A new National Instrument 43-101 resource estimate for the Rahill- Bonanza property in Red Lake, Ont., has pleased joint-venture partners Premier Gold Mines (PG-T, PIRGF-O) and Goldcorp (G-T, GG-N).
The estimate reveals an inferred resource of 2.28 million tonnes averaging 6.98 grams gold per tonne over an average width of 3.1 metres, for 512,000 oz. gold. A cutoff grade of 4 grams gold per tonne was used.
With a lower cutoff grade of 2 grams gold, the estimate pegged inferred resources at 6.65 million tonnes at an average grade of 4.26 grams gold per tonne over a width of 4.9 metres, for 911,000 oz. gold.
Red Lake Gold Mines, a Goldcorp affiliate, increased its interest in the Rahill-Bonanza joint venture by 1% to 51% in January. Premier owns 49% of the project, and Goldcorp is the primary operator of the joint venture.
The property is located in the Red Lake greenstone belt of northwestern Ontario’s Red Lake mining district.
Rahill-Bonanza is contiguous to Goldcorp’s Red Lake gold mine complex, one of the world’s highest- grade gold mines. It is also host to several gold deposits and mineralized zones, including the Wilmar and West Granodiorite gold deposits, and the Follansbee, Bonanza, CP and North Contact zones.
The property is underlain by numerous ultramafic horizons, which are key markers for high-grade gold in Red Lake, including Goldcorp’s high-grade zone.
A good chunk of the property has seen only limited or sporadic near-surface exploration.
The news sent Premier’s shares on the Toronto Stock Exchange up 6 to $1.96, on 173,000 shares traded.
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