019. Premier Gold anticipates reporting on the final results of the updated resource block model during the third quarter of 2019.

Stephen McGibbon, 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.

Sampling and QAQC Protocol for 2018 RCGC Program

Procedures implemented to ensure a high standard of data acquisition during the RCGC program include the following protocols:

  • Two-metre samples collected downhole utilizing a “dry” RC- drilling rig and an integral sample (cone) splitter to capture two simultaneous samples, a 4kg met sample for analysis and a 10kg representative sample
  • A small amount of the representative sample is placed into a “dry” chip tray. An equal amount is sieved and cleaned and placed into a “wet” tray.
  • Samples shipped to Actlabs in Geraldton for 50-gram fire assay
  • QAQC samples inserted into the sample stream at the rate of one for every ten samples
  • QAQC samples include blanks, standards and field duplicates
  • Standards used include a low grade (0.42 g/t Au), mid-grade (0.89 g/t Au) and high grade (5.95 g/t Au)
  • Failure rates for blanks and standards were less than 2%, field duplicate failure rate was about 4%

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