Premier Gold releases Trans-Canada property resource estimates on four deposits
Thursday, Dec 20, 2012THUNDER BAY, ON, Dec. 19, 2012 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier" or "The Company") (TSX: PG) is very pleased to release recently completed mineral resource estimates on four gold deposits located on the Company's 100%-owned Trans-Canada Property including the Hardrock, Brookbank, Kailey and Key Lake Deposits. The undiluted and in-situ estimates were completed by Micon International Limited for each of the deposits utilizing a 3D block model andsupported with input from the Company's geological personnel. Key assumptions
of the updated mineral resource estimates are summarized in Table 1.
Table 2 provides individual deposit summaries of the resources at Trans-Canada, each being categorized by potential underground (U/G) and/or open-pit (O/P) cut-off grades where appropriate.
The Company has also scheduled a conference call and webcast for investors and analysts at 2:00 p.m. (Eastern Time) Thursday, December 20, 2012. Details for the call can be found at the bottom of this press release.
The estimations are based on samples composited to 1.5 metres (for the Hardrock underground), 1 metre (for the Brookbank deposit) and 3 metres (for the Hardrock open pit, Kailey and Key Lake).
The resource for the Hardrock deposit is based on dynamic modeling of composites defined on 0.5 g/t Au cut-off for the underground portion of the resource and on 0.1 g/t cut-off for the open pit resource. The composites defined on a 0.5 g/t cut-off comprise 9 distinct domains while the 0.1 g/t cut-off combines all of these domains into a single mass which was subjected to a Whittle Pit optimization analysis restricted to 200 m vertical depth.
Resources for the Brookbank and Key Lake deposits are based on mineralization wireframes defined on a 0.3 g/t Au cut-off while for the predominantly low grade Kailey deposit the mineralization wireframe is defined on a 0.1 g/t Au cut-off.
The Inverse Distance Cubed (ID3) method which gives a fairly high level of selectivity was utilized in the resource estimate to ensure that zones with internal waste remained distinct. The resource models were validated visually by sectioning, running a parallel estimate using Ordinary Kriging and by Swath plots.
The aggregate impact of these choices and adjustments has resulted in a 42% reduction of M+I ounces reported at Hardrock U/G. At the same time, Premier is reporting a significant increase of 183% in Inferred ounces at Hardrock U/G. In Premier's opinion, this "rebalancing of ounces" can be regarded as an improvement in how the block model reflects the data and in-situ mineralization both locally and regionally.
Hardrock Gold Deposit
The Hardrock Gold Deposit is the largest gold deposit within the Trans-Canada Property. It is located 3.0 kilometres south of the Town of Geraldton in Ontario. Open Pit mineralization has been identified where historic gold mining comes to surface, and underground mineralization consists of both new horizons located parallel to the historic mine and extensions of the main zones historically mined.
Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the most prolific gold trends in Nevada.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
SOURCE Premier Gold Mines Limited