Friday-Petsite hosts a 531,890 oz gold inferred resource (NI 43-101). Open along strike and at depth, it has many of the hallmarks of a significant, gold deposit in terms of its size potential and current grade. There is the possibility of additional sulphide gold mineralization at depth and additional oxide gold mineralization along strike.
Previous operators Bema Gold, Cyprus-Amax, and Kinross Gold Corp., delineated the first 250 metres (820 ft.) of a high-grade zone within the area of the resource while focusing on developing the near surface low-grade deposit. In 2004, Beartooth Platinum Corp., audited the previous drilling as well as expanded the high-grade strike of the high-grade zone by 100 metres (328 ft.). At the time, the price of gold was approximately $350/oz.
Phase 1
Phase 2
The property is located in the vicinity of Elk City, Idaho County, central Idaho, in the western United States. The terrain is hilly and rather than mountainous, although local relief is sharp in places. The elevations at which the properties are located, range from 4,000 and 5,000 feet above sea level, and are heavily wooded. Due to extensive soil development, outcrop is less than would be anticipated based on the relief. Premium believes the possibility exists to increase these historical resource estimates on the Friday-Petsite Property through further exploration work as the deposit is open to the north and south along strike and at depth.
The property consists of 120 claims and includes the two past-producing mines locally known as the Orogrande Mine and the Frisco Pit.
The Orogrande Shear Zone is a gold mineralization belt that is 26 miles long in strike length and has 245 mapped prospects and mines with historically reported results of 0.5 oz gold in past producing mines which produced from small vein structures. There are disseminated deposits that are open along strike and at depth associated with the historic mines. It is underlain by Proterozoic-age Belt Group metamorphic rocks intruded by the Cretaceous age Idaho Batholith and a Tertiary-age rhyolite quartz-eye porphyry stock. Exploration to date has defined several important exploration prospects including: i) a disseminated bulk tonnage prospect and ii) a high grade vein prospect. The following table presents the nature of drilling on the Friday – Petsite Property from 1984 – 2009.
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Drilling on the Friday-Petsite Property 1986-2009 |
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|
Year |
Company |
Type |
Number |
Footage |
|
1984-86 |
Centennial |
RC |
6 |
1,610 |
|
1985-86 |
Bema |
RC |
48 |
6,645+ |
|
1996 |
Cyprus/Idaho Consolidated |
RC |
16 |
6,175 |
|
1997 |
Cyprus/Idaho Consolidated |
RC |
90 |
35,475 |
|
|
|
Core BQ |
5 |
2,115 |
|
|
|
Core HQ |
6 |
2,035 |
|
1998 |
Kinross / Idaho Consolidated |
Core HQ |
12 |
7,184 |
|
2002 |
Canden / Idaho Consolidated |
Core NQ |
5 |
1,278 |
|
2004 |
Beartooth / Idaho Consolidated |
Core HQ |
4 |
1,696 |
|
2009 |
Premium Exploration – Summer |
Core HQ |
7 |
2,800 |
|
2009 |
Premium Exploration – Fall |
Core HQ |
6 |
6,463 |
Extensive exploration from the mid-1980’s to 1998, including reverse circulation (RC) and core drilling (at least 180 holes), and estimated to have cost about US$2.5 million, After completing its 1998 drill program on the Friday / Petsite Property, Kinross prepared an estimate of the mineral resources for the combined Friday-Frisco zones using Datamine modeling and planning software which incorporated all drill hole and survey data to that time. Surface sampling and trench data from the Frisco pit were also included. All available gold assay values greater than 0.25 oz/ton were cut to 0.25. Drill hole data were composited to 20 feet. The mineralized zone was divided into six domains with locally adjusted search orientations. Total resources at various cutoff grades from zero to 0.10 oz/ton Au were determined as set out in the table presented below. At a cutoff grade of 0.015 oz/ton, the total resource amounts to 16.73 million tons averaging 0.032 oz/ton Au. By applying what Kinross called a “potentially economic” cutoff grade of 0.025 oz/ton, an Inferred Resource of 7.8 million tons averaging 0.046 oz/ton was determined (359,400 contained ounces). Within this Inferred Resource, oxide material makes up 1.60 million tons at 0.048 oz/ton Au.
In preparing this estimate, Kinross used the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) resource definitions and classification as in effect in early 1999, and the price of gold was approximately $290 per ounce. Kinross’ reported resource total at a cutoff grade of 0.015 oz/ton (0.5 g/t), highlighted in the table above, was converted by Micon in its 2004 report to metric units to be 15.17 million tonnes averaging 1.1 g/t Au. This includes about 18 % oxide mineralization. In its 2004 report Micon stated that this historical resource estimate complies with the definition of Inferred Mineral Resources as specified in Canadian National Instrument (NI) 43-101, and went on to further state that with the amount of drilling completed and the density of the drill pattern, that Micon was of the opinion that some of these resources may qualify as Indicated Mineral Resources.
As part of its exploration program on this prospect Bema Gold Corporation conducted bottle-roll and column testing on the resource mater with the latter showing 75% recovery of the gold in oxide material after 25 days. The bottle-roll tests showed recoveries of both oxidized and sulphide material to be in the range of 75% to 90%.
Historic exploration drilling conducted by Cyprus Amax Minerals, Canden Capital Corporation and Beartooth Platinum Corporation on the property has identified a discrete high grade gold zone that appears to run alongside or as part of the Orogrande Shear. This exploration work to date has not established the extent of the high grade zone. A summary overview of the various historic drill programs that intersected the high grade zone are presented below. (Historic Drill Program Table)
Over the past 20 years there has been extensive historical exploration work conducted on the South Orogrande Shear Zone that has been completed by several well known mining companies including Bema Gold Corporation, Cyprus Amax Minerals, and Kinross Gold Corporation. Premium has reviewed a Technical Report meeting the criteria for NI 43-101 on the property prepared by Micon International, Ltd., (“Micon”) dated September 10, 2004. . Micon describes the Friday / Petsite property as an Advanced Exploration Property and further concluded that the results of the historical exploration programs on the property have defined the following primary mineralized zones:
| Cutoff Grade (oz/t Au) | Oxide Inferred Resource | Sulphide & Mixed Inferred Resource | Total Inferred Resource | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Tons | Au oz/t | Contained Au oz | Tons | Au oz/t | Contained Au oz | Tons | Au oz/t | Contained Au oz | |
| 0.000 | 11,978,000 | 0.0130 | 156,280 | 58,706,000 | 0.0117 | 689,060 | 70,684,000 | 0.0120 | 845,340 |
| 0.005 | 7,440,000 | 0.0195 | 145,060 | 36,945,000 | 0.0172 | 635,460 | 44,385,000 | 0.0176 | 780,520 |
| 0.010 | 4,606,000 | 0.0270 | 124,360 | 21,291,000 | 0.0244 | 520,380 | 25,897,000 | 0.0249 | 644,740 |
| 0.015 | 2,996,000 | 0.0349 | 104,430 | 13,731,000 | 0.0311 | 427,460 | 16,727,000 | 0.0318 | 531,890 |
| 0.020 | 2,133,000 | 0.0418 | 89,180 | 9,299,000 | 0.0377 | 350,880 | 11,432,000 | 0.0385 | 440,060 |
| 0.025 | 1,602,000 | 0.0484 | 77,460 | 6,196,000 | 0.0455 | 281,960 | 7,798,000 | 0.0461 | 359,420 |
In Premium’s preliminary review of the historical exploration data of this disseminated gold deposit, Premium has identified three additional targets, some of which are associated with geochemical / geophysical gold anomalies in the near vicinity of this deposit that have not been drill tested to date.
In its 2004 report Micon stated that with a gold price of over $400/oz the Friday / Petsite property is deserving of additional exploration programs to determine if the Inferred Resource estimates can be further upgraded to that of mineral reserves. On October 16, 2007, the closing price of gold was approximately $760 per ounce. In conjunction with the acquisition of the lode claims and associated drill inferred gold mineralization, Premium is also acquiring all available historical data including geological mapping, geochemical and geophysical surveys, drill logs, core samples, and other related geologic data. Premium is currently reviewing this historical data on the South Orogrande Shear Zone and intends to conduct a drilling program, and will be engaging potential joint venture partners to further develop this project.
The Dixie Property comprises 17 claims and is located somewhat remotely near the South Orogrande Shear Zone. It is not part of the South Orogrande Shear Zone, but may be associated with a second shear zone in the area that is similar to the South Orogrande Shear Zone. The underlying geology is that of igneous rocks intruding early Precambrian metamorphic rocks. Anomalous gold areas have been identified by stream sediment and soil geochemical sampling, but no meaningful follow-up work has been done. Premium intends to complete a general exploration program to investigate the anomalous areas in order to locate targets for drilling. The property is classified by Micon as an early-stage exploration property where geochemical surveys have outlined areas of anomalous gold values.
Phase One
Phase Two
