Premium Exploration Announces Increased Mineral Resource Estimate at Idaho Gold Property
Premium Exploration Inc. (TSX-V:PEM; OTCQX:PMMEF)is pleased to announce Logan Resources Ltd (“Logan”) has announced an updated mineral resource estimate for the Friday Deposit, one of six zones of known gold mineralization within the Idaho Gold Property (the “Property”), located in north-central Idaho, USA.
The updated resource estimate at a 0.45 g/t Au cut-off increases the Friday Deposit to:
Indicated:
647,000 oz (20.1 Mt @ 1.0 g/t Au) from 629,000 oz (21.5 MT @ 0.91 g/t Au & 0.4 g/t cut-off)
Inferred:
590,000 oz (20.9 Mt @ 0.88 g/t Au) from 146,000 oz (5.9 MT @ 0.77 g/t Au & 0.4 g/t cut-off)
This is an increase in both the grade and the ounces of gold estimated in the Indicated and Inferred categories over those reported in the initial mineral resource estimate published on the Friday Deposit by Premium Exploration Inc. (“Premium”) on August 16, 2012. Data acquired from 18 holes drilled in 2011 and one hole in 2012 was utilized in the resource estimate, which also resulted in the reclassification of some of the resources.
Logan has signed an Option and Joint Venture Agreement (the “Agreement”) with Premium which affords Logan the option to acquire up to a 75% interest in the Property. Further details of this transaction are disclosed in the Company’s press release dated March 28, 2013. Closing of this transaction is subject to a number of conditions, including approval of the TSX Venture Exchange and the completion of a financing satisfactory to the Company.
“We are very pleased that the pending Logan/Premium option and joint venture has already created value for Premium shareholders”, stated Del Steiner, President & CEO of Premium. “The updated and increased resource estimate for the Friday deposit clearly demonstrates Logan’s ambition to advance the Idaho Gold Project. With $1.5M committed in exploration, permitting, and development activities within the first 12 months of closing and $3.5M in the 24 months thereafter, we believe this positive revised resource estimate is just a sign of things to come for our shareholders.”
Mineral resource estimates summarized above represent the estimate with a gold cut-off grade of 0.45 g/t within a potential open pit limit and considered to be generally consistent with the economic cut-off for other mineral deposits of similar characteristics, scale and location. Assumptions used in the estimate include a gold price of US$1,500 per ounce, gold recovery of 85% and combined processing, G&A and mining costs of $16.50 per tonne.
With a cutoff grade like that who wouldn’t throw their life savings in this stock. Not.
I still own some of this but will not be on this train much longer.
Dan
Wow $1506.00 gold…looks like the fundamentals are on vacation!
The USA is starting to make me physically ill….so corrupt.
Just try to find a stock that is holding up as well as PEM today! Man… I never thought I could say that. (;-)
Dan
i have huge concerns over the jv deal and the very possible implications for pem shareholders . im sorry i ever bought a share after 09. optioning 75% of the oz for 250k and a minor work program doesnt cut it. i say minor because 30 million or thereabouts has already been spent by pem , ic ,btp and the others when a company could get value for its money which apparently was a scarce commodity as of late. thanks for the update and the avenue to vent our frustrations mr K.
An update.
On an earlier post, I was given some links to the BLM and USFS to follow-up on Premiums plans for drilling. I also sent an email to the BLM to inquire.
1) Buffalo Gulch: plans are in the scoping stage with an Environmental Analysis expected to be completed by september 2013:
2) Deadwood Quickdraw: This application appears to still be in the scoping stage with no timeline for permitting.
3) Friday Mineral Exploration: The permit memo from the USFS has been withdrawn and Premium appears to have not filed a new application to date.
The withdraw for the project in question was for something that had been approved but required a comment period for final approval, Premium decided to request that both the BLM and USFS start the process of an EA which would encompass their entire property and thus reduce the time spent requesting 10 – 20 drill sites every so often when needed. Once the EA is completed if no environmental impact is present within the property, then it is the property that receives the permitting and can be passed on to other companies if necessary. The BLM and USFS are some times slow in their addition and deletion of material that appear on their web-site (current resource shortages) and when scoping a project do not release what stage of the process they are currently working on unless they feel it should be released to the public.
Thanks Pem Supporter.
Based upon my correspondence with the BLM yesterday, barring any unforeseen delays, they hope to have the environmental analysis (EA) for Premium’s plan completed with a decision some time in September of 2013. Therefore, at the earliest we could expect drilling to commence is after that.
I expect it will be longer because there were appeals filed by two conservation groups against Premium on its Friday Mineral Exploration proposal. It is very likely these same groups will appeal any future decision made in Premium´s favor.
They still have all the private property that they can drill along with any previous drilling sights that had been approved before the start on the EA. Something to remember is that the BLM already had a forum by which people could appeal the 2010 project outline with reasons for their appeals, when both the BLM and USFS receive these appeals to the preliminary plan they make sure that everything possible is taken into account before making their final decision. Just check the Nez Perce Forest Service records of final appeals and the number that were rejected by the USFS, from what I have seen there has only been one or two in the last ten years.
Pem Supporter, This is an excerpt take from one of the letter from the USFS NEPA website: “I (District Ranger)am withdrawing my November 5, 2012 Friday Minerals Exploration Decision Memo. Now that I have withdrawn this decision, none of the activities previously authorized under that notice may occur until the Forest Service completes a new National Environmental Policy Act (NEPA) analysis.” My mistake, I thought this covered the drilling on private lands as well.
From reading two other letters on the site, it appeared that the decision memo issued by the USFS was withdrawn before the appeals were considered.
Where is drilling permitted? It would seem that the two-year time line has since expired on the older drilling permits. From drillling from within the existing patented claims, it seems like it would be difficult to expand the size of the resource. This is after all where almost all the Premium´s drilling has been conducted.
http://www.premiumexploration.com/wp-content/uploads/Friday-Resource-Zone-Sections-Plan.pdf
Anything within the black lines are patented claims and there looks like lots of opportunity to the south, I think they will have to get approval first for taking any drilling rigs down Crooked Creek Rd. and whether they will be able to remove trees if needed along with creation of temporary roads if necessary.
Pem Supporter, thanks for the link
Logan/Premium release their new NI43-101 resource estimate April 30 and the report is on http://www.Sedar.com
Del is pleased that Logan/Premium has already created value for shareholders. Someone might want to inform Dell that this news release has done nothing for the shareprice. Or maybe he thinks it would be less that 3 cents!! Geeeez!