Providence Gold Mines Inc. Bulk Sample and Stockpile Modeling Update
February 24, 2021 - Providence Gold Mines "the Company" (TSXV:PHD) (OTC:PRRVF) (FSE:7RH1) is pleased to report further on the ongoing evaluation of one of several stockpiles of material containing free gold on the Company's Providence Group of Gold Mines located near the city of Sonora, California. The Company has now completed a conservative volume estimate using trenching, ground percussion drilling and airborne survey imagery of the stockpile area. The first of numerous historical stockpiles contains approximately >25,000 cubic yards, which consists primarily of historical stamp mill tailings material.
The Company has received confirmation of shipment of several tons of material to FLSmidth Minerals Testing and Research Center of Salt Lake City, UT. This bulk sample test work will determine the distribution of gold in the various size fractions and so as to better understand how much of the contained gold is present as unrecovered fine gold in stamp-milled material versus discarded gold-bearing coarser material. The test work will also evaluate recoveries of this gold at several size fraction cut offs, and when completed will provide design constraints for a portable milling and gold processing plant. Test work and full reporting is expected before end of March.
Weighted and arithmetic gold grade averages for trenching and percussion drilling were considered, however, due to poor and variable sample material recovery of gold from this air recovery drilling method the bulk sample test work now underway will provide a much better representation of grade and recovery.
Upcoming ground field campaigns will aim to better delineate the extension of the first stockpile and evaluate the potential for other nearby stockpile locations within the patented tenure. This is expected to improve on the limits defined through air-photo analysis into the ravines and under canopy, where conservative approaches were taken for the current calculations. Cost-benefit trade-offs for other methods continue to be evaluated to increase confidence in the volume calculations (e.g., sonic drilling, ground penetrating radar). The field work will also include prospecting and reconnaissance work to further define future diamond drilling.
Qualified Person:
Dr. Lee Groat Ph.D., P.Geo. is the Company's qualified person (as defined under NI 43-101 and has read and approved the technical information contained in this news release.
ON BEHALF OF THE BOARD
"Ronald Coombes"
Ronald Coombes, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT: Ronald Coombes
Office: (604) 688-8200
Email: info@providencegold.com
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All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements relating to the permitting process, future production of Providence Gold Mines, budget and timing estimates, the Company's working capital and financing opportunities and statements regarding the exploration and mineralization potential of the Company's properties, are forward-looking statements. Forward- looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward- looking statements. Important factors that could cause actual results to differ materially from Providence Gold Mines expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; and uncertainty as to timely availability of permits and other governmental approvals. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Providence Gold Mines does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward- looking statements.
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