The Idaho Gold Project is a re-emerging mining district with the potential to host several bulk tonnage deposits within the 180 km2 land package.
It is located along 30 km of the Orogrande Shear Zone (“OSZ”), a significant regional structure with numerous parallel and cross-cutting structures.
The OSZ exhibits structural control to gold mineralization and is the conduit for multiple zones of gold mineralization along the 30 km strike length.
This is similar to many large gold belts such as the Carlin Trend in Nevada. The Carlin Trend hosts numerous producing mines along dilatant zones with numerous cross-cutting structures intersecting the main regional structure, creating the gold “trend”. The Carlin Trend surpassed 50 million troy ounces (1,555 tonnes) of gold production in 2002 and provides the US with ~80% of its gold production.
Premium’s vision is to discover multiple deposits along the Idaho Gold Project. Approximately 24,000 m have been drilled since the Company’s first program in mid-2009. This has resulted in 8 gold discoveries along 20 km of strike while encountering gold mineralization in 99.9% of all drilling; results in line with the Company’s objectives.
Less than 50% of the property has been systematically grid soil sampled and less than 3.0 km of co-incident gold-in-soil and geophysical trends have been drill tested to date. This provides tremendous exploration upside potential and is the focus of the 25,000 meter planned Phase-Four Exploration Program currently underway.
The IGP consists of six contiguous zones all linked by coincident geophysics and gold-in-soil trends that correlate with the 30 km Orogrande Shear Zone regional structure:
Buffalo Gulch Zone – Coincident 4 km geophysical and gold-in-soil trend, non NI 43-101 complaint historic resource open along strike and depth:
Indicated: 111,000 oz – (4.8 Mt @ 0.8 g/t with 0.4 g/t cut-off*) *see disclaimer
Deadwood Zone – Coincident 12 km geophysical and gold-in-soil trend; non NI 43-101 compliant historic resource open along strike and depth:
Indicated: 38,940 oz – (1.6 Mt @ 0.75 g/t Au with 0.4 g/t cut-off*)
Inferred: 18,480 oz – (0.7 Mt @ 0.75 g/t Au with 0.4 g/t cut-off*) *see disclaimer
Friday Zone – Coincident 5 km geophysical and gold-in-soil trend
Monday Zone – Interpreted 900 m strike length along potential 5 km trend identified by geophysics, discovery holes:
PFR2010-19: 1.4 g/t Au over 38.4 m including 9.4 g/t Au over 4.6 m
PFR2010-22: 2.1 g/t Au over 20.1 m including 5.5 g/t Au over 6.4 m
X Zone – Interpreted structural target revealed by geophysics
|Click for Buffalo Gulch Zone||Click for Deadwood Zone||Click for Lucky Strike Zone|
|Click for Friday Zone||Click for Monday Zone||Click for X Zone|
Friday (Lower Block): 9.2 g/t Au over 29.3 m within 2.6 g/t Au over 198 m
Monday #1: 9.4 g/t Au over 4.6 m within 1.4 g/t Au over 38.4 m
Monday #2: 5.5 g/t Au over 6.4 m within 2.1 g/t Au over 20.1 m
Buffalo Gulch: 1.3 g/t Au over 4.6 meters
Deadwood Central #1: 1.0 g/t Au over 1.8 m as well as 0.5 g/t Au over 4.9 m
Deadwood Central #2: 1.4 g/t Au over 3.1 m within 0.9 g/t Au over 7.6 m
Deadwood Central #3: 1.6 g/t Au over 2.7 m within 1.0 g/t Au over 8.5 m
Deadwood High-Grade Vein #4: 11.2 g/t Au over 0.6 m within 2.0 g/t over 4.6 m
25,000 meter drill program underway to explore and develop the 180 km2 Idaho Gold Project by:
The Idaho Gold Project consists of 2,169 un-patented lode claims and 18 patented claims for a total of 2,187 claims and 1 State of Idaho Minerals lease. The total area of the property is 18,000 Hectares or 180 square kilometers. All claims are 100% owned subject to a 1% NSR on the Friday-Petsite Deposit capped at $3,000,000 and a 1.5% NSR on the Buffalo Gulch Deposit capped at $1,500,000, upon commercial production.
The Idaho Gold Project is located in the vicinity of Elk City, Idaho County, North-Central Idaho. The terrain is hilly and forested. Elevations range from 4,000 to 5,000 feet above sea level. Year round access is excellent via Idaho State Highway 14 and Idaho County Road #233, three-phase power is available, and water is abundant.
The project has seen historic mining & exploration activity dating back to the 1860’s. Historic regional production has been estimated to exceed 8 million oz where mining has occurred at over 20 historic mines along strike with over 18 km of placer dredging as well. The area was once referred to as the Elk City Mining District or Idaho Gold Belt.
Placer gold was discovered in the area in the 1860’s with follow up high-grade quartz vein lode deposits being discovered soon after. Placer and lode mining continued until the 1930’s when the price of gold was fixed. Modern exploration of the Orogrande Shear Zone began in the 1970’s by such companies as Cypress-Amax, Kinross Gold, Bema Gold, where the primary focus was the near-surface bulk tonnage potential.
Using in-situ soil sampling, previous operators located near-surface oxide mineralization and did not investigate potential high-grade structural mineralization at depth. Several oxide deposits were located and developed but with the fall of the price in gold in the mid-1990’s, exploration ceased in the area.
In 2008 Premium geologists reviewed past work and recognizing the lack of follow-up on potential high-grade structural mineralization, devised a new structural-geologic model for the area.
From 2009 to 2011 Premium consolidated 180 Km2 of the fragmented historic district and began work on the Friday Zone where the new model was confirmed. Premium revealed the presence of a high-grade structurally controlled gold system within a low-grade envelope and made three gold discoveries in 13,000 meters of drilling at the Friday Zone.
Due to the well-developed un-glaciated soils, lack of outcrop, and thick forest cover, Premium conducted an airborne geophysical survey along the 30 km trend revealing the OSZ to be a continuous structure linking the Buffalo Gulch, Deadwood, Friday, Monday, and X Zones together.
Geophysics and in-situ gold-in-soil sampling have been shown to be a highly effective exploration tools at the Idaho Gold Project; geophysics identifies the structural targets and gold-in-soil refines them.
Utilizing this combination of exploration techniques, The “Right Exploration Strategy” was developed resulting in 99.9% drill success, 8 discoveries, and the identification of several additional drill-ready targets along the 180 km2 property.
Premium intends to maximize shareholder value by applying their exploration strategy to the balance of the property that remains unexplored. Premium will continue the discovery and development of this re-emerging gold district in Idaho.
Gold mineralization discovered in all zones at the Idaho Gold Project to date is associated with a low sulfidation system primarily hosted within sheared and brecciated granites of the Idaho Batholith accompanied by sericite alteration, silica flooding and disseminated pyrite. Gold is finely disseminated and also occurs as native in networks of small quartz-carbonate veinlets.
The granite of the Idaho Batholith is interpreted as being the preferred host rock for gold mineralization at the IGP. It covers a vast regional extent in central Idaho and also hosts gold mineralization at Midas Gold’s Golden Meadows Project located approximately 90 km due south along a large structural and geological trend coincident with Premium’s Idaho Gold Project.
Buffalo Gulch is the most northern and hosts a historic 110,000 oz indicated gold resource that was once fully permitted for open-pit production in 1991 by Bema Gold Inc. The historic resources as calculated by the Bema Gold subsidiary “Idaho Gold Corporation” were prepared prior to the introduction of NI43-101, but were carried out in accordance with established practice at that time. Idaho Gold estimated “proven and probable geologic reserves” of oxide material to a depth of 220 feet as 4.839 million short tons at a grade of 0.023 ounce/ton containing 110,759 troy ounces of gold. Micon International’s report in 2004 also concludes that the Buffalo Gulch property had historical Mineral Resources of about 5 million tons averaging 0.023 oz/ton Au (4.5 million tonnes at 0.8 g/t Au), comparable to an indicated resource. No cut-off grade was provided. Micon International’s report also concludes that Deadwood hosts an historic Indicated deposit of 38,940 oz Au (1.6 Mt @ 0.75 g/t Au with 0.4 g/t cut-off) and an historic Inferred Resource of 18,480 oz Au (0.7 Mt at 0.75 g/t Au with 0.4 g/t cut-off).
Deadwood and Buffalo Gulch estimates of gold resources are historical in nature, predate and are noncompliant with NI 43-101. Premium is not treating the historical estimate as current mineral resources or reserves. Premium has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. The historical classes used by Idaho Gold are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes.
The Company wishes to state that the potential additional resources are conceptual in nature only, and that there has been insufficient exploration to define an increased mineral resource outside of the current NI 43-101 compliant resource. Furthermore, it is uncertain if further exploration will result in additional mineral resources. Estimates for potential additional resources are reported as exploration targets based on the presence of step-out mineralized drill holes, known mineralized zones open along strike and depth and geophysical anomalies.