Premier Expands High-Grade Mineralization at the El Nino Mine, Nevada

THUNDER BAY, ON, Feb. 16, 2021 /CNW/ – Premier Gold Mines Limited (TSX: PG) (OTCPK: PIRGF) (“Premier”, “the Company”) is pleased to announce additional results from the 2020 drill program focused on expanding mineralization at the El Nino underground mine on the Company’s 40%-owned South Arturo Property. Located on the prolific Carlin Trend of Nevada, the South Arturo Mine is a joint venture between Premier and Nevada Gold Mines LLC, a joint venture between Newmont Mining Corporation and Barrick Gold Corporation (“Barrick“) operated by Barrick.

Highlight intercepts from the drill program include:

• 25.9 m of 13.33 g/t Au includes 18.3 m of 15.84 g/t Au (SEC20004)
• 10.7 m of 10.70 g/t Au and 16.8 m of 8.57 g/t Au and 18.3 m of 6.77 g/t Au (SEC20008)
• 9.1 m of 24.11 g/t Au and 6.1 m of 7.84 g/t Au and 3.1 m of 20.45 g/t Au (SEC20009)
• 3.1 m of 29.21 g/t Au and 18.3 m of 26.76 g/t Au and 4.6 m of 7.05 g/t Au (SEC20010)
• 3.1 m of 55.73 g/t Au and 3.1 m of 7.08 g/t Au (SEC20011)
• 6.1 m of 10.46 g/t Au and 10.0 m of 9.45 g/t Au (SER20022)

Highlight intercepts from previously released drill holes in 2020 include:

• 41.1 m of 7.37 g/t Au (SEC20003)
• 100.6 m of 5.72 g/t Au (SER20018)
• 39.6 m of 17.11 g/t Au (SER20019)
• 45.7 m of 6.79 g/t Au includes 9.1 m of 10.15 g/t Au and 4.6 m of 18.82 g/t Au (SER20025)

“The highly successful drill campaign in 2020 at El Nino has returned numerous impressive intercepts with excellent grade and width that bode well for the future of the mine”, stated Ewan Downie, President and CEO of Premier. “Multiple holes from the program intersected multiple zones of mineralization and we expect an increase reserves and resources and an expanded mine life. The deposit remains open at depth and along strike”.

El Nino is a Carlin-type deposit hosted in a silica-sulphide breccia within the Rodeo Creek formation near the contact with the Bootstrap limestone. Ore from El Nino is processed at Nevada Gold Mines’ nearby Goldstrike facility.  Exploration drilling in 2020 tested the down-plunge extent of mineralization at intersections of favorable structures, where high-grade ore often resides.

Results received to date (see Figure 1 and Table 1) indicate that the 2020 delineation campaign has successfully extended high–grade mineralization more than 100 m below existing mine workings and confirms the likelihood to continue expanding high-grade mineralization at depth. The irregularly shaped mineralization mapped from mining excavations suggest true widths are 40% to 80% of the core lengths summarized in Table 1. Assays results from six drill holes completed in the northern portion of the lower El Nino target are pending. In 2021, 6,000 metres of drilling is planned to further define and expand the ore body that remains open at depth to the east and along strike north and south. 

In addition to the drilling completed in 2020 at El Nino, a surface drilling program was also completed proximal to the Phase 1 pit and Phase 3 deposit in an effort to better define near-surface mineralization potentially amenable to heap leach processing and to test potential high-grade targets. Results from this program are expected to be received in the first quarter. Part of the ongoing work being performed at South Arturo include trade-off work associated with the Phase 3 project (open pit vs underground) and progressing a revised mineral resource estimate that will then be completed once all assay results from 2020 are received.

Qualified Person

Stephen McGibbon, P. Geo., Executive Vice President, Corporate and Project Development, 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. The primary assay laboratories for the South Arturo Mine are ALS Minerals and American Assay Labs (American Assay) in Reno, Nevada. For a complete description of sample preparation, analytical methods and QA/QC procedures, refer to the technical report dated January 25, 2021 (effective date December 1, 2020), titled “Preliminary Feasibility Study for the South Arturo Mine, Elko County, NV” located on Premier’s website and at www.sedar.com.

Abbreviations used in this press release are available by following this link (click here).

About Premier & i-80

Premier is a gold producer and respected exploration and development company with a high-quality portfolio of precious metals projects in proven, accessible, and safe mining jurisdictions in Canada, the United States and Mexico. On December 16, 2020, Equinox Gold Corp. and Premier Gold Mines Limited announced that the companies have entered into a definitive agreement whereby Equinox Gold will acquire all the outstanding shares of Premier. Concurrently, Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp.

Premier remains focused on creating i-80 as a Nevada-focused mining company with an organic pipeline of assets to achieve mid-tier gold producer status. In addition to its producing mine, El Nino at South Arturo, Premier is beginning to plan for future production growth through the potential addition of the Phases 1 & 3 projects at South Arturo, advancing the Pinson underground and open pit opportunities at the Getchell Project, and completing permitting and the underground development plan for the 100%-owned McCoy-Cove Property.

Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the Company’s current expectations regarding future events, performance and results and speak only as of the date of this release.

Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.

Although the forward-looking statements contained in this release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.