K2 Gold

Premier Gold Mines Expands High-Grade at Diluvio West and Marianas

Includes 84.7 m of stockwork grading 6.31 g/t Au & 23.19 g/t Ag at Diluvio West

THUNDER BAY, ON, June 3, 2020 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) (OTCPK: PIRGF) ("Premier", "the Company") is pleased to announce an update on its delineation core drilling program at the Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West (See Figure 1, Table 1). Highlights from Q1 2020 drilling include:

  • Diluvio West returns multiple high-grade intercepts that include:
    • 84.7 m of 6.31 g/t Au & 23.19 g/t Ag (UG-DI20-096)
    • 73.5 m of 6.38 g/t Au & 13.65 g/t Ag (UG-DI20-095)
  • Marianas delineation drilling expands high grade in multiple horizons with:
    •  5.2 m of 11.67 g/t Au & 55.72 g/t Ag (UG-MR20-056)
    • 11.3 m of 9.74 g/t Au & 16.07 g/t Ag (UG-MR20-059)

"Our recent drilling from Diluvio West and Marianas confirm that these zones are emerging as important contributors to the future of Mercedes," commented Stephen McGibbon, Executive Vice-President. "The results of our Q1 program have provided some of the best intercepts realized over the past several years with grades well exceeding current reserves. We look forward to expanding on these now that drilling has been reactivated."

Figure 1 – Mercedes Trend location map (CNW Group/Premier Gold Mines Limited)

Diluvio West

Diluvio consists of a stockwork system that is divided into Diluvio Central, hosted in felsic volcanoclastic, and Diluvio West hosted in an andesite. The volcanoclastic host is more permeable than the andesite, allowing fluid to disperse whereas the andesites retain the gold-rich fluid longer, enhancing grade at Diluvio West versus Diluvio Central.

Because of the mineralization acting more as a broad envelope than discrete veins, bulk mining methods will be used at Diluvio West to recover the stockwork system, as was done at Diluvio Central. The underground delineation program is underway to increase confidence in the grade and convert the core of the deposit into a mineral reserve. This program has returned some large intercepts of high grade within the core of the zone and has helped outline the extent of mineralization (Figure 2).

Results from the Diluvio West underground delineation program contain a major interval in UG-DI20-096 of 84.7 m of 6.31 g/t Au & 23.19 g/t Ag that includes 10.5 m of 15.89 g/t Au & 31.43 g/t Ag and 14.2 m of 9.74 g/t Au & 30.63 g/t Ag. UG-DI20-095, higher in the zone, intercepted 73.5 m of 6.38 g/t Au & 13.65 g/t Ag. UG-DI20-085, located within the upper part of the zone, intersected a thick high-grade interval of 49.2 m of 3.13 g/t Au & 9.20 g/t Ag including 11.5 m of 5.80 g/t Au & 11.96 g/t Ag.

These intervals support confidence in the high-grade core of Diluvio West. Other drill holes tested the edge of the zone and still returned quality intercepts, including 13.5 m of 3.80 g/t Au and 10.89 g/t Ag (UG-DI19-077) and 5.9 m of 2.44 g/t Au and 19.62 g/t Ag (UG-DI19-089). The ongoing delineation program is designed to upgrade and possibly expand the mineral resource. Diluvio West is located immediately adjacent to existing mine workings and can be advanced quickly into development.

Figure 2 – Diluvio West delineation update (CNW Group/Premier Gold Mines Limited)

Table 1 – Highlight Composites summary from underground drilling at Diluvio

Hole ID

Target

From
 m

To
m

Length
 m

Au
g/t

Ag
g/t

UG-DI20-082

Diluvio Central

109.0

113.3

4.3

6.01

15.74

UG-DI20-084

Diluvio Central

64.6

69.0

4.4

6.11

167.27

UG-DI20-087

Diluvio Central

59.0

67.5

8.5

3.63

13.18

UG-DI20-091

Diluvio Central

27.9

40.7

12.9

3.38

17.60

Including

Diluvio Central

27.9

32.4

4.6

5.33

21.36

And

Diluvio Central

39.6

40.7

1.2

13.20

26.00

 

Diluvio Central

70.0

71.5

1.6

5.05

15.00

UG-DI20-094

Diluvio Central

59.3

98.6

39.4

2.24

7.00

Including

Diluvio Central

68.3

73.1

4.8

8.07

17.39

And

Diluvio Central

92.6

98.6

6.0

3.38

7.00

UG-DI19-077

Diluvio West

136.5

150

13.5

3.80

10.89

 

Diluvio West

137.7

145.0

7.3

5.42

12.49

UG-DI20-085

Diluvio West

50.4

89.4

39.0

2.32

13.65

Including

Diluvio West

77.4

89.4

12.0

3.40

18.13

 

Diluvio West

100.3

149.5

49.2

3.13

9.20

Including

Diluvio West

106.3

107.5

1.2

7.57

17.00

And

Diluvio West

128.5

140.0

11.5

5.80

11.86

 

Diluvio West

209.3

210.5

1.2

5.30

8.00

UG-DI20-089

Diluvio West

136.0

141.9

5.9

2.44

19.62

UG-DI20-092

Diluvio West

77.5

110.6

33.1

0.99

11.99

 

Diluvio West

59.0

60.0

1.0

9.16

17.00

 

Diluvio West

64.5

67.5

3.0

4.98

10.50

UG-DI20-095

Diluvio West

56.7

130.2

73.5

6.38

13.65

UG-DI20-096

Diluvio West

81.5

166.2

84.7

6.31

23.19

Including

Diluvio West

128.0

138.5

10.5

15.89

31.43

And

Diluvio West

152.0

166.2

14.2

9.74

30.63

Marianas

Marianas represents the down-plunge extension of the main Mercedes mine trend (Figure 1). A delineation program is currently getting drilled, with 3,000 m planned for the remainder of the year. This program is completed from a nearby ramp driven from the Lagunas mine workings, which will be used for future mine development (Figure 3).

Significant results were intercepted in the core of the mineral resource at Marianas. Locally, the grade and width of mineralization being intersected are significantly exceeding expectations (Table 2) with intercepts of up to 11.3 m of true width grading 9.74 g/t Au and 16.07 g/t Ag (UG-MR20-059). The drilling completed during Q1 upgrades the core of Marianas with expanding size and grade, with still more opportunities to augment.

Figure 3 – Marianas delineation update (CNW Group/Premier Gold Mines Limited)

Table 2 – Highlight Composites summary from underground drilling at Marianas

Hole ID

Target

From
 m

To
m

Length
 m

True Width
m

Au
g/t

Ag
g/t

UG-MR19-041

Marianitas

89.7

91.2

1.5

1.2

4.07

27.00

UG-MR19-046

Marianitas

67.3

71.5

4.2

4.0

5.21

43.58

UG-MR20-052

Marianas

107.0

111.3

4.3

4.2

8.64

102.19

UG-MR20-054

Marianas

112.2

115.7

3.5

3.2

3.58

242.09

 

Marianas

159.6

164.1

4.5

4.4

3.29

15.90

UG-MR20-056

Marianas

123.1

130.8

7.7

5.2

11.67

55.72

UG-MR20-058

Marianas

96.5

105.4

8.9

8.9

3.35

152.93

UG-MR20-059

Marianas

114.1

124.5

10.5

8.1

3.24

115.51

 

Marianas

155.1

167.3

12.2

11.3

9.74

16.07

Including

Marianas

161.2

167.3

6.1

5.7

17.75

21.18

Table 3 - Collar coordinates

UTM

Project

Hole ID

North
m

East
m

Elevation
m

Azimuth

Dip

NAD 27 zone 12

Mercedes

UG-DI20-082

552280

3360660

1050

215

-17

Mercedes

UG-DI20-084

552282

3360660

1049

195

-28

Mercedes

UG-DI20-087

552282

3360660

1049

185

-50

Mercedes

UG-DI20-091

552282

3360660

1049

185

-40

Mercedes

UG-DI20-094

552281

3360660

1049

204

-50

Mercedes

UG-DI19-077

551907

3360648

1034

160

-27

Mercedes

UG-DI20-085

551953

3360667

1015

178

-14

Mercedes

UG-DI20-089

551954

3360666

1015

166

-11

Mercedes

UG-DI20-092

551953

3360667

1015

191

-12

Mercedes

UG-DI20-095

551954

3360666

1015

165

-21

Mercedes

UG-DI20-096

551954

3360666

1015

178

-23

Mercedes

UG-MR19-041

547579

3357555

890

048

18

Mercedes

UG-MR19-046

547579

3357556

889

045

-10

Mercedes

UG-MR20-052

547420

3357637

863

022

-45

Mercedes

UG-MR20-054

547336

3357684

850

044

-11

Mercedes

UG-MR20-056

547335

3357684

851

022

-6

Mercedes

UG-MR20-058

547335

3357683

850

044

-33

Mercedes

UG-MR20-059

547335

3357684

851

034

-4

Premier Gold Mines Limited is a gold-producer and respected exploration and development company with a high‑quality pipeline of precious metal projects in proven, accessible, and safe mining jurisdictions in Canada, the United States and Mexico.

Julie-Anaïs Debreil, Ph.D., P.Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43 -101. Mercedes assay results are from core samples sent to ALS Chemex, an accredited mineral analysis laboratory in Lima (Peru) or Vancouver (Canada), for preparation and analysis utilizing both fire assay and ICP methods. For a complete description of Mercedes's sample preparation, analytical methods and QA/QC procedures refer to the technical report for the Mercedes Mine dated April 18, 2018 (effective date December 31, 2017), entitled "Technical Report on the Mercedes Gold-Silver Mine, Sonora State, Mexico."

This Press Release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, mineral resource and mineral reserve estimates and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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