Premier Gold Mines triples gold resource at Hardrock Project

Andrew Topf | April 7, 2011 | 2:59 pm Precious Metals Canada Gold 

Toronto-listed Premier Gold Mines has nearly tripled gold resources at its 70%-owned Hardrock Project in northwestern Ontario, Canada.

An updated NI 43-101 report by Micon International Limited shows a 269% increase in measured and indicated resources to 2.5 million ounces, and a 164% increase in inferred resources to 1.1 million ounces.

“This robust mineral resource estimate at Hardrock is the result of a great team effort and 24 months of aggressive exploration,” said Premier President & CEO Ewan Downie. “This resource estimate is in line with our goal of developing a significant deposit, potentially capable of mid-tier gold production. With eight drills currently active on the property and several zones still open for expansion, we continue to see considerable upside in this resource.”

The company plans to do 70,000 metres of drilling in 2011, along with de-watering of older mine workings and construction of an exploration ramp.

The Hardrock Project, located about four kilometres south of Geraldton, ON, is host to several past-producing mines which collectively produced more than 3 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968. Underground resources are located proximal to and below the historic mine workings.

The nearby Kailey deposit located about 2K north of the Hardrock deposit at the location of the former Little Long Lac gold mine. The Kailey mineralized zone is a small lower-grade potential open pit mineral resource.

Highlights:

  • A 269% increase in Measured and Indicated resources to 2.5 million ounces.
  • A 164% increase in Inferred resources to 1.1 million ounces.
  • A 30% increase in the “potential open pit” Measured and Indicated resource grade to 2.37 grams per tonne gold (g/t Au).
  • A 37% increase in the “potential open pit” Inferred resource grade to 2.48 g/t Au.
  • Some 40% of the Measured and Indicated resource ounces are categorized as “Measured.”
  • A “Whittle-Pit” analysis suggesting a strip ratio on potential open pit mineral resources of 2.1 to 1.
  • The Kailey (“potential open pit”) Deposit resource is included and contains 127,000 ounces of Measured and Indicated Resources at 1.57 g/t Au and 10,000 ounces of Inferred resources at 1.48 g/t Au.

Click here to read the full press release

Image by Premier Gold Mines

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