Premier discovers more high grade at McCoy-Cove

 

THUNDER BAY, ON Premier Gold Mines Limited reported that ongoing drilling continues to identify high-grade mineralization in multiple horizons at the Company's McCoy-Cove Project, located along the Battle Mountain-Eureka Trend in Nevada . Drill results from the 2015 exploration program have confirmed expansion potential within the historic UPC Zone and intersected multiple intercepts of Au-Ag±Cu skarn and polymetallic mineralization at depth beneath the historic McCoy pit. Two new mineralized zones were also intersected at previously undrilled depths, while testing the "Deep IP" target between the McCoy and Cove pits. 

At McCoy Open Pit & Underground initial drilling of the UPC zone has confirmed historic mineralization as well as identified additional expansion potential along the Gold Dome fault. Continued drilling 300 m beneath the UPC Zone with drill-hole PM15-09 discovered new mineralization hosted within the hanging wall of the McCoy Thrust fault. 

The McCoy Thrust created a similar thrust-dominated structural fabric to the Cove pit and its associated deposits with mineralization consisting of sulfidic skarn alteration and mineralization at the thrust contact with the Dixie Valley conglomerate and Favret limestone. The McCoy thrust is also cut by several cross-cutting "feeder" structures including the Gold Dome and Bay faults, which were historically mined at both the Cove and McCoy open pit and underground operations. Step-out drilling 200m along strike of PM15-09 intersected similar alteration and mineralization associated with the McCoy thrust in PM15-11A. Structural similarities to the thrust fault-hosted 2201 Zone beneath the Cove pit, as well as lateral continuity suggested by initial drilling, confirms Premier's belief that significant infill and expansion potential exists within the McCoy Thrust horizon and warrants additional drilling in 2016.

The Deep IP target horizon is located between the McCoy and Cove open pits, with the strongest anomaly associated with the Gold Dome and Bay faults at previously untested depths of 400 meters or more. Initial testing of the Deep IP anomaly with drill-hole PM15-17 intersected multiple intervals of Carlin -type and polymetallic mineralization at previously undrilled depths. 

"Intercepts from the 2015 drilling program highlight the potential size of the McCoy-Cove system and demonstrate our confidence to expand high grade gold and silver mineralization within the UPC, Deep IP and McCoy Thrust target horizons," stated Chad Peters , Premier's Nevada Exploration Manager. "Planned 2016 drilling will focus on infill and expansion of multiple high grade targets with a property-wide resource update planned for year-end."

The McCoy-Cove Project is located along the Battle Mountain-Eureka Trend (See Figure 3) that is host to numerous multi-million ounce producing and past-producing mines. The McCoy and Cove deposits were mined (primarily by open pit) between 1986 and 2001, a period of comparatively low metal prices, producing approximately 3.3 million ounces of gold and more than 110 million ounces of silver. The property is located in close proximity to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.