Resource World Magazine

f e b r u a r y / m a r c h 2 0 1 6 www.resourceworld.com 53 Premier gold mines drills 46 g/T gold over 11 meTres premier Gold mines ltd. [PG-TSX] reported excellent drill results from its Rahill-Bonanza Joint Venture Project (44% PG) in the Red Lake mining district, north- west Ontario. Rahill-Bonanza is being explored with partner and operator Red Lake Gold Mines, an affiliate of Goldcorp inc. [G-TSX; GG-NYSE]. Exploration highlights include the discovery of addi- tional high-grade gold mineralization in a favourable geological setting, immediately south of the tram (railway system) and on-strike with the Red Lake Gold Mines complex. Favourable alteration, mineralization and structure are widespread on the prop- erty, and often supported by multiple, high-grade, gold intercepts in horizons that remains open at depth. Drilling in 2016 will continue to test these prospective horizons with a focus on the Fold Target where the JV is testing an arsenopyrite replacement zone located approximately 200 metres to the south of the tram. Significant developments and assay highlights at Rahill-Bonanza include: Drilling has continued testing a favourable geological setting to the south of the tram that shares similarities with the Red Lake Gold Mines complex) including favourable alteration and mineralization proximal to an ultramafic rock unit. • Hole D36987 grades 15.79 g/t gold across 2.1 m contained within a mineralized alter- ation zone grading 6.58 g/t gold across 6.3 m. • Hole D36994 contains 18.20 g/t gold across 3.4 m. • Hole D36999 grades 36.30 g/t gold across 1.7 m & 11.0 g/t gold across 2.5 m. • Hole D361036 with 46.00 g/t gold across 11.0 m (1.34 oz/ton gold across 36.0 feet) including 121.20 g/t gold across 3.8 m (3.54 oz/ton gold across 12.3 feet); one of the deepest holes drilled to test this hori- zon to-date. Terrax minerals Finds visible gold aT yelloWkniFe ciTy ProjecT terraX minerals inc. [TXR-TSXV; TRXXF-OTC; TX0-FSE] has received final results from the summer surface explora- tion program on its Yellowknife City gold project immediately north of Yellowknife, Northwest Territories. Highlights, which focused on the Core gold area, include: Visible gold in a newly discovered vein about 200 metres southeast of Pinto South. Assays from grab sampling include 108.00 g/t gold, 65.7 g/t and 35.2 g/t. Numerous quartz veins in the JED area west of the Barney shear returned 133.5 g/t gold, 30.4 g/t and 20.6 g/t. Mineralization in the felsic portion of the Ryan Lake pluton returned assays of up to 12.35 g/t gold, 45 g/t silver, 3.23% lead, 1.31% zinc and 0.53% molybdenum in separate samples. Assays up to 6.32% Mo had been obtained in this area previously. Sampling at the shear 17/18 intersection that revealed polymetallic veining similar to the Ryan Lake East area reported above. Assay values include up to 4.94 g/t gold, 51.9 g/t silver, 1.24% copper and greater than 1% Mo (over detection limit assays pending) in separate samples. This sam- pling expands to the north and east the area of polymetallic mineralization associ- ated with the Ryan Lake pluton. Three new areas were identified as hav- ing alteration, structure and stratigraphy similar to the Hebert-Brent area (11.0 m at 7.55 g/t gold in channel samples and 10.26 m at 3.69 g/t gold in hole TNB15-024) With the success of the Hebert-Brent discovery, these areas are priority targets for more exploration. n NEW diSCovEriES The drill results are impressive, especially those on the newly discovered Crab Claw anomaly, where all 10 reverse circulation drill holes returned measurable gold grades and six holes returned bulk tonnage intercepts of 50-100 metres thick grading from 0.57 to 4.24 g/t gold. The six drill holes bottomed in mineralization, indicating the deposit remains open at depth. More important was the discovery the mineralization that all of the holes bottomed in were hosted in Late Cretaceous Aspen Formation sedimentary rocks – the same rocks which the higher-grade Kilgore deposit drill holes bottomed in during previous drill programs, meaning there may be other opportunities for further expansion of the deposit both laterally and at depth. Otis Gold isn't the first operator to explore at the Kilgore Project; six different companies beginning with Bear Creek Mining in 1983, followed by Placer Dome US, Pegasus, Echo Bay Exploration, Latitude Minerals and Kilgore Gold, have explored the project. And while the previous companies drilled 107 RC holes and 185 core holes totaling 205,150 feet (62,530 m) none appeared to be able to fully put the geological story together. Patient commodity investors should be on the lookout for another capital financing and some further dilution to fully fund the 2016 program which could include up to 10,000 metres of drilling. Project permitting and environmental work, a NI 43-101 resource estimate and a Preliminary Economic Assessment (PEA) are planned. "Our goal in 2016 is to implement a very aggressive drill pro- gram designed to find the edges of the Kilgore deposit laterally and at depth. Upon completion of this program (which is sched- uled to run from July to November), we will then update our resource estimate and initiate a PEA," says Lindsay. For investors who will wake up hungry for good news this spring, Otis Gold is a story worth following. n mINING

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