Provenance Gold explains its business model and provides an update on its ongoing White Rock drilling program

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Vancouver, British Columbia – (Newsfile Corp. – September 8, 2021) – Provenance Gold Corp. (CSE: PAU) (FSE: 3PG) (OTCQB: PVGDF) (the “Company” or “Provenance”) is pleased to discuss its business model for its White Rock gold project and reports confirmatory drill hole assays in Classes.

Economic valuation

Provenance believes that its White Rock project harbors a potentially significant gold deposit, similar to the mines in Nevada currently in operation. Operating Nevada surface gold mines typically grade in the order of 0.5 g / t gold with typical cut-offs as low as 0.1 to 0.2 g / t d ‘gold. Examples of such mines are the SSR Marigold Mine and the Kinross Bald Mountain Mine.

These grades and production costs are typical of surface gold mines in Nevada and similar mines around the world. With normal sizes over one million ounces of gold, high annual production volumes and year-round operation, these mines are very attractive compared to the often much smaller high-grade deposits and production volumes. much smaller annuals of high-grade underground operations. .

Project

2020 production (oz)

Class 2020
(g / t)

2019 production (oz)

Ranking 2019
(g / t)

SSR concern [1]

234,443

0.39

220 227

0.40

Kinross Bald [2] Mountain

191,282

0.51

187,961

0.42

Compared to an early-stage open-pit gold discovery in a stable region and mining-friendly state like Nevada, with infrastructure established through electricity, water and roads , in addition to the depth of the mineralization near the surface, the model becomes convincing. in favor of a large tonnage surface mine in Nevada.

Rauno Perttu, CEO of Provenance added: “It is very important to let our current investors and future shareholders understand that we firmly believe that our White Rock Gold project has long-term development potential. We are just starting to enter the developmental drilling phase, and we are learning a lot about rocks, mineralization controls and the wide distribution of gold. For a junior exploration company, the gold veins high-grade can be a great story, but when you factor in geographic location, political location, terrain, and the extensive infrastructure required to explore, license, construct and operate a mine, the economics don’t. almost always do not add up. “

White Rock Drilling Program Update

The Company began its drilling program in July and efforts were focused on two exploration zones which demonstrated significant high tonnage open pit gold intersections from historic drilling beginning in 1985. Drilling began in the White Rock Mountain Zone (Figure 1) where only one historic hole drilled by Kennecott identified a thick mineralized zone. A total of six holes were completed by Provenance in two distinct sectors of the White Rock Mountain area.

Analyzes of the first two holes, WR-15 and WR-16, have already been reported in two previous press releases. The holes intersected thick and shallow areas of open pit mineralization. These included WR-15 returning 30.6 meters (95 feet) of 0.636 grams per ton of gold followed by an additional 56.4 meters (175 feet) of 0.197 grams per ton of gold, and WR-16 returning a interval of 55 meters (180 feet) which averages 0.618 g / t gold starting with 1.5 meters (five feet) of 3.55 g / t gold at 20 meters (95 feet) and ending with a interval of 6.4 meters (20 feet) with an average of 2.3 g / t gold.

The remaining four holes drilled in the White Rock Mountain area experienced difficult drilling conditions due to severely rugged soil and widely open fractures. Ground conditions prevented drilling from going further and drillers were forced to complete the holes while still in mineralization that Provenance says extends much deeper, according to the holes and the cross sections nearby. One example was WR-18, which had just entered the main mineralized zone and intersected the highest 7.6 meters (25 feet) in the zone. The first 7.6 meters (25 feet) of the zone contained an average of 1.0 g / t gold from 1.5 meters (five feet) of 3.2 g / t gold. Provenance plans to reoccupy this area in the future and drill the area in a different direction.

Drilling moved to the Central Ridge area, located over a kilometer to the southeast. Numerous historic holes in the Central Ridge area have intercepted 50-100 meters of mineralization along a north-south ridge 400-500 meters wide and 1000 meters long at surface.

The widely spaced historic drilling found heavy mineralization in every drill hole. Twelve holes (WR-22 to WR-33) have been completed, but only the results of hole WR-22 have been received to date. This hole was placed near the historic RR-3 hole, drilled in 1985 by AMAX Gold. The hole was scheduled to be drilled at 161 meters (500 feet) but was lost at 45 meters (140 feet) and could not be drilled any deeper. Although, based on historical drilling, a thick zone of higher grade mineralization lies below its cut-off depth, it nonetheless contained three notable intervals that encompassed most of the length of the hole: 0 to 12 meters (0 to 40 feet) at 0.357 g / t gold, 5 meters (60 to 65 feet) at 1.34 g / t gold and 17 meters (85 to 140 feet) at 0.25 g / t d ‘gold. When you compare these analyzes to nearby historical surveys, they are 10 to 15% higher than historical analyzes. A nearby historic corner hole contained higher grades over 100 meters.

Steve Craig, Principal Consultant, Project Manager and QP at Provenance said: “I am very satisfied with the incoming analysis results and plan to meet our long term goals of proving an economic deposit. I think we are at the start of confirmation of a large new open pit gold deposit from Nevada. “

Figure 1 – Initial Drill Zones at White Rock

To view an improved version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5654/95841_400b009824498ab8_001full.jpg

Quality assurance and quality control: The reverse circulation drilling program used by Provenance completed a quality assurance / quality control (QA / QC) program with control samples consisting of standards, blanks and duplicates inserted approximately every 100 feet . Control samples were randomly inserted into the sample stream before being sent to the laboratory. RC drill sampling was carried out at five foot sampling intervals. Drill samples were sent to Paragon Geochemical, an ISO 9001 compliant company in Sparks, Nevada, for pyrotechnic analyzes for gold and silver. The suckers and pulps remain with Paragon in Sparks, Nevada. The QA / QC program was implemented as part of the exploration program sampling procedures.

Rauno Perttu, P. Geo., A qualified person (as defined in National Instrument 43-101) and Chief Executive Officer of the Company, has reviewed and approved the technical contents of this press release.

About Provenance Gold Corp.

Provenance Gold Corp. is a precious metals exploration company focused on gold and silver resources in North America. The Company currently holds interests in three properties in Nevada, United States. For more information, please visit the Company’s website at https://provenancegold.com or contact [email protected]

On behalf of the Council,

Gold company of provenance

Rauno Perttu, Chairman and Chief Executive Officer

Neither the Canadian Securities Exchange nor its regulatory services provider accepts responsibility for the adequacy or accuracy of this press release.

This press release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if they are used in this press release, the words “anticipate”, “believe”, “estimate”, “expect”, “target,“ plan ”,“ anticipate ”,“ may ”,“ establish a timeline ”and similar words or phrases identify forward-looking statements or information. These forward-looking statements or information may relate to a review of potential strategic acquisition opportunities, and other factors or information. These statements represent the Company’s current views regarding future events and are necessarily based on a number of assumptions and estimates which, although considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social, contingencies and uncertainties. Many factors, known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend and does not assume any obligation to update such forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other event affecting such statements and information other than those required. by applicable laws, rules and regulations.

[1] 2020 SSR Mining Reports Fourth Quarter and Year End 2020 Results – http://s22.q4cdn.com/546540291/files/doc_financials/2020/q4/2021-02-17-Q4-Financial-Results-News -Release-Final .pdf

[2] Kinross Gold Annual Report 2020 – https://s2.q4cdn.com/496390694/files/doc_financials/2020/ar/K.4.271-KinrossAR2020_LR.pdf

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/95841


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