After two years of exploration, measured and indicated resources have jumped by 269% to 2.5 million oz. at Premier Gold Mines‘ (PG-T) 70%-owned Hardrock gold project near Geraldton in northwestern Ontario. Inferred resources have grown by 164% to 1.1 million oz.
An updated estimate uses 11 identified mineralized domains to develop a potential open-pit and underground resource.
Hardrock has measured and indicated resources in a potential open-pit mine, at a 0.5 gram gold per tonne cutoff grade, of 18.2 million tonnes at 1.85 grams gold per tonne for 1.08 million oz. contained gold. Plus another 937,000 inferred tonnes at 1.85 grams gold for 55,700 oz. contained gold.
In the underground portion of the project, measured and indicated resources at a 2 gram gold cutoff tally 12.85 million tonnes of 4.57 grams gold for 1.89 million oz. contained gold and inferred resources of 9.15 million tonnes at 4.41 grams gold for 1.3 million oz. contained gold.
A Whittle-pit analysis suggests a strip ratio on Hardrock’s open-pit resource of 2.1-to-1.
The potential open-pit Kailey deposit resource – about 2 km north of the Hardrock deposit – is included in the new Hardrock estimate and contains 127,000 oz. of measured and indicated resources grading 1.57 grams gold and 10,000 oz. of inferred resources at 1.48 grams gold. Kailey, near the site of the past-producing Little Long Lac gold mine, is a small, lower-grade potential open-pit resource.
Hardrock, a joint venture with Goldstone Resources (GRC-T), is about 4 km south of Geraldton and hosts several past-producing mines, which between 1938 and 1968 together produced more than 3 million oz. gold from depths primarily within 600 metres of surface. Underground resources are located close to and below the historic mine workings.
In 2010, Premier completed 114,000 metres of drilling at Hardrock on near-surface and deeper zones. Many of these remain open for expansion. Currently, eight drills are active on the property and the company says it sees “considerable upside” in the resource. This year Premier is planning a 70,000-metre drill program.
The company also expects to nail down permits for advanced exploration, which will include de-watering the historic mine workings and building an exploration ramp. The ramp will enable Premier to drill from underground in preparation for a preliminary economic assessment. New discoveries including the High-Grade North zone and the F2 East zone will be the focus of the underground drill program.
Hardrock is near the Trans-Canada highway, the Trans-Canada pipeline, and major power lines.
At presstime, Premier was trading at $7.65 per share, within a 52-week range of $3.85 (May 7, 2010) and $7.92 per share (April 5, 2011). The company has 104.2 million shares outstanding.
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