A new National Instrument 43-101 resource estimate for the Rahill-Bonanza property in Red Lake, has pleased joint-venture partners Premier Gold Mines (PG-T) and Goldcorp (G-T, GG-N).
Highlights of the estimate, at a 4-gram-gold per tonne cut-off grade, indicate an inferred resource of 512,000 oz. gold (2.28 million tonnes) at an average grade of 6.98 grams gold per tonne over an average width of 3.1 metres.
At a 2-gram-gold per tonne cut-off grade, the resource estimate yields an inferred resource of 911,000 oz. gold (6.65 million tonnes) at an average grade of 4.26 grams gold per tonne over a width of 4.9 metres.
Red Lake Gold Mines, a Goldcorp affiliate, increased its interest in the Rahill-Bonanza joint venture by 1% to 51% in January. Premier owns 49% of the project. Goldcorp is the primary operator of the joint venture.
The property is within the Red Lake greenstone belt of northwestern Ontario’s Red Lake mining district.
Rahill-Bonanza is contiguous to Goldcorp’s Red Lake gold mine complex, thought to be one of the world’s highest-grade gold mines. It is also host to several gold deposits and mineralized zones including the Wilmar and West Granodiorite gold deposits, and the Follansbee, Bonanza, CP and North Contact zones.
The property is also underlain by numerous ultramafic horizons, which are key markers for high-grade gold in Red Lake including Goldcorp’s high-grade zone.
A good chunk of the property has seen only limited or sporadic near-surface exploration.
The news sent Premier’s shares on the Toronto Stock Exchange up 6 to $1.96, with 173,241 shares changing hands.
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