Premier Gold Mines (TSX: PG; US-OTC: PIRGF) has released exploration results from its wholly owned Hasaga project in Ontario’s Red Lake camp that point to extensions of the Epp-C and Epp-D zones at the past-producing site.
The company has reported assay results for six drill holes, which stepped out the Epp-C area to the east and confirm continuity of the high-grade structures within the Epp-D zone for at least 240 metres.
Drill highlights from up-dip extensions of Epp-C include 17 metres of 4.93 grams gold per tonne; and 4 metres of 76.12 grams gold per tonne. Infill drilling within Epp-C returned 8 metres of 26.82 grams gold.
Notable intercepts from Epp-D include 11 metres of 4.94 grams gold and 2 metres of 7.18 grams gold.
“This drilling campaign intersected gold mineralization in every hole and was often accompanied by visible gold,” executive vice president Stephen McGibbon said in a statement. “In addition to significantly expanding the Epp-C and D zones, we have successfully demonstrated widespread mineralization further to the west toward Buffalo that warrants continued exploration.”
The Hasaga project features high-grade mineralization with true widths of up to 30 metres and is adjacent to Pure Gold Mining’s (TSXV: PGM) PureGold mine. The Hasaga site includes the past-producing Hasaga, Buffalo and Goldshore mines.
Premier’s focus for this year is assessing the underground potential of Hasaga. An underground resource estimate is expected by year-end.
Current resources at the site include 42.3 million measured and indicated tonnes, at 0.83 gram gold, containing 1.1 million oz. gold; and 25.1 million inferred tonnes, at 0.78 gram gold, for a further 631,000 oz. gold.
CIBC has a 12-18 month price target on the stock of $4.50 per share.
Over the last year, Premier has traded in a range of 85 cents and $3.10 and at presstime was trading at $2.52 per share. The company has about 237 million common shares outstanding for a market cap of about $598 million.