RE:South Arturo UpdatePremier Gold Provides Exploration and Development Update at South Arturo Mine
Drill results include 45.7 m of 21.7 g/t Au and 68.7 m of 15.92 g/t Au -
https://www.premiergoldmines.com/assets/docs/nr/2018-05-01_NR_PG_jp5b9Nns-20180430212530.pdf -
Brent Cook Comments
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Premier Gold (PG.T)—Better than expected grades at El Nio
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The North American junior gold producer updated the market on progress at the South
Arturo joint venture with Barrick Gold (ABX.T, ABX.NYSE), which comprises several deposits
in the Carlin Trend of Nevada.
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In a past letter we highlighted that the first quarter production at South Arturo (15 koz > 10 koz) had exceeded the upper limit of the full year guidance for this project, which is a positive from a production perspective as it offsets the shortfall at Mercedes due to changes in the mine plan.
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Besides treating stockpile at the mine, which is processed at the nearby Goldstrike facility,
the company has shifted to exploration on the property and the development of new open
pits and underground projects.
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This week’s results were from a drill program designed to test for near pit gold mineralization, infill any gaps, and condemn any areas requiring infrastructure for development at the Phase 1 open pit and El Nio underground projects, where development is planned for the second half of 2018.
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The program intersected extremely high grade gold mineralization at the El Nio
underground project (which is the down plunge extension of the completed Phase 2 open
pit) including 68.5 meters grading 15.9 grams per tonne gold and 45.7 meters grading 21.6
grams per tonne gold.
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The high grades exceeded the grades expected near the planned portal location and the mineral resource estimates at the Upper Zone were confirmed.
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Unfortunately, no plan maps or sections were provided to put the intersections in context
with respect to the current resource.
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The Phase 3 Pit is an additional project at South Arturo where drilling encountered higher
than expected grades at the southern extent of the current pit design and found new gold
mineralization under the pit outline, including 35.7 meters grading 16.5 grams per tonne
gold.
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The potential to expand the resource for this target will be further tested.
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End Quote. -
RJ