Successful Delineation Of Higher Grades At Mercedes

THUNDER BAY, ON - Premier Gold Mines Limited reported on the continued success of its delineation core drilling program at the Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The campaign is focused on expanding and confirming the continuity of higher-grade mineralization in several areas including Marianas, San Martin and Diluvio West.

"Our recent delineation drilling at Marianas, San Martin and Diluvio West confirm that these zones are emerging as important contributors to the future production at Mercedes," said, Stephen McGibbon, Executive Vice–President. "We are excited by these three major areas that have yielded some of the best grade intercepts over the past several years."

Marianas represents the down-plunge extension of the main Mercedes mine trend, which remains open at depth. A delineation program of 5,000 m will be completed by the end of the year. This program is conducted from a nearby ramp, driven from the Lagunas mine workings, which will be used as access for future mine development.

The delineation campaign confirmed that Marianas is composed of three main veins: Main, West and East. Significant results in the core of the mineral resource at Marianas Main returned 6.3 m of grading 20.23 g/t Au & 631.41 g/t Ag contained within 12.7 m of grading 10.17 g/t Au & 294.27 g/t Ag (UG-MR20-065). Marianas East, a sub-vertical structure west of the Main vein, has returned up to 2.8 m grading 5.29 g/t Au & 30.28 g/t Ag (UG-MR20-063). Six drill holes remain to complete the delineation program which should result in an upgrade and increase in the Marianas resource. The plan is to upgrade these to reserves for production in 2022.

San Martin, located 600 m to the west of Lupita, was discovered with an intercept of 1.5 m of 5.56 g/t Au (L19-396D) in May 2019. The delineation program underway at San Martin has identified a fault on the eastern portion of the deposit, along which the vertical displacement is interpreted to be 170 m. Further drilling is planned to prospect for the vein at depth. Drilling in 2020, focused on the eastern portion of San Martin, to define the extension of the mineralization and the potential for inferred resources.

Highlights of the program include 4.2 m grading 10.03 g/t Au & 118.89 g/t Ag (L20-534D), confirming prospective continuity towards the Neo target to the north. Drilling at the edge of Lupita Extension returned 1.8 m grading 5.31 g/t Au & 131.42 g/t Ag (L20-528D), demonstrating further potential to the north. Assay results are still pending for several holes that intercepted veins that are visually encouraging. Drilling to date continues to expand San Martin and increases confidence in the grade of the zone.  

Drilling at Diluvio West continues to intercept high-grade zones including 12.2 m of 4.47 g/t Au & 21.43 g/t Ag and 6.2 m of 5.64 g/t Au & 12.57 g/t Ag contained within 56.6 m of 2.99 g/t Au & 12.28 g/t Ag (UG-DI20-105). Other intercepts on the edge of the mineralized zone returned 10.2 m of 7.12 g/t Au & 26.21 g/t Ag (UG-DI20-099), 27.5 m of 4.07 g/t Au & 13.39 g/t Ag (UG-DI20-113) and 36.5 m of 3.24 g/t Au & 11.29 g/t Ag (UG-DI20-109). The program focused on defining the limits of the mineralization and confirm the continuity within the heart of the zone.

Diluvio West consists of a vein stockwork system within a broad envelope. The underground drill program has increased confidence in the grade and should result in an upgrade from a resource to a mineral reserve. The program returned several large intercepts of higher grades within the core of the zone and has successfully delineated the extent of mineralization.