Issue link: http://resourceworld.uberflip.com/i/1174544
44 www.resourceworld.com O C T O B E R / N O V E M B E R 2 0 1 9 SPENCES BRIDGE Zone is associated with a broad area of dis- seminated pyrite hosted in silicified and brecciated feldspathic rocks. The Canyon and Central Zones are both untested resistivity anomalies with coincident anomalous gold-arsenic soil geochemistry. The company plans to complete detailed bedrock and alteration mapping, prospecting and confirmatory sampling of known zones, a magnetometry survey, early stage thin section analysis and preliminary environmental baseline studies. Independence is working towards earning a 60% interest in the Nicoamen property from Almadex Minerals Ltd. [DEX-TSXV]. Lionheart Exploration Inc., a private company, is planning to obtain a listing on a Canadian stock exchange, a prerequisite to inaugurating a comprehensive explora- tion program on its two 100%-optioned properties in the heart of the SBGB – Chev West and Chev North. Geologists are cur- rently carrying out stream sediment and soil sampling on the Chev North. The Chev claims encompass an area of 5,910 acres in two different claim blocks directly north and west of Westhaven's Shovelnose Project. In the past, Chevron conducted MAG and EM surveys along with rock sampling that confirmed the gold potential on Lionheart's claims. While not exploring for gold in the SBGB, Nicola Mining Inc. [NIM-TSXV; HUSIF-OTC] offers custom gold ore pro- cessing in its 200 tonne-per-day mill where there is a fully-lined tailings facility located 10 km northwest of Merritt. The company has been successfully exploring the adjacent past-producing Craigmont copper mine. With the kind of assays that geologists and investors hope for, the Spences Bridge Gold Belt is developing into a new and sig- nificant area play with excellent potential for further discoveries. n High-grade delineation continues at Premier's Mercedes Mine Premier Gold Mines Ltd. [PG-TSX; PIRGF-OTC] provided an update on its 42,000-metre diamond drilling program at the company's 100%-owned, producing (2,000 tonnes per day) underground Mercedes gold-silver mine, located 60 km southeast of Magdelana de Kino, in the State of Sonora, northern Mexico. The 2019 drilling campaign is currently focused on delineating new mineral resources in the Lupita Extension, while exploration is still testing potential at Neo. Highlights from August and September include, in true thickness: • 3.6 metres of 7.18 g/t gold & 54.38 g/t silver (L19-441D) • 1.8 metres of 24.24 g/t gold & 1.79.43 g/t silver (L19-445D) • 3.4 metres of 10.47 g/t gold & 63.60 g/t silver (L19-448D) • 4.4 metres of 8.86 g/t gold & 66.69 g/t silver (L19-451D) • 3.1 metres of 13.65 g/t Au & 80.01 Ag g/t (L19-429D) at Neo, within a stockwork system similar to Diluvio "Our Lupita Extension drilling is returning intercepts well in excess of average production grades," commented Stephen McGibbon, Executive Vice-President. "Early results from the San Martin/Neo target area suggest that our 2020 campaign will confirm the potential for significant resource expansion as well." LUPITA EXTENSION The Phase 2 infill program at Lupita Extension continues to increase potential resource mineralization by demonstrating the continuity of the vein to the west. Figure 1 presents the evolution of the grade thickness map from the beginning of 2019 to today. New results are enlarging the high-grade zones, as well as defining its limit, which will guide the focus of future drilling. Drilling will delineate the mineralized footprint discovered in 2019 with a 30 m x 30 m grid over the area. In August and September, a total of 34 drill holes, representing 5,855 m of drilling, were completed. An additional 12 drill holes assay results are pending. NEO TARGET Neo represents a potentially new discovery at Mercedes, located 400 metres north of San Martin. It was identified as a possible extension to the Diluvio system due to geological simi- larity. The first hole followed up an historical drill hole, L15-258D that contained 1.53 metres gfrading 6.95 g/t gold and 4.00 g/t silver. L19-429D, located 110 m to the east, successfully returned 3.1 metres of 13.65 g/t gold and 80.01 g/t silver. Two additional holes drilled to the east had low-grade results, one of which was hosted within 30 metres of the same host rock as Diluvio. Drilling in 2020 will further test the potential to expand the mineralization up to 900 metres east to Diluvio. Production guidance for 2019 is forecast at 75,000 – 85,000 ounces of gold and 225,000 – 250,000 ounces of silver. Production for Q2 2019 was 15,532 ounces of gold. Cash cost of production for 2019 is expected to range between US $730 – 780/oz gold. Premier Gold Mines is focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; South Arturo in the Carlin Trend of Nevada, a joint venture between Premier (40% ownership) and Barrick Gold Corp.'s [ABX-TSX; GOLD-NYSE] wholly- owned subsidiary, Barrick Gold Exploration Inc., and the Mercedes Mine, and through future mine development opportunities at the Hardrock Project in northwestern Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing and the McCoy-Cove Project in the Battle Mountain-Eureka trend, Nevada. The company has about $26.4 million in its treasury. n www.resourceworld.com