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.