Exploration Drill Program Commences At The McCoy-Cove Project
THUNDER BAY - Premier Gold Mines Limited has commenced the 2020 exploration drill program at the Company’s 100%-owned McCoy-Cove Project located along the Battle Mountain Trend in Nevada. Exploration will focus on high-priority targets located in close proximity to the Cove deposit
“With grades in excess of 11.0 g/t Au, the Cove deposit is one of the highest-grade undeveloped gold deposits in the United States with resources over 1 million ounces”, said Ewan Downie, President and CEO of Premier. “We see the potential for further discoveries on the large land package that has seen historic production of more than 3.3 million ounces of gold and 100 million ounces of silver”.
Exploration on the grounds surrounding the main deposit completed in 2019 resulted in the discovery of several new structures that have yet to be drill-tested. One primary target is “Davenport”, a 4 km2 magnetic anomaly that may host a gold-skarn system, similar to the McCoy Mine to the south and the Fortitude Mine to the north.
A second priority target is “Antenna” located to the south of the Cove deposit where 2019 drilling intersected high-grade mineralization. Additional drilling to the east and west of the Cove pit will test for the structural extension of the Cove Anticline that hosts the Cove deposit. All targets have the potential to complement the high-grade gold resource at Cove.
In 2019, large diameter wells were drilled for the purpose of modeling water flow for a hydrology study (completed) and develop a water plan that will be required prior to underground development. The Company is also completing additional metallurgical work to assess processing options to support a potential production decision for a future underground mine.
The McCoy-Cove Property hosts one of the highest grade undeveloped gold deposits in Nevada. Cove was mined by Echo Bay Mines Ltd. (Echo Bay) between 1987 and 2003, with historic production of approximately 2.6 million ounces of gold and 100 million ounces of silver.
In 2018, the Company announced a Preliminary Economic Assessment (PEA) indicating strong economics for the Project. Premier expects to begin construction of a ramp to complete delineation drilling, bulk sampling followed by a Feasibility Study.
The total land package of the McCoy-Cove property consists of 30,660 acres. The McCoy-Cove Property is located in the Battle Mountain trend in north Nevada approximately 20 kilometers south of Nevada Gold Mines Phoenix mine and 50 kilometers southwest of Battle Mountain.
Located west of the central part of the Battle Mountain-Eureka Trend. The Property including the Favret Formation (approximately 700 ft thick) is the principal Carlin-style ore host. Three types of mineralization occur within the Property including (a) Carlin-type at Cove in the Helen zone, CSD zone, and the Gap zone, (b) polymetallic sheeted vein in the deep 2201 zone and (c) skarn mineralization at the historic McCoy pit.