Re: Time to keep an eye on PEM
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Message: Time to keep an eye on PEM
This was written in 09 before any of the last 25 holes in 2010 but may have some of the host rock info you talked of.
We have a regional structure - a shear zone that strikes longer than the 28 kilometers from Buffalo Gulch to Friday-Petsite and in fact continues further south. So you’ve got this huge regional structure along the contact with the Idaho Batholith, which was the heat source to get these mineralizing fluids moving around, and the Archean schists and gneisses adjacent the Batholith which are the primary host rock.
As a result, we have a number of deposits stretched out along that shear zone, instead of a small localized deposit. Therefore, instead of having just one property and one deposit we’re working on, we’ve got several properties along the Orogrande Shear Zone at various stages of development.
From a mineralization standpoint - when these big regional structures exist and big heat sources with abundant source rock from which to extract the gold, then the tonnage and grade potential increase dramatically.
Going back to the Elk City area, we’ve got the Buffalo Gulch project in the north which is associated with the Shear Zone. The mineralizing solutions come up the Shear Zone and found favorable host rock at the surface adjacent the Shear Zone creating Buffalo Gulch deposit.
The original discovery was by Gary Nordine and myself while we were working for Bema Gold and its subsidiaries. At that time Bema’s mandate was to find near surface, low-grade open-pittable heap leach deposits. They were successful with that – they came up with the 100,000 ounce Buffalo Gulch deposit (non-43-101 compliant). The gold delineated to date by drilling occurs on only about 30% of the soil geochem anomaly that has values up to 2.2 g/t gold, so there’s a lot of blue sky on Buffalo Gulch alone.
With their focus on low grade, near surface deposits, Bema utilized shallow reverse circulation drilling in vertical drill holes, so the early drilling didn’t really test the near vertical mineralization associated with the Shear Zone. Therefore the mineralization associated with the Shear Zone in the Buffalo Gulch area hasn’t been drill tested and that’s important because of what we have learned from the Friday-Petsite property, 28 kilometers to the south."
Premium is currently working on the Friday-Petsite to follow up on the work initiated by Bema when they started doing exploration on the property in the mid 1980’s. This was followed by Cyprus which became Cyprus Amax which became Kinross. The companies were very successful in delineating a 531,000 ounce gold resource, that is a 43-101 compliant resource, but unfortunately the price of gold was low precluding development of the property.
The intriguing aspect of Friday-Petsite, is that a high-grade zone has been identified within the disseminated deposit and only recently, we concluded that the high-grade zone is directly associated with the Shear Zone which cuts north-south through the disseminated deposit. This means that while the previous operators were successful in achieving their goals of defining open-pittable types of deposits along the Zone, the high-grade contribution and potential of Shear Zone was over looked.
With this new concept, it is now postulated that the Shear Zone is a contributing factor to the mineralization at the property and consequently is a new high priority target. Additionally, there is another 4,000 feet soil geochem anomaly with values over 0.5 g/t gold that extends south, beyond where the majority of that drilling took place. Since only a small portion is drilled off, we could be looking at multi-million ounce exploration target that may host high-grade zones similar to the one intersected in the drilling to date at this end of the Shear Zone.
The implications of this concept could potentially be “district-sized”, and will only be determined by additional drilling the along the Shear Zone at both the Friday-Petsite and Buffalo Gulch deposits. The drilling will be designed to test the potential high-grade continuity along the Shear Zone.
Therefore, Premium Exploration is better positioned than most junior exploration companies because it already controls a large 43-101 compliant resource with substantial expansion and exploration potential that will have additional drilling in the near future. The Company also has the Buffalo Gulf deposit which has a near surface gold resource with additional near-surface exploration potential and the project is advancing through the permitting phase with the objective of operating as an open pit mine with a very low strip ratio.
To summarize – Premium Exploration’s properties in Idaho are well advanced and the Company is benefiting from extensive previous exploration which consisted of mapping, sampling, soil geochemistry, geophysics, trenching, drilling and metallurgical test work.
As a result, we have a number of deposits stretched out along that shear zone, instead of a small localized deposit. Therefore, instead of having just one property and one deposit we’re working on, we’ve got several properties along the Orogrande Shear Zone at various stages of development.
From a mineralization standpoint - when these big regional structures exist and big heat sources with abundant source rock from which to extract the gold, then the tonnage and grade potential increase dramatically.
Going back to the Elk City area, we’ve got the Buffalo Gulch project in the north which is associated with the Shear Zone. The mineralizing solutions come up the Shear Zone and found favorable host rock at the surface adjacent the Shear Zone creating Buffalo Gulch deposit.
The original discovery was by Gary Nordine and myself while we were working for Bema Gold and its subsidiaries. At that time Bema’s mandate was to find near surface, low-grade open-pittable heap leach deposits. They were successful with that – they came up with the 100,000 ounce Buffalo Gulch deposit (non-43-101 compliant). The gold delineated to date by drilling occurs on only about 30% of the soil geochem anomaly that has values up to 2.2 g/t gold, so there’s a lot of blue sky on Buffalo Gulch alone.
With their focus on low grade, near surface deposits, Bema utilized shallow reverse circulation drilling in vertical drill holes, so the early drilling didn’t really test the near vertical mineralization associated with the Shear Zone. Therefore the mineralization associated with the Shear Zone in the Buffalo Gulch area hasn’t been drill tested and that’s important because of what we have learned from the Friday-Petsite property, 28 kilometers to the south."
Premium is currently working on the Friday-Petsite to follow up on the work initiated by Bema when they started doing exploration on the property in the mid 1980’s. This was followed by Cyprus which became Cyprus Amax which became Kinross. The companies were very successful in delineating a 531,000 ounce gold resource, that is a 43-101 compliant resource, but unfortunately the price of gold was low precluding development of the property.
The intriguing aspect of Friday-Petsite, is that a high-grade zone has been identified within the disseminated deposit and only recently, we concluded that the high-grade zone is directly associated with the Shear Zone which cuts north-south through the disseminated deposit. This means that while the previous operators were successful in achieving their goals of defining open-pittable types of deposits along the Zone, the high-grade contribution and potential of Shear Zone was over looked.
With this new concept, it is now postulated that the Shear Zone is a contributing factor to the mineralization at the property and consequently is a new high priority target. Additionally, there is another 4,000 feet soil geochem anomaly with values over 0.5 g/t gold that extends south, beyond where the majority of that drilling took place. Since only a small portion is drilled off, we could be looking at multi-million ounce exploration target that may host high-grade zones similar to the one intersected in the drilling to date at this end of the Shear Zone.
The implications of this concept could potentially be “district-sized”, and will only be determined by additional drilling the along the Shear Zone at both the Friday-Petsite and Buffalo Gulch deposits. The drilling will be designed to test the potential high-grade continuity along the Shear Zone.
Therefore, Premium Exploration is better positioned than most junior exploration companies because it already controls a large 43-101 compliant resource with substantial expansion and exploration potential that will have additional drilling in the near future. The Company also has the Buffalo Gulf deposit which has a near surface gold resource with additional near-surface exploration potential and the project is advancing through the permitting phase with the objective of operating as an open pit mine with a very low strip ratio.
To summarize – Premium Exploration’s properties in Idaho are well advanced and the Company is benefiting from extensive previous exploration which consisted of mapping, sampling, soil geochemistry, geophysics, trenching, drilling and metallurgical test work.
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