posted in:

Premier expands high-grade gold mineralization at Cove Gold Project, Nevada

Thursday, Jan 10, 2013

THUNDER BAY, ON, Jan. 9, 2013 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier") is pleased to announce additional assay results from the Helen Zone on the Company's Cove Gold Project, located in the Eureka-Battle Mountain Trend in Nevada.  These results continue to expand mineralization, with strong grades and widths, along the Cove anticline to the southeast towards and below the historic mining operations.

The Helen Zone deposit represents a prospective, high-grade, Carlin-style, gold deposit and is the focus of an ongoing drill program which is to extend the mineralization within both the Upper and Lower Helen Zone horizons.  Drilling has now expanded this mineralization by 213 metres (700 feet) to the southeast of previously drilled mineralization with the Helen Zones and the favourable horizons remain wide open.

"Drill results from the step-out drilling supports our geologic model that the Helen Zone is a bedding-controlled Carlin-style deposit which is punctuated by areas of high-grade mineralization where feeder structures intersect the axial plane of the anticline," stated Brian Morris, Vice-President Exploration for Premier.  "Current step-out drilling has added materially to the size of the zones at Cove, particularly in the Lower Helen Zone.  The prospective horizons are largely untested by previous exploration programs and are wide open for expansion.

Additionally, the discovery of gold mineralization within the deeper
Dixie Valley rock Formation offers a new target for defining potentially
significant mineralization."

New drill holes confirm Premier's model that the Helen Zone is a flat-lying, Carlin-style deposit that occurs in favourable limestone and dolomite units and remains open along the favourable anticline structure that was host to the primary mineralized zones mined at the Cove pit.

Nevada is one of the world's most favourable jurisdictions for mine development and the Cove Gold Project offers substantial upside in the existing resource areas in addition to opportunities for the discovery of new high-grade gold deposits within the district.  The Cove deposit was mined (primarily by open pit) between 1988 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of gold, and more than 100 million ounces of silver.  The Cove Project is held under lease from Newmont McCoy Cove Limited, a wholly owned subsidiary of Newmont Mining Corporation. Newmont has the option at any time to earn back 51%, by paying 250% of all exploration
expenditures on the project since March of 2006.  If Premier submits a positive feasibility study containing 500,000 ounces gold or greater, Newmont has a window of 90 days in order to confirm its participation.

SOURCE Premier Gold Mines Limited

posted in:

Other Mining News

Marathon completes successful sprite zone winter drilling program, Valentine Lake property 18-04-2014
Aureus Mining Inc. - appointment of MonuRent to provide and maintain fleet for owner mining operation at the New Liberty Gold Project in Liberia 18-04-2014
Vista Gold Corp. announces option agreement on the Guadalupe de los Reyes project 16-04-2014
Ivanhoe Mines' drilling program extends depths of rich zinc and copper zones at the Kipushi Mine in D.R. Congo 16-04-2014
Vorkutaugol to commission 11 new coal faces across its mines in 2014 16-04-2014
Vanstar updates on Liam drilling 15-04-2014
Lakeland Resources Inc. acquires 5 new uranium properties in the Athabasca Basin 14-04-2014
Comstock Mining provides update 11-04-2014
Sierra Mining Limited announces registration of scheme booklet 11-04-2014
Silver Standard provides first quarter 2014 operational results 11-04-2014