Premier Gold Mines (PG-T) says deeper drilling has intersected the widest gold zone so far within the PG70 discovery area of the Rahill-Bonanza project, its joint venture with Red Lake Gold Mines, an affiliate of Goldcorp (G-T, GG-N).
The company has also made a new discovery between Goldcorp’s GAZ deposit on the East Bay property and Rubicon Mineral‘s (RMX-T, RBY-X) Phoenix project. The discovery is on the portion of the East Bay property that is operated under a 50-50 joint venture with Red Lake Gold Mines.
Rahill-Bonanza is in the heart of the prolific Red Lake gold mining district and highlights from drilling in the PG70 zone, which is close to the high-grade Bruce Channel deposit, included Hole PG10071*, which returned 23.70 grams gold per tonne across 2 metres, and Hole PG10072B’s 9.53 grams gold across 6 metres.
Lower grade but widespread mineralization in PG10072B returned 4.31 grams gold across 25 metres. In addition to the PG70 Zone intercepts, the deep extension of hole PG10071A intersected the WGZ, returning 3.83 grams gold across 19 metres, about 1,253.5 metres downhole. That intersect is about 700 metres beneath the bottom of the historic WGZ deposit, a large, near-surface, bulk-tonnage deposit.
The Rahill-Bonanza property covers about 4.5 km of the Red Lake mine trend between the Red Lake Gold Mines’ complex to the east, and the Cochenour (Bruce Channel) complex to the west, and is the last piece of the main mine horizon in the Red Lake gold camp that is not 100% owned by Goldcorp. The Rahill-Bonanza ground includes several deposits having historical and National Instrument 43-101 compliant resources as well as the past-producing Wilmar gold mine.
At the East Bay project, meanwhile, about 2,775 metres of diamond drilling in six holes during the winter of 2010 yielded a new discovery on the portion of the East Bay property that is operated under a 50:50 joint venture with Red Lake Gold mines.
So far the new discovery area has been tested in just one hole. The discovery hole, EBJV10174, intersected a major shear zone characterized by silica flooding and disseminated pyrrhotite within biotite-amphibole altered basalts. Premier believes the zone of veining and mineralization is similar to Rubicon’s ‘F2″ Gold Zone. Assay results are pending.
At presstime Premier was trading at at $4.09 per share.
The company has traded in a range of $1.89-$4.52 per share over the last year and has 92.6 million shares outstanding.
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