Premier Gold Mines: Successful Delineation at Mercedes
May 14, 2019
Elemental Royalties Limited, (“Elemental”), a private company expanding a diversified portfolio of mineral royalties, is pleased to note the recent announcement made by Premier Gold Mines Limited (“Premier”) of that company’s multiple new and high-grade intercepts from the expansion and delineation drilling program ongoing at Premier’s 100%-owned Mercedes Mine, located in State of Sonora in northern Mexico, on which Elemental Royalties holds a 1% NSR royalty subject to a production hurdle.
Mercedes is an underground gold and silver mine that exploits quartz veins and quartz-carbonate stockworks within a low-sulphidation epithermal system. The Mercedes trend is host to a series of high-grade sub-vertical veins with production to-date (2011-2018) of some 687,000 Oz gold. Four kilometres east of this main trend is a basin hosting both the Lupita and Diluvio deposits, an area which Premier believe is is attractive for future discoveries.
The Lupita deposit has a 2018 P+P mineral reserve of 329 kt @ 4.42 g/t Au for 47 koz and the Diluvio deposit has a 2018 P+P mineral reserve is 2,055 kt @ 3.10 g/t Au for 205 koz. Premier intends to convert a portion of Lupita and Diluvio resources to mineral reserves during the balance of 2019 and to continue exploring for potential resource extensions.
Drilling has recently discovered favourable veining and mineralization in newly tested areas proximal to the Lupita – Diluvio deposits, to the west at San Martin and to the east at Margarita. An exploration campaign is currently testing both San Martin (600 m to the west) and Margarita (1.2 km to the east) where drill holes have recently discovered mineralized veins at a similar Lupita Vein host contact with assays pending on multiple holes. The two areas are approximately 3 km apart, and the operator confirms the target remains open to the east and west. The consistent intersection of the mineralized vein along the Lupita fault contact to the west of the Lupita resource makes this area a focus for continued exploration.
Highlights of this ongoing drill program include:
- New mineralized veins have been discovered at San Martin and Margarita, outlining a 3 km corridor with high potential for future discoveries
- Lupita vein extension drilling returned multiple intercepts including 3.9 m of 5.99 g/t Au & 40.75 g/t Ag and 2.9 m of 5.70 g/t Au & 56.00 g/t Ag
- Ongoing delineation program at Lupita intersected high-grade intercepts including 1.2 m of 10.75 g/t Au & 89.31 g/t Ag
- Diluvio West delineation returns 30.4 m of 6.43 g/t Au & 11.91 g/t Ag including 4.4 m of 13.79 g/t Au & 21.93 g/t Ag
The text above is Elemental Royalties’ comment to the operator’s news release and is not included within the original release. The original article is available using the links below.
About Elemental Royalties Limited
Elemental is a private company providing investors with exposure to a dividend-paying royalty company building a diverse portfolio of mining royalties, benefiting from ongoing royalty revenue, future exploration upside and low operating costs.
Since early 2017 Elemental has assembled a portfolio of five royalties over seven commodities in four countries, four of which cover producing mines. Immediate cash-flow has enabled the Company to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend from inception.
Elemental’s focus remains on securing royalties over advanced assets with established operators and credible counter-parties from a robust pipeline of potential royalty acquisitions across commodities and geographies.
For further information you are invited to visit the Company’s website www.elementalroyalties.com or contact:
|Elemental Royalties Limited|
|T: +44 (0)203 983 7040|
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