"Initial drilling confirms our belief that Marianas will be important to the future of Mercedes. The drill programme is in its very early stages, testing the margins of Marianas from new ramp development. We expect stronger and more consistent results as the drilling progresses toward the core of the Marianas resource later in 2019," said EVP Stephen McGibbon.
The Marianas zone comprises the down-plunge extension of the main Mercedes mine trend and where previous surface drilling has suggested that it has the potential to host economic mineralisation at grades above the current reserve grade.
Premier aims to convert a portion of Marianas mineral resources to mineral reserves with a delineation drill programme throughout the remainder of 2019. At the end of 2018, mineral resources in the Marianas area stood at 21,000y grading 18.39g/t for 13,000oz of gold in the indicated category and 645,000t grading 4.46g/t Au for 92,000oz in the inferred category.
Mercedes is an underground gold and silver mine that exploits quartz veins and quartz-carbonate stockworks in a low sulphidation epithermal system at an extraction rate of about 2,000 tonnes per day.
Shares in Premier Gold Mines (TSX:PG) opened slightly down Tuesday at C$1.59, valuing the company at C$337 million.