Premier Gold Mines Limited TSX:PG in joint venture with Goldcorp TSX:G announced assay results from the Wilmar Mine target area of the Rahill-Bonanza project in Ontario. Highlights include
68.87 g/t gold over 3.5 metres (including 207.43 g/t over 1.2 metres)
46.15 g/t over 4.5 metres
15.12 g/t over 2 metres
19.8 g/t over 1.2 metres
60.01 g/t over 2.6 metres
89.95 g/t over 1 metre
The Rahill-Bonanza project is owned 49% by Premier and 51% by Goldcorp.
The companies also announced that the Cochenour-Red Lake haulage drift that is being constructed has crossed onto the Rahill-Bonanza project. Premier President Ewan Downie tells ResourceClips.com, “On the uncomformity contact, the Rahill-Bonanza joint venture property covers about 4.5 kilometres of the favourable horizon that hosts the Red Lake Mine on one side and the Bruce Channel deposit and Cochenour Mine on the other side. Goldcorp is building a haulage tram to link the two operations at a depth of 5,400 feet. We have been drilling underneath the historic Wilmar mine at depth towards where the tram is going to come through. From that tram we will be exploring the whole strike length of the Red Lake mine trend, which has never been drilled at the depth of the tram. So it’s opening up a whole new horizon for exploration and, hopefully, future development.
I think that by the time Cochenour goes into production—Goldcorp is saying that will be 2014—by then we should have reserves and resources drilled off on the JV as well right beside those workings—Ewan Downie
“In the last four years that Cochenour was in operation all the ore was coming from Wilmar. It was shut down in the 1960s owing to low gold prices. The average grade at Wilmar that they were mining was just over 10 g/t. We’ve been drilling around and beneath the workings, and we’ve been having quite a bit of success, including intermittent multi-ounce-plus drill hits. Today was just more of that.
“We’ll be taking a break in the program for spring break up,” Downie continues. “Then [we will be] drilling from surface throughout the year. In the second half of the year we’re going to start an exploration program on the JV from that tram. That drill program will probably go, on and off, for the next decade, I’d guess. So it’s pretty exciting.
“We’ve got an internal resource on the property, but we probably won’t be doing a 43-101 until we get underground to drill off reserves. I think that by the time Cochenour goes into production—Goldcorp is saying that will be 2014—by then we should have reserves and resources drilled off on the JV as well right beside those workings. Goldcorp has been a great partner there. We continue to move the project forward, and as we define reserves and resources I think that they will bring them online for development.”
Downie notes that the company is well funded and moving forward with $85 million in the bank.
“If it was 100% our property we’d probably be a little more aggressive in drilling, but with Goldcorp funding 100% of the cost of the tram we’re quite happy to move at a bit slower of a pace, given that they’re putting in this major mine development that opens the potential of our JV property.” He concludes, “We’re quite happy with the progress, and as the tram gets completed I think that exploration and development on our project will accelerate. In my opinion it’s one of our core projects, if not the core project; we sit right in the middle of two of Goldcorp’s major gold mines.”
Premier Gold Mines Limited
by Ted Niles