Premier Gold, Roxmark drill 37 m of 5.21 g/t Au on EP

2009-06-17 15:42 ET - News Release

See News Release (C-PG) Premier Gold Mines Ltd

Mr. Ewan Downie of Premier Gold reports

PREMIER INTERSECTS HIGH-GRADE GOLD AT EP AND SP ZONE TARGETS

Premier Gold Mines Ltd.'s continuing drilling continues to intersect significant gold mineralization across multiple subzones at the company's Hardrock project in Northwestern Ontario. The current program, consisting of delineation and exploration drilling, will continue throughout 2009 and is expected to result in an NI 43-101-compliant resource estimate by year-end. Drilling at the EP zone continues to exceed expectations with recent step-out and infill holes returning some of the best results received to date. The first three holes drilled to test the south porphyry zone (SP zone) have all returned high-grade gold mineralization within multiple zones.

Highlights from recent drilling include:

• EP zone: 5.21 grams per tonne gold (g/t Au) across 37 metres within the north limb; 19.03 g/t Au across 11.3 metres in step-out drilling on the south limb;

• SP zone: 6.63 g/t Au across 28.1 metres within the SP zone underground target; 36.22 g/t Au (1.06 ounces per ton) across 2.2 metres within the high-grade vein (HGV) zone target.

Premier holds a 70-per-cent interest in the Hardrock project, which is operated under a joint venture with Roxmark Mines Ltd. The Hardrock project is host to several past-producing mines which collectively produced nearly three million ounces of gold within 600 metres of surface from 1938-1968. Early drilling in 2009 focused on open pit-style mineralization and but is now targeting the huge potential to expand higher grade mineralization amenable to efficient underground mining methods. Historically at Hardrock, little effort was made to define narrow vein, high-grade mineralization as bulk mining methods were used to extract the ore.

EP zone

The EP zone has been identified as a potential high-grade open pit target in the vicinity of the historic north zone, from which 2.97 million short tons of ore was mined at a recovered grade of 0.22 ounce per ton gold (7.54 g/t Au). Drilling has intersected mineralization in multiple subzones within the EP target over a strike length of 600 metres. Previous highlights include 7.60 g/t Au across 20.5 m in hole EP044, 2.37 g/t Au across 62.7 m in hole EP026 and 4.17 g/t Au across 29 m in hole EP053. New results, that include 6.66 g/t Au across 14 m in hole EP074, 5.21 g/t Au across 37 m in hole EP079 and 19.03 g/t Au across 11.3 m in hole EP080, continue to define and expand mineralization within the EP target area. The table highlights new assay results at the EP zone. A complete table of results for the EP zone can be found on the company's website.

    NEW SUBZONE INTERCEPTS WITHIN THE EP ZONE TARGET AREA
        
         UTM
       Co-ord-      Dip/              Inter- Grade Inter- Grade
Hole-  inates    Azimuth  From   To   val    (g/   val   (oz/
ID       (m)    (degrees)  (m)   (m)  (m)  tonne) (ft)   ton)    Zone

EP058 5503053 N  -45/360 147.6  156.4  8.8  5.81  28.9  0.17  North Limb B
       504699 E          165.7  176.4 10.7  3.03  35.1  0.09  North Limb C
EP061 5503076 N  -50/360  62.4   62.9  0.5  5.89   1.6  0.17  South Limb
       504652 E           71.5   72.0  0.5  7.19   1.6  0.21  North Limb
                         165.7  180.1 14.4  1.23  47.2  0.04  North Limb C
EP062 5503052 N  -50/360  89.6   98.7  9.1  0.73  29.8  0.02  South Limb
       504650 E          116.5  117.2  0.7  5.04   2.3  0.15  North Limb
                         135.2  159.2 24.0  1.71  78.7  0.05  North Limb B
                         195.7  196.2  0.5  7.31   1.6  0.21  North Limb C
EP063 5503052 N  -60/360 130.8  135.4  4.6  4.00  15.1  0.12  North Limb
       504650 E          181.3  187.1  5.8  4.30  19.0  0.13  North Limb B
EP064 5503027 N  -60/360  74.9   92.9 18.0  1.49  59.0  0.04  South Limb B
       504653 E          212.8  217.7  4.9  2.83  16.1  0.08  North Limb C
EP066 5503051 N  -60/360 124.7  125.7  1.0  5.48   3.3  0.16  North Limb
       504601 E          159.9  162.6  2.7  4.87   8.9  0.14  North Limb B
                         249.7  252.0  2.3  5.49   7.5  0.16  North Limb C
EP071 5503074 N  -60/360 108.9  120.8 11.9  4.06  39.0  0.12  South Limb
       504551 E          138.1  141.5  3.4  4.48  11.2  0.13  North Limb
EP072 5503101 N  -60/360 106.0  116.1 10.1  1.29  33.1  0.04  North Limb
       504549 E          128.1  135.3  7.2  2.11  23.6  0.06  North Limb B
EP074 5503050 N  -60/360              14.0        45.9  0.19
       504500 E          154.0  168.0       6.66              North Limb
EP078 5503026 N  -60/360 159.0  165.7  6.7  3.16  22.0  0.09  South Limb
       504750 E          176.5  185.5  9.0  2.59  29.5  0.08  North Limb
                         193.0  218.5 25.5  2.12  83.6  0.06  North Limb B
EP079 5503102 N  -45/360              37.0       121.4  0.15
       504808 E           40.0   77.0       5.21              North Limb
EP080 5503026 N  -60/360  75.0   76.5  1.5 21.10   4.9  0.62  South Limb C
       504807 E          131.0  146.4 15.4  2.10  50.5  0.06  South Limb B
                         156.2  167.5 11.3 19.03  37.1  0.56  South Limb
                         187.5  189.0  1.5 14.00   4.9  0.41  North Limb
                         241.5  246.0  4.5  2.13  14.8  0.06  North Limb C

True widths estimated at approximately 70 per cent of intersection widths.

Underground zones

Following compilation of data from the project area, several highly prospective target areas, with the potential to host new underground mineral resources, have been identified. Initial drilling to test the potential of the SP zone, and one of several high-grade vein zones, has returned multiple intersections of high-grade gold mineralization.

SP zone

At Hardrock, the SP zone was partially mined in the upper levels of the mine with 264,354 tonnes (291,428 tons) of ore mined at an average grade of 8.37 g/t Au (0.244 ounce per ton). Intermittent historic drilling that tested the unmined down-plunge extension of the SP zone suggests the potential to outline mineralization over a plunge length of nearly three kilometres (8,500 feet). The initial three holes drilled to test this target have all intersected significant mineralization within the SP zone in addition to high-grade gold within an HGV zone (note that only MM006 was drilled far enough to intersect the HGV -- other holes are being deepened). The second table summarizes new assay results from drilling to test the SP zone. Highlights include 6.63 g/t Au across 28.1 m and 6.74 g/t Au across seven metres within the SP zone, 8.42 g/t Au across two metres within the F zone, and 36.22 g/t Au across 2.2 m within the HGV zone. SP zone results correlate very well with previous surface drilling results conducted by Asarco in 1994. Previous SP zone hits include 11.69 g/t across 7.6 m in 94-77 and 7.76 g/t across 21.6 m in 94-78. Premier plans to include these intercepts in its NI-43101-compliant resource by year-end.

  NEW SUBZONE INTERCEPTS WITHIN THE SP ZONE TARGET AREA

         UTM
       Co-ord-      Dip/              Inter- Grade Inter- Grade
Hole-  inates    Azimuth  From   To   val    (g/   val   (oz/
ID       (m)    (degrees)  (m)   (m)  (m)  tonne) (ft)   ton)    Zone

MM004 5502718 N  -55/360 208.1  210.0  1.9  5.88   6.2  0.17      SP
       504306 E          219.0  223.4  4.4  6.36  14.4  0.19      SP
                         240.5  242.1  1.6  8.35   5.2  0.24      SP
                         334.0  336.0  2.0  8.42   6.6  0.25       F
MM005 5502703 N  -55/360 230.8  258.9 28.1  6.63  92.2  0.19      SP
inclu  504257 E          252.9  258.9  6.0 17.14  19.7  0.50      SP
-ding                    272.3  273.5  1.2 10.92   3.9  0.32      SP
                         297.5  300.5  3.0  4.57   9.8  0.13      SP
MM006 5502694 N  -55/360 244.0  251.0  7.0  6.74  23.0  0.20      SP
       504199 E          314.5  316.0  1.5  4.80   4.9  0.14       F
                         371.0  373.2  2.2 36.22   7.2  1.06     HGV

True widths estimated at approximately 70 per cent of intersection widths

Recent compilation work has identified define what appears to be continuous veining over a plunge length of about 1,100 metres (3,800 feet) with historic intersections that include 112.5 g/t Au (3.28 ounces per ton Au) across 1.2 m on the seventh mine level, 39.1 g/t Au (1.14 ounces per ton Au) across 1.2 m on the 10th mine level and 88.5 g/t Au (2.58 ounces per ton Au) across 1.5 m on the 13th mine level. MM006 intersected similar high-grade vein mineralization up dip from this previous work. This style of mineralization is similar to that at two of the nearby mines which exist on the Hardrock property including the Little Long Lac mine (past production of more than 600,000 ounces of gold at an average recovered grade of 11.66 g/t Au) and the Magnet mine (past production of more than 150,000 ounces of gold at an average grade of 14.4 g/t Au). Importantly, the Hardrock project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario's major gold mines including open-pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo), broad zones of mineralization with grades averaging more than five grams per tonne Au (Musselwhite) and narrow vein zones with higher gold grades often exceeding seven grams per tonne (Red Lake, Pickle Lake). The Hardrock project benefits from development advantages with the Trans-Canada Highway, TransCanada PipeLines, and major power lines running through the centre of the property.

Annual general meeting

Premier Gold Mines will be hosting its annual general meeting of shareholders today at 4 p.m. Eastern Time at the Toronto Board of Trade, located at 1 First Canadian Place, Toronto, Ont. At 4:45 p.m., president and chief executive officer Ewan Downie, along with other senior members of Premier management, will complete a presentation that will profile key projects, including the topics covered in this news release and future milestones. In addition, there will be a webcast of the event which can be listened to via a link from the Premier Gold Mines website. Stephen McGibbon, PGeo, is the qualified person for the information contained in this press release and is a qualified person within the meaning of National Instrument 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ont., for analysis utilizing both fire assay and screen metallic methods.

We seek Safe Harbor.