Premier Gold Mines drills 30.4 metres of 6.64 g/t gold at Mercedes

Premier Gold Mines Limited [PG-TSX] reported multiple new and high-grade intercepts from the expansion and delineation program active at its 100%-owned Mercedes Mine, located in the State of Sonora, northern Mexico.

Highlights of this ongoing drill program include:

• New mineralized veins have been discovered at San Martin and Margarita, outlining a 3 km corridor with high potential for future discoveries.
• Lupita vein extension drilling returned multiple intercepts including 3.9 m of 5.99 g/t Au & 40.75 g/t Ag and 2.9 m of 5.70 g/t Au & 56.00 g/t Ag (LP19-392D and LP19-390D).
• Ongoing delineation program at Lupita intersected high-grade intercepts including 1.2 m of 10.75 g/t Au & 89.31 g/t Ag (UG-LP19-016).
• Diluvio West delineation returns 30.4 m of 6.43 g/t Au & 11.91 g/t Ag including 4.4 m of 13.79 g/t Au & 21.93 g/t Ag (UG-DI19-056).

“Premier is very encouraged by the expansion of the Lupita – Diluvio resource areas, and the 3-km corridor that step-out exploration has identified”, commented Stephen McGibbon, Executive Vice-President. “A high-grade intercept from the delineation program at Diluvio West validates our current resource model.”

Mercedes is an underground gold and silver mine that exploits quartz veins and quartz-carbonate stockworks within a low-sulphidation epithermal system. The Mercedes trend is host to a series of high-grade sub-vertical veins with production to-date (2011-2018) of some 687,000 recovered ounces of gold.

Four kilometres east of this main trend is an under-explored basin that hosts both the Lupita and Diluvio deposits. This corridor is attractive for future discoveries. The Lupita deposit has a 2018 P+P mineral reserve of 329,000 t grading 4.42 g/t gold for 47,000 oz and the Diluvio deposit has a 2018 P+P mineral reserve is 2,055,000 t grading 3.10 g/t gold for 205,000 oz.

It is the company’s goal to convert a portion of Lupita and Diluvio resources to mineral reserves during the balance of 2019 and successfully explore for potential resource extensions. Drilling has recently discovered favourable veining and mineralization in newly tested areas proximal to the Lupita – Diluvio deposits, to the west at San Martin and to the east at Margarita..

An exploration campaign is currently testing both San Martin (600 metres to the west) and Margarita (1.2 km to the east) where drill holes have recently discovered mineralized veins at a similar Lupita Vein host contact with assays pending on multiple holes. The two areas are approximately 3 km apart, and the target is still open to the east and west. The consistent intersection of the mineralized vein along the Lupita fault contact to the west of the Lupita resource makes this area a focus for continued exploration.

The Lupita discovery outcrop hosts a 3-metre wide silicified vein of typical low-sulphidation epithermal textures and diagnostic green quartz. The Lupita Extension drill program, designed to expand the Lupita resource, was started early in 2019 to test the continuity of the vein to the west. The planned Phase 1 program included 18 drill holes with a 60-metre spacing of which eight drill holes are now completed.

Assay results show that the mineralized Lupita vein has been repeatedly crossed, with grades ranging from 1.09 g/t gold over 0.9 metres at the periphery to 5.99 g/t gold over 3.9 metres. A second phase of 6,000 metres drilling will infill to a 30-metre spacing, supporting the creation of indicated mineral resources.

In addition, an underground Lupita Delineation program is focused on upgrading ounces of gold from the current resource. Highlights include high-grade intercepts that improved the grade x thickness of the zone). A portion of the underground program plan will also drill directly to the east of Lupita ore body.

Results from the Diluvio underground delineation program are also reported. The ore at Diluvio is found within a stockwork system that is a unique host environment on the property. Recent structural compilation work and additional infill drilling has led to a more refined resource model and subsequent infill drilling remains very positive.

Five drill holes were part of an underground delineation program on the western part of Diluvio. UG-DI19-056, located within the heart of the zone, intersected a thick high-grade interval of 30.4 metres of 6.43 g/t gold and 11.91 g/t silver, including 4.4 metres of 13.79 g/t gold and 21.93 g/t silver and 5.0 metres of 12.58 g/t gold and 8.99 g/t silver. This interval supports confidence in the high-grade core of Diluvio West.

The other four drill holes tested the edge of the zone, and are still returning high-grade intercepts, including 8.7 metres of 3.48 g/t gold and 188.82 g/t silver (UG-DI19-055) and 1.3 metres of 5.94 g/t gold and 327.00 g/t silver (UG-DI19-054). The ongoing delineation program is designed to upgrade and possibly expand the mineral resource.