Cove-McCoy Project August 2014 Symbol: PG 1-888-346-1390 - - PowerPoint PPT Presentation

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Cove-McCoy Project August 2014 Symbol: PG 1-888-346-1390 - - PowerPoint PPT Presentation

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Proven Management Proven Gold Districts Safe Jurisdictions Cove-McCoy Project August 2014 Symbol: PG 1-888-346-1390 Exchange: TSX www.premiergoldmines.com DISCLAIMER: PG:TSX This presentation may contain "forward looking

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Proven Management – Proven Gold Districts – Safe Jurisdictions

Cove-McCoy Project

August 2014

1-888-346-1390 www.premiergoldmines.com Symbol: PG Exchange: TSX

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PG:TSX

DISCLAIMER:

This presentation may contain "forward looking information" within the meaning of Canadian securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry, the risk of commodity price and foreign exchange rate fluctuations, the ability of Premier to fund the capital and operating expenses necessary to achieve the business

  • bjectives of Premier, as well as those risks described in public disclosure documents filed by Premier. Due to the risks,

uncertainties and assumptions inherent in forward-looking information, prospective investors in securities of Premier should not place undue reliance on these forward-looking information. This presentation has been completed by Premier. Certain corporate projects referred to herein are subject to agreements with third parties who have not prepared, reviewed nor approved this presentation. The presentation is not intended to reflect the actual plans or exploration and development programs contemplated for such projects. The Hardrock PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applies to them that would enable them to be categories as mineral reserves, and there is no certainty that the Hardock PEA will be realized. Economic studies will need to be completed prior to accurate guidance being provided For further information on the technical data provided in this presentation, refer to the Sedar filings as listed below:

Note Project/Property Company Date (1) Trans-Canada PEA Premier Gold Mines Limited January 28, 2014 (2) Hardrock (Trans-Canada) Premier Gold Mines Limited December 13, 2013 (3) Trans-Canada Premier Gold Mines Limited February 1, 2013 (4) Bonanza Premier Gold Mines Limited September 17, 2009 (5) Helen (Cove) Premier Gold Mines Limited January 2, 2014 (6) Trans-Canada Premier Gold Mines Limited February 1, 2013 (7) Hardrock Premier Gold Mines Limited May 17, 2011 (8) Hardrock Premier Gold Mines Limited March 4, 2010 (9) Kailey Premier Gold Mines Limited May 17, 2011 (10) Brookbank Goldstone Resources Inc. May 15, 2009 (11) East Bay Wolfden Resources Inc. June 5, 2006 (12) Helen (Cove) Victoria Gold Corp May 5, 2011

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NORTH AMERICAN FOCUS – Pro-mining jurisdictions (Ontario/Nevada) offer reduced political and execution (permitting/development) risk. EXPERIENCED MANAGEMENT TEAM – Strong history in exploration, mining & corporate development. THREE CORE PROJECTS – Trans-Canada (Hardrock), Cove-McCoy (Nevada) and Rahill-Bonanza (Red Lake) SIGNIFICANT GOLD RESOURCES – Growing mineral resource base with multiple projects advancing towards development INFRASTRUCTURE – All projects are located in the heart of some of North America’s “premier” gold mining camps. STRONG BALANCE SHEET – Approximately $55 M in cash and investments ($40 M post-acquisition).

THE PREMIER DIFFERENCE

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OWNERSHIP: 100% Premier LOCATION: Battle Mountain, Nevada STATUS: Surface Exploration MINERAL RESOURCES:

* See note 2

RECENT DEVELOPMENTS:

  • Consolidated 100% ownership in large property

package in the heart of the prolific Battle Mountain - Eureka Trend

  • Potential for open pit and underground mining
  • pportunities

Deposit Cut-off Category Resource Category Tonnes (Mt) Gold (Au) Grade (g/t) Au Ounces (Mozs) Helen Underground Indicated 0.425 10.46 0.143 Inferred 0.882 9.81 0.279

50km

N

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COVE-McCOY GOLD PROJECT

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Consolidated Cove-McCoy Land Package

  • Located immediately south of the multi-

million ounce (+ copper) Phoenix Mine

  • perated by Newmont
  • Large underexplored land package of
  • approx. 31,000 acres (~48 sq miles)
  • Past-production at Cove-McCoy: ~3.3 M
  • unces gold and ~110M ounces silver
  • Cove Mine is the fourth largest silver

producer in the history of Nevada *

  • NEAR-TERM RESOURCE POTENTIAL:
  • 2201 discovery at Cove
  • Helen Zone and CND target at Cove
  • Open pit expansion at McCoy
  • Deep high-grade potential at McCoy

* - Geology of the Cove Mine, Johnston et al, 2008

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COVE-McCOY GOLD PROJECT

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Deal Terms and Highlights

  • 100% interest in the consolidated Cove-McCoy property package (now totaling approx. 31,000

acres or 48 square miles) in the heart of one of the world’s most productive gold districts.

  • Purchase price: $21 Million to Newmont ($15 Million on signing, $6 Million in 18-months) plus

assume project bonding.

  • Elimination of “back-in” rights previously held by Newmont as well as a revision of the royalty

terms held by Newmont from a “potential” 5.0% royalty (NSR) to a 1.5% NSR.

  • McCoy project offers the potential to define near-surface heap leachable mineralization that

could be prioritized towards development.

  • Existing infrastructure, including lined heap leach pads, could potentially be utilized under a

renewed development scenario.

  • A “good faith efforts” processing arrangement with Newmont over a 10-year period within a 12-

year window for ores mined at Cove-McCoy.

  • Premier will retain a 1.5% Net Smelter Royalty (“NSR”) in the South Carlin property interests

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COVE-McCOY GOLD PROJECT

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COVE-McCOY GOLD DEPOSITS

Cove Pit McCoy Pit

Regional fault Pit surface outline

Cove / McCoy Plan View

Host fault structures between deposits offer substantial upside

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Open Pit and Underground potential

McCOY DEPOSIT

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Original Pit

MC_A MC_B MC_C (Underground)

Mined out 250 m

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View of potentially remaining ore potential at McCoy

McCOY OPEN PIT POTENTIAL

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Host fault structures also associated with the Cove Mine

250 m

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View Direction

Remaining Ore Block?

View direction SE of potential remaining ore block in East Wall of McCoy pit

McCOY PIT

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11 Remaining Ore Block?

View direction SSW of potential remaining ore block in East Wall

McCOY PIT

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Open Pit Potential

McCOY DEPOSIT

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N

DDH intercepts inside grade shell 0.01 opt 250 m

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Resource Potential Proximal to McCoy Pit

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N

Grade shell 0.01 opt

Underground Mined out in red

McCOY OPEN PIT POTENTIAL

250 m

High grade intercepts at depth

  • Incl. 11.73 g/t Au –

22.9m

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McCoy – Section looking NE

100m

Speculative strtigraphic contact

NW SE

Regional fault Near surface Mineralized Zone Brown Stock intrusion Underground Mineralized Zone Undefined stratigraphy

Mined out

McCoy Pit ?

UPC2 12.89 g/t Au – 5.9 m UPC9 8.06 g/t Au – 12.5 m UPC5 6.55 g/t Au – 10.7 m UPC3 11.73 g/t Au – 22.9 m

Potential for pit expansion

McCOY DEPOSIT

Deep target offers upside potential

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High-Grade Gold/Silver Target bases on Historic Drilling

McCOY DEPOSIT

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Zoom in

UPC13 6.86 g/t Au, 316.46 g/t Ag Over 6.1 m UPC14 7.20 g/t Au, 74.40 g/t Ag Over 5.3 m

100m

Red - estimated to be mined out

Looking NE

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Surface Plan – Cove Deposit

COVE GOLD PROJECT

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Cove pit

100m

A A’ Helen Zone CSD 2201 MS

Since the end of active mining, new discoveries have been made in the deeper rock units proximal to the Cove Pit

Selected Drill Results

2201 Zone:

PG-02

  • 10.3m - 13.22g/t Au, 38.67g/t Ag, 1.16% Pb/Zn
  • 4.1m - 18.96g/t Au, 23.00g/t Ag, 0.35% Pb/Zn
  • 3.0m - 11.39g/t Au, 56.70g/t Ag, 0.27% Pb/Zn

AX-51

  • 3.0m - 4.76g/t Au, 311.07g/t Ag, 12.67% Pb/Zn
  • 6.1m - 10.98g/t Au, 38.95g/t Ag

PG14-03

  • 40.23 g/t Au, 203.17 g/t Ag Across 4.9 m

CND Zone:

PG-01

  • 5.0m - 3.74g/t Au, 718.72g/t Ag, 1.76% Pb/Zn
  • 4.5m - 28.05g/t Au, 15.81g/t Ag

Helen Zone Resource:

  • Indicated: 143,100 ounces @ 10.46 g/t Au
  • Inferred: 278,700 ounces @ 9.81 g/t Au

CND N

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Long Section View – Looking Northeast

COVE GOLD PROJECT

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Cove pit

Caetano Tuff Smelser Pass Panther Canyon congl. Panther Canyon dolomite Home Station Favret Formation Dixie Valley Formation Mineralized Zone

Helen Zone

Indicated: 143,100 ounces @ 10.46 g/t Au Inferred: 278,700 ounces @ 9.81 g/t Au

CSD

Dyke

2201 MS

NW SE

100m

Multiple “Feeder” structures offer the potential for multiple discoveries

CND

A A’

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COVE GOLD PROJECT – 2201 Zone

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Long Section View – Looking Northeast Cove pit NW SE

Caetano Tuff Smelser Pass Panther Canyon congl. Panther Canyon dolomite Home Station Favret Formation Dixie Valley Formation Mineralized Zone Dyke

AX-46 6.74 g/t Au, 13.00 g/t Ag Across 9.1 m PG14-04 6.16 g/t Au, 6.50 g/t Ag Across 3.0 m PG14-05 11.33 g/t Au, 72.64 g/t Ag Across 4.3 m PG-02 15.83 g/t Au, 38.95 g/t Ag Across 6.1 m AX-51 13.22 g/t Au, 38.67 g/t Ag Across 10.3 m PG14-03 40.23 g/t Au, 203.17 g/t Ag Across 4.9 m PG14-02 182.87 g/t Au, 46.90 g/t Ag Across 1.5 m 100m

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Long Section View – Looking Northeast

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NW SE

CSD Zone:

Upper Horizon located immediately below Cove underground mine workings

2201 MID Zones:

Includes massive sulphide mineralization

CSD 2201 MID VG

2201 Zone:

Bedding replacement sulphide horizons

2201 - VG Zone:

High-grade horizon closely associated with thrust fault, open in multiple directions

Multiple Target Horizons Multiple Zones – wide open for expansion

100m

COVE GOLD DEPOSIT

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2201 ZONE DISCOVERY (PG14-03)

VG

4.9m (16.2 ft) @ 40.23 g/t Au (1.17 oz/t), 203.17 g/t Ag (5.93 oz/t), 1.73% Zn and 0.21% Pb

2201 ZONE

  • Moderate to strong silicification and chloritization
  • Mineral assemblage consists of Py, Po, Sph, Gal, Cpy and local VG

PG:TSX

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PG-02: 4.75 g/t Au, 311.07 g/t Ag, 8.24% Zn & 4.43% Pb Across 3.0 m (637.6-640.6m)

2201 ZONE – MASSIVE SULPHIDE HORIZON

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PG-01: 1) 4.5m @ 28.05 g/t Au, 15.81 g/t Ag 2) 5.0m @ 3.74 g/t Au, 718.72 g/t Ag 1.76% Pb/Zn

HELEN ZONE DEPOSIT * Indicated: 143,100 ounces @ 10.46 g/t Au Inferred: 278,700 ounces @ 9.81 g/t Au

High-grade gold and silver intersected in “Bay Fault” structural target (PG-01) Similar rock units as historic intercepts into “Silver Vein” located on trend

3D Longitudinal View Looking Northeast

COVE NORTH DEEP TARGET

PG:TSX

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Historic intercepts

CVC-7: 5’ – 21.9 opt Ag CV-1111: 10’ – 238.3 opt Ag

200m

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Advanced-stage project opportunity, Battle Mountain, Nevada Existing infrastructure, including lined heap leach pads, could potentially be utilized under a renewed development scenario

COVE-McCOY DEPOSITS & INFRASTRUCTURE

Cove Pit McCoy Pit Tailings Heap Leach Pads

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McCoy Infrastructure

INFRASTRUCTURE

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  • Lined heap leach pads
  • Tailings facility
  • Office and Maintenance buildings
  • Machinery and Equipment
  • Existing infrastructure could allow for accelerated development
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PG:TSX

SUMMARY & NEWS FLOW - 2014

  • 100% interest in the consolidated Cove-McCoy property package
  • Elimination of “back-in” rights previously held by Newmont
  • Excellent opportunity to define multiple mineralized horizons:
  • Potential for near-surface heap leachable mineralization at McCoy
  • Further definition of high-grade mineralization at Cove (2201 Zone)
  • A “good faith efforts” processing arrangement for ores mined at Cove-McCoy

SUMMARY

  • Initiate drill program focused on McCoy open pit opportunity
  • Continue expansion of the recently discovered 2201 Zone at Cove
  • Assess potential for reprocessing historic tailings & heap leach pads
  • Complete project wide compilation in an effort to define future exploration targets
  • Target resource estimate for combined project in 2015

NEXT STEPS

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KEY CONTACTS: Ewan Downie (807) 346-1390 President & CEO Ebe Scherkus (416) 317-4877 Chairman Stephen McGibbon (613) 376-6782 Executive Vice President Corporate & Project Development Matthew Gollat (807) 346-1397 Corporate Development Investor Relations Shobana Thaya (416) 807-1009 IR & Corporate Communications

A World of Opportunity

  • Premier Performance –

Premier Growth – Premier Opportunity - Symbol: PG Exchange: TSX

* - Cove Underground image (Source: Echo Bay Annual Report 2000)