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
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