Premium Exploration drills 80 m of 0.8 g/t Au at Friday
Premium Exploration drills 80 m of 0.8 g/t Au at Friday
2014-09-08 13:25 ET - News Release
Mr. John Ryan reports
PREMIUM EXPLORATION ANNOUNCES PAYMENT OF CLAIM FEES
Premium Exploration Inc. has provided the following update.
Claim fees paid
Premium Exploration has paid the Bureau of Land Management claim fees which were due on Sept. 2, 2014, on a large portion of the landholdings of the company in both Idaho and Montana. The funds used to pay the fees were those received in a payment from New Jersey Mining Company from the sale of the company's Deer Trail patented mining claims and old sawmill site located near Elk City, Idaho.
The company evaluated the existing land package that it had retained last year for the following factors: (1) geological potential; (2) accessibility; (3) difficulty of permitting for exploration; and (4) difficulty of permitting for eventual development. Based on these factors and the economic constraints facing the company, the land package was significantly reduced but retains all of the existing known resources and a large portion of the drill infill exploration potential.
Commented John Ryan, chief executive officer of Premium: "I feel we met our goal of reducing our claim package as much as possible, while still retaining a very large amount of upside for both current shareholders and future potential investors of the company. In the past few years, the burden of these claim fees has weighed heavily on the company and has caused the company to make last-minute 'panic' funding decisions in order to pay the claim fees. I strongly believed that this year we should concentrate on which claims held the strongest potential for the company and only retain those claims. We were able to pay the claim fees this year well in advance of the end-of-the-month deadline and, as a result, were able to much better rationalize what the ongoing future land package should look like. I think this is a good move for the long-term survivability of the company, especially in light of the ongoing difficult market conditions."
2014 Friday drill program update and results of drill hole PRF2014-7
A total of 15 holes were drilled in the early months of 2014 into the high-grade sections of the Friday deposit, and results from six of the holes have been press released in the past. Three holes targeted the deep gold zone at roughly 200 metres average depth, and 12 holes targeted the upper gold zone at roughly 100 metres average depth. All selected zones for assay have been received by ALS Chemex laboratory in Elko, Nev., and results for eight holes continue to be pending, awaiting payment of assay and handling fees.
Recently the company received results from ALS Chemex for hole PFR2014-7, which are summarized in the attached table. This hole was the southernmost hole drilled on the property at an azimuth of 120 degrees, inclination of minus 45 degrees and to a depth of 122 metres. Commented Mr. Ryan, CEO of the company: "This hole demonstrates that the Friday zone's southern boundary has not yet been found with drilling. The deposit remains open to the south, and we look forward to advancing this project with further drilling and possible underground access once funds are available. We are pleased with the results from this hole as we intercepted a very long interval of close to one-gram-per-tonne material, which has been typical of past drilling. Additionally, although this hole did not intersect a spectacular high-grade interval as has been the case in many other holes, there was a definite 'bump' in grade right where we expected it to be in the hole, demonstrating that the prevalent high-grade structure is present and continuing to the south. As is common with high-grade gold systems, the presence of structure in the hole at the right point is perhaps more important than a high-grade gold 'hit' in terms of overall evaluation of the project. Overall grade is ultimately best evaluated with a bulk sample of high-grade material."
Highlights of PFR2014-7 include:
- 0.8 gram per tonne gold over 80.2 metres;
- 4.4 g/t gold over 1.5 metres;
- 2.76 g/t gold over 1.5 metres;
- 2.5 g/t gold over 1.5 metres.
Drill hole Zone From To Interval Au (m) (m) (m) (g/t) PFR2014-7 Friday 24.08 104.24 80.2 0.80 Including Friday 27.13 28.65 1.52 4.40 Friday 38.71 40.23 1.52 2.76 Friday 58.22 59.74 1.52 2.50 (1) The gold grade calculation is a weighted mean with no top cut and no bottom cut. The grade calculation includes internal waste and low-grade sections. (2) True widths are estimated to be between 65 per cent and 75 per cent of the drilled interval.
The recent drilling program was completed to support a preliminary economic study of the high-grade portions within the Friday deposit and is designed to extend the high-grade mineralization found in drill holes detailed in previous press releases. The high-grade mineral zones have been identified by internal block modelling done by the company and its consultants, and incorporate over 50 past drill holes done by the company and its predecessors. The 2014 drilling will help support a preliminary economic assessment, which will be completed by an outside third party consultant upon further financing. The PEA will focus on the feasibility of mining the high-grade underground gold resources, which are indicated at the Friday deposit.
Year of the Profit, Oilseeker