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Premier Gold drills 6.7 m of 12.5 g/t Au at Hardrock

2009-10-13 09:04 ET - News Release

Mr. Ewan Downie reports

PREMIER EXPANDS HIGH-GRADE GOLD ZONES AT HARDROCK 12.5G/T GOLD ACROSS 6.7M

Premier Gold Mines Ltd.'s diamond drilling continues to delineate multiple high-grade gold zones at the Hardrock project in Northwestern Ontario. Highlights include high-grade underground potential in the North Limb (NL) and High Grade North (HGN) zones located in close proximity to the EP (open pit) Zone, and open pit potential in the New North (NN) Zone:

- Drilling at the NN Zone suggests the potential to expand the proposed EP Zone pit envelope west by as much as 300 metres; significant intercepts include results up to 6.42g/t Au across 22.4m.

- Recent drilling has defined two gold-bearing zones proximal to, and north of, the EP Zone with grades up to 12.5 grams per tonne gold (g/t Au) across 6.7 metres (m) in the NL Zone and 1,141.5g/t Au across 2.0m in the HGN Zone.

- Expansion drilling at the South Porphyry (SP) Zone continues to define high-grade mineralization with intersections up to 16.72g/t Au across 3.0m.

NN Zone

The NN Zone is located along strike from and within the same iron formation that hosts the North and West Zones at the historic mine. During production, the North Zone was mined to a depth of 610 metres (2,000 feet) resulting in the recovery of 2.97 million tons with a recovered grade of 0.22 oz/ton (7.54g/t Au), while mining at the West Zone reported 532,000 tons with a recovered grade of 0.23 oz/ton (7.85 g/t Au). Numerous intercepts into the NN Zone have now outlined a zone displaying consistent grades over a plunge length of approximately 400 metres. Recent near-surface holes suggest the potential for defining open-pit resources within the zone as demonstrated by new intersections up to 6.42g/t Au (0.24 oz/ton) across 22.4m at a depth of only 70m in the nearest-surface hole drilled to-date. Follow-up drilling continues to define strong near-surface mineralization including veining with visible gold. Table 1 summarizes new drill results from the NN Zone.

       NEW SUBZONE INTERCEPTS WITHIN THE NN ZONE TARGET AREA
    
             UTM       Dip/                               
       co-ordinates azimuth  From   To  Interval Grade Interval Grade 
Hole ID    (m)     (degrees)  (m)   (m)   (m)    (g/t)  (ft)  (oz/t) Zone
    
MM010   5502940 N             94.5 117.0  22.5   2.28   73.8   0.07   NN*
                    -45/360 
504124 E                     129.5 131.0   1.5   8.56    4.9   0.25   NN
MM034   5502909 N
         504129 E   -45/360  172.5 179.9   7.4   1.69   24.3   0.05   NN
MM036   5502940 N
         504150 E   -45/360  112.4 145.4  33.0   2.13  108.2   0.06   NN
MM038   5502940 N
         504215 E   -45/360   83.0  97.5  14.5   2.19   47.6   0.06   NN
MM040   5502955 N
         504250     -45/360   99.3 121.7  22.4   6.42   73.5   0.19   NN
    
* Previously announced
True widths estimated at approximately 70 per cent of intersection 
widths
NN -- New north

EP North Zone

Drilling to define the EP Zone, an open pit target, has intersected high-grade gold mineralization below and north of the EP Zone in close proximity to existing mine workings. Drilling has intersected sulphide rich mineralization in the NL Zone (which was partially defined within the mine) and a high-grade, narrow vein style, gold mineralization in the new HGN Zone. Ten holes have now confirmed mineralization in this area over a plunge length of some 200 metres, where it remains open up and down plunge. Hole EP105 has returned one of the highest-ever gold results from drilling in the entire district with an intersection of 1,141.54g/t Au (33.33oz/ton) across 2.0m (6.6 feet) within the HGN Zone (previously announced) and 8.84g/t Au across 7.0m within the NL Zone. Follow-up drilling has returned intersections up to 12.5g/t Au across 6.7m in the NL Zone and 10.6g/t Au across 1.5m in the HGN Zone. Table 2 provides a summary of drilling in the EP North area.

      NEW SUBZONE INTERCEPTS WITHIN THE EP NORTH ZONE TARGET AREA
    
             UTM       Dip/                               
       co-ordinates azimuth  From   To  Interval Grade Interval Grade 
Hole ID    (m)     (degrees)  (m)   (m)   (m)    (g/t)  (ft)  (oz/t) Zone
    
OR001   5502920 N            397.6 398.7   1.1   5.27    3.6   0.15   NL
                    -60/360  
         504649 E            412.4 414.0   1.6   6.30    5.2   0.18  HGN
OR002   5502864 N            388.6 394.6   6.0   7.59   19.7   0.22   NL*
                    -60/360 
         504648 E            469.5 471.0   1.5  10.60    4.9   0.31  HGN
OR005   5502917 N            346.2 347.6   1.4   2.70    4.6   0.08   NL*
                    -60/360 
         504701 E            414.5 416.0   1.5  12.99    4.9   0.38  HGN*
OR007   5502869 N            382.3 389.0   6.7  12.46   22.0   0.36   NL
                    -60/360 
         504602 E            472.5 474.0   1.5   2.38    4.9   0.07  HGN
OR009   5502931 N
         504552 E   -60/360  372.5 374.0   1.5   5.25    4.9   0.15   NL*
EP064   5503027 N
         504653 E   -60/360  316.3 317.0   0.7  20.10    2.3   0.59  HGN*
EP105                        282.5 289.5   7.0   8.84   23.0   0.26   NL
        5502939 N           
                    -60/360  311.5 318.0   6.5   2.57   21.3   0.08   NL
         504700 E           
                             382.1 384.1   2.0 1141.50   6.6  33.33  HGN*
EP113   5503228 N
         504701 E   -78/360  297.0 298.5   1.5   6.89    4.9   0.20  HGN
EP114   5502940 N            302.8 306.0   3.2   8.95   10.5   0.26   NL
                    -60/360 
         504726 E            384.0 385.5   1.5   2.06    4.9   0.06  HGN
EP117   5502940 N
         504675 E   -60/360  374.0 374.4   0.4   9.59    1.3   0.28  HGN

* Previously announced
True widths estimated at approximately 70 per cent of intersection widths
NL -- North limb
HGN -- High-grade north

SP Zone

Drilling in the SP Zone has returned multiple intersections of high-grade gold mineralization including recently announced intercepts of 6.60g/t Au across 32.6m (MM014) and 17.14g/t Au across 7.0m (MM005) down-plunge from the historically mined SP Zone.

The SP Zone was partially mined in the upper levels of the mine with 264,000 tonnes (291,000 tons) of ore mined at an average grade of 8.37g/t Au (0.24 oz/t). 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 3.0 kilometres (8,500 feet). Highlights from new drilling include 9.70g/t Au across 11.8m in hole MM024 and 16.72g/t Au across 3.0m in hole MM039. Table 3 summarizes new drill results from the SP Zone.

Ongoing work at Hardrock is testing both open pit and underground type targets. The EP Zone is one of several potential open pit zones that are being detailed in preparation for the completion of a NI43-101 compliant resource calculation which is expected to be completed in Q4 2009 (initial open pit resource).

         NEW SUBZONE INTERCEPTS WITHIN THE SP ZONE TARGET AREA
    
             UTM       Dip/                               
       co-ordinates azimuth  From   To  Interval Grade Interval Grade 
Hole ID    (m)     (degrees)  (m)   (m)   (m)    (g/t)  (ft)  (oz/t) Zone
    
MM017   5502680 N
         503900 E   -55/360  379.5 390.6  11.1   3.48   36.4   0.10   SP
MM020   5502628 N
         503897 E   -61/360    Hole abandoned                         SP
MM021   5502628 N
         503897 E   -55/360  390.5 395.0   4.5   7.30   14.8   0.21   SP
MM024                        388.9 400.7  11.8   9.70   38.7   0.28   SP
incl.   5502657 N            388.9 390.6   1.7  11.10    5.6   0.32   SP
incl.               -55/360 
         503807 E            398.0 399.7   1.7  50.28    5.6   1.47   SP
                             424.0 431.0   7.0   4.63   23.0   0.14    F
MM025   5502721 N
         503500 E   -65/360                       NSV                 SP
MM026   5502706 N            163.1 172.7   9.6   2.25   31.5   0.07   SP
incl.               -65/360 
         504449 E            163.9 164.9   1.0  10.40    3.3   0.30   SP
MM027   5502725 N
         504350 E   -65/360  223.0 225.3   2.3   3.88    7.5   0.11   SP
MM028   5502744 N
         504302 E   -55/360                       NSV                 SP
MM029   5502726 N
         504250 E   -55/360                       NSV                 SP
MM030   5502623 N             73.4  76.4   3.0  11.13    9.8   0.32    x
                    -55/360 
         504152 E            300.5   305   4.5   3.29   14.8   0.10   SP
MM031   5502701 N
         504101 E   -55/360                       NSV                 SP
MM032                        276.5   278   1.5   43.1    4.9   1.26   SP
        5502669 N           
                    -55/360  305.3 311.7   6.4   4.16   21.0   0.12   SP
         504049 E           
                             351.8 354.8   3.0   8.31    9.8   0.24    F
MM033                        247.2   262  14.8   3.73   48.5   0.11   SP
incl.   5502691 N           
                    -55/360  247.2 248.5   1.3   18.7    4.3   0.55   SP
         504306 E            318.2   321   2.8   9.88    9.2   0.29    F
MM035   5502670 N
         504350 E   -60/360                       NSV                 SP
MM039   5502647 N            247.0 250.0   3.0  16.72    9.8   0.49   SP
                    -55/360 
         504250 E            356.8 361.4   4.6   3.22   15.1   0.09    F
    
* True widths estimated at approximately 70 per cent of intersection 
widths

Significant potential exists for developing resources in several areas including:

- Open pit-style mineralization at sites where historic resources were partially delineated by previous operators, in addition to newly defined mineralization at the Tenacity, EP and Kailey Zones;

- Numerous surface and historic high-grade gold intercepts throughout the large property package that have received little to no follow-up;

- Historic resource blocks reported to remain within the mine workings, including high-grade vein targets; and,

- The main mined zones which remain open below the 600m Level.

The Hardrock project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier holds a 70% interest). The Hardrock project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold primarily from relatively shallow depths (600 metres) from 1938-1968. 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 1.5g/t Au (Timmins, Hemlo), broad zones of mineralization with grades averaging 5.0+g/t Au (Musselwhite), and narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake). The Hardrock project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.

Stephen McGibbon, P. Geo., 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, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

We seek Safe Harbor.