EXPLORATION & DEVELOPMENT

Drilling confirms Mercedes expansion potential

Lupita-Diluvio area shaping up with high potential

Staff Reporter
 Premier's Mercedes project area in Sonora, Mexico

Premier's Mercedes project area in Sonora, Mexico

The company has discovered new mineralised veins at San Martin and Margarita, outlining a 3km corridor with potential for future discoveries. In addition, extension drilling on the Lupita vein returned multiple intercepts including 3.9m grading 5.99 grams per tonne of gold and 40.75g/t of silver.

"Premier is very encouraged by the expansion of the Lupita-Diluvio resource areas, and the 3km corridor that step-out exploration has identified," said EVP Stephen McGibbon.

Mercedes is an underground gold and silver mine that exploits quartz veins and quartz-carbonate stockworks within a low-sulphidation epithermal system. Guidance is for 2019 production of up to 85,000oz of gold and 250,000oz of silver from the Marianas underground mine and a 2,000tpd plant.

Four kilometres east of the Mariana main trend is an under-explored basin that hosts both the Lupita and Diluvio deposits.

Shares in Premier Gold Mines (TSX:PG) are trading at C$1.85, valuing the company at $389 million. Its share price has increased almost 11% so far this year.

 

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