Phase I Exploration at Providence Gold Mines Preliminary Channel Sampling Produces 1.3 metres of 45.64 gpt Au
September 25, 2017 Trading Symbol: PHD
News Release
Phase I Exploration at Providence Gold Mines
Preliminary Channel Sampling Produces
1.3 metres of 45.64 gpt Au
VANCOUVER, BRITISH COLUMBIA - Providence Gold Mines Inc. (TSXV: PHD) ("Providence" or the
"Company") is pleased to announce ongoing success on its Phase I exploration program at the
company’s Providence Gold Mine property.
“We are very pleased with the i nitial results from this first phase of exploration at the Providence Gold
Properties,” said Ron Coombes, President & CEO of the Company. “It is amazing that this historical past
producing high grade gold property has been idle for 100 years. With modern d ay exploration methods
we believe the Providence Gold Properties are a significant untapped opportunity. The gold targets are
now identified and we look forward to the commencement of drilling.”
Stage 1 Exploration Program
In August, 2017 the Company ini tiated a Stage 1 program designed to investigate the structural
controls to the gold mineralization. To facilitate the Company's objectives, a program of
geological/structural mapping and underground channel sampling together with detailed soil
geochemistry and an underground 3D laser survey was undertaken.
A limited number of continuous saw -cut and rock chip samples were taken in the accessible
underground workings at the Providence Mine and Consuelo workings. Due to limited access the work
was completed mostly within the 1.6 km (one mile) drift on the 600 foot Level. Rock chip sampling,
completed along the access drift and the stopes reinforced the historical reports of high grade shoots
occurring within the mine. Sampling of the North Ore Shoot outli ned an approximately 80 metre long
section in which highly variable gold values occur. The section corresponds to an area of historic
stoping completed on the level in an area referred to as the “North Ore Shoot”. Within the stope,
samples were collected of the quartz veining along a pillar and from both the foot and hanging walls.
The results show high grade, greater than 5.0 gpt (grams per ton) Au to occur within narrow up to 2.20
metre wide quartz veined zones, with the wall rock values generally being less. Within the historically
mined stope area, 46 rock chip samples were collected. Values range from less than 0.020 gpt Au over
Suite 750 – 580 Hornby Street, Vancouver, B.C. V6C 3B6
Telephone: 604-602-4935 Fax: 604-602-4936
Website: www.providencegold.com
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1.50 metres to 1.3 metres assaying 45.64 gpt Au. Of the 46 samples collected 18 samples assayed
greater than 1 gpt Au with eight of the samples assaying >3 gpt Au of which three assayed >10 gpt Au.
Limited rock sampling outside of the historically stoped area returned weakly anomalous gold values
ranging from 0.010 gpt over 0.80 m to 1.26 gpt over 0.60 m. These results validate the historical
mining of previous operators and show that even within stoped areas potential gold mineralization
remains.
PRELIMINARY ROCK CHIP SAMPLE RESULTS (>3GPT Au) SUMMARY: 600
LEVEL-NORTH SHOOT
Sample # Location Width (Metres) Au (GPT)
2980069 Stope back 1.0 8.60
2980074 398 0.9 4.15
2980076 398, West Rib 1.0 3.31
Or 2.2 3.28
2980077 372 Back, W Rib 1.0 19.58
2980103 426 Slab From Small Stope 0.3 14.55
2980108 435, W Rib 1.3 45.64
2980116 447, East Rib and Back 1.1 4.82
Sampling of the Consuelo drift returned anomalous gold values with the best result being a 1.2 metre
sample of quartz veining assaying 2.89 gpt Au.
Results from sampling of the various workings in the South Ore Shoot on the 600 foot level are
pending.
Eight surface lines were soil sampled over a 300 metre wide transect straddling the Providence Mine.
The sampling was completed on lines located 50 metres apart with stations established every 25
metres along the lines. Soil samples were collected from the “B” horizon. Using the 25 ppb (0.025
grams) gold in soil contour, an up to 50 metre wide 400 metre long linear anomaly, corresponding with
the gold bearing system w as outlined. This anomaly is open at both ends. Within the anomaly, gold
values range from 25 to 1852 ppb (1.85 grams) gold. Due to the success of the survey in outlining the
gold mineralized zones the soil survey is being expanded to cover the projecte d trend of gold
mineralization.
Project Background
The Providence Property hosts a 850 metre long north trending zone of moderately east dipping, gold
bearing, quartz veining. The vein system is open both to the north and south. The veins are hosted
within deformed and metamorphosed layered rocks (calc -silicate gneisses, mica schists, slates and
limestones) of the Paleozoic Calaveras Complex and conformable sill- like bodies of diorite. Individual
veins range in width from less than a centimeter to in excess of 3.0 metres. According to Thompson’s
report titled “Notes on the Providence Mine” dated April 1933 “…the vein system consists of two
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parallel veins occurring in a host black slate near the surface, but at depth intrusions occur forming one
of t he walls. The vein has an average width of 5 feet...”. Sulphide content is generally low, <2%,
consisting primarily of pyrite. Within the veins several steeply -plunging chutes of higher grade gold
mineralization occur that were mined in the past.
Providence Gold Mines, through an option purchase agreement, has the right to purchase a 100%
interest in the Providence Group of claims located in the Eastern Belt of the Motherlode Gold District
near the town of Tuolumne, California. The property, consisting o f 6 patented and 22 located claims
totaling 197.3 hectares (490 acres), hosts several workings including those at the formerly producing
Providence Gold Mine. Access to the property is by a combination of paved and gravel roads.
History
Gold production on the property was primarily from the Providence, Consuelo and Bonita Mines. The
Bonita Mine, located at the north end of the property is approximately 120 metres north of the
Consuelo Mine which in turn is approximately 600 metres north of the Provi dence Shaft. In the 1894
Report of the State Mineralogist it states the Bonita Mine “ …consists of the Bonita and Garfield Veins.
The latter lies to the east and approaches the Bonita vein going southward. They unite in the Consuelo
Mine 750’ south of t he Bonita. Both veins are in black slate and each is accompanied by a light grey
dike. On the Bonita vein a 440’ adit has been run and in it about 300’ from the mouth a 50’ winze sunk.
On the Garfield vein a 400’ adit has been driven; about 200’ beyond the present face of the adit a 70’
shaft has been sunk from surface and has no machinery…” In his report dated April 1932 , Thompson
states “…at the north end of the Bonita claim another mineralized shoot has been developed. A small
mill was used to reduce the mineralization from this shoot…The mineralization was very good and this
shoot as far as worked paid handsomely…”
With regards to the Consuelo Mine, John Chapman, Superintendent for New Providence Gold Mines in
a memo dated June, 1933 states “… the Consuelo mineralized shoot lies about 1800 feet north of the
Providence shaft…This mineralized body has been attacked at two points, 300 feet apart by the
McCarthy shaft on the south and the Mexican shaft on the north to a depth of 100 feet to the present
tunnel level. Eighty feet south of the Mexican shaft a winze was sunk to a depth of 90 feet in the vein
fissure. The vein filling at this point indicates that mineralization is in the making and should be
encountered at any time. The vein material is abo ut 6 feet wide and carries $1.50 in values. Work is
now being prosecuted in this winze, at a depth of 100 feet a drift will be driven north under the Mexican
Shaft. The mineralization produced from this shaft ran $80/ton. The McCarthy shaft is sunk 75 f eet
below the tunnel level, exposing $9 mineralization . Some mineralization was milled from this ground
but there are no records as to values. US Mint and Wells Fargo records indicate that not less than
$50,000 in gold was taken from the Consuelo ground…”
The Providence Mine operated until 1916. Development at the mine consisted of a double
compartment shaft sunk to a depth of 1470 feet on the dip of the vein system. Drifting was completed
on twelve levels. Production was from stopes located throughout the workings. According to a report
written by Bluett (1916) “ some of these shoots and veins have been stoped out. In others the
mineralization is still in place…” Research completed on the Company’s behalf by an archivist
associated with the Tuolumne County Museum located some articles detailing work at the Providence
Property. According to a newspaper clipping dated April 7, 1931 the Providence Mine ”…from 1902 to
1912, when the mine was owned and operated by E.A. Wiltsee of San Francisco, yielded mineralization
averaging $18 a ton(gold at $20/ounce) to a total of $3,000,000…” According to a September 14, 1921
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report by James Kendall “…the mine was not closed down for lack of good mineralization, but because
of a disagreement between the owners and the parties to whom the mine had been leased, at the
expiration of which the owners refused to grant an extension and suspended operations in the midst of
active mining and milling of high grade mineralization from the 10 th and 11 th levels and while good
mineralized bodies were being developed on the 12th levels after which the lower levels filled with water
and have never since been unwatered. Thus the mineralized bodies in the lower six levels are in
identically the same condition as they were when the mine ceased operations…”
The surface workings and mills of the Providence, Consuelo and Bonita Mines along with the operation
records were destroyed in a large brush fire in 1918.
As most of the technical information was destroyed in a fire in 1918, t here is no way to document the
accuracy of the above statements. The above historical account was taken from several miners and
engineers who worked in the mine or either visited it while in operation. Although this information is
believed to be factual the Company cannot state unequivocally that it is accurate.
QA&QC Procedures
The Company followed industry standards in its QA&QC procedures. A certified standard sample, or a
blank or a field duplicate sample is inserted every 10 samples before the set of samples is sent to the
Laboratory. This procedure is applied to all rock chip and channel samples. The Company sent all of
the samples to Bureau Veritas Laboratory in Reno, a laboratory that meets International Standards ISO
9001 and ISO 14001 Certification.
Qualified Person
John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43 -101) has read and
approved the technical information contained in this news release. Mr. Kowalchuk is a senior geologist
consulting to the Company.
ON BEHALF OF THE BOARD
“Ronald Coombes”
Ronald Coombes, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936
Contact: Ronald Coombes
Mobile: 1- 604- 724-2369
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