Published Feb 21, 2018
BY JENNIFER PARSONS
Drills will continue to turn this summer behind Westerlund and across Highway 618 as Premier Gold works to understand the ore body of the Hasaga property.
Providing an update to residents on the exploration activities on Feb. 13 Hasaga Project Manager Jim Rogers noted there would be drills set up on either side of the local highway as the company moves forwards on plans for 20,000 plus kilometres of diamond drilling.
“This year we are planning to spend another $3.7 million,” said Rodgers.
The company has spent $19 million on the Hasaga Project since 2015 and 130 km of NQ drilling has been completed, he added, with the goal of the exploration being to delineate high grade underground resources and explore the opportunity for a stand alone underground mine.
Responding to questions from the audience, Rogers compared the operation to that of one in Geraldton in relation to timeline for exploration to development.
“Yeah it is going to take a while. In Geraldton 2008 was our start and its 2018 now. It will be 10 years before you really go for it.”
Steve McGibbon – Executive Vice President and Corporate Director also spoke last Tuesday providing an update on the company’s overall production and highlights noting 2017 had resulted in 139,658 ounces of gold production and silver production 357,901 ounces.
He says in the past year the company has commenced work on EL Nino underground mine and advanced the Phase 1 pit project and released new mineral resource estimates for McCoy-Cove (Nevada) and Hasaga
“From Premier’s standpoint if we decide that we want to [build] hardrock we have to come up with $500 million. We have 170 million in the treasury so it would be very difficult for us to try to build this project when already have a $500 million project to build,” McGibbon explained.
“That is why we are doing this deeper exploration and see if there is a higher grade opportunity that is actually much less to get at it. Something that we ramp down on.”
The company has 100 per cent ownership of the Hasaga Property and in Q1 2017 mineral resource estimate at Hasaga (0.05 g/t cut off) show 1,124,000 oz at 0.83 g/t Au indicated and 631,000 oz at 0.78 g/t Au inferred.
Rodgers says the focus of the exploration efforts is the “C” zone deep which has historic resources of about 200,000 ounces and the Hasaga West Zone. The Hasaga Project includes properties west of the Beer Store, in Buffalo and behind Westerlund.