Premier Gold Mines Limited
News Releases


 
Wed Feb 25, 2009
PREMIER-ROXMARK INTERSECT HIGH-GRADE GOLD AT HARDROCK


PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that drilling has intersected broad intersections of near-surface mineralization as well as narrow vein high-grade gold in separate target zones on the Hardrock Project in Northwestern Ontario. These gold zones confirm extensions to previously drilled open pit zones, and define the potential to identify significant high-grade mineralization in close proximity to existing mine workings in both the OREO and PIT target areas. These drill targets represent the second and third of several targets currently being tested on the property, and are in addition to the EP-Zone, where the companies recently announced intersections of up to 11.8g/t Au across 11.4 meters (see press release dated Feb. 17, 2009). The current program is expected to consist of more than 50,000 metres of definition and exploration drilling leading to NI 43-101 compliant gold resources in 2009.

OREO Zone

The OREO Zone was identified in historic drilling between the two main producing horizons at Hardrock, namely the North Iron Formation and the Porphyry Hill horizons. The historic drilling, testing for mineralization between these horizons returned numerous high-grade intercepts in the area currently being tested. The current program has intersected mineralization in the OREO Zone, in addition to gold mineralization in the Porphyry Hill open pit and beneath the North Zone mine workings as tested with hole OR-02. Highlights include intersections of 6.35 g/t Au across 3.0 metres (m) and 9.95 g/t Au across 1.5 m in the OREO Zone and 13.61 g/t Au across 3.0 m in the North Zone. To date, the OREO Zone has been tested by nine holes with mineralization intersected over a strike length of 150 metres. It remains open in both directions.

Table 1 provides results from the initial three holes drilled to test the OREO and North Zones:

Table 1 Oreo and North Zone Results
Hole No. Grid
Coordinates (m)
Dip/Azimuth
(Degrees)
Intersection
From-to (m)
Int.
(m)
Int.
(ft)
Au
(g/t)
Au
(oz/ton)
Zone
OR-01 504650mE
5502920mN
-60/360 255.80-256.60
271.10-274.10
285.50-287.00
0.8
3.0
1.5
2.6
9.8
4.9
17.50
6.35
6.48
0.51
0.19
0.19
OREO
OREO
OREO
OR-02 504648mE
5502865mN
-60/ 360 108.60-116.00
125.40-131.50
390.10-393.10
7.4
6.1
3.0
24.3
20.0
9.8
1.74
1.89
13.61
0.05
0.06
0.40
PIT
PIT
NORTH
OR-03 504650mE
5502967mN
-60/ 360 220.70-222.20
244.70-245.70
1.5
1.0
4.9
3.3
9.95
5.70
0.29
0.17
OREO
OREO
* True widths are estimated at approximately 70% of intersection widths

High-Grade E-Zone

Drilling in the E-Zone has supported the Company's goal of identifying narrow vein, high-grade gold mineralization at Hardrock. The E-Zone is located along strike from, and within the same iron formation host rock as the North Zone deposit, from which 2.97 Million tonnes of ore was mined at a grade of 7.54 g/t Au. Initial drilling has identified parallel zones within the E-Zone target highlighted by an intersection of 40.1 g/t (1.17 oz/ton) Au across 1.5 metres (m) in the E-Zone and 1.35 g/t Au across 23.0 m in an eastward step-out in the Porphyry Hill Open Pit Zone.

Table 2 demonstrates the high-grade potential of the E-Zone and expansion potential in the Porphyry Hill Open Pit target:

Table 2 E-Zone Drilling results
Hole No. Grid
Coordinates (m)
Dip/Azimuth
(Degrees)
Intersection
From-to (m)
Int.
(m)
Int.
(ft)
Au
(g/t)
Au
(oz/ton)
Zone
PIT-01 505053mE
5502804mN
-45/360 Assays pending
Assays pending
        PIT
E
PIT-02 505052mE
5502854mN
-45/ 360 202.50-204.00 1.5 4.9 40.1 1.17 E
PIT-03 505051mE
5502904mN
-45/ 360 24.00-47.00
184.40-186.00
23.0
1.6
75.5
5.2
1.35
2.36
0.04
0.07
PIT
E
* True widths are estimated at approximately 70% of intersection widths

The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (PG 70%) and is host to several past-producing mines which collectively produced more than 3.0 Million ounces of gold from the same deposits to relatively shallow depths of approximately 2000 feet (600 metres) from 1938-1968. The mined zones remained open at depth at the time mining ceased and developed historical resources were left in place within the existing mine workings (a qualified person has not done sufficient work to verify the historical resource, the company is not treating the historical resource as a current resource and the historical resource should not be relied upon). Importantly, the Hardrock Project has the potential to host several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario's major gold mines including:

  1. Open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo)
  2. Broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite)
  3. Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake)
Ongoing drilling with four drills is focusing on delineating both potential open pit and underground resources with the goal of defining a multi-million ounce gold resource that can be moved quickly towards development (See references to historical resources above). Two drills are currently testing several high-potential exploration targets located on the project area.

The Hardrock Project is located in the heart of the Beardmore-Geraldton Greenstone Belt, a highly prospective high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers some of the most prospective geology in the region and is host to several past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold. The Project offers development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and hydro power lines running through or near the property. Significant potential exists for developing both open pit and underground resources.

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. The GH results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

Premier Gold Mines Limited is a well financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, while a newly signed option agreement will give Premier 100% interest in the strategic Lennie Red Lake Property. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and recently acquired mineral properties in Geraldton area.

For further information, please contact:
Ewan Downie, President & CEO
E-mail: info@premiergoldmines.com
Phone: 807-346-1390
Fax: 807-346-0100
Web Site: http://www.premiergoldmines.com

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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